The Tanzanian government is contemplating increasing mobile money transaction limits in response to complaints from consumers and businesses. Deputy Finance Minister Mshamu Munde stated that the Bank of Tanzania is assessing the possibility of raising the limits while ensuring customer protection from fraud and financial risks. This move aims to address concerns that existing restrictions hinder high-value payments.
The issue was raised by Kigoma Urban MP Revocatus Chipando, who argued that current transaction limits inconvenience consumers and traders, potentially undermining efforts to promote cashless transactions. Chipando cited cases where customers could not receive or send large sums of money due to daily limits, questioning the need for multiple mobile lines for ordinary citizens.
MP Chipando urged the government to consider allowing customers to make payments of between Sh20 million and Sh50 million and receive up to Sh100 million through their mobile phones. He emphasized that ordinary citizens should not be forced to have multiple mobile lines, especially when not running formal businesses.
Deputy Minister Munde acknowledged that higher transaction limits could facilitate business, reduce reliance on cash, and make payments more convenient. However, he stressed that any changes must consider the security risks associated with mobile money services. Munde explained that mobile phone-based transactions operate under different security arrangements than internet banking.
The Electronic Money Regulations of 2015 empower the central bank to set and review transaction limits according to customer categories and associated risks. Munde warned that raising limits without adequate safeguards could expose customers and businesses to fraud, money laundering, and financial losses.
The government, through the central bank, continues to improve payment systems and assess whether limits should be raised to reflect changing business needs and technological developments. The review aims to balance the convenience of higher-value transactions with the need to protect customers' money.
This debate occurs as Tanzania expands digital financial services and encourages electronic payments as an alternative to cash. The government seeks to promote a cashless economy while ensuring that customers' financial security is not compromised.
Key points
- The Tanzanian government considers raising mobile money transaction limits to facilitate high-value payments.
- Existing transaction limits inconvenience consumers and traders, potentially undermining cashless transaction efforts.
- Any changes to transaction limits must balance convenience with customer protection from fraud and financial risks.
