Published and draft legislation - Peru

Financial inclusion: standards for overcoming geographical obstacles

Draft Regulation on branch offices, shared premises, ATMs and banking correspondant

This bill amends the “Regulation of the opening, conversion, transfer or closure of branches, use of shared premises, ATMs and correspondent cashiers”, enacted by the Peruvian Banking, Insurance & Pension Fund Supervisor, the Superintendencia de Banca, Seguros y Administradoras Privadas de Fondos de Pensiones, on 18th October 2013.

The purpose of this modification is to extend the existing supplementary channels for servicing the public, as well as to fine-tune the regulation referred to above. The main features introduced in the draft are as follows:

  • The Correspondent Cashier was already covered in the previous Regulation, which defined this as: service points in fixed or mobile establishments which operate through an intermediary representing the companies comprising the country’s financial system and electronic money institutions (EMIs). The draft regulation requires these companies to keep an up-to-date register of intermediary operators and correspondent cashiers with which they work. Similarly, they will be required to publish this information on their website, so that customers can see it.
  • The most interesting development is the creation of “establishments for basic transactions (EBT)”. These establishments may conduct the same transactions for which correspondent cashiers are authorised, but they will be operated directly by companies in the financial system or by EMIs. Cutting out intermediaries will mean a more straightforward and efficient financial service for their customers

The country’s geographical features, as well as the wide dispersal of its inhabitants, represent a major challenge for financial institutions which pretend to provide an appropriate and efficient service to the entire population.

That is why extending these supplementary financial channels for servicing consumers encourages access and financial inclusion for all customers who live far from the major population centres; in many cases they are the only way that these groups can have access to formal financial transactions.

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