BoG extends deadline for Mobile Money operators to meet minimum capital requirement

The Bank of Ghana (BoG) has extended the date for Mobile Money operators and financial technology firms to meet the new minimum capital requirement from June to December 2020.

This forms part of moves by the Central Bank to ensure that all operators meet the new requirement before the deadline. 

Aside from the minimum requirement review, the BoG also agreed to allow 50 per cent of assets by the operators as part of the capital requirements whilst the other 50 per cent of the paid-up capital will be held at the Central bank.

The requirement forms part of the regulation process as prescribed by the Payments and Settlements Act.

Speaking at the Mobile Technology for Development Conference in Accra, Head of Payment Systems at the Bank of Ghana, Dr Settor Amediku said “All Fintechs are to use 50 per cent of verifiable assets as part of the paid-up capital for the new capital requirements and the 50 per cent will be held at the Bank of Ghana.

“In addition, the governance framework and infrastructure requirement deadline have also been extended to December 2020,” he said.

Dr Amediku spoke on behalf of the Governor of the Bank of Ghana, Dr Ernest Addison.

Speaking at the event, the Vice President Dr Mahamudu Bawumia called for support to the yet to be introduced Universal QR code which will make payment for services easier.

Dr Bawumia said, “We are going ahead with the innovation where the Universal code will become very important for the financial inclusion drive.

“Government needs your collaboration because when we launch this product in about two weeks, Ghana will be the first country in Africa to have such an innovative product with operability. We’re bringing in the standards to make it interoperable”.

The Bank of Ghana last year announced June 2020 as the deadline for all mobile money operators including telecom firms and banks engaged in mobile money to meet a new minimum requirement or lose their operating license.

The two-day conference organised by the Ghana Chamber of Telecoms brought together all telecom sector players to deliberate on ways of advancing the digital drive.