CBN restricts mobile banking app operation to one device

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CBN

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By Elizabeth Adegbesan

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The Central Bank of Nigeria, CBN, on Friday restricted the operation of mobile banking applications (apps) to one device.

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This means that a customer cannot operate the same bank mobile application on two different devices simultaneously in Nigeria.

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This was contained in a circular to all banks and other financial institutions and payment service providers (PSP) announcing additional guidance for the operations of instant payments (IP) in Nigeria.

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The circular signed by the CBN’s Director of Payments System Policy Department, Musa Jimoh, read: “The Central CBN in line with its mandate of promoting financial system stability hereby issues additional guidance for the operations of Instant Payments in Nigeria:

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“All Financial Institutions (FIs) offering Instant Payment (IP) shall provide the following additional functionalities: Mandatory device binding: Mobile financial services applications (apps) shall only be enabled on one device at a time, and customers cannot operate the apps concurrently on multiple devices.

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“Migration to another device shall trigger automatic re-activation and authentication.

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“Customers shall have the option to opt-out of opt-in to IP service at any time and for any given period. This process shall be subject to Multi-Factor Authentication (MFA) control. Default setting shall be Opt-in upon on-boarding a new customer.

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“In the opt-out mode, a customer shall not be able to carry out online instant transfer of funds (intra or inter) from his/her account to another customer.

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“However, customers can physically visit the financial institution to effect transfer during this period.

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“Voluntary Transaction Limit: Subject to the existing maximum limits of N25 million for individuals and N250 million for corporates, customers shall have the option to adjust the limits as needed.

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“Any such adjustment shall be subject to enhanced due diligence and appropriate risk assessment by the financial institution.

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“The new transaction limit shall take effect immediately upon successful completion of multi-factor authentication (customer consent).

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“Enterprise Fraud Monitoring functionality: All FIs shall implement and activate Enterprise Fraud Monitoring for both inflows and outflows to facilitate fraud detection and restriction of suspicious transactions.

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“Liveliness Checks for online account opening/account reactivation: Accounts opened online shall be subjected to liveliness check; All online account opening / online reactivation, shall be validated real-time with the BVN/NIN database; and Enhanced authentication mechanisms (such as MFA, biometric authentication, soft token, hard token, liveliness check etc.) shall be adopted for online account reactivation.

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“For new accounts, transaction limits (inflow and outflow) shall be imposed on a newly activated mobile financial services app in the first 24-hours of activation.

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“The limit shall be as determined by the financial institution, subject to a maximum transaction limit of N20,000.00.

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“For existing accounts, transaction limits (outflow) shall be imposed on a newly activated mobile financial services app in the first 24-hours of activation.

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“The limit shall be as determined by the financial institution, subject to a maximum transaction limit of N20,000.00.

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“For internet banking access, first-time log on a new device shall require additional MFA.

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“The above are the minimum standard requirements for instant payments in Nigeria.

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“Implementation of the above provisions shall take effect from July 1, 2026.”

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