The National Bank of Georgia to Open Settlement Accounts for Payment Service Providers to Promote Competition and Increase Efficiency in the Payment Market
By the decision of the Parliament of Georgia, in order to promote competition and increase efficiency in the country's payment market, the National Bank of Georgia has been granted the authority to open settlement accounts for registered payment service providers (PSPs) that are participants in significant systems.
It is noteworthy that access to the National Bank of Georgia's new payment infrastructure will be available to such providers even without an account; however, the opportunity to open an account will bring them significant additional benefits.
Significantly, holding a settlement account will enable providers to carry out settlements without the intermediation of commercial banks. This reduces dependence on commercial banks, as well as costs and operational constraints. As a result, payment transactions for customers of registered payment service providers will be executed faster and more flexibly.
This change represents a significant step forward in improving the competitive environment, which is a driving factor for the development of innovative products tailored to customer needs within the Georgian financial sector.
