Guidance Note to Micro Lenders and Directive to other Non-Bank Lenders on Early Settlement
The Non-Bank Lending Industry in Botswana is regulated by the Non-Bank Financial Institutions Regulatory Authority (“NBFIRA”) in accordance with the NBFIRA Act of 2023 (“the Act”). The Act provides for the Regulatory Authority’s powers and functions to regulate the non-bank financial institutions for the purposes of improving the fairness, efficiency and orderliness of the sector; the stability of the financial system; and for matters incidental thereto.
The Regulatory Authority is empowered by Section 53 of the NBFIRA Act, 2023, to issue interpretation guidance notes to non-bank financial institutions and Section 56(1)(f) of the same Act to give a non-bank financial institution a written direction on the manner in which the affairs of the non-bank financial institution may be conducted if it appears to the Regulatory Authority that the direction is necessary to protect the interests of clients of such non-bank financial institution and the public. In this regard, the Regulatory Authority hereby circulates a Guidance Note to the Micro Lenders and a Directive to other Non-Bank Lenders on early settlement (refer to Guidance Note NBFIRA/RS/LAD/GN01 and Directive NBFIRA/RS/LAD/DIR01 herein attached).
The Guidance Note and Directive are effective July 1, 2024.
Download 1: Early Settlement Guidance Note: Lending activities guidance note of NBFIRA for micro lenders
Oduetse A. Motshidisi
CHIEF EXECUTIVE OFFICER
