By Elizabeth Adegbesan
The Central Bank of Nigeria (CBN) has released a Regulatory Framework for Non-bank Acquiring to all deposit money banks, payment service providers and all financial institutions.
The apex bank disclosed this today in a circular signed by Director, Payments System Management Department, CBN, Musa Jimoh.
The CBN circular stated that the framework is in furtherance of its mandate to promote a sound financial system and facilitate the development of electronic payments service in Nigeria.
The circular stated:” The CBN, in furtherance of its mandate to promote a sound financial system and facilitate the development of electronic payment systems in Nigeria, hereby issues the Regulatory Framework for Non Bank Acquiring In Nigeria.
“The framework sets out the rules for the operation of Non-Bank Merchant Acquitting in Nigeria as a regulated service and provides minimum standards and requirements for that operations of Non-Bank Acquiring in Nigeria including the rights and obligations of the parties involved in the process.
“It also compels Non-Bank Merchant Acquirers fo meet the minimum standards of operators, as approved by the Bank.
“This Regulatory Framework shall guide activities of the participants in the provision of Non-Bank Acquiring services in Nigeria,
“All stakeholders are required to ensure strict compliance with the framework and all other regulations, as the CBN continues to monitor developments and issue guidance as may be appropriate.”
According to CBN, the objectives of the Framework are to establish Non-Bank Acquiring as a regulated service in Nigeria; and provide minimum standards and requirements for the operations of Non-Bank Acquiring in Nigeria.
The Framework is to guide the activities of the Non-Bank Acquirer, Settlement Bank/Sponsor Bank, Merchant’s Deposit Money Bank, Card Schemes, Other Payment Schemes and Nigeria Central Switch (NCS).