The Central of Nigeria (CBN) hereafter called the Bank has introduced various initiatives to enhance access to financial services for the unbanked population of the Nigerian economy.
This included the deployment and facilitation of the use of technology to drive the financial inclusion ambition of the CBN.
To this end, the Guidelines for the Licensing and Regulation of Payment Service Banks (PSBs) in Nigeria was issued in 2018 (revised 2020).
The Payment Service Banks are expected to leverage technology to provide services that would be easily accessed by the unbanked population and those who are in hard-to-reach areas of the country.
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, risks 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.
Payment Service Banks are required to comply with relevant extant regulations and CBN’s prudential guidelines and circulars which are issued periodically.