BoT's mobile money regulatory system in place since November

A new comprehensive regulatory framework for all payment system across the country including mobile money transfer services has been put in place by Bank of Tanzania.

Senior Legal Counsel at BoT, George Sije said last weekend during a Mobile Money and Digital Payments conference that the system which is backed up by an Act of parliament became effective last November.

 

“The new system is backed up by National Payment System Act 2015 which officially started operating in November this year,” Sije said

He said the main objectives of the system is to maintain safety and efficiency of the national payment, clearing and settlement systems, maintain reliability, integrity and safeguarding transmission channel as well as promote fair access.

 

Elaborating on mobile financial services, Sije said right now the system is more stable because of the comprehensive regulatory framework.“Right now everything is operating under the law for both consumers and investors,” he said noting that as BoT they are doing everything to safeguard security and smooth running of the money transfer system.

According to a FinScope survey conducted in 2009, only 12 percent of the population has access to formal financial services while 62 percent use mobile money services.

 

But another FinScope survey of 2013, it indicated that 58 percent had access to formal financial services mostly through mobile phones while 14 percent have access to formal bank services.

 

The FinScope survey which is done under Financial Deepening Trust Project is taking part in several African countries including Tanzania and has transformed people’s lives in accessing financial services and bring positive change.

 

Mobile financial services have assisted in weaning people out of poverty by speeding up their access to formal financial services.

 

In order to safeguard the Protection of Consumers Fund, BoT has signed memorandum of understanding with Tanzania Communication Regulatory Authority to ensure that consumer funds are secured against risks associated with mobile money transactions.

 

Currently Vodacom Tanzania’s M-Pesa, Airtel Tanzania’s Airtel Money, MIC Tanzania’s TigoPesa and Zantel’s EzyPesa are the main mobile financial service in the country.

 

The Central Bank targets to have 80 percent of the population access formal financial services by end 2016.

 

SOURCE: THE GUARDIAN