The Central Bank of Nigeria (CBN) has directed operators of Payment Service Banks (PSBs) to henceforth stop from accepting foreign exchange deposits.
This was contained in a circular titled Re: Guidelines For Licensing and Regulation of payment service banks (PSBs) In Nigerian with reference Num FPR/DIR/GEN/CIR/07/060 dated 27th August, 2020 and signed by Kelvin N. Amaugo, Director, Financial Policy and Regulation Department that In the new guideline, which is the upgraded version of the circular the CBN issued on October 26, 2018 to all banks, telecommunications firms, Mobile Money Operators and banking agents among others.
The circular added that the name of PSBs must not include any word that links it to the parent company.
The CBN noted that PSBs are not allowed to grant any form of loans, advances and guarantees (directly or indirectly.)
