National Payment System

The National Payment System, a modernization project was launched in October 2002, to provide an efficient customer centered payment system designed to meet the payment needs of the country.

Limitations of the current Method of Payment

The current methods of payment in Sierra Leone have various shortcomings such as delays in settlement periods, high costs, and risk of fraud. The most common instruments that characterize these payment methods are cash, cheques, and to a limited extent electronic payments.

What has been done so far

The Director of Banking is the Chairman of the project committee and the main objectives are to minimize payment, clearing and settlement risks and achieve reliable, secure, convenient, cost effective, universal and integrated systems to meet the needs of the economy.

More specifically, the major issues under focus include the following:

• Problems associated with the NPS, background of the country’s culture and economy and the country’s national payment system needs.
• The infrastructure situation and state of automation within and between bank branches and their customers.
• The key legal structures that affect payments.
• The existing payment instruments.
• Inter bank clearing and settlement systems.
• Risks associated with payments in the country.

To streamline and reduce on settlement delays the Central Bank adopted a two clearing system to ensure that all high value payments are finalized on transaction dates.

However, the committee is still working on setting modalities for the implementation of a modernized and more robust National Payment System in compliance with WAMI standards.