Payment System Authorisation and Oversight

The Namibian Payment System Determination (PSD-1) regulates the operation of payment systems in the country, ensuring that all participants are authorized and comply with relevant laws and regulations.

Suspension, Revocation or Variation of Authorisation

In the event that a payment system operator fails to meet the required standards, the Bank may suspend, revoke or vary the conditions of their authorization. Before taking such action, the Bank will notify the payment system operator in writing, providing reasons for the proposed action.

• The payment system operator must respond in writing within 30 business days, outlining any grounds why the suspension, revocation or variation should not be made effective.
• The Bank will then consider the response and seek further clarification if necessary before making a final decision.

Reporting Requirements

Payment system operators are required to submit monthly statistics to the Bank using the Payment System Operator Returns provided by the Bank. These statistics must reach the Bank within 10 days of the start of the following month.

• The Bank reserves the right to inspect all records, data and other relevant information in the possession of payment system operators to ensure effective oversight.

Eligibility for Authorisation

Only authorized system participants may participate in payment, clearing or settlement systems. To be eligible, an individual must be a licensed banking institution or non-banking financial institution (NBFI).

Process for Authorization as a System Participant

Banking institutions and NBFIs seeking to become system participants must submit a letter of intent to the Bank, detailing their intention to engage with a payment system operator for authorisation.

• The Bank will assess the letter of intent and may issue a letter of no objection to engage the payment system operator.
• Once received, the banking institution or NBFI may formally engage with the payment system operator for authorization.

Application Process

A payment system operator must consider applications from banking institutions and NBFIs in line with its rules, access and participation criteria, the Act and this Determination. The decision of the payment system operator is subject to endorsement by the Bank.

• The Bank may supplement, modify or make further recommendations to the payment system operator’s decision regarding an application.

By implementing these measures, the Namibian Payment System Determination (PSD-1) aims to promote a safe, efficient and reliable payment system in the country.