The National Bank of Ethiopia (NBE) has officially announced an extension for the mandatory linking of bank accounts with the Fayda national digital identity (ID) system. This decision follows the original deadline of March 30, 2018 (Ethiopian Calendar), which has now been pushed back to accommodate more citizens and resolve technical hurdles.
In a statement provided to Tikvah Ethiopia, the central bank confirmed that the extension was granted as a one-time measure. The NBE cited two primary reasons for the delay: the current registration numbers have not yet reached the desired targets, and several commercial banks have encountered significant system integration challenges that slowed down the process.
The Fayda ID is a cornerstone of Ethiopia's digital transformation strategy. By assigning a unique biometric identity to every resident, the government aims to streamline financial services, enhance security, and improve the accuracy of 'Know Your Customer' (KYC) protocols within the banking sector. Once fully implemented, the digital ID will be a mandatory requirement for maintaining an active bank account in the country.
Financial experts suggest that the extension will provide a necessary window for banks to upgrade their digital infrastructure and for the National ID Program (NIDP) to expand its registration reach. The National Bank of Ethiopia has urged the public to take advantage of this additional time to ensure their accounts remain compliant and to avoid potential service disruptions in the future.
Source: Telegram / tikvahethiopia