New protocol to facilitate the issuance of payment instruments for consumer credit companies
The Central Bank of Egypt (CBE) has signed a Memorandum of Cooperation with the Financial Regulatory Authority (FRA) to facilitate the issuance of licenses and approvals for payment instruments for consumer credit or other payment methods approved by the EPC.
This is part of the strategy of the National Payments Council headed by President Abdel Fattah Al-Sisi, and the implementation of the Egyptian government’s strategy to develop and automate such procedures to facilitate access. citizens to various financial services.
The cooperation protocol was signed by Ramy Aboul Naga, deputy governor of the CBE, and Islam Azzam, vice-president of the FRA.
The agreement aims to establish a mechanism to facilitate the executive procedures for obtaining the necessary licenses and approvals from the EPC, which are established under the provisions of the law regulating the activity of consumer finance published. by Law No.18 of 2020, with regard to commercial payment cards or other means of payment approved by the Central Bank.
This protocol benefits all consumer credit companies that issue electronic payment tools to customers, as they will be licensed on the basis of joint coordination between the Central Bank of Egypt and the Financial Regulatory Authority, where businesses will be able to use payment cards to disburse the value of consumer loan to citizens electronically, which will positively impact the ease of service provision to citizens and merchants doing business with this type of business.
The 3-year protocol is part of the government’s guidelines for transforming itself into a society less dependent on banknotes by offering electronic payment and strengthening financial inclusion.