Account owners in Nigerian banks have only tomorrow to adjust to a fresh set of banking regulations introduced by the Central Bank of Nigeria.
From Friday, new restrictions on Bank Verification Number (BVN) telephone number changes will take effect.
Under the new rule contained in a circular by the CBN, account holders will only be allowed to change the phone number linked to their BVN once.
The policy is part of amendments aimed at strengthening the security of the BVN system and reducing rising cases of fraud across the banking sector.
The apex bank also announced that access to the BVN database will now be restricted strictly to licensed financial institutions.
In addition, banks and other financial institutions were directed to create temporary watchlists for BVNs suspected of being connected to fraudulent transactions.
According to the circular, any BVN placed on the watchlist can remain there for up to 24 hours while the financial institution contacts the customer involved to explain the suspicious transaction.
The CBN explained that the arrangement is intended to allow banks act quickly against possible fraud while also allowing affected customers to clarify legitimate transactions before further action is taken.
Another major change in the framework is the introduction of a minimum age requirement for BVN enrolment.
The regulator stated that only persons aged 18 years and above will now be eligible to register for a BVN, although exceptions may still be granted in special cases in line with existing laws and regulations.
The restriction on repeated phone number changes linked to BVNs is aimed at tightening identity verification processes and limiting opportunities for fraudsters who often exploit SIM swaps and multiple number changes to gain unauthorised access to bank accounts.
The CBN also released another circular introducing fresh operational rules for instant payment services as part of wider efforts to improve customer protection and strengthen electronic banking security.
Under the new regulations, banks must allow customers to voluntarily deactivate instant transfer services on their accounts whenever they choose.
This means account holders can temporarily switch off electronic instant transfers for a selected period. During that period, transfers cannot be carried out electronically, although customers will still be able to visit bank branches physically to complete transactions.
The apex bank stated that requests to activate or deactivate instant payment services must pass through multi-factor authentication to ensure only the account owner can carry out such actions.
The regulator also directed banks to allow customers to set lower personal transaction limits on their accounts if they wish.
Although the existing maximum regulatory limits of N25 million for individuals and N250 million for corporate accounts remain unchanged, customers can choose lower limits for additional protection.
According to the circular, any request to adjust transaction limits must undergo enhanced verification and risk assessment before approval.
The CBN further instructed financial institutions to deploy advanced fraud monitoring systems capable of tracking transactions in real time to quickly identify suspicious activities.
Banks were also directed to strengthen identity verification procedures for online account opening and account reactivation.
Under the new guidelines, all accounts opened online must undergo what the regulator described as a “liveliness check,” while customer information must be validated immediately against the national identity and BVN databases.
The circular also introduced tighter controls for mobile banking applications.
Going forward, a mobile banking app will only be allowed to operate on one device at a time. Customers using a new device will be required to complete fresh authentication and reactivation procedures before access can be granted.
In addition, newly activated mobile banking applications will face temporary transaction restrictions.
For the first 24 hours after activation, transactions on such applications must not exceed N20,000, whether the account is newly opened or an existing account being activated on another device.
Customers using internet banking on a new device for the first time will also be required to complete additional authentication checks.
The CBN said the new minimum operational standards for instant payment services will become effective from July 1.
