(3 minutes read)
· The Central Bank of Nigeria has set capital benchmarks for fintech firms ( firms involved financial technology and payment operations), to bring in more stability in the operations of such companies
· The regulator said that those in the top category, dealing with switching and processing, as well as mobile money operation, will have to set aside a N2 billion shareholders’ funds unimpaired by losses as refundable security
· CBN has approved six categories of payment operators including those involved in switching and processing, mobile money operators,
The Central Bank of Nigeria has set capital benchmarks for fintech firms ( firms involved in financial technology and payment operations), to bring in more stability in the operations of such companies.
The regulator said that those in the top category, dealing with switching and processing, as well as mobile money operation, will have to set aside N2 billion shareholders’ funds unimpaired by losses as refundable security.
CBN has approved six categories of payment operators including those involved in switching and processing, mobile money operators, Payment Solution Services (PSS), Payment Terminal Service Provider (PTSP), Payment Solution Service Provider (PSSP) and Super Agent licenses.
The top category is required to escrow refundable N2 billion into a CBN account with a condition that payment must be made in full single lump sum. Funds, which are refundable, are to be invested in treasury bills. For the next category –PSS-escrow fund of N250 million must be deposited with the CBN, while for entities applying for the three licenses such as PSSP (N100 million), PTSP ( N100 million), and Super Agent – (N50 million) respectively have to deposit in escrow amounts in CBN, which are refundable.
