Financial Sector

MMA announces revisions to the Regulations on Payment Services

MMA said the changes are intended to ensure payment service providers have sufficient financial capacity to absorb losses, manage risks and continue providing payment services.

SunOnline International

SunOnline International

The Maldives Monetary Authority (MMA) has announced amendments to the Payment Service Regulations, which have been published in the Gazette following amendments to the Payment System Act.

The changes published are as follows:

  • The minimum unimpaired capital requirement for electronic money issuance has increased from MVR 500,000 to MVR 2 million. 
  • For payment acquiring services and remittance services, the minimum capital requirement has increased from MVR 20,000 to MVR 2 million. 
  • Payment initiation service providers and account information service providers will each be required to maintain a minimum unimpaired capital of MVR 1 million, up from MVR 10,000.
  • The security deposit for electronic money issuance has increased from MVR 250,000 to MVR 2 million, while the requirement for payment acquiring and remittance services has risen from MVR 100,000 to MVR 2 million.

In addition to this, existing licensed payment service providers have been given 180 days from the date the regulations come into force to meet the new capital requirements. The regulations also increase the security deposit payment service providers are required to place with the MMA.

Payment initiation and account information service providers, which previously did not have a security deposit requirement, will each be required to deposit MVR 1 million with the MMA.

The revised regulations also introduce requirements relating to the settlement of payments. Banks or financial institutions acting as intermediaries in transactions must ensure that funds are credited to the beneficiary’s bank account in the Maldives within two business days.

MMA said the changes are intended to ensure payment service providers have sufficient financial capacity to absorb losses, manage risks and continue providing payment services.

The revisions form part of changes to the regulatory framework governing payment services and the operation of payment service providers in the Maldives.

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