The Nigeria Interbank Settlement System Plc (NIBSS) has instructed deposit money banks take down all non-deposit-taking financial institution from their NIP fund transfer channels.
The non-deposit-taking financial institutions include switching companies, payment solution service providers, as well as super agents.
Meanwhile NIP fund transfer channels include USSD, mobile banking apps, POS, ATMs, plus web and internet platforms.
The NIBSS in a circular to banks, said, “listing non-deposit taking financial institutions such as switching companies (switches). Payment Solution Service Providers (PSSP), and Super Agents (SA) as beneficiary institutions on your NIP funds transfer channels contravenes the CBN Guidelines on Electronic Payment of Salaries, Pensions, Suppliers and Taxes in Nigeria dated February 2014.”
The circular, however, explained that while these financial institutions would be stopped from receiving inflows, they are allowed to process outflows as inflows to banks.
“For clarity, Switches, PSSPs, and SAs may process outward transfers as inflows to Banks but are not to receive inflows as their licenses do not permit to hold customers’ funds.”
With the directive, Fintechs without any form of banking license will be taken down from the fund transfer channels of banks.
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