The Central Bank of Nigeria (CBN) on Thursday released the regulatory framework for Unstructured Supplementary Service Data (USSD) for the financial system.
In a circular signed by Dipo Fatokun, director, banking and payments system department, the implementation of the framework is with effect from June 1, 2018.
The framework stated that financial Institutions providing use of the USSD channel shall put a limit of N100,000.00 per customer, per day for transactions as may be required.
However, customers desirous of higher limits shall execute documented indemnities with their banks or Mobile Money Operators (MMO)s.
The vast applications of the USSD technology, in terms of available services have raised the issue of the risks inherent in the channel.
In this regard, concerns have been expressed on the likely exposure of CBN approved entities to the possible breaching of the USSD accessed financial services in view of likely vulnerabilities in the technology and the ever growing threats.
The implementation in Nigeria has created multiple USSD channels to customers, thereby increasing their exposure to risk, without a common standard for all.
According to the regulator, the framework seeks to establish the rules and risk mitigation considerations when implementing USSD for financial services offering in Nigeria.