The Bank of Ghana has put together a Payment Services Regulation document, which has been approved by management and is to be passed into law by parliament with the aim of regulating all e-transactions and e-payments.
The purpose of the Regulation is to amend and consolidate guidelines relating to electronic money operations and to regulate institutions which issue electronic money and provide payment services.
The Regulation provides rules for issuers of electronic money and payment service providers.
It will apply to banks, specialised deposit-taking institutions, affiliates of banks, and financial holding companies; pre-paid cards to the extent that the value stored on such cards falls under the definition of electronic money; electronic commerce platforms and aggregators; payment instruments; payment systems; electronic transmission of payment instruments as well as agents of banks, specialised deposit-taking institutions, and dedicated electronic money issuers.
Currently, there are no specific regulations with respect to issuers of electronic money and payment services passed by parliament and this regulation is to reduce barriers to entry, increase competition in the electronic money business space, and reflect technological changes as well as promote innovation in the design of new secure electronic money products and payment services.
The regulation is expected to also open up the electronic money space to engender financial inclusion and help to reduce poverty level.
According to the central bank, the regulation will, therefore, streamline and strengthen licensing procedures, governance arrangements, oversight, consumer protection and anti-money laundering procedures.
In addition, the regulation is being issued as part of Bank of Ghana’s broader strategy to “create an enabling regulatory environment for convenient, efficient, and safe retail payment and fund transfer mechanisms”.
It is also to promote the availability and acceptance of electronic money and hybrid of payment services as retail payment medium with the potential to specify necessary safeguards and controls to mitigate the risks associated with electronic money business and other payment services.
The central bank said the proposals in the regulation may be modified in light of comments received form the general public. Attached above is a PDF file of the proposed Payment Services Regulation.
Source: Ghana/AccraFM.com
