The National Payment Systems (NPS) are integral to the efficient functioning of financial markets and the broader economy.

National payment systems facilitate the transfer of funds, enabling payment obligations to be met across various sectors. As a result, they contribute significantly to overall economic performance.

The Central Bank of Lesotho oversees and monitors the NPS to ensure their smooth operation. Two key legislations empower the CBL in this regard: 

Payment Systems Act, 2014 (PSA): This legislation grants the CBL the authority to oversee, inspect, and monitor payment and settlement systems within Lesotho. The PSA ensures that these systems adhere to established standards and operate efficiently.

Lesotho Monetary Authority Act of 1978: The CBL, initially established as the Lesotho Monetary Authority, derives its mandate from this Act. It commenced operations on January 2nd, 1980.

Payment Systems Act 2014

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Payment Systems Regulations 2017

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Wholesale Payments Services

Mandate:

  • Operate and monitor large value payment system
  • Provide terms and conditions for admission to be a participant in the large value payment system.
  • Organize, set technical standards and regulate the participation of members on the large value payment system

Policy, Oversight and Research

Mandate:

  • Facilitate oversight of the payment and settlement system. Oversight of payment and settlement systems is a central bank function whereby the objectives of safety and efficiency are promoted by monitoring existing and planned systems, assessing them against these objectives and, where necessary, inducing change.
  • Promote financial inclusion and FinTech development.
  • Licensing of Payment system operators and Service providers.

Retail Payment Services

Mandate:

  • Operate (Clearing and switching) and monitor retail payment system (cheques, credit transfers, direct debits, and card payment transactions)
  • Levelling the playing field and facilitating interoperability between service providers in the payment space by organizing, setting technical standards and regulating participation in the retail payment systems.
  • Supporting the development of effective standards and infrastructure arrangements.

Contact Details

Email: paymentsettlements@centralbank.org.ls
Contact Number: 22232455/2516/2167/2188