This Guideline provides a framework for the conduct of agent banking business. It ensures that agent banks offer banking services in a cost effective manner, outline their activities, and provide a set of minimum standards of data, network security, customer protection and risk management.
Before seeking the Central Bank’s approval, an institution shall, make sure it has an existing well established commercial activity in operation for at least eighteen months, not classified as a deficient, doubtful or non-performing borrower, and that possesses appropriate physical infrastructure and human resources to be able to provide the services. Prior to engaging as an agent, an institution shall assess the moral, business and professional suitability of the sole proprietor or partners of an entity proposed to be appointed as an agent. Part IV details the permissible and prohibited activities of agents.
The institution shall be responsible for developing and implementing agent banking strategy and for establishing an effective management oversight over agent banking services.