CBN Releases Framework For Non-Bank Acquiring

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 services 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 operation 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 to 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).

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 services 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 operation 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 to 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).