Central Bank of Nigeria (CBN) yesterday issued a new licence requirements for payment systems, increasing the minimum capital requirements for Payment Solutions Service Providers (PSSPs) to N250 million from N100 million.

The new framework also reviewed downward, the capital requirements for licensing of Payment Solution Services (PSSs) to N100 million from N250 million.

Capital requirement for the Switching and Processing licence remains unchanged at N2 billion, including Mobile Money Operator licence, which was retained at N2 billion.

Others include the capital requirements for the Payment Terminal Service Provider (PTSP) licence, which remains at N100 million.

The Super Agent licence was also maintained at N50 million.

CBN, in a document released yesterday, stated that eligibility for each licence category was tied to any corporate entity registered by the Corporate Affairs Commission (CAC), with Memorandum and Article of Association (MEMART).

For switching and processing licence, documentary requirements under the new payment systems framework include a certificate of incorporation of the company, Memorandum and Articles of Association, Form CAC 2A (Return on Allotment of shares) and Form CAC 7A (Particulars of Directors).

Others are tax clearance certificate for three years of the company (if applicable) and Taxpayer Identification Number (TIN) of the company; the company’s profile; detailing the current type of business operation, products and services.

Others are structure of holding company or parent company (if applicable), details of ownership: private/public; ultimate parent; any significant changes in ownership in the last two years, the total number of employees, organogram among a host of other requirements.

Part of the capital requirements for the mobile money operators are N2 billion shareholders’ funds unimpaired by losses, preceding three-years audited financial statements of the company (If applicable); and escrow of refundable N2 billion into CBN PSP Share Capital Deposit Account.

It added that the deposit for escrow must be in full (one lump sum) and must be made in the name of the company applying for a licence (not an individual or related company).

Also, escrowed funds are to be invested in treasury bills, subject to the availability of treasury instruments, which would be refunded accordingly.

Application and licensing for super agents also harped on-refundable application fee of N100,000.00 payable to the CBN.

It further stimulated that for the validity of the licence, there will be approval-in-principle for six months and commercial licence validity is as determined by the bank renewable upon satisfactory performance of operations as well as others, as advised from time to time.

Thisday