Saw this during the newspaper review in Channels TV. After reading, I think it's good to share... The Central Bank of Nigeria (CBN) said it would remove “its implicit role of ‘Lender of Last Resort’ for the Real-Time Gross Settlement (RTGS) payment system by December 2016.
What this means is that while the CBN will continue with its explicit role lender of last resort to Deposit Money Banks (DMBs), Primary Mortgage Institutions (PMIs) and Microfinance Banks (MFBs), it will not lend for transactions from December 2016.
The bank said it will also stop the Deferred Net Settlement systems by December 2019. An outline deployment plan Sanusi said will be published by the CBN, indicating interim steps to achieving this longer term objective.
An outline deployment plan would be published by the CBN, indicating interim steps to achieving this longer term objective, the CBN Governor, Sanusi Lamido Sanusi, has said
Sanusi, who spoke yesterday at the international conference on payment system in Abuja, directed that henceforth, no national payments system shall invoke the principle of unwind, meaning that after an electronic transaction has reached a certain stage, it can no longer be reversed.
“CBN will formally inform the industry that unwinds must not be invoked in any national payment system,” he said, adding that “each payment scheme must define and formally document the exact point at which payments are deemed to be ‘final and irrevocable.” Other key recommendations in the revised document, which Sanusi, said, resulted from identified deficiencies due to the significant progress already achieved with payment system in Nigeria, will include: “Strengthening the Scheme Governance structure to reflect the significantly greater responsibility of scheme management, covering all aspects of risk, business management and operational resilience.”
Also it must be ensured that each Scheme Management Board must carry out an annual self-assessment against the CPSS/IOSCO PFMI. An independent review should be undertaken every four years, with the target to make the results publically available by end, 2017; Open formal engagement channels with CLS as a first step towards Naira becoming a CLS Settlement currency; Mandate the use of the SWIFT Sanctions Checking (or its equivalent) for international payment instructions originating from all banks in Nigeria; and Work jointly with the Securities and Exchange Commission (SEC) and other key stakeholders to sponsor a formal review of the Securities Markets in Nigeria. The review should be completed under the FSS2020.
Sanusi noted that the apex bank commenced the operations of Real-Time Gross Settlement (RTGS) System on December 18, 2006, “to increase the efficiency of time-critical payments with all the Deposit Money Banks and Discount Houses as direct participants.”
The prevailing market needs, best practice and technology, he said rendered the existing RTGS System inadequate as it did not meet current user requirements. Source: The Nation