Regulatory Alerts2006-01-01
CB Circular 08/2006 Item Value Limit (IVL) Implementation
The Bank of Zambia has commenced electronic payments to eligible creditors and suppliers via the ZIPSS/RTGS system, initiating a phased migration from cheques. Commercial banks are directed to promote ZIPSS/RTGS adoption for large and time-critical customer transactions while concurrently routing their own tax and supplier payments through the platform. This coordinated operational shift targets full Item Value Limit implementation by January 1, 2007, supported by continuous public education and system feedback mechanisms.
# BANK OF ZAMBIA
OFFICE OF THE DEPUTY GOVERNOR - OPERATIONS
December 11, 2006
CB Circular No: 08/2006
TO : All Commercial Banks
## ITEM VALUE LIMIT (IVL) IMPLEMENTATION
The Bank of Zambia has with immediate effect started paying eligible creditors and suppliers electronically via the Real Time Gross Settlement system. This is intended to facilitate migration from the traditional and familiar cheque payment system to the more secure and efficient ZIPSS/RTGS system.
Implementation of this initiative at the Bank of Zambia is expected to be fully completed by January 1, 2007. This timeframe provides an opportunity for education campaigns to be undertaken on a continuous basis to facilitate a better understanding by the business community and the general public. The continuing campaigns and surveys will also provide a feedback mechanism to facilitate improvements on ZIPSS/RTGS payment stream.
In this regard, you are all hereby requested to encourage your customers to use the ZIPSS/RTGS for large value and time critical payments and to conduct educational/sensitisation campaigns accordingly. In addition, you are also requested to utilise the ZIPSS/RTGS when making large value and/or time critical payments to your creditors and suppliers. As you make payments for all tax obligations and to all your suppliers using ZIPSS/RTGS, this will facilitate speeding up the implementation of IVL, which has been under discussion for some time now.
PP Denny H Kalyalya (Dr)
DEPUTY GOVERNOR – OPERATIONS
Cc: Governor
Deputy Governor-Administration
Bank Square, Cairo Road P.O. Box 30080, Lusaka, Zambia Tel: +260-1-226844 Fax: +260-1- 237070 Email: dkalyaly@boz.zm Web: http://www.boz.zm/
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