The Central Bank of Nigeria (CBN), on Friday, announced an indefinite suspension of its new policy on extension of settlement banking to all cheque clearing sessions with effect from January 2, 2018, which was contained in its circularly referenced BPS/DIR/CIR/GEN/02/039 dated November 10, 2017.
This according to a circular dated December 21, 2017, signed by ‘Dipo Fatokun, Director, Banking and Payments System Department (BPSD), means “for the avoidance of doubt, the existing policy that was introduced in April 2004, on settlement banking relationship for sessions 1 and 2 (cheque and NEFT clearing instruments) only shall remain in force.”
In its November 10, 2017 circular, the CBN had directed settlement banks to update the agency agreements with their respective non-settlement banks, while merchant banks that do not have settlement banks should appoint settlement banks and inform the Director, BPSD, CBN Abuja, on or before 15th December, 2017.