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NDIC mulls insurance coverage for mobile banking

By on June 14, 2014

The Nigeria Deposit Insurance Corporation (NDIC) has said it is considering extending deposit insurance coverage to mobile banking subscribers between N200, 000 and N500,000.

Alternatively, the NDIC said in a situation where a bank fails, the insured mobile account could be transferred to another sound bank.

Managing Director, NDIC, Alhaji Umaru Ibrahim, stated this at a roundtable on mobile payment services in Nigeria held in Lagos.

According to the NDIC boss, the move would further engender public confidence in the system thereby promoting financial stability.

He disclosed that the NDIC framework for extending deposit insurance to individual customers of mobile payment services is being finalised.

“The NDIC is equally actively involved in promoting financial literacy and supporting agent banking and non-interest/Islamic banking as strategies for attaining financial inclusion in the country in order to improve the economic well being of the people who have been excluded in the formal financial system,” the NDIC boss added.

Furthermore, he stated that a predominantly cash-based economy is not good for the system, saying that the corporation is supporting the cashless policy of the Central Bank of Nigeria.

“The NDIC as a deposit insurer provides a unique role of enhancing financial inclusion by encouraging mobile financial services. There is a link between deposit insurance system and financial inclusion.

“Deposit insurance is vital to financial inclusion because the poor need assurance that their deposits are safe and available at all times they have need for them,” he explained.

 

 

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