CBN imposes N20,000 transfer limit on newly activated mobile banking apps

THE Central Bank of Nigeria (CBN) has directed banks to restrict transactions on newly activated mobile banking applications to a maximum of N20,000 within the first 24 hours, as part of fresh efforts to improve security in Nigeria’s instant payment system.

The instruction was contained in a circular dated March 12, 2026 and sent to banks, financial institutions and payment service providers. According to the apex bank, the new rules are aimed at strengthening safeguards around digital payment channels and reducing the rising incidence of fraud.

Banks and other financial service providers have until July 1, 2026 to implement the changes, allowing time for system upgrades and compliance with the new operational standards.

Under the guideline, any newly activated mobile financial service application must operate under a strict transaction ceiling during its first day of use. The combined value of transfers, both inflows and outflows, must not exceed N20,000 for newly opened accounts, though banks may apply stricter limits depending on their internal risk assessments.

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For existing bank customers who log into their mobile banking application on a new device, financial institutions must also enforce a N20,000 cap on outgoing transfers within the first 24 hours after activation.

The CBN explained that the measure is intended to reduce risks linked to account compromise, identity theft and unauthorised device switching, which have become more common as digital financial services continue to expand nationwide.

As part of the updated security framework, the regulator also mandated device binding for mobile banking apps. This means customers will be allowed to operate their mobile banking application on only one device at a time.

Any attempt to migrate the application to another device will trigger a fresh verification process to confirm the user’s identity before access can be restored.

The CBN also instructed banks to introduce additional multi-factor authentication checks whenever customers access internet banking platforms for the first time on a newly registered device.

Beyond device-related safeguards, financial institutions are now required to install enterprise-level fraud monitoring systems capable of observing transactions in real time. The systems are expected to track both incoming and outgoing payments and help identify suspicious activities early enough to block potentially fraudulent transfers.

The circular further tightened the rules guiding digital account opening and reactivation. According to the apex bank, individuals opening accounts online must undergo liveliness verification to ensure that the person initiating the process is physically present.

In addition, all digital onboarding and reactivation procedures must be validated instantly using the Bank Verification Number (BVN) and National Identity Number (NIN) databases.

Banks were also advised to deploy stronger authentication methods for account reactivation, including biometric verification, soft tokens, hard tokens and other multi-factor security tools.

Customers can temporarily disable instant transfers

The new framework also introduces a voluntary opt-in and opt-out option for instant payment services.

With the feature, customers will be able to temporarily disable instant transfers on their accounts for any chosen period, provided the request is confirmed through multi-factor authentication.

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Once the opt-out function is activated, instant transfers, whether within the same bank or to other banks, will no longer be available online. However, customers can still conduct transfers physically at their bank branches.

For newly opened accounts, the default setting will remain opt-in at the point of onboarding.

The circular also allows customers to modify their transaction limits, as long as they remain within the maximum thresholds of N25 million for individuals and N250 million for corporate accounts. Such changes, however, must pass additional risk checks and due diligence by the financial institution.

The CBN said the measures represent the minimum operational requirements expected of all institutions offering instant payment services within Nigeria’s financial system.