Don't Miss


Home   >   Business   >   Industries   >   Banking   >   NDIC unveils protection measure for mobile money subscribers

NDIC unveils protection measure for mobile money subscribers

By on January 19, 2016

The Nigeria Deposit Insurance Corporation has released deposit insurance guidelines on the mobile payment system, known as ‘Pass-Through Deposit Insurance scheme’.

The NDIC said the move followed the introduction of mobile banking in Nigeria by the Central Bank of Nigeria, which issued operating licences to many Deposit Money Banks and telecommunications companies to provide mobile banking services.

According to a statement from the corporation, the Pass-Through Deposit Insurance scheme is the protection provided by the NDIC to mobile money subscribers, whereby the corporation insures funds that are deposited by a mobile money operator in the DMBs.

The MMO acts as a custodian on behalf of the one or more subscribers who are actual owners of the funds as if those actual owners have deposits in the DMBs.

Mobile payment system refers to payment services operated under financial regulation and performed through the use of mobile devices such as smart phones, cell phones, tablets, personal digital devices and other electronic devices.

“It is also a convenient, safe and affordable way by which subscribers make instant transfer of funds and execute payments for goods and services from anywhere at any time without having a bank account,” the statement said.

The Pass-Through Deposit Insurance scheme is aimed at guaranteeing the payment of insured sums to subscribers of MMOs in the event of failure of insured institutions where pool funds are maintained; enhancing confidence of subscribers and ensuring continuity of the MPS.

Other public policy objectives of the scheme are to promote financial inclusion by protecting and ensuring the safety of the MPS, and the stability of the Nigerian financial system.

 

[Punch]