TRYNESS TEMBO, Lusaka
THE Bank of Zambia (BoZ) is reviewing directives on electronic money issuance to keep them up-to-date with the latest developments in the sub-sector.
BoZ assistant director for banking currency and payments Mirriam Kamuhuza said the directives on electronic money issuance were last reviewed in 2015 and from that time there have been several developments.
In an interview last week, Ms Kamuhuza said once the directives are reviewed they will address risks involved during transaction and give confidence to consumers to use electronic payments.
“We are reviewing the guidelines for electronic money, which were last revised in 2015 where we looked at Zambia’s environment and how the service can be offered and the risks which come with the product. These directives govern electronic payment or mobile money transaction.
“This year, we want to review the directives so that we can further address the risks associated to electronic payments. We want to minimise the risks so that people can safely use them and have confidence. That is want we want to achieve when we review the directives,” she said.
Ms Kamuhuza also said the central bank licences electronic service providers and also gives them rules which they are expected to abide by and are monitored to ensure that they follow them.
She said BoZ also wants to create an enabling environment to help service providers come up with more innovations in the subsector but at the same time they must be efficient and safe.
Ms Kamuhuza said the objective of financial inclusion, is aimed at bringing the unbanked and under-served population into the formal financial system.
She said exploiting technological advancements, which has created opportunities for expanding access and usage of financial services.
She said increased financial inclusion is expected to result in improved effectiveness of monetary policy and economic growth in the long run.
The central bank is working with various stakeholders such as Pensions Fund Authority and Ministry of Finance among others to increase financial inclusion.
“Previously, they [institutions] used to work separately, which made it difficult to increase financial inclusion but as a unit, stakeholders will be working towards one goal,” Ms Kamuhuza said.