Dev. Finance

CBN issues framework, allows PSB to sell dollars

Published

2 years ago

July 9, 2021

Naira to dollar dips to new low, sells for N550

The Central of Nigeria (CBN) on Thursday released a supervisory framework that allows Payment Service Banks (PSB)in the country to buy and sell foreign currencies, including dollars.

The framework also empowered the PSB operators to sell foreign currencies to authorised foreign exchange dealers.

the apex bank said the PSBs are allowed to carry out payments and remittances, including inbound cross-border personal remittances, services through various channels within the country.

The CBN framework also authorised the PSBs to accept deposits from individuals and small businesses, which shall be covered by the deposit insurance scheme.

The framework stated the operators are expected to leverage technology to provide services that would be easily accessed by the unbanked population and those who are in hard-to-reach areas of the country.

The framework focuses on corporate governance, risks management of the PSBs, and safety of funds to the consumers of the Payment Service Banks’ products.

The CBN said PSBs are to operate mostly in the rural areas and unbanked locations targeting financially excluded persons, with not less than 25 per cent financial service touch points in such rural areas as defined by the CBN from time to time.

According to the apex bank, the framework will ensure that sound risk management practices are embedded in the operations of the PSBs.

It added that the PSBs are required to comply with relevant extant regulations and CBN’s prudential guidelines and circulars which are issued periodically.