AmendmentFintech

Licensing and Authorization of Payment Instrument Issuer (Amendment) Directive No. 395/2022

National Bank Of Ethiopia395/2022

Summary

This directive amends the Licensing and Authorization of Payment Instrument Issuer Directive No. 314/2020 by modifying account identification systems, establishing daily electronic account balance limits for Level 1 and Level 2 accounts, and specifying exceptions for certain services like inward remittances and salary payments. It also updates requirements for capturing user information for Level 2 accounts.

Who's affected

Payment instrument issuers and users of electronic accounts with payment instrument issuers.

Action required

Payment instrument issuers must update their systems and procedures to comply with the new account balance limits and identification requirements by February 28, 2022.

Key points

5
  • Amendment to Directive No. 314/2020.
  • New daily balance limits for Level 1 (Birr 5,000) and Level 2 (Birr 30,000) accounts.
  • Exemptions for specific transaction types.
    • Show 2 more
    • Enhanced customer identification requirements for Level 2 accounts.
    • Effective date of February 28, 2022.

Requirements

6
  • Payment instrument issuers must implement systems and procedures to identify at least two categories of customers upon opening an electronic account.
  • Level 1 accounts are subject to a maximum daily electronic account balance of Ethiopian Birr 5,000.
  • Level 2 accounts are subject to a maximum daily electronic account balance of Ethiopian Birr 30,000.
    • Show 3 more
    • The maximum daily electronic account balance limit does not apply to inward remittances, payments for airline tickets, salary payments, and utility payments.
    • Payment instrument issuers must ensure their systems can segregate these exempted services and monitor account balances with strong internal controls.
    • For Level 2 accounts, the system must capture the user's name, date of birth, residential/business address, telephone number, recent photo, and identity card.

Rights and permissions

1
  • Exemption from daily electronic account balance limits for specific services (inward remittance, airline tickets, salary payments, utilities).

Restrictions

3
  • Maximum daily electronic account balance limit of Birr 5,000 for Level 1 accounts.
  • Maximum daily electronic account balance limit of Birr 30,000 for Level 2 accounts.
  • Requirement for payment instrument issuers to segregate exempted services and monitor balances.

Objectives

2
  • Promote the safety, growth, and efficiency of digital payments.
  • Enhance financial inclusion.

Organizations

1
  • National Bank of Ethiopia

Legal references

2
  • National Payment System proclamation No.718/2011, sub-article 4(2a)/2, 4(2)/e, 10(1)/c, 19/3, 20(2), and 37(2)
  • Licensing and Authorization of Payment Instrument Issuer Directive No. 314/2020
Original sourcehttps://justice.gov.et/en/directives/licensing-and-authorization-of-payment-instrument-issuer-amendment-directive-no-395-2022/
View source