CBN releases Exposure Draft Guidelines for Licensing and Regulation of Payment Service Banks in Nigeria.
15.10.2018Chinedu Kema, Adeleke Alao
Leveraging on the role of technology in the provision of financial services, and in line with its responsibility as the regulator of the financial sector, the Central Bank of Nigeria (“CBN”) recently issued Exposure Draft Guidelines for Licensing and Regulation of Payment Service Banks (“PSBs”) in Nigeria (“Draft PSB Guidelines”) for comments and observations by stakeholders in the digital financial ecosystem.
The PSBs are expected to leverage mobile and digital services to enhance financial inclusion and stimulate economic activities at the grassroots through the provision of financial services, micro-savings and withdrawal services in a secured technology-driven environment.
It is envisaged that the PSBs will engage in the following permissible activities: maintain savings accounts and accept deposits from individuals and small businesses; provide payment and remittance services; issue debit and pre-paid cards; operate electronic purses and invest in Federal Government of Nigeria and CBN securities. PSBs will, however, not be permitted to grant any form of loans, advances and guarantees. The Draft PSB Guidelines cover issues regarding eligibility of promoters, licensing requirements, corporate governance, business conducts, prudential regulation, supervision, know-your-customer as well as risk management of the PSBs.
Stakeholders are expected to provide their comments and observations on the Draft PSB Guidelines to the CBN by Friday, 19th October 2018. Please click on the link below to download the Draft PSB Guidelines.
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