In furtherance of its sustained drive to banking services to the grassroots and by implication, bring millions of unbanked poor into the financial inclusion net, the Central Bank of Nigeria (CBN), on Thursday released new guidelines and regulations for Payment System Banks (PSBs) in the country.
The apex bank stated that the regulatory measure, which were announced through a circular issued by the Director, Financial Policy and Regulatory Department, Kevin Amugo, was part of its efforts to complement financial services being provided by other licensed institutions.
It clarified: “The essence of the regulation is to leverage on technology to promote financial inclusion and enhance access to financial services to the rural poor, low income earners and financially excluded of the society.
“The key objective of setting up PSBs is to enhance financial inclusion by increasing access to deposit products and payment/remittance services to small businesses, low-income households and other financially excluded entities through high-volume low-value transactions in a secured technology-driven environment”, the CBN added.
Under the policy regime, PSBs are expected to leverage on mobile and digital channels to enhance financial inclusion and stimulate economic activities at the grassroots through the provision of financial services.
In addition, they are expected also to operate mostly in the rural areas and unbanked locations targeting financially excluded persons, with not less than 25% financial service touch points in such rural areas as defined by the CBN from time to time; enter into direct partnership with card scheme operators.
According to the apex bank, such cards shall not be eligible for foreign currency transactions while the PSBs are to deploy ATMs in some of these areas as well as Point of Sale (PoS) devices.
The circular stated further that the PSBs shall “be at liberty to operate through banking agents (in line with the CBN’s Guidelines for the Regulation of Agent Banking and Agent Banking Relationships in Nigeria); roll out agent networks with the prior approval of the CBN; and use other channels including electronic platforms to reach-out to its customers.
In addition, it stipulated that they can establish coordinating centres in clusters of outlets to superintend and control the activities of the various financial service touch points and banking agents; amongst others.
Based on the regulatory requirements, the minimum capital requirement for the PSBs are N5 billion or such other amount that the CBN may prescribe from time to time.
