Regulatory Alerts2018-11-30 | Banking Act Directions No. 10 of 2018Amendments to Directions on Appointment of Agents of Licensed Banks
The Central Bank of Sri Lanka issued Banking Act Directions No. 10 of 2018 to replace Direction 6 governing licensed bank agents, restricting them to eight specified services including deposits, loan and credit card repayments, utility payments, balance inquiries, internal transfers, and other approved activities. The amendment explicitly classifies third-party cash delivery as an agent activity, mandates comprehensive insurance for the entire collection and storage process, and exempts it from previous restrictions. Additionally, licensed bank agents are now permitted to disburse inward remittances alongside their core banking functions.
- Permitted Agent Banking Business 30 November 2018 MONETARY BOARI) CENTRAL BANK OF SRI LAI{KA BANKING ACT DIRECTIONS No.10 of2018 AMENDMENTS TO DIRECTIONS ON APPOINTMENT OF AGENTS OF LICENSED BANKS The following new Direction shall replace Direction 6 of the Banking Act Directions No. 02 of 2018 on appointment of agents of licensed banks dated 24May 2018. 6.), The agent shall provide the following banking products/services only to the existing customers of the licensed bank: (i) deposit acceptance; (ii) deposit withdrawal; (iii) receiving loan repayments; (iv) receiving credit card payments; (v) facilitating utility bill payments; (vi) account balance request; (vii) fund transfer within the same licensed bank; and (viii) any other activity as approved by CBSL. Cash delivery activities handled by a third party on behalf of the licensed bank where such third party meets the customers of the licensed bank to collect or deliver cash shall be treated under Direction 6.1(viii). Such activities shall be covered under a comprehensive insurance policy and licensed bank shall be able to claim insurance on any risk covering the entire process of cash collection/delivery and storage at third party vault. Direction 9.1(vii) does not apply for such activities. The agent may also provide the service of disbursement of inward remittances. ,L"="" N ^.7 Dr. Indrajit Coomaraswamy Chairman of the Monetary Board and Governor of the Central Bank of Sri Lanka 6.2 6.3
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