In a move to bolster the country's payment system infrastructure, the Minister of Finance and Public Enterprises submitted a notice of motion to introduce a Banking Systems Bill in the National Assembly. 
   
The proposed legislation aims to establish, manage, regulate, and supervise payment, clearing, and settlement systems across the nation.

If passed, the bill will serve as a comprehensive framework for the establishment, administration, and operation of payment systems in Namibia.

It also seeks to ensure the continuation of the Payment System Management Body through the Payments Association of Namibia, emphasising its crucial role in overseeing the payment ecosystem.

A key objective of the bill is to empower the Bank of Namibia with the functions necessary to guarantee an accessible, safe, secure, efficient, and effective national payment system.

"The current act does not have restrictions on foreign shareholding in respect of banking institutions; in line with our national aspirations of local empowerment, local and foreign-owned banking institutions are required to ensure social and economic development in Namibia," said Iipumbu Shiimi, Finance and Public Enterprises Minister.

The development is aimed at fostering public trust and confidence in electronic transactions while promoting financial stability and economic growth.

Additionally, the proposed legislation will introduce a licencing and authorization framework for payment instruments, payment service providers, and payment system operators.

By implementing this regulatory structure, the government aims to ensure that only qualified and reliable entities participate in the payment industry, safeguarding the interests of consumers and businesses alike.

The bill also addresses important aspects such as the issuance of electronic money, the operations of trust accounts, and the designation of payment, clearing, and settlement systems.

These provisions will enhance transparency, accountability, and standardisation within the payment ecosystem, fostering an environment conducive to innovation and competition.

Furthermore, the bill seeks to establish a mechanism for the settlement of disputes involving payment service providers, the Payments Association of Namibia, payment system operators, and the Bank of Namibia.

This will contribute to the prompt and efficient resolution of conflicts, maintaining the integrity and stability of the payment system.

The proposed legislation aims to repeal the existing Payment System Management Act of 2003, which is outdated and does not align with the evolving landscape of payment systems.