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National Payment Systems Bill to curb abuse

National Payment Systems Bill to curb abuse
By LILLIAN MUSENGE

GOVERNMENT is confident that the proposed National Payment Systems Bill would curb the abuse of payment systems among players when enacted. Minister of Finance and National Planning, Ng'andu Magande, told Parliament on Wednesday that to induce adherence to the prescribed conduct and compliance by participants, the bill had provided for various penalties and imprisonment terms.

Mr Magande said this when the bill came up for second reading in Parliament. The bill has provided for management, administration, operation, supervision and regulation of payment, clearing and settlement systems. The bill has further provided for the empowerment of the Bank of Zambia (BOZ) so that it could develop and implement payment, clearing and settlement systems policy to promote efficiency, stability and safety of the Zambian financial system.

It also intends to give legal basis upon which the central bank could formulate and implement policies that would ensure the stability and safety of the payment systems to contribute to a balanced macroeconomic growth and development. Further, the bill when enacted would provide an anchor upon which the Bank of Zambia could oversee the payment systems with respect to their management, administration and operation and comply with international standards and best practice. "It’s equally important that the Bank of Zambia is clearly empowered with administrative authority of the bill.

The approach taken on allowing detailed operational issues to be dealt with by rules, guidelines and directives allows for flexibility and is important for keeping up with rapid developments and is necessary for the proper functioning of the financial system as whole," Mr Magande said. He explained that the central bank would have powers to recommend to the minister on the introduction of certain regulations and further prescribe rules or other regulatory guidelines or directives as required. "Mr Speaker, the proposed legislation will apply to persons operating or participating in a payment system business such as clearing houses and money transmission services. The bill has provided for both normal operating conditions as well as when something goes wrong during the process," he said.

Chairperson of the Parliamentary Committee on Economic Affairs and Labour, Given Lubinda, said stakeholders had already supported the bill. Mr Lubinda, who is also Kabwata MP for the Patriotic Front, however, said the committee's concern was that for any payment system to operate efficiently and effectively, its participants needed to understand and appreciate it. "Mr Speaker, it is the recommendation of your committee that major participants in the National Payment Systems including the government, Bank of Zambia, commercial banks, the media and others undertake extensive awareness creation programmes," he said.

Bweengwa MP Highvie Hamududu (UPND), said the bill was timely and relevant especially with the introduction of the electronic banking. Mr Hamududu said the legislation would ensure security for customers' money, which would easily be recovered if lost. Kalomo MP, Request Muntanga, (UPND), said the legislation should ensure that unnecessary charges were not introduced on the customers. Bahati MP, Besa Chimbaka (PF), said the bill would better Bank of Zambia operations and foster development.

Labels: BANKING, GOVERNANCE, MAGANDE

posted by MrK @ 12:01 AM