BVN- Bank Verification Number. When next you say BVN, you need not add number again to the statement. Saying BVN Number is an error. You can get your BVN on your phone by dialing *565*0#
TIN- Tax Identification Number. When next you say TIN, you need not add number again to the statement. Saying BVN Number is an error.
FD- Fixed Deposit. These are funds you keep with the bank for a certain tenure and at an agreed interest rate. Some banks prefer to call it TD (Term Deposit)
OD- Over Draft. These are very short term loans granted by the bank to a customer. It is usually for 30,60 or 90 days and can be recycled.
TOD- this means Temporal Overdraft. It works in similar way as the OD but has a maximum tenure of 30 days. It is not a CBN approved mode of facility because it is usually given to customers without collateral.
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OTP- One Time Password. This most times is used during an internet banking transaction. As the name implies, it is a one-time password that enables a particular transaction. It does same function with the token. While some banks issue token for online/internet transactions, some others send OTP for every transaction being carried out.
BCOB- In as much as this is not really a banking term, it is used by most bankers very often and customers are usually lost as to what it means. It means Before Close of Business.
FX- Foreign Exchange.
PND- Post No Debit. This simply means that an account has been blocked temporarily from any form of debit. When an account is on PND, no form of withdrawal can be made on that account. There are usually different reasons for this ranging from lack of BVN, lack of Reference, External authorities directives (EFCC,etc).
LC- Letters of Credit. This is usually used by importers of goods. It is a payment method between and importer and a manufacturer. It is a letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount.
NIP- NIBSS Instant Payment. It is an e-payment platform used by banks for money transfers. It guarantees instant value to receivers or beneficiaries of funds. For most banks, there is a maximum amount that can go through this platform.
NIBBS- Nigeria Inter-bank Settlement System. It provides the platform for automated processing, settlement of payments and fund transfer instructions between Banks and Card Companies in Nigeria.
RTGS- Real Time Gross Settlement. This is an electronic form of funds transfer where the transmission takes place on a real time basis. This is a more complex version of NIP as this accommodates larger amount of money.
NEFT- NIBBS Electronic Funds Transfer. This works in very similar ways with NIP. The major difference here is that they have a particular cut off time each day for transactions to be processed. They are treated in batches and once it gets to the cut off time, any further instruction will have to be completed with the next batch.
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