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Wednesday, 4 July 2018

Planning Ministry prepares first draft of legislation regulating electronic payments

LEGISLATION WATCH- Planning Ministry has finished drafting legislation to encourage non-cash payments: The Planning Ministry has completed the first draft of a law governing non-cash payments that means to encourage Egypt’s transition to a cashless economy, said Minister Hala El Said. The Planning Ministry consulted the finance and justice ministries on the legislation, before referring it to the CBE for review and sign-off, according to El Said, who did not provide additional details on the contents. It is unclear if the bill is the same or complementary to the one that the Finance Ministry and CBE had been working on earlier this year, which sets limits on the amount of cash that government agencies can receive or pay in a single transaction.

Background: Drafting a law to govern non-cash payments and transactions was one of several resolutions adopted during a National Payments Council meeting last year. The government has been taking steps to gradually decrease the rate of cash transactions as part of the state’s wider financial inclusion strategy. Finance Minister Mohamed Maait had issued a decision last month that would make all transactions between government and private sector worth more than EGP 100k exclusively electronic. All transactions with the government will be electronic as of January 2019, Maait said.

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