A copy of the Bill seen by URN shows that it also provides for the licensing criteria, procedure and the regulatory power of the Central Bank concerning imposition of norms, standards on operators of payment systems and the powers to obtain information and take enforcement actions to ensure compliance.
The State Planning Minister, David Bahati has
emphasized the need to enact a law regulating all payment systems to ensure
safety and efficient financials.
He was formally presenting the
National Payment Systems bill 2019 to the Finance Committee of Parliament
chaired by Rubanda East MP, Henry Musasizi, which is scrutinizing the proposed
The Bill seeks to provide for supervision and
oversight of mobile money transactions. It provides for the protection of the
payment and settlement systems against insolvency proceedings by providing for
transfer orders finality, irrevocability and protection of collateral
“It provides for electronic money issuance and
circulation. This deals with how issuance of mobile money will be licensed,
supervised and regulated. The Bill also provides on how to deal with dormant accounts
held with electronic money issuers where after a period of 10 years, the funds
on the dormant accounts will be transferred to the Consolidated Fund,” said
A copy of the Bill seen by URN shows that it also provides for the
licensing criteria, procedure and the regulatory power of the Central Bank
concerning imposition of norms, standards on operators of payment systems and
the powers to obtain information and take enforcement actions to ensure
It also seeks to
ensure principles of consumer protection guided by transparency, accountability,
data protection, full disclosure of the information relating to services,
confidentiality and dispute resolution mechanism.
According to Bahati, once enacted, the law will promote
public confidence through increased certainty and transparency. The
Committee Chairperson, Henry Musasizi, said the Finance Ministry will be
required to explain further how the gaps in the mobile money system will be
closed by the proposed law.
//Cue in: “the main issue…
Cue out:…period of time.”//
Agago Woman MP, Judith Franca said that the 10 year period
for money on dormant accounts to be transferred to the Consolidated Funds seems
in: “especially the length…
Cue out:…the implication then.”//
The Pian County MP, Achia Remigio also asked
how the Finance Ministry will guarantee the amount of money that will be on
//Cue in: “how will you…
Cue out:…handle this issue.”//
Bahati explained that the gaps to be closed in
the mobile money service are to mostly do with consumer protection.
//Cue in: “there have
Cue out:…protect the consumers.”//
The Minister also defended the transfer of
money on dormant accounts to the Consolidated Fund, saying that often times
Banks use it for self-gain once not claimed by owners.