National Payment System
One of the Reserve Bank of Zimbabwe’s (RBZ) functions as provided for under Section 6(i) (e) of the Reserve Bank of Zimbabwe Act [Chap. 22:15] is to promote the smooth operation of the payment systems. In the same vain the National Payment Systems Act [Chap: 24:23] (NPS Act) allows for the formulation and implementation of such policies to promote the establishment, regulation and oversight of safe, sound and efficient payment, clearing and settlement systems in the country.
Pursuant to the same, the (RBZ) seeks to ensure that payment systems:
- Have a sound legal basis and regulatory framework;
- Have comprehensive risk management systems;
- Offer efficient, reliable and safe payment services to customers; and,
- Are aligned to regional and international best practices and standards.
NATIONAL PAYMENT SYSTEMS (NPS) BACKGROUND
The Reserve Bank of Zimbabwe has, since 1995, been involved in collaborative efforts with the banking industry and other key stakeholders to reform the payment system in Zimbabwe. Pursuant to that, the National Payment Systems (NPS) function was established in 1998 in response to the increasing awareness on the need, by the Central Banks, to pay undivided attention to payment systems issues, given their significant contribution to financial stability and economic development. These efforts culminated in the development of the National Payment Systems Framework and Strategy in 2000. In this regard, the Bank’s overall payment system vision is to maintain and develop a payment system that is locally, regionally and internationally recognized. The ultimate goal therefore is to ensure a safe, sound and efficient payment system through the oversight role.
NATIONAL PAYMENT SYSTEMS OBJECTIVES
The main objectives of the NPS function are to:
- Ensure payment, clearing and securities settlement systems have a sound legal basis,
- Oversee payment, clearing and securities settlement systems in Zimbabwe, to ensure implementation of sound risk management practices.
- Ensure finality and irrevocability of settlement, while facilitating the circulation of money in the economy.
- Continue to guide the evolution of payment systems in Zimbabwe and ensure developments take place in a collaborative and coordinated manner.
- Ensure safe, sound and efficient payment, clearing and securities settlement systems.
- Ensure that payment systems are effectively used as a mechanism to promote electronic transactions, consumer protection, interoperability and financial inclusion in the country.