The National Bank of Rwanda (NBR) will regulate the new mobile money transfer system that will soon be introduced by MTN Rwanda, the central bank Governor said.
François Kanimba said MTN has approached the Central Bank and that the bank has issued the company a license of operation after satisfying the criteria.
“It is important that this system be regulated because it is for the public interest and there is need to safeguard public interest,” explained Kanimba.
The new system will be regulated through the laws governing the payment service providers and the payment system laws.
However, the timeframe in which this will start operations is not yet known as the company is still working on the project which is expected to commence in the near future.
The new service will help MTN subscribers transfer money from one person to another.
The service comes as a relief to millions of Rwandans who have either had to endure high money transfer charges imposed by either banks, or money transfer institutions like Western Union, Money gram.
It is meant to extend affordable, accessible and user friendly money transfer services to millions of the un-banked population in the county.
The same service is being offered by MTN Uganda and other regional telecom companies including Kenya’s Safaricom and Zain.
The system can help transfer money locally and internationally provided it’s from an MTN to MTN network.
Official at MTN say that the system is convenient, secure and affordable way for MTN subscribers to send money, buy airtime and pay bills using their cell phones.
Whether users have an existing bank account or not, they can register for MTN Mobile Money as long as they are MTN subscribers.
Those who do not have MTN SIM cards or even a phone can still receive money from MTN Mobile Money users and send money through a network of agents in their country.