In what is known as ‘Pass-Through Deposit Insurance scheme’, the Nigeria Deposit Insurance Corporation has made available an insurance guidelines on the mobile payment system.
According to a statement by the agency, the Pass-Through Deposit Insurance scheme is the protection provided by the NDIC to mobile money subscribers, whereby the corporation insures funds that are deposited by a mobile money operator in the DMBs.
Mobile Money is an innovation that came to be in vogue as the digital awareness grew in the country.
NDIC describe Mobile Money "as a convenient, safe and affordable way by which subscribers make instant transfer of funds and execute payments for goods and services from anywhere at any time without having a bank account".
The Pass-Through Deposit Insurance scheme was created in order to ensure the payment of insured sums to subscribers of MMOs in the event of failure of insured institutions where pool funds are maintained; enhancing confidence of subscribers and ensuring continuity of the MPS.