CBN deepens financial inclusion with PSB supervisory guideline

THE Central Bank of Nigeria ( CBN) has released a supervisory framework for payment service banks ( PSBS) to streamline their operations and deepen financial inclusion.

The document, released yesterday, is a follow- up to the licensing and regulation blueprint issued in 2018 and revised last year.

The document covers the structure of the market, permissible/ non- permissible activities, ownership/ licensing, corporate governance, shared services and sanctions.

“This framework hereby provides a set of regulations that are targeted at streamlining the operations of payment service banks, ensuring transparency in their operations as well as ensuring adequate customer protection.

“The framework focuses on corporate governance, risk management of the PSBS and safety of funds to the consumers of the payment service banks’ products. This framework also aims to ensure that sound risk management practices are embedded in the operations of the payment service banks,” the document stated.

The apex bank said PSBS would be required to comply with relevant extant regulations, prudential guidelines and circulars issued periodically.

The regulator has, through the framework, mandated operators to deploy at least 25 per cent of their services to rural areas to be defined by the regulatory body from time to time and other underbanked areas. PSBS will also need to deploy automated teller machines ( ATMS) and point- of- sale ( POS) centres to the areas.