The central bank added that existing mobile money companies and other organisations 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.
Head of Payment Systems at the Bank of Ghana, Dr Settor Amedeku speaking at the Business and Financial Times’ Ghana Most Respected CEOs Breakfast meeting in Accra hinted that the Governor of BoG will launch the initiative before the end of the year.
“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.