Ethiopia: National Bank issued rule on licensing and authorisation of payment instrument issuers (Directive No. ONPS/01/2020)

On 1 April 2020, the National Bank of Ethiopia (NBE) issued the Licensing and Authorisation of Payment Instrument Issuers Directive No. ONPS/01/2020, which came into force with a grace period. Entities licensed by the NBE to issue payment instruments were required to comply with its provisions within six months of its effective date. This directive repealed the Regulation of Mobile and Agent Banking Services Directive No. FIS/01/2012 and replaced it. The directive established regulatory requirements for entities issuing electronic money, including licensing criteria, account management systems, transaction security measures, and customer due diligence. It required ongoing oversight, regular reporting, and compliance with interoperability standards, while also specifying conditions for limited-use payment instruments and penalties for non-compliance.