Money within reach, as cash access flow opens across ATMs

ALVAR MWAKYUSA

BANK customers will in the future be allowed to deposit and withdraw cash from any of automated teller machines (ATMs) operated by commercial banks through the envisaged National Payment System Switch.

This was revealed in Dar e Salaam last week by the Managing Director of the National Microfinance Bank (NMB), Ms Ineke Bussemaker, during a panel discussion at the launch of the 9th Tanzania Economic Update by the World Bank.

“All commercial banks through the Tanzania Bankers Association (TBA) have agreed to the new arrangement and discussions are underway for its enforcement,” Ms Bussemaker explained. According to the banker, the new system will allow transactions across all ATMs and will also act as a point of sales (PoS) and mobile banking.

“It is a long process which could take up to 14 months to start operating; we hope that the new system will enhance financial inclusion among the population,” she explained during the launch of the report which carried a theme; “Money within reach; Extending Financial Inclusion in Tanzania.

” Through its website, the Bank of Tanzania (BoT) defines the system as a group of institutions and a set of instruments and procedures, used to ensure the circulation of money within a country.

The NPS supports the full spectrum of financial activity, from Tanzanian businesses transacting globally in the international markets to servicing the individual payment requirements of the Tanzanian populace. Stakeholders to be involved include commercial banks and registered financial institutions as well as telecommunication companies and payment service providers.

The envisioned system is aimed to put in place a modern payment system that is effective, efficient, secure and compatible with internationally recognised payment systems.

It will be open to all parties … both domestic and foreign … who wish to provide payment services and will be easily accessible to both urban and rural consumers to effect both domestic and international transactions.

The Central Bank explains further that the payment system will support electronic trading in both the securities and foreign exchange markets. The operation of payment systems is closely related to the BoT’s objectives of monetary stability and financial stability.

At present, customers of more than 20 commercial and community banks are connected through the UmojaSwitch, which was established in 2006 by six banks with the main purpose being able to establish a joint shared infrastructure for financial services and enjoying the economies of scale.