Payment Systems Oversight approach Regional Workshop on practical

Payment Systems Oversight approach Regional Workshop on practical application of payment systems operations & oversight 16 th October, 2017

Presentation Outline § § Current legal and regulatory framework; Infrastructure developments; Institutional arrangements; Coordination and cooperation with other regulators; § Challenges; § Way forward.

Current legal and regulatory framework • Responsible authority: The National Bank of Rwanda (BNR); • Oversight mandate: Ø The Central Bank Act 2007; Ø The NPS Act 2010. • Regulations: Ø Payment Service Providers Regulation; Ø Regulation relating to the licensing criteria of operating payment and securities settlement systems; Ø Regulation on the licensing requirements for participants in central securities depository and the protection of securities holders Ø Regulation governing e-money issuers; • Systems rules and procedures;

Infrastructure developments • The payment system modernization in Rwanda recorded important changes : – In 2005 with the introduction of payment cards (local and international cards); – 2010 with the introduction of mobile money services; – In 2011 with the implementation of Rwanda Integrated Payment Processing System(RIPPS) encompassing ACH, RTGS and CSD, all three running on the same platform. – RIPPS interaction with other systems • EAPS • REPPS

Infrastructure developments (Cont’) • Three Mobile Network Operators (MNOs) are licensed by the Central Bank: MTN, Tigo & Airtel. • All MNOs are authorized to provide cross border mobile payments. MNO PARTNER COMPANY MTN Vodacom, Safaricom, MTN Uganda, MTN Zambia, Small World, World Remit, Western Union. TIGO Tigo Tanzania, World Remit AIRTEL DRC, Niger, Malawi, Zambia, Tanzania, Kenya, Congo Brazzaville, Ghana.

Institutional arrangements BNR Organizational Structure Board of Directors Governor Vice Governor DG, Financial Stability Bank Supervision MFI Supervision Payment System Department Non Bank Supervision (Insurance) Financial Stability monitoring & policy

Coordination and cooperation with other regulators • Mo. U between BNR and Rwanda Utility Regulatory Agency (RURA). • Mo. U between BNR and Capital Market Authority (CMA). • BNR also cooperates with other central banks with regard to the oversight of EAPS and REPSS and other payment services provision through information sharing.

Challenges • Technology being ahead of regulation; • Low skills on oversight of new technologies; • Low public awareness; • Different legal requirements for cross border transactions;

Way Forward • Enhance cooperation with foreign regulators; • Enforce consumer protection measures; • Regular monitoring of operations and onsite visits;