NDIC extends insurance coverage to licensed PSBS

…as Mobile Money Operators record 9.2m subscribers

The Nigeria Deposit Insurance Corporation ( NDIC) on Wednesday said it has extended insurance coverage to depositors of the Payment Service Banks (PSBS) recently licensed by the Central Bank of Nigeria (CBN).

The CBN on September 18, 2019 issued Approvalsin-principle to three Payment Service Banks.

PSBS are specialised banks established to promote financial inclusion and enhance access to financial services for low-income earners and unbanked segments of the society by leveraging on technology.

The NDIC has therefore designed an appropriate Differential Premium Assessment System (DPAS) matrix for premium computation/ payment as well as set an insurable limit to depositors in the event of failure.

The Corporation said it was taking these measures to engender confidence in the system and to discourage bank customers from keeping cash at home, shops and other places outside the bank.

“Monies kept outside the banks are not insured by the Corporation and are susceptible to loss through robbery, theft or fire outbreak,” Umaru Ibrahim, managing director/ CEO, NDIC, said during the NDIC’S special day at the ongoing 33rd Lagos International Trade Fair.

Ibrahim, who was represented by Joshua James Etopidiok, director, special insured institutions, said the NDIC would in the coming years continue to work with the CBN to ensure effective supervision of banks and the adherence to prudential guidelines and code of corporate governance for banks to ensure their safety and the overall stability of the Nigerian financial system.

The NDIC, which celebrated its 30th anniversary last month, has been able to record some significant achievements, which have contributed to the stability of the nation’s financial system.

One of the most significant achievements of the Corporation was the provision of the deposit insurance coverage to subscribers of Mobile Money Operators (MMOS) to the maximum limit of N500,000 through the pass-through deposit insurance framework. • Continues online at www.businessday.ng