CBN reduces capital requirements for Payment Solutions Service Providers to N100M
The Central Bank of Nigeria has approved a new licence categorization requirements for payment system.
The guideline was released on its official website on Monday.
The license was categorized into switching and processing licence, Mobile Money Operator licence, Payment solution services (PSS), Payment Terminal Service Provider (PTSP) licence, Payment Solution Service Provider (PSSP), Super Agent Licence.
According to the apex bank, any corporate entity registered by the Corporate Affairs Commission (CAC) with Memorandum and Article of Association (MEMART) is eligible to apply for the licence.
For the switching and processing and Mobile Money Operator licence the requirements of N2 billion (shareholders’ funds impaired by losses) remained stable. Payment
The CBN increases the capital requirement of Payment Solution Services (PSS) to N250 million from N100 million while the capital requirement for Payment Solution Service Provider (PSSP) reduced to N100 million.
The capital requirement to apply for a Payment Terminal Service Provider (PTSP) licence remained N100 million (shareholders’ funds unimpaired by losses) while to register for a Super Agent Licence, the capital requirement is N50M.
Other requirements to obtain the licences include: preceding 3 years’ audited financial statements of the company (if applicable). Escrow of refundable capital into CBN PSP share capital Deposit account No. 1000014009. Deposit for escrow must be in full (one lump sum). It must be made in the name of the company applying for licence (not an individual or related company), Escrowed funds are invested in treasury bills, subject to availability of treasury instruments, which would be refunded accordingly.
Documentary requirement such as the certificate of incorporation of the company, Memorandum & Articles of Association (Note: the object clause(s) must be RESTRICTED to relevant payments system activities permitted by the Bank), Form CAC 2A (Return on Allotment of shares), Form CAC 7A (Particulars of Directors), Tax Clearance Certificate for three (3) years of the company (if applicable) and Taxpayer Identification Number (TIN) of company, The company’s profile; detailing the current type of business operation, products, and services classified as Confidential, 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, Organogram
The total number of employees, The functional physical address, contact e-mails from the company’s domain, and telephone numbers, Board Structure – showing at a minimum Chairman, CEO/MD, and at least, one (1) Independent Non-Executive Director and other Director(s), Bank Verification Number (BVN), Curricula Vitae (CVs), proof of government-issued identity (National Identification Number (NIN), International Passport, Driver’s Licence, Voter’s Card) of Board and top management team, Details of the current line of business (if applicable), Business Plan, Enterprise Risk Management Framework, Dispute Resolution Framework, Contingency, and Disaster Recovery Plan, Certifications:
The validity of the license is based on approval-in-Principle for six (6) Months, Commercial licence validity is as determined by the Bank and renewable upon satisfactory performance of operations as well as others, as advised from time to time.