Egypt’s Government Takes Bold Steps to Promote Non-Cash Financial Transactions

Promoting Financial Inclusion through Electronic Payments

In a move aimed at promoting financial inclusion and reducing cash transactions, the Egyptian government has issued new regulations mandating the acceptance of electronic payments in all government agencies providing public services. The decision was taken during the second meeting of the National Payments Council (NPC).

Prohibition on Cash Transactions Exceeding EGP 20,000

According to the NPC’s decisions, all state administrative units, local administration units, public service bodies, economic bodies, and other government agencies are prohibited from paying any dues exceeding EGP 20,000 in cash or through bank checks until July 2018. This is part of a broader effort to promote non-cash transactions and reduce the use of cash.

Electronic Payments Mandated for Government Agencies

The NPC has mandated that all government agencies providing public services must accept electronic payments in stages within two years. Additionally, the council has tasked the Central Bank of Egypt (CBE) with developing a comprehensive vision for e-government services, with the goal of providing them electronically to citizens within six months.

National Branded Payment Card Scheme and Blockchain Technology

In related news, the CBE has announced plans to establish a national branded payment card scheme, which will enable holders to access various financial services and promote financial inclusion. The bank is also studying the possibility of using blockchain technology to enhance electronic identity checks (e-KYC) and improve anti-money laundering efforts.

Innovation Fund for Fintech Companies

Furthermore, the CBE is planning to establish an innovation fund worth EGP 1 billion to finance fintech companies and innovative projects. This move aims to support the growth of the fintech sector in Egypt and promote financial inclusion.

Reduction of Mobile Payment Service Costs

The NPC has also decided to extend the decision to reduce mobile payment service costs by 50 percent for another six months, ending in June 2018. Citizens will be exempt from expenses associated with opening a mobile payment account for one year.

Ensuring Sustainability and Security of Digital Financial Services

To ensure the sustainability and security of digital financial services, the CBE is studying the possibility of developing regulations allowing electronic identity checks (e-KYC) without customer presence. The bank is also planning to establish Egypt’s first fully digital bank, which will allow customers to conduct all transactions online.

Computing Security Incident Response Team

In addition, the CBE has established a Computing Security Incident Response Team (CSIRT) for the banking sector to respond to cyberattacks and other security threats.

Overall Goals

The efforts aim to promote financial inclusion, reduce cash transactions, and enhance the overall efficiency of the financial system in Egypt. By promoting electronic payments and reducing cash transactions, the government hopes to increase transparency, improve accountability, and make it easier for citizens to access financial services.