The Central Bank of Nigeria has recently ordered Payment Service Banks to sell foreign currencies realised from remittances to authorized foreign exchange dealers.
This is contained in the guideline for PSBs
Operations released by the CBN stating categorically that all Payment Service Banks are to accept payment from individuals and small businesses, which shall be covered by the deposit insurance scheme through various links nationwide.
This rule was signed by Kelvin Amugo, the CBN director who also added saying
“PSBs shall have the privilege to make their investments from the CBN window. All funds in excess of the PSB’s operational float should be placed with DMBs. PSBs shall participate in the payment and settlement system and have access to the inter-bank and the CBN collateralised repo window for its temporary liquidity management”.
Adding that “PSBs shall render quarterly returns indicating the number of financially excluded customers on-boarded during the quarter to which the returns relate. All PSBs shall be required to interface with the Nigeria Inter-bank Settlement System (NIBSS) platform in order to promote interconnectivity and interoperability of operations within the Nigeria banking system”.
The Payment Service Banks are to operate majorly in rural areas with aim to target the low class people with not less than 25 percentage of financial service touch point in such rurality.
By Taiwo Michael
GGB reports
Gbos Gist Blog 