Financial Supervision Authority issues payment authority activity license
Financial Supervision Authority has issued a paying authority activity license to Rural Development Credit Cooperative.
The activity license issued to the Rural Development Credit Cooperative allows it to provide the following payment services: depositing of cash to a payment account, withdrawal of cash from a payment account, performing payment transactions, including transferring money to a payment account opened with a payment service provider and execution of a payment transaction if the funds have been granted as a loan to a client of the paying authority; execution of payment transactions if the payer’s consent for executing a payment is granted by way of the operator of a telecommunication, digital or information technology network who acts solely as an intermediary between the paying authority’s customers and the provider of goods or services.
The Financial Supervision Authority has previously granted the Rural Development Credit Cooperative a permit for the exception set forth in the Paying Authorities and E-Money Institutions Act, which to this point allowed the savings and loan association to provide money transfer service with volume restrictions.
Under the Paying Authorities and E-Money Institutions Act, which entered into force in January 2010, companies that provide payment service must apply for a paying authority activity license from the Financial Supervision Authority. The activity license must be applied for regardless of whether the provision of payment services is the primary or ancillary area of activity.