The Bank of Ghana (BoG) will soon be announcing a new minimum capital
requirement for all institutions that want to enter the business of
mobile money operations.
According to the central bank, telecom companies and existing firms
that are already offering the service will be given some time to meet
the new requirement while new operators will be required to meet the new
minimum capital before acquiring a license to operate.
Speaking of JoyBusiness, Head of Payment Systems at the Central Bank,
Dr Settor Amedeku noted that the Governor of BoG is expected to launch
the initiative before the end of the year.
He said, “Very soon we will announce the amount to be paid but this
is a process to ensure maximum regulation and security of the business
for stakeholders and the people of Ghana.”
“Officially the government will make an announcement. The banks that also want to do Mobile Money must set up a separate subsidiary to do the electronic transaction and have to be capitalised as a guarantee to ensure that you’re fit and proper to carry on any transaction of electronic money,” he added.
Payment and Settlement Act
In May 2019, President Akufo-Addo assented to the Payment and Settlement Act after its passage by Parliament in March.
This is expected to pave the way for a new set of regulations to aid electronic payments in the country and also to stir up innovation in the financial sector space as Ghanaians move closer to the use of digital platforms for transactions.
With the passage of the Payment Systems and Services law, all mobile
money operators need to set up a subsidiary and will have to seek
approval from the Bank of Ghana.
The activities of Fintechs and electronic payments are also expected to boom.
Ghana going cash-lite
The Bank of Ghana has set 2024 as a deadline for the country to move towards an era where little cash is used in financial transactions.
The move is part of efforts to reduce the cost of doing business and improve revenue collections in the country.
Source: Joy Business
