Pexels Andrea Piacquadio 3823540

What Internet Banking Agents Should Know


These days, Internet Banking and other services are now prevalent in Africa, especially in Nigeria as approved by the Central Bank of Nigeria by the virtue of a letter dated September 20, 2016, to operate agency services business in Nigeria.

Banks and other financial institutions engage the Agent to provide banking services on the inbound rapid Transfer and Mobile Money platform at various locations designated by banks and the Agent agrees to provide the Service upon the terms and conditions set out below.

The Services

The agent will:

  • Register customers
  • Receive maximum daily cash deposits of N1milliom into registered bank customers’ accounts
  • Process maximum daily cash withdrawals of N1million for registered bank customers. Rapid Transfer service shall have an N50,000 limit per transaction.
  • Process cash withdrawals for non-registered bank Mobile customers with a daily limit of 1 Million.
  • Banks prescribe any other services to the Agents from time to time.

Obligations of the Agent

The Agent will undertake, throughout the term of this Agreement to:

  • Ensure that its employees actively undergo such training as financial institutions may require from time to time about the Service.
  • Educate customers on the available Service and provide information on terms and conditions to the customer from time to time.
  • Ensure that such promotional or advertising materials as may be provided from time to time are displayed at all times in the Agent’s outlets to inspect the display of promotional and advertising materials and the Agent shall ensure that financial institutions are given reasonable access and co-operation for the purpose.
  • Actively participate in and promote all special offers and packages relating to the bank’s products and services from time to time.
  • Direct any customers’ or potential customers’ inquiries to Financial Institutions Call Centre for assistance on issues beyond the Agent’s control
  • Ensure safe-keeping of all relevant records, data, and documents/files for at least five years, or submit such records to banks at regular pre-specified intervals which will then ensure the safe-keeping of these records for at least 5 years.
  • Grant full and timely access to bank’s inspecting officers to internal systems, documents, reports, records, and staff of the Agent.
  • Comply with the bank’s anti-fraud policies, and agrees not to at any time use the rapid Transfer platform or the bank Mobile Money Platform for fraud or assist any other persons in committing fraud.
  • Agrees that all information/data that the Agent collects about the service, whether from the customers or bank or other sources, is the property of the institution and the institution will be provided with copies of related working papers/files it deems necessary, and any information about banks and its customers must be kept confidential.
  • Undertake to comply with all banks’ business practices and Anti-Money Laundering (AML) and know Your Customer (KYC) policies.

Prohibited Activities

The agent shall not:

  • Carry out a transaction where a receipt or acknowledgment cannot be generated
  • Offer banking services on its own accord.
  • Continue with the agency business when it has a proven criminal record involving fraud, dishonesty, integrity, or any other financial impropriety.
  • Provide, render, or hold itself out to be providing or rendering any banking service which is not specifically permitted by the agreement.
  • Open accounts, grant loans or carry out any appraisal function to open an account or grant of a loan or any other facility except as may be permitted by any other written law to which the Agent is subject.
  • Under cheque deposit and encashment of cheques
  • Transact in foreign currency
  • Provide cash advances
  • Sub-contract another entity to carry out Agent banking on its behalf
  • Process outbound transfers on the Rapid Transfer platform.

Security and Confidentiality

  • The Agent acknowledges that the service requires essential security and confidentiality. The Agent and its staff/business partner shall exhibit the utmost care in protecting the confidentiality of the security codes, accounts numbers, and customer data, and apply all the security measures and procedures put in place by the bank.
  • The agent shall consider as confidential and shall not, at any time, (whether during the period of this Agreement or after termination for whatever reason whatsoever) on its behalf or behalf of a third party, disclose to any individual or legal entity.

Representation and Warranty

  • The Agent warrants that it is duly incorporated and has full capacity and corporate authorization to enter into this Agreement and discharge the obligations and responsibilities created herein.
  • The Agent warrants that it has the required licenses and regulatory approvals and consents to provide the service herein and that no element of the service to be provided constitutes a breach of any existing contract it is para ty to.
  • The Agent will keep the p bank indemnified against all actions, claims, proceedings, and all legal costs or other expenses arising out of any breach of the above warrants or out of any claim by a third party that was made under breach of the Agent’s contractual or other relevant legal duties.

Environmental and Sustainability

  • The Agent shall comply with all environmental laws in force in Nigeria and undertakes to conduct its business and activities under this Agreement by the Nigerian Sustainable banking principles issued from time to time by the Central Bank of Nigeria and any environmental and social action plan as may be agreed between the Company and bank.
  • The Agent shall comply in all material respects with the environmental and social requirements applicable in Nigeria or, for those items addressed in the environmental and social action plan, become compliant within the time frames agreed upon from time to time and take all reasonable steps in anticipation of known or expected future changes to or obligations under the same.
  • The Agent shall develop and/or maintain and further improve an environmental and social management system, and shall at all times conduct its business by the environmental and social management system. This shall be made available to the bank on request.
  • The Agent shall inform the bank in writing as soon as reasonably practicable upon becoming aware of any environmental and social claim being commenced against it or/and facts or circumstances which will or are reasonably likely to result in any environmental and social claim being commenced or threatened against it
  • The Agent shall procure and comply with the conditions of any environmental and/or social permit, license, consent, approval, or any other authorization required for the Agent to conduct its business.





Leave a Reply

Your email address will not be published.