National Bank of Malawi worries about legislation

National Bank of Malawi (NBM) expressed its concern regarding the absence of the relevant legislative base to match the current global technological needs.

The bank notes that the existing laws in the sphere of commerce make allowance for checks and cash as the only legal payments which are found by the bank to be very archaic.

In 2002 the Payment Systems Bill was drafted by the government but it has no statutory force so far. Interestingly, the current Bills of Exchange Act was adopted in 1967 from the British laws formulated in 1882. Thus the launch of the Visa card initiated by NBM last week is to be considered illegal.

“The Act recognises legal payments as cash or cheques not otherwise so we are operating under a risk that is why I would like to urge our law makers in parliament to consider passing all economic bills now,” said George Partridge, NBM Chief Executive Officer who is also president of Bankers Association of Malawi (Bam) and Chairman of Institute of Banker (IOB) in Malawi.

“I would like to publicly plead with our authorities to consider passing the Payment and Systems Bill because we are lowly rated on the global market in terms of advanced payment systems,” stated Partridge.