Zimbabwe: National Payment System Healthy, Stable - RBZ

A National Payment System is a configuration of institutions supported by an infrastructure of technology-driven processes and practices to facilitate commercial and financial transfers between buyers and sellers.

A country's payment system reflects its banking and financial history and the development of supporting communications and technology platforms.

According to the RBZ's latest monetary policy statement (MPS), the real-time gross settlement (RTGS) system was upgraded in November 2024 to ensure that the system complies with ISO (International Organisation for Standardisation) 20022 standards.

"This was aimed at enhancing the efficiency, security, and effectiveness of the system, ultimately benefiting financial institutions, customers, and the economy," said Governor Dr John Mushayavanhu.

During 2024, the values of transactions processed through the RTGS System were ZiG$266,89 billion and US$29,02 billion, with volumes at 5,52 million and 5,83 million, respectively.

According to the RBZ, all access devices, except for ATMs, recorded growth during the year 2024.

In terms of interoperability, the central bank said the values for retail digital transactions reached the ZiG$1,8 billion mark in December 2024, a significant increase from less than ZiG200 million in June 2024.

The RBZ noted that the banking community continued to work towards full compliance with SWIFT cross-border payment processes for the ISO 20022 programme after successfully implementing incoming and outgoing cross-border payments and reporting plus (CBPR+).

The central bank highlighted that in order to mitigate risks associated with cyber threats and technological disruptions, the Reserve Bank is strengthening the regulatory framework governing the National Payment Systems.

"Regular assessments of system resilience and the implementation of best practices in cybersecurity will continue to be prioritised," reads part of the MPS.

The RBZ said all stakeholders in the financial services sector are expected to effectively collaborate, embrace the risk-based approach, and work towards ensuring the success of the related cyber control measures.

On the other hand, the RBZ said financial institutions and other stakeholders continued to utilise the Credit Registry and private credit bureaus from the year to December 2024.

The credit information-sharing environment facilitates effective credit risk management and decision-making, which ultimately fosters financial inclusion and promotes financial stability.

"As of December 31, 2024, all the credit reporting institutions maintained 23.51 million searchable records, and during the same period, statistics from the Credit Registry reveal a 27,76 percent increase in cumulative enquiries, rising from 4,085,598 on December 31, 2023."

On the Collateral Registry, as of December 31, 2024, there were 2,481 active registrations with a total principal value of ZAR 42,19 billion.

RBZ said microfinance institutions were the major users of the Collateral Registry with 1,185 registrations, followed by banks with 1,135 entries.

In terms of the value of movable collateral, banking institutions recorded a total of ZiG20,99 billion, while law firms registered a total value of ZiG20,75 billion on behalf of clients.

Source: All Africa