The Central Bank of Uganda in partnership with the East African Community has on October 1st reviewed the National Payment Systems Bill at a stake holders workshop held at Golf Course Hotel Kampala.
The National Payment Systems bill is aimed at regulating the payment systems, providing safety and efficiency of the payment systems, providing the function of the Central Bank in relation to payment systems and to provide for the establishment of the national payment systems council among others.
The National Payments System Bill is being accelerated to enable efficient regulation of digital payments providers like mobile money, cheques and many more.
While opening the Workshop Mr. Elliot Mwebya, the Acting Deputy Governor Bank of Uganda said that the payment systems are very crucial but has to be backed up by strong laws and regulations.
“The payment systems are a vital part of the economic and financial infrastructure. The law is therefore intended to provide an overall framework for ensuring safety and efficiency of payment systems, before us today is the first draft of the NPS bill 2018 which has been circulated to the various stakeholders, many of whom have submitted their comments. It is therefore a god opportunity for us to go through the draft bill for clarification and additional comments,” said Mwebya.
This law seems to have worked in several countries as it has already been effected at regional level where the East African Payment System (EAPS) has been implemented so as to facilitate cross border payments within the East African region.
The National Payment Systems bill also seeks for the establishment of the National Payment Systems Council which shall be an advisory body to the Central Bank on payment systems.
Mr. Mwebya revealed that the process did not just start this year as Cabinet in December 2017 approved the Policy and Principles for the National Payment Systems Bill which covers the regulation of payment systems, payment service providers and payment instruments and more. It was approved by cabinet.
“Following approval by Cabinet, the Ministry of Finance Planning and Economic Development requested the Office of the Attorney General to draft the National payment system bill,” revealed Mwebya.
Mwebya also added that there is need to recognize the benefits of bill and stake holders paying much attention to the development of payment systems.
“Recognizing the benefits accruing from the recent technological developments in the financial sector, and being mindful of the need not to stifle innovations, Bank of Uganda put in place interim oversight measures to promote the development of payment systems in Uganda.”
There have been challenges with the e-payment systems ranging from Money laundering and some big organizations especially from the western World financing terror groups.
The bill is now expected to be going to the Attorney General, cabinet and to Parliament for it to be finally passed as a law.