Assessment of the efficacy of the national payment regulatory framework for the provision of an efficient and secure payment systems in Tanzania

This study presents an assessment of the efficacy of the National Payment Regulatory Framework for the provision of efficient and secure Payment Systems in Tanzania. This study was prompted by the great transformation and developments which have occurred in the Tanzanian Payment System during the past one decade. Unlike the payment systems which existed during the period up to mid-1990s, the payment systems of Tanzania today are greatly characterized by the use of modem technology. In this study, the researcher conducted literature review and field study with a view to elicit a scholarly discussion on the efficacy of the Tanzanian Payment Systems Regulatory Framework which is crucial for creation of an efficient and secure payment system. This study's findings are that the Tanzanian Payment system has undergone tremendous changes and improvements in the past one and half decade, being a result of the economic liberalization policy adopted by the country in the early 1990s. The modernization of the financial systems has enabled the financial sector to respond positively and at a reasonable pace to the rapidly changing demands in the banking sector. The study, however, has revealed a number of weaknesses in the payment system regulatory framework which made the Researcher come up with a conclusion that the payment system of Tanzania is not adequately regulated to guarantee an efficient and secure National Payment System. This work carries recommendations for correction of the weaknesses to ensure existence of an efficient and secure Payment System which is a necessary factor for the existence of an effective financial system.