The National Bank of Ethiopia has issued the directive allowing banks and micro-finance institutions to offer transaction based mobile and agent banking services. The directive has come into effect as of the 1st of January.

Mobile banking services include deposits and withdrawals through electronic means as well as facilitating payment and money transfer.

The directive has been anticipated by banks such as Berhan, United and Zemen who have had acquired the capacity to offer e-services but have been unable to do so because awaiting the proper regulatory framework from the central bank.

The banks had been offering non-transaction based services to clients so far including viewing balance, mini-statements, book transfers, and notifications alerts through their phones.

The draft directive stipulates that agents that provide mobile banking services on behalf of mobile banking institutions will offer services including  opening regular savings accounts for clients and performing ‘cash in cash out’ payments and transfer of funds, on behalf of the bank.

Clients will have mobile accounts to which money is debited or credited as they may transactions explains the new regulation.

The maximum balance that should be available in a mobile account, of an individual, is limited to 25,000 Br, and daily mobile banking transactions shall not exceed 6,000 Br, according to the directive.

Source: Fortune