By A Lagos-based lawyer, Olajide Abiodun has written to the Central Bank of Nigeria (CBN) over the non-compliance of commercial banks with the regulations on reversal of failed transactions.
The letter was dated July 4, 2022 and addressed to the CBN Governor, Godwin Emefiele, four Deputy Governors and other non-executive board members of the apex bank.
In the letter obtained by BlackBox Nigeria, Abiodun argued that though the CBN had made adequate provisions for the reversal of wrong/mistaken transactions through the Regulations on Instant (Inter-bank) Electronic Funds Transfer Services in Nigeria, banks have been “subjecting innocent citizens to all sort of difficulties in recovering their hard earned funds mistakenly transferred to wrong accounts”.
“All the banks are guilty in meeting the CBN’s directive on the fund reversal, although they blame technological glitches relating to connectivity sometimes,” it reads in part.
“One major way in which the banks flout the CBN Regulation is that the banks always demand for court order before effecting reversal. In the light of the provisions summarized in the preamble to this letter, one wonders where the banks got their own idea of court order from.
“In one instance amongst many, my client, an elderly woman who mistakenly transferred the sum of 5,000 naira to a 3rd party’s account, was made to face the illegal demand of court order before same could be reversed. This we all know is impossible to achieve, as the lady would have expended more in trying to have her funds back. She had to leave the said sum.”
The lawyer urged the apex bank to direct commercial banks to organize mandatory training for its staff on the said regulations, with emphasis on the fact that a court order isn’t a requirement for reversal of wrongful transaction except if a customer chooses to.
He said the CBN should regularly monitor banks on compliance with the regulation, and also direct them to give monthly reports on details of reversals made.
“It will also not be out of place if the CBN sensitize the public on the procedure for securing reversal of wrong transactions. And should there be need for a review of the regulations, a minimum should be agreed on that requires no form of such court order,” Abiodun added.
