NRB To Close License For New Payment Service Provider
July 15, 2020 | Investopaper
NRB is preparing to close the licenses of non-banking institutions such as Nepal Clearing House, e-service, IME Pay. About two dozen organizations have already received permission to work on the payment. In line with the state’s policy of discouraging cash transactions, NRB has been promoting electronic transactions for several years. For this, NRB is going to establish a separate payment department.
NRB has been distributing two types of licenses, namely Payment System Operator (PSO) and Payment Service Provider (PSP). Out of which, nine companies have got permission for PSO and 14 companies have got permission for PSP. Of the 14 licensed, 11 are in operation. The other two are in process of starting operation. Eight more companies have received in-principle agreement (LOI) for PSO.
The new license is being closed based on the conclusion that the companies working in this field will be optimum after all the licenses have been obtained and those in the process are operational. Currently, about 22 organizations have received such licenses.
Similarly, NRB has made a policy arrangement to allow mergers and acquisitions among e-payment entities. Such a provision exists in the recently issued ‘Payment and Forward Regulation 077’. NRB, which has been encouraging banks and financial institutions for mergers and acquisitions for the last half a decade, has also made arrangements for non-banking payment service providers and operators to merge.
Related: Merger Of Online Payment Service Providers Possible
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