Namibia postpones implementation of regulatory changes for electronic fund transfers

WINDHOEK, April 13– The Bank of Namibia (BoN), the central bank, has postponed the implementation of regulatory changes affecting Electronic Fund Transfer (EFT) transactions within the National Payment System (PSD-9) from April 30 to September 30.
The decision follows consultations highlighting concerns over potential disruptions to transaction speed, convenience, and costs related to migrating to the Southern African Development Community — Real Time Gross Settlement (SADC-RTGS) platform, as stated in a statement by the Bank of Namibia (BoN) Friday.
PSD-9 mandates that Namibian EFT transactions should not be processed as domestic transactions in other jurisdictions but rather treated and reported as cross-border transactions.
According to the bank, this directive aims to enhance visibility, transparency, and classification of cross-border low-value Namibian EFT transactions, particularly within the Common Monetary Area (CMA). The extension to the implementation date is to allow banking institutions more time to adjust, ensuring a smooth transition for customers. This adjustment ensures alignment with other CMA countries when transitioning from the current cross-border interim EFT solution, the bank added.
“It is important to further emphasize that the migration of cross-border CMA low-value transactions to the SADC-RTGS platform is a temporary solution, with plans for a permanent arrangement once an appropriate regional payment system is established,” the bank stated.

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