Malawi Reserve Bank introduces instant electronic funds transfer

The Malawi Reserve Bank of Malawi has introduced instant electronic funds transfer which will enable recipients access money instantly after being transferred into their accounts or mobile phones.

In a statement, released by the Malawi’s central bank, signed by the RBM governor Dr Wilson Banda and National Switch Limited chairperson Zandile Shaba this has been possible in collaboration with commercial banks with funding from World Bank’s Financial Sector Technical Assistance Project.

Reads the statement in part: “The public is hereby notified that the Reserve Bank of Malawi has introduced Instant Electronic Cash Transfer (IET) through National Switch Limited (Natswitch) effective 1st December 2022, With this facility all transactions initiated through commercial banks’ mobile or Internet banking platforms are processed instantaneously and as such, recipients bank accounts get credited in real time on 24/7.”

The Reserve Bank of Malawi said the EFT will improve customer experience while at the same time increasing the velocity of money which is a catalyst for economic growth and development.

It has also urged customers to use digital payments facilities, saying: “they are faster, safer and convenient

“The Reserve Bank of Malawi shall continue to collaborate with relevant stakeholders to implement measures aimed at increasing confidence and trust in digital payments solutions in the country,” further reads the statement.”

Consumer Association of Malawi executive director John welcomed the move, saying it will ease the burden on consumers.

“It didn’t make sense to see that one had to wait for days without receiving money sent electronically. It caused a lot of inconveniences,” he said.

A consumer identified as Chilembo Mulinda wrote on Facebook saying, “Better late than never. Good news.”

While another Joseph Ngwira said it was long overdue, as such no need for press release.