Payment Changes Become Law in Fiji

Fijians stand to benefit from important regulatory changes that will make everyday bank transactions easier, helping boost financial inclusion while supporting financial stability and economic activity, says the Reserve Bank of Fiji.

The National Payment System Act 2021 and Regulations 2022 have been passed into law, marking a critical milestone in a broader ongoing reform program led by the Bank.

The new legislation and regulation will enable an upgraded national payment and settlement system and central securities depository. In turn, the new infrastructure and systems will facilitate enhanced electronic fund transfers, retail payments and agent banking.

According to the Bank, these legislative reforms, as part of a broader national payments program, will provide the platform to boost access to affordable payment services through digital solutions, reduce reliance on cash and help drive e-commerce.

Transactions will be safer, more reliable and more efficient for businesses and households.

Cash is widely used in Fiji now, both for retail payments and in many types of business transactions, including paying bills. The use of electronic payment systems and services is limited. The reforms, which are being implemented in phases, will allow financial and payment service providers to develop and introduce additional non-cash payment services and products for their clients in a faster and more secure manner, and at a lower cost.

One of the first casualties will be cheques, with the Bank phasing out cheque processing from 2024. According to the Governor, Ariff Ali, ‘once we launch the CSD and the real gross settlement system, something we’re working on is by 2024, there’ll be no cheques basically’.

Similar reforms are being undertaken by central banks in neighbouring Samoa, Solomon Islands and Vanuatu.