We are going to apply for a payment institution operating license only to act as an intermediary for bill payments. Under the Law, our company must have 1 million TL of paid-in capital, and under the Regulation it must keep 1 million TL of collateral with the CBRT in cash or government domestic debt securities. Must we have deposited this collateral when applying for the operating license?
No. When applying for the operating license, you must document that your company's paid-in capital, paid in cash and free of collusion, is 1 million TL; the collateral must be deposited with the CBRT if the Board grants the operating license.
The difference between capital and collateral
Capital is the company's own equity and is documented in the application. Collateral, on the other hand, is a guarantee held at the Central Bank after the license is granted, protecting users' claims.
Knowing that these two elements are separate matters for cash planning: the capital must be ready at the application stage, and additional funds must be set aside for the collateral after the license is granted.
Capital and collateral amounts may be updated over time; the current regulation should be checked before applying.
