CBN bars Payment Service Banks from accepting forex deposits

The Central Bank of Nigeria (CBN) has barred operators of Payment Service Banks (PSBs) from accepting foreign exchange deposits and to accept any closed scheme electronic value (airtime) as a form of deposit or payment.

This was disclosed by the apex bank in the reviewed guidelines for licensing and regulations of PSBs released on Thursday on its website.

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In the new guideline, which is the upgraded version of the circular the CBN issued on October 05, 2018 to all banks, telecommunications firms, Mobile Money Operators and banking agents among others, the apex bank emphasized that PSBs are not allowed to grant any form of loans, advances and guarantees (directly or indirectly.)

The document, which was signed by Kevin Amugo, Director, Financial Policy and Regulation Department, CBN, added that the name of PSBs must not include any word that links it to the parent company.

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Permissible Activities

Payment Service Banks shall carry out the following activities:

* Accept deposits from individuals and small businesses, which shall be covered by the deposit insurance scheme;

* Carry out payments and remittances (including inbound cross-border personal remittances) services through various channels within Nigeria.