The Central Bank of Nigeria (CBN) has released a draft guidelines for the regulation of more payment service banks it has set to licence in order to boost financial inclusion in Nigeria.
The guideline, which was seen on the website of the apex bank, indicates that the new rural banks would not be allowed to grant any form of loans, advances and guarantees. They are also expected to have a minimum capital base of N5 billion, with capital adequacy ratio of 10 per cent or as may be prescribed by the CBN from time to time.
The essence of the new license is to promote and enhance access to banking services, especially in the rural areas where the majority of unbanked and semi banked Nigerians reside, as they are expected to operate mostly in rural areas and unbanked location, with not less than 50 per cent physical points in such areas.
According to the guideline, the bank service providers will establish ATMs in some areas and can also operate via banking agents, leverage technology tools to reach-out to its customers.
Expectedly, they will be involved in maintaining savings accounts and accept deposits from individuals and small businesses, which shall be covered by the deposit insurance scheme.