Nigeria: CBN Issues Guidelines for Licensing, Regulation of Payment Service Banks

Nov 02, 2018 | Premium Times; All Africa

The Central Bank of Nigeria (CBN) on Thursday issued guidelines for licensing, regulation and operation of payment service banks (PSBs) in the country.

The Director, Financial Policy and Regulation Department of the regulatory body, Kevin Amuga, said the guidelines were in furtherance of the apex bank's effort to leverage on technology to promote financial inclusion, enhance access to financial services to the rural poor, low income earners and financially excluded in the society.

In line with the National Financial Inclusion Strategy (NFIS), the CBN seeks to ensure over 80 per cent of the bankable adults in Nigeria have access to financial services by 2020.

Despite several initiatives, including Introduction of microfinance banking, agency banking, tiered know-your-customer requirements and mobile money operation (MMO) in pursuit of the objective, the CBN noted inclusion rate remains below expectation.

To drive financial inclusion, the CBN said it has collaborated with groups, like the Nigerian Communication Commission, commercial banks, mobile money operators and telecommunications companies to conduct several studies.

The regulator said the latest regulations are to provide for the licensing and operations of PSBs in the country to utilise the mobile and digital channels to enhance financial inclusion and stimulate economic activities at the grassroots through financial services.

Dos and Don'ts

The PSBs would operate mostly in the rural areas and unbanked locations with the financially excluded persons as target, including not less than 25 per cent of financial service touch points in such rural areas as may be defined by the CBN. Besides, operators would be expected to enter into direct partnership with card scheme operators, with such cards not eligible for foreign currency transactions. Read more on All Africa.

 

Source: All Africa