The Payment Systems and Settlement bill, which the Bank of Ghana expected to be passed in June this year, has been finally passed by the Parliament of Ghana. The bill had been in its latter phase for two years in parliament and has now been passed into law.
The Payment Systems and Settlement bill is going help in the regulations of electronic payments, and help strengthen the previous financial regulations in the country.
It is going to merge up previous regulations that had to do with electronic money operations and payment systems.
The bill now law will control financial institutions (not limited to banks only) which offer electronic payment services in the country. Such organisations will be given the support to establish and operate their services in Ghana.
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The preceding laws before the Payment Systems and Settlements bill weren’t able to support and check newer payment services, so there had to be a change. Those services the previous laws couldn’t check include credit cards, prepaid cards, electronic money, and electronic payments platforms and their instruments.
As the Payment Systems and Settlement bill turns law, organisations that provide mobile money services will have to set up subsidiaries, plus go for approval to operate from the Bank of Ghana.
Also, the Payment Systems and Settlement bill will help banks in the country issue electronic money to their customers. Needless to say, this, as well, will be guided by the regulations in the Payment Systems law.
Cashless society on the way
This new law is in line with the government and the Bank of Ghana’s agenda for a cashless Ghanaian society.
As TechNova reports, the Bank of Ghana has already set 2024 as a deadline for Ghana to progress a society where electronic money is mainly used in financial transactions.
The Ghanaian government is also doing its best to support this agenda. It has made provisions to “start accepting electronic payment for its service starting in June and virtually phasing out cash transactions”, according to Tech Nova.