GAZETTE NOTICE No. 98 OF 2015 [5472725]

The National Payment Systems Act

(Act No. 1 of 2007)

The National Payment Systems Directive on the Implementation of the National Financial Switch

WHEREAS the Bank of Zambia and the Commercial Banks decided to implement the National Financial Switch Project in 2008.

WHEREAS the Bank of Zambia is mandated under the Bank of Zambia Act, Chapter 360 of the Laws of Zambia and the National Payment System Act No 1 of 2007 to develop policies for the development of an efficient system in Zambia.

WHEREAS it is the desire of the Bank of Zambia and commercial banks to consolidate and integrate the multiple systems with varying service levels into a nation-wide uniform and standard business process for all retail payment systems and facilitate an affordable payment mechanism to benefit the customers across the country and help financial inclusion.

IN EXERCISE of the powers contained in section forty-three of the National Payment Systems Act No. 1 of 2007, the following Directives are hereby made:

Title

These Directives may be cited as the National Payment Systems Implementation of the National Financial Switch Directives, 2015.

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Interpretation

In these Directives, unless the context otherwise requires—

• “Act” means the National Payment Systems Act No.1 of 2007
• “Bank of Zambia” means the Bank of Zambia as established under the Bank of Zambia Act
• “bank” shall have same meaning as assigned in the Banking and Financial Services Act
• “National Financial Switch” means a shared payment system infrastructure that is aimed at interconnecting the ATMs, Point of Sale (POS) Machines, mobile payment and other gadgets in the country and facilitating convenient provision of banking and financial services.
• “Steering Committee” means a committee constituted from among the members of the Bankers Association of Zambia and Bank of Zambia to make strategic decisions concerning the project.
• “vendor” means a company that shall be contracted to supply the National Financial Switch.

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PART I

PARTICIPATION

1. All commercial banks licensed and operating in Zambia shall participate in the National Financial Switch.

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PART II

DECISIONS

2. All commercial banks shall be bound by all decisions of the Steering Committee of the National Financial Switch project.

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PART III

FINANCIAL CONTRIBUTIONS

3. Each commercial bank shall be required to pay in full to the Zambia Electronic Clearing House Limited the contributions to the project for the National Financial Switch which were agreed in 2008; and

4. All commercial banks shall be required to contribute additional amounts to the projects as and when the needs of the project so requires and as advised by the Project Manager.

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PART IV

CONSTITUTION OF PROJECT TEAMS

5. All commercial banks shall be required to put in place project teams to ensure that this project is implemented as shall be agreed with the vendor.

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PART V

PAYMENT SYSTEM INFRASTRUCTURE DEVELOPMENT

6. All commercial banks shall support all the industry decisions and efforts to modernise the payment system and the payment system infrastructure.

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PART VI

PENALTY FOR NON COMPLIANCE

7. Any Commercial bank that contravenes these directives shall be guilty of an offence and shall be liable to the penalties as stipulated under Section 43 of the Act.

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LUSAKA
DR T. K. MABULA,
Deputy Governor—Administration
Bank of Zambia