CBN issues new licence and capital requirements for payment systems (Details Here)

The Central Bank of Nigeria (CBN) yesterday issued new licence requirements for payment systems, increasing the minimum capital requirements for Payment Solutions Service Providers (PSSPs) from N100 million to N250 million.

Also, the new framework had a downward review of the capital requirements for licensing of Payment Solution Services (PSSs) from N250 million to N100 million.

Capital requirement for the Switching and Processing licence and Mobile Money Operator licence both remains unchanged at N2 billion.

This disclosure is contained in a document released by the apex bank on Monday, May 24, 2021, which stated that the eligibility for each licence category was tied to any corporate entity registered by the Corporate Affairs Commission (CAC), with Memorandum and Article of Association (MEMART).

READ ALSO: Dangote Lost N343 Billion In 24 hours -Becomes 114 Richest Man On Earth

The document also stated that the capital requirements for the Payment Terminal Service Provider (PTSP) remain unchanged at N100 million and the Super Agent licence unchanged at N50 million.

It states that the documentary requirements for switching and processing licence under the new payment systems framework include a certificate of incorporation of the company, Memorandum and Articles of Association, Form CAC 2A (Return on Allotment of shares) and Form CAC 7A (Particulars of Directors).

Others are tax clearance certificate for three years of the company (if applicable) and Taxpayer Identification Number (TIN) of the company; the company’s profile; detailing the current type of business operation, products and services.

Others are the structure of holding company or parent company (if applicable), details of ownership: private/public; ultimate parent; any significant changes in ownership in the last two years, the total number of employees, organogram among a host of other requirements.

MORE UPDATE!!  How Movies and Television Have an effect on Us - Pros and Cons

Also, part of the capital requirements for the mobile money operators are N2 billion shareholders’ funds unimpaired by losses, preceding three-years audited financial statements of the company (If applicable); and escrow of refundable N2 billion into CBN PSP Share Capital Deposit Account.

It added that the deposit for escrow must be in full (one lump sum) and must be made in the name of the company applying for a licence (not an individual or related company).

ALSO READ: Bank Documents Show How Obasa Received N51.7 Million 11 Times

It also stated that escrowed funds are to be invested in treasury bills, subject to the availability of treasury instruments, which would be refunded accordingly.

Application and licensing for super agents also harped on-refundable application fee of N100,000.00 payable to the CBN.

For the licence validity, it stated that there will be approval-in-principle for 6 months and commercial licence validity is as determined by the bank renewable upon satisfactory performance of operations as well as others, as advised from time to time.

Related Posts

Onyeweaku Ibe Bekee

Onyeweaku Wisdom Ibe Bekee is the CEO/Founder of an entertainment website that updates it's viewers with latest trends all round the world. Follow Us On Social Media: Twitter: @real260vibes Instagram: @real260vibes Facebook Page: @real260vibes Call or WhatsApp us: +2347010096998.

Leave a Reply

Upload & Feature Your Song on 260Vibes For just A Token (Click To Chat Us On WhatsApp)

%d bloggers like this: