Payment Systems Act drafting at advanced stage

The Reserve Bank of Malawi (RBM) says drafting of complementary regulations and directives to operationalise the Payment Systems Act that was passed during the last sitting of Parliament is at an advanced stage.

RBM in its December 2016 National Payment System report said the regulations as well as the directives will guide stakeholder market conduct on matters of licensing, regulation and efficient supervision of financial infrastructure in the country.

Meanwhile, RBM in collaboration with key stakeholders are implementing measures to ensure sustainable adoption of electronic payments by the rural masses in the country.

Speaking earlier with Business News, RBM spokesperson Mbane Ngwira said it is certain that the development of regulations and directives will improve the efficiency and safety of flow of funds in the economy.

He said the Act will support RBM financial stability functions. He added that the Act also aims to provide clarity and transparency to oversight and regulatory arrangements for payment instruments in Malawi including automated high-value transfer systems which are critical to the economy.

“Up to now, RBM had no specific legislation on automated payments systems and instruments, yet payments are being automated and operated by various players, not just the traditional financial institutions.

“The Act will, therefore, strengthen legal and regulatory framework for automated payments, clearing and settlement systems and instruments,” he said.

Ngwira added that the Act will also bring in investor confidence as it provides clarity and certainty of regulatory framework on usage, rights and obligations of both end-users and market players.

On regional level, he said the Act is a fulfilment of Sadc requirements for harmonisation of regional payments, clearing and settlement systems.

According to the central bank, the country’s key financial infrastructure remained stable and allowed smooth flow of financial transactions in various payment streams during the period under review.

For instance, in November, 2016, the total daily average volume of transactions registered a net overall increase of 2.5 percent compared to the previous month. n