Banks in East Africa have been urged to adopt the East African Payments System which went live in November.

Central Bank governors from the region were told that a total of Sh1.6 billion has been processed through the EAPS during the six months it has been active, adding that its adoption will enable banks to execute real time transfer of funds across the region’s borders. Other accrued benefits are transfer of large value payments, safety and risk control mechanisms, and reduced cost of transaction.

The Central Bank of Kenya governor, Njuguna Ndung’u said at least 10 EAPS transactions are processed daily and the payment system has handled 1,106 transactions since it went live. “The system is expected to promote, facilitate and support trade within the East African Community region,” he said.

He spoke during the launch of the payment system, which was attended by the heads of EAC central banks, in Nairobi last week.

The CBK governor said the EAPS system has been in use among central and commercial banks in Kenya, Uganda, and Tanzania. Banks in Rwanda and Burundi are expected to join the payment system before the year ends. “EAPS will enable the public to send and receive payments on real time basis. Its implementation will address deficiencies in the cross border payment methods,” he said.

According to the governor, EAPS has integrated Real Time Gross Settlement systems of Kenya, Uganda, and Tanzania. He said the system is safe and secure.

Ndung’u said the system reduces transaction costs because it handles payments in the regions’ currencies adding that money can be transferred to any commercial bank within the EAC.

See more at: https://www.the-star.co.ke/news/2014/05/19/commercial-banks-urged-to-adopt-east-african-payment-system_c941772

Source: The Star

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