CBE, FRA ink deal to facilitate payment for consumer finance companies

The three-year protocol benefits all consumer finance companies that issue electronic payment tools t

  
People and vehicles are seen in a traffic jam in front of the old Central Bank of Egypt's headquarters in downtown Cairo, Egypt July 25, 2017. Image used for illustrative purpose.

People and vehicles are seen in a traffic jam in front of the old Central Bank of Egypt's headquarters in downtown Cairo, Egypt July 25, 2017. Image used for illustrative purpose.

REUTERS/Amr Abdallah Dalsh

ArabFinance: The Central Bank of Egypt (CBE) and the Financial Regulatory Authority (FRA) signed a cooperation protocol to facilitate the issuance of licenses and approvals with regard to payment instruments for consumer finance or other payment methods approved by CBE, a recent statement said.

The deal was signed by Ramy Aboul Naga, Deputy Governor of CBE, and Islam Azzam, Vice-President of FRA.

The deal comes within the framework of the strategy of the National Payments Council headed by President Abdel Fattah el-Sisi, and in the implementation of the Egyptian government’s strategy to develop and automate such procedures to facilitate citizens’ access to various financial services.

The newly signed protocol comes with the aim of setting up a mechanism to facilitate the executive procedures for obtaining the necessary licenses and approvals from CBE.

The three-year protocol benefits all consumer finance companies that issue electronic payment tools to customers, as they will be licensed based on joint coordination between the CBE and the FRA, where companies will be able to use payment cards to disburse the value of the consumer loan to citizens electronically. This will be reflected positively on the ease of providing service to citizens and merchants dealing with this type of company.

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