The Central Bank is vested with the responsibility of regulating the transactions that involve public funds.
News1st, on Thursday reported of attempts by the Information Communication Technology Agency (ICTA) to hand over this responsibility to three private companies.
A National Payment Platform (NPP) is a system where online transactions can be carried out using the electronic payment methods such as credit cards.
The platform will create a way to carry out transactions with institutions like the Inland Revenue Department, Customs Department, Excise Department and other state institutions, banks as well as financial institutions.
Yesterday, Newsfirst reported that the ICTA has shortlisted three private companies to carry out this project.
The Central Bank should be the regulatory authority of a system like this, where major financial transactions will be carried out.
“The Central Bank has a responsibility in terms of the act, to regulate them. Any payment system”, says Governor of the CBSL Dr. Indrajit Coomaraswamy.
The law pertaining to payment systems is very clearly mentioned in the Payment and Settlement Systems Act no. 28 of 2005.
It says that the Central Bank shall be the authority responsible for the preparation of a plan for a national payment system.
The company short listing to develop this system however, has been done by the ICTA.
The prospectus of one of the companies short listed, Total Pay says they have been awarded the “right to operate as a Digital Instruction Provider (DIP) to the National Payment Platform by the ICTA.
According to the prospectus, Total Pay as a DIP can carry out user executed transactions by transmitting instructions to the bank via the National Payment Platform.
What approval has the ICTA received to transfer this responsibility to a private company?