Parliament has passed an amendment to the National Payment System Act to establish a National Payment Switch as part of efforts to further strengthen the Maldives’ financial infrastructure.
The amendment, submitted by the Government, was passed after the Parliament’s Public Accounts Committee reviewed the bill and decided that it should be approved.
The bill was submitted to Parliament on behalf of the Government by Hulhudhoo Member of Parliament Mohamed Shahid. One of the reasons cited for introducing the amendment is to establish a National Payment Switch and set out the principles governing its operation as part of efforts to further strengthen the country’s financial infrastructure.
Under a provision proposed to be added to the Act, the Maldives Monetary Authority (MMA) will have the authority to designate a particular system within the national payment system as the National Payment Switch.
The bill also states that payment transactions designated by the MMA, conducted within the Maldives and internationally through banks and payment service providers, must be processed and routed through the system designated as the National Payment Switch.
Presenting the bill, Shahid said connecting transactions between different banks and payment service providers through a single network would allow payments to be made easily from the card or wallet of one bank using another bank’s QR code or machines. He also said this would reduce fees charged on transactions.
All Parliamentarians who debated the bill noted that it is an important bill for the Maldives’ payment system.
The bill was passed unanimously by all 66 Members of Parliament who voted at the sitting.