Guidelines for Rural Banking License

This paper examines the guidelines for rural banking license in Ghana. It describes the eligibility criteria for applying for license and discusses the permissible banking business activities, including:

• Acceptance of deposits from public;
• Lending;
• Inward money transmission services.

The paper highlights that every application should be accompanied by:

• Details of persons holding significant shareholding;
• Particulars of directors and key personnel management of proposed venture;
• Statutory declaration note by the directors;
• Feasibility report including business plans and financial projections;
• Capital and sources of funds.

The paper describes the minimum paid up capital required by individuals and corporate bodies for provisional approval.

It elucidates the activities permissible by the Central bank on provisional approval including:

• Acquisition and refurbishment of premises for banking business;
• Acquisition and other logistics to support bank operations;
• Submission of:
  • Operational and policy manuals;
  • Audited pre operating accounts;
  • Operational budget for first year.
• Recruitment and induction of staff.

The paper also touches upon the following:

• The conditions specified by Bank of Ghana for issuing final approval and license;
• The conditions for refusal of license by the Central bank;
• The time limit for decision on the application;
• The amount to be paid as processing and licensing fees.