Banks must seek approval for e-payment product development, says CBN –

The Central Bank of Nigeria (CBN) has issued a warning notice to depository banks to ensure full compliance with the guidelines on electronic payment products.

Apex Bank noted that failure to comply with rules governing the development of electronic payment products will now result in penalties.

In its new rules titled “Digital Financial Services Awareness Guidelines,” released over the weekend, the CBN said they are primarily designed to ensure customers get value from their deposits.

According to the financial regulator, banks should first seek its approval for the development of their electronic payment products and services.

apex bank said the guideline aligns with the digital financial services awareness program aimed at addressing gaps in consumer knowledge and practices around electronic products.

It also ordered financial institutions to submit the developed educational materials to its director of consumer protection for review.

“Develop and deliver educational materials to potential and existing customers through core channels such as Short Message Service (SMS), Unstructured Supplementary Service Data (USSD), and in branches. In addition to app, web and social media platforms, submit the developed educational materials to the Director of Consumer Protection, CBN for review.

The CBN said digital financial services have the potential to expand access to financial services for the Nigerian population and drive innovation in the financial services industry.

He said: “The guidelines provide a set of principles and expectations for financial service providers to incorporate into the provision of digital financial services to ensure consumer understanding, good treatment and positive outcomes.

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