All bank customers must get BVN by June: CBN

Bank customers who have not got Bank Verification Number (BVN) by June 2015 may not be attended to, according to a new directive of the Central Bank of Nigeria (CBN).
BVN is obtained after registering biometric information with banks .
The CBN in a circular to all Deposit Money Banks (DMBs), entitled: “Circular on the accelaration of bank verification number project,” which is available in the bank’s website, stated that by March 2015, transactions valued at N100 million and above should only be allowed for customers with the BVN and any customer without BVN by June 2015 will be deemed to have inadequate Know Your Customer (KYC) requirements.
The circular, which was signed by the Director, Banking and Payments System Department of CBN, Dipo Fatokun, states further, To increase the tempo in the enrollment by DMBs customers on the BVN, and to start coupling the enormous benefits of the project, it is imperative to stipulate milestones for the implementation of the project.
“DBMs should intensify efforts to sensitise their customers on the aforementioned development and enroll them for the BVN accordingly.”
According to the CBN, DMBs are required to submit to the Nigeria Interbank Settlement System (NIBSS), as part of their weekly returns on customers account details, the account status of customers that have submitted their BVN and those that have not.
“NIBSS, in turn, will render consolidated returns to the CBN weekly, starting from October 1, 2014. The Central Bank of Nigeria will monitor compliance with the requirements of this circular, and defaulters will be sanctioned,” the circular read in part.
The CBN had earlier last week, approved an industry-wide incentive scheme and awareness campaign for electronic payment stakeholders and users.
According to a circular to that effect by the bank, it is meant to reward users of electronic payments in Nigeria and to encourage greater adoption by all, with emphasis on channels of electronic payments that promote financial inclusion.
The circular states that though refund of cash based on card usage is currently being implemented by all banks, starting from December 1, 2014, Point Based Reward System (PBRS) will be adopted to reward card holders.
PBRS is a reward system whereby NIBSS, in conjunction with other service providers, will track the frequency of card usage by the holder and reward same accordingly.
It added that with effect from November 1, 2014, Merchants Service Charge (MSC) rate will be reduced from the current 1.25 per cent (N2,000) to 0.75 per cent or a maximum of N1,200 per transaction. It also stated that free Commission on Turnover (COT) will be adopted for merchants ahead of 2016, such that inflows into the accounts of merchants will be exempted from the calculation of COT at the end of each month.