Burundi: Mobile banking service providers decry new regulations
The new regulations compel mobile phone operators and companies to create new separate and independent societies in order to provide mobile banking and money transfer services.The new mobile banking regulations introduced by the Central Bank of Burundi have been condemned by the mobile banking service providers across Burundi. The service providers are critical of the regulation as it might make the services more expensive. With the new regulations, mobile phone operators and companies will create new separate and independent societies which qualify them to provide mobile banking and money transfer services. Decrying the new development, among others, Jean Claude Ndayipfukamiye, Manager of Lumicash service of Lumitel said, "the Central Bank made the regulations without including us (mobile banking service providers). They did not even consider who the services benefit the most. "The new regulations might compel us to increase our service fees. When the prices rise, our clients for whom we thought we were providing services at low cost will see prices rise. This is too bad especially in the current context where living conditions are very bad" he added. The Director of Financial Supervision and Stability at Burundi Central Bank, Prosper Ngendanganya said the service had no regulatory framework initially; he said that was done intentionally to encourage good initiatives of different operators because that was in accordance with the national strategy of the development of the finance sector.