Regulatory Alerts2025-05-23
Oversight of the National Payment System: Licensing and Authorization of Payment Instrument Issuer (Amendment) Directive No. ONPS/10/2025
The National Bank of Ethiopia issued Directive No. ONPS/10/2025 to amend the Licensing and Authorization of Payment Instrument Issuer framework, introducing stricter capital requirements, shareholding caps, and interoperability mandates for the digital payment ecosystem. The directive establishes a Birr 100 million minimum paid-up capital, limits non-strategic shareholding to 40 percent with a 60 percent aggregate cap, and mandates two-factor authentication for transactions exceeding Birr 5,000. Additionally, it defines daily balance and transaction limits for Level 2 accounts, requires participation in the national instant payment system, and enforces biannual security audits to strengthen consumer protection and financial inclusion.
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