NEW SYSTEM SET TO WRITE OFF REGION’S CHEQUE BOOKS

East African businesses doing cross-border transactions have less than two years to use their cheque books after which all bulk payments in the region will be done electronically.

The EAC-Payment and Settlement System Integration Project (EAC-PSSIP) is nearly complete, with work currently ongoing to upgrade the Real Time Gross Settlement (RTGS) systems of regional central banks.

According to the EAC Secretariat, the project’s implementing agency, national legislations, regulations and policies required to support the new payment and settlement system have been harmonised.

The project, which is funded by the African Development Bank (AfDB) through a grant of over $22.5 million, is expected to go live in 2021.

In an interview with The EastAfrican, EAC-PSSIP project manager at the EAC secretariat Teresia Ndivo said, “The implementation of the project is over 85 per cent complete, with the final disbursement in June 2021.”

She added that the project will strengthen the efficiency of cross-border fund transfers across EAC countries.

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