from Benjamin A Ameh, Lagos
Deposit insurance is vital to financial inclusion because the poor need assurance that their deposits are safe and available at all times they have need for them
The Nigeria Deposit Insurance Corporation (NDIC) has revealed its arrangement to extending deposit insurance coverage to mobile banking subscribers value between N200, 000 and N500,000.
Managing Director, NDIC, Umaru Ibrahim, stated this at a roundtable on mobile payment services in Nigeria held in Lagos.
Ibrahim, the move would further engender public confidence in the system thereby promoting financial stability.
He further pointed out that the framework for extending deposit insurance to individual customers of mobile payment services is being finalised.
The NDIC boss noted as one of the agent actively involved in promoting financial literacy, supporting agent banking and Islamic banking as strategies for attaining financial inclusion in the country in order to improve the economic well being of the people who have been excluded in the formal financial system,
“The NDIC as a deposit insurer provides a unique role of enhancing financial inclusion by encouraging mobile financial services. There is a link between deposit insurance system and financial inclusion.
However, the NDIC said in a situation where a bank fails, the insured mobile account could be transferred to another sound bank.
In the same vein, Ibrahim affirmed that a predominantly cash-based economy is not good for the system adding that the Corporation is supporting the cashless policy of the Central Bank of Nigeria.