CBK to tighten electronic retail payments

October 10, 2013
Shares

,

According to the CBK, the proposed rules are set to increase the safety and efficiency of the national payment system/FILE
According to the CBK, the proposed rules are set to increase the safety and efficiency of the national payment system/FILE
NAIROBI, Kenya, Oct 10 – The Central Bank of Kenya (CBK) has proposed new guidelines seeking to elevate its control of electronic retail payment services.

According to the CBK, the proposed rules are set to increase the safety and efficiency of the national payment system.

Interested parties and the general public have until October 18 to submit their comments.

Some of the new proposals suggest that all electronic retail payment service providers – other than institutions already licensed by CBK – will be required to apply to the bank for authorisation before commencing operations.

All such applicants will be required to have minimal core capital of Sh5 million for electronic retail transfers and Sh20 million for e-money issuers.

The scope includes all electronic retail transfers utilising an electronic payment system, including mobile payment service providers.

CBK proposes that an electronic retail payment service provider shall at all times maintain a register that contains identification details of all customers and the funds outstanding in their e-money accounts.

The new regulations also give an electronic retail payment service provider permission to appoint agents and cash merchants to perform cash services, provided the service giver can execute electronic retail transfers that support the cash services in real time

“Any substantial change or enhancement in the electronic retail payment service which an electronic retail payment service provider intends to introduce shall be subject to the approval of the bank and the electronic retail payment service provider shall notify the Bank in writing 30 days prior to the proposed implementation of the change or enhancement,” the new rules propose.

A substantial change or enhancement is one that will expand the scope or change the nature of the electronic retail payment service.

The new regulations also suggest that the retail payment service shall be liable for all transactions of the agents and cash merchants.

Shares

Latest Articles

Stock Market

Most Viewed