National Bank Issues Directive for Effective Payment System

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Addis Ababa, March 2/2020( ENA)The National Bank of Ethiopia (NBE) has issued a new directive that enable to promote the safety and efficiency of the payment system in Ethiopia.

In its statement, the bank said the directive composed of six parts and twenty articles, is of establishing clear and enabling regulatory requirements that are necessary to protect the interest of users of payment instruments.

In its statement, the bank said the directive composed of six parts and twenty articles, is cautious of establishing clear and enabling regulatory requirements that are necessary to protect the interest of users of payment instruments.

According to the directive, a person other than the licensed financial institutions shall submit a complete application to NBE to get a license to issue a payment instrument.

The directive comes in the middle of plans to liberalize the financial sector as well as the telecommunication industry by offering new licenses in the country.

The directive is expected to be effective since April 1st, 2020 and allows maximum account balances of 30,000 birr and transaction limits of 8,000 birr daily and 60,000 birr monthly, it was learned.

A licensed payment instrument issuer permits and can also provide saving, credit, insurance and pension products.

“Based on written approval of the NBE, a licensed payment instrument issuer under full responsibility of and written outsourcing agreement with a regulated financial institutions and pension funds may be allowed to provide; micro-saving products, micro-credit products, micro-insurance products; or pension products,” the statement said.