The Central Bank of Egypt’s (CBE) Board of Directors has adopted a new set of open banking regulations governing the instant payments network’s (IPN) services in Egypt.

This is part of the country’s National Payments Council’s policy to assist the digital economy’s transition and provide new services that would make financial transactions easier for citizens.

The IPN links different banks and financial services providers, allowing payments sent between accounts at different banks to be credited and debited instantly. It is one of the most important means to provide access to banking services efficiently and effectively, thus enhancing financial inclusion.

“The IPN regulations adopted by the CBE represent an important step on the path to providing the appropriate infrastructure for payment services and systems nationwide. It will allow approved mobile phone applications to provide payment services and instant transfers, in a way that supports the improvement of the financial services provided, and contributes to creating new competitive opportunities that will attract new customers to the banking sector and provide banking services in an advanced manner, while ensuring the complete safety of all transactions,” Amany Shams Eldin, First Sub-Governor Banking Operations, said.

The new regulation is the first of its type to apply the requirements of open banking transactions to real-time bank account management via application programming interfaces (APIs).

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The new network, which is slated to go live in the current quarter of this year, will allow customers to send money instantly using their phone number or a real-time payment address. Customers will also be able to monitor all of their bank accounts and make transfers to any bank using a single application, allowing for the provision of new financial services that will help to reinvigorate the national economy and reduce reliance on cash.

What Do The New Regulations Provide?

• According to the new regulations, a bank seeking a license to participate in the instant payments network must apply to the Central Bank of Egypt for the appropriate licenses and take into account the following: Follow the Central Bank of Egypt’s guidelines, as well as any modifications; Follow the rules set forth by the immediate payment network, as well as any modifications.’

• Under the regulations, the issuing bank is mainly responsible for approving any transactions of its customers dealing on the instant payments network, whether through the applications of payment service providers or through the bank’s electronic channels.

• If the customer utilizes the approved service providers’ applications, the issuing bank is required to set appropriate restrictions for the values and number of monthly operations in accordance with the bank’s risk management vision, and not to exceed the following limits: Maximum transaction value: 50,000 Egyptian pounds (fifty thousand); Maximum Daily Transaction Value: 60,000 Egyptian pounds (sixty thousand); Maximum Monthly Transaction Value: 200,000 Egyptian pounds (two hundred thousand).

• Based on the bank’s license as a bank offering payment services through electronic channels, the bank can extend these restrictions if it uses additional means of authentication through its electronic channels (Pre-authorized PSP Bank).

• Find out more about the new laws here. 

Open Banking Regulations Egypt Open Banking Regulations Egypt

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
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