Central Bank of Bahrain launches consultation on a new Payment Service Requirements Module aligned with PSD2 and PSD3

The Central Bank of Bahrain (CBB) has opened a consultation on a proposed Payment Service Requirements Module (Module PS) that would introduce a new regulatory framework for payment service providers, aligned with the European Union’s Payment Services Directive 2 (PSD2) and the proposed Payment Services Directive 3 (PSD3). The proposal would bring existing licensees for Money Changers, Payment Service Providers, Account Information Services and Payment Initiation Services under updated standards for governance, security, customer protection and operational requirements. The draft module sets out enhancements covering the definition and scope of payment services, digital token-based payments, strong customer authentication, safeguarding of customer funds, transparency and information requirements, inclusion of open banking services within payment services, and liability for errors, fraud and complaints. It also proposes changes to e-money wallet limits, including a BD 10,000 limit for individual wallets and removal of wallet limits for corporates and legal persons, and seeks views on a shift to risk-based capital (calculated based on total operating expenses under section PS-1.2), alongside additional standards to aid fraud prevention. Feedback, including nil responses and answers to the consultation questions, is requested by 5 March 2026, with the proposed module published on the CBB website under the “Open Consultations” section.