Kathmandu: Beema Samiti, the regulatory authority for insurance companies, is preparing to issue agency license to the payment service providers(PSP). The new directive prepared by Beema Samiti mentions that payment service providers (digital wallet) can obtain agency license from Samiti.
Though Samiti’s move has dragged criticism from different corners. Nepal Rastra Bank(NRB) is the regulatory and licensing authority for the PSP. And as per the rules and regulations of NRB, payment service providers are not allowed to pert any other task except payment service.
Mr. Surya Prasad Silwal,the chairman of Samiti, says that the guideline has been prepared to issue agency license to payment service providers with the objective of expanding mass access to insurance. He said, “We have prepared a directives. Now the board is will approve it for implementation. ‘
Experts say that though the intention behind issuing a license to PSP is good,the process is not. Samiti must have consulted with NRB before preparing the directives since without green signal from NRB, the directives is impossible to implement among the payment networks.
Dev Kumar Dhakal, Executive Director and Spokesperson of Nepal Rastra Bank, informed that the PSPs are not allowed to do any work other than payment as per the prevailing legal provisions.
PSPs provide direct service to customers in electronic payment related transactions. These institutions conduct payment transactions through electronic means such as payment of goods, services, assets or other obligations, transfer of money at home and abroad, etc.
Dhakal argues that the job of insurance agents is of different nature and will not be available to such organizations. Dhakal said that PSPs can provide premium collection service to the insurance company but they cannot work as agents.
As per the new directives,once the PSPs obtain institutional license from Samiti, they will enter into agreements with insurance companies to act as agents. The agreement will be made only on the basis of the criteria specified by the Samiti. Executive Director of the Samiti Rajuraman Poudel shared that the licensed organizations will get commission as per the rules. According to him, PSP will not get incentives.