BOZ TO REVISE ELECTRONIC PAYMENT REGULATIONS

Tue, 29 Aug 2017 12:49:06 +0000

By Buumba Chimbulu

DIRECTIVES on electronic money issuance aimed at creating an enabling and safe environment for automated payment systems are this year expected to be revised by the Bank of Zambia (BoZ).

The central bank in 2015 issued directives on electronic money issuance under Government Gazette notice No. 416 of 2015 as provided for in the National Payments Systems Directives Act No. 1 of 2007 with the aim of maintaining an efficient and safe payment system.

According to BoZ assistant director payment systems, Miriam Kamuhuza, the revision was also part of the central bank’s measure of creating an enabling environment for innovation in the banking sector.

Ms. Kamuhuza explained that the main aim of reviewing the directives was to ensure that they were up to date and safe for people to use electronic payment systems confidently.

“In 2015, we looked at Zambia’s environment and how the digital financial services were being offered; we looked at the risks that may come with these services, so we came up with the directives to address these risks,” she said.

She said in an interview in Lusaka on the side-lines of the 4th Mobile Money and Payment Expo that the revision would help service providers to come up with innovations, but at the same time ensuring that there was efficiency and safety in the industry.

Ms. Kamuhuza explained that the directives were a way of handling risk management for both BoZ and service providers.

“Our aim is to minimise or reduce the risks so that people can be able to safely use these products and be confident that there money is safe. So this year we thought we should review them create an enabling environment that will help innovation come up,” she said.

Meanwhile, Ms. Kamuhuza said the implementation of National Financial Switch (NFS) would help to facilitate interoperability.

She said operators and commercial banks were currently in the process of implementing the NFS.

Ms. Kamuhuza said financial service providers should actively participate in the implementation of the NFS as it would be critical platform that would facilitate interoperability.

“We hope phase one of the NFS will be implemented this year or early this year,” she said.