New Telegraph

CBN releases supervisory framework for payment service banks

The Central Bank of Nigeria (CBN) has released its supervisory framework for payment service banks (PSBs) in the country. According to the apex bank, the framework, posted on its website yesterday, “provides a set of regulations that are targeted at streamlining the operations of Payment Service Banks, ensuring transparency in their operations as well as ensur-ing adequate customer protection.”

It further stated that the “framework also aims to ensure that sound risk management practices are embedded in the operations of the Payment Service Banks,” adding that the PSBs are required to comply with relevant extant regulations, prudential guidelines as well as circulars which are issued periodically. Among other directives, CBN states in the supervisory framework that “for their role as Participating Institutions in the Global Standing Instruction (GSI) scheme, PSBs shall execute the GSI Mandate Agreement with the Nigeria Inter- Bank Settlement System (NIBSS) in line with the provisions of the Guidelines on Global Standing Instruction (2020) or the Extant Regulation.”

As part of measures to promote a sound financial system and enhance access to financial services for low income earners and the unbanked population, CBN had unveiled operational guidelines for PSBs in November 2018(revised in 2020). PSBs were expected to leverage on technology to provide services that would be easily accessed by those who are in hard-to[1]reach areas of the country. As at March 31, 2021, the number of PSBs licensed by CBN stood at three. They are Hope PSB Limited, MoneyMaster PSB Ltd and 9PSB Limited.

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