NDIC extends insurance coverage to licensed PSBs

The Nigeria Deposit Insurance Corporation (NDIC) on Wednesday said it has extended insurance coverage to depositors of the Payment Service Banks (PSBs) recently licensed by the Central Bank of Nigeria (CBN).
The CBN on September 18, 2019 issued Approvals-in-Principle to three Payment Service Banks. PSBs are specialised banks established to promote financial inclusion.

Speaking at the NDIC special day, at the ongoing Lagos International Trade Fair, the Managing Director and Chief Executive of NDIC, Ibrahim Umaru, said the corporation had taken steps towards securing depositors’ funds as it strives to encourage financial inclusion in the country.

The Central Bank of Nigeria (CBN) recently granted Approval-in-Principle to some firms to operate as PSBs, as a way of taking financial services to rural areas where financial exclusion is high and banking penetration is low.

Owing to this, Umaru who was represented by the Director, Special Insured Institutions Department, Joshua

Utopidok, said following the issuance of the “framework for the Licensing and Regulation of Payment Service banks (PSBs) by the CBN which stipulated the extension of Deposit Insurance Coverage to the depositors, the Corporation has designed an appropriate Differential Premium Assessment System (DPAS) Matrix for Premium computation/payment as well as set an Insurable Limit to the Depositors in the event of failure.