CBN to review N15bn collateral requirement on RTGS

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The Central Bank of Nigeria (CBN) said it plans to review the Real Time Gross Settlement (RTGS) collateral, which currently stand at N15 billion to support the quantity of transactions in different banks.

The move by CBN is to ensure good cooperate governance and international banking best practices.
The RTGS collateral is a required deposit by banks to ensure that banks are able to settle their obligations either with other banks or with the central bank.

The review of the RTGS, according to the CBN Director of Banking and Payments Systems, Mr. Dipo Fatokun, is expected to be concluded before the end of next year.

Fatokun, speaking at the CBN/Society for Worldwide Interbank Financial Telecommunication Workshop in Lagos, stated that the “best practice is that your collateral should be a function of your debit balances.

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