The Board of Directors of the Central Bank of Egypt (CBE) has approved the regulations governing the services of the instant payments network (IPN) inside Egypt.
This comes within the framework of implementing the strategy of the National Payments Council headed by President Abdel Fattah Al-Sisi to support the transformation of the digital economy and provide new services that will facilitate citizens in carrying out financial transactions.
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.
Rami Abulnaga, Deputy Governor of the Central Bank, said that the regulations that have been adopted come within the framework of the Central Bank of Egypt’s keenness to keep pace with the latest developments in digital payment services globally, to facilitate procedures for citizens and encourage them to continue using electronic payment methods and channels. Through the new network, customers will be able to complete transfers within a few seconds, on weekdays and during official holidays, through various electronic payment tools issued by Egyptian banks.
Amany Shams Eldin, First Sub-Governor Banking Operations, said: “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.
For his part, Ehab Nasr, Assistant Sub-Governor Payment Systems and Services, said that the new regulations are a qualitative leap in the banking rules for electronic transactions, as it is the first application of its kind for the rules of open banking transactions through application programming interfaces (APIs) for managing bank accounts in real-time.
The new network, which is expected to be launched in the current quarter of this year, will allow instant transfer through a mobile phone number, or a real-time payment address for the customer. It will also enable customers to manage all their bank accounts and complete transfers with any bank, through one application, which will contribute to the provision of new financial services that will revitalize the national economy and reduce dependence on the use of cash.
The issuance of the rules regulating instant payments network services comes within the framework of the Central Bank of Egypt’s plan to strengthen the financial infrastructure of the banking sector and contribute to the transition to a cashless society.