12-03-2010-news
2010-03-12
CMA signs a contract for the provision of RTGS, ACH and CSD solutions to the National Bank of Rwanda.
Stockholm, March 11, 2010. CMA has been selected to provide Real Time Gross Settlement, Low-Value Clearing and Central Securities Depository System to the National Bank of Rwanda.
Rwanda will soon put an end to the use of cheques, thanks to a new initiative by Central Bank of Rwanda to implement an Integrated Payments Processing System (RIPPS).
The project, funded by the World Bank, will see the usage of cheques reduced to minimal levels. It is funded through the Competitiveness and Enterprise Development Project (CEDP).
As a result of the World Bank sponsored procurement procedure, CMA has been selected for the provision of RTGS, ACH and CSD solutions to the National Bank of Rwanda. As in its previous projects in Africa, CMA is partnering with a Uganda based company - AH Consulting, which is one of the leading African based consulting firms specializing in the provision of services to private and public sector organizations with specific emphasis on information systems, economic, financial management, human resource services and engineering consulting (more information at: www.ahcul.com).
The new system involves Real Time Gross Settlement System (RTGS), an Automated Clearing House (ACH) and a Central Securities Depository (CSD). Officials also said that once implemented the National payment System (NPS) will conform to international standards.
The Managing Director of CMA Small Systems, Mr. Alexey Nazarov said the project is not just an IT project but it will require institutions to make procedural changes to implement the system.
He noted that in the first four months after the signing, his company will install the initial configuration, training staff to guarantee maintenance in the five year program of the project.
“The project does not only allow quick transfer but also has efficient tools to manage risks and liquidity,” Nazarov said. Mr. Herbert Rwamibazi, Managing Director of AH Consulting, CMA’s local partner in this project commented: “Like in other similar projects across Africa, AH Consulting is proud to partner with CMA on this important project to bring world class technology to Rwanda and to the region. Our local and regional technical expertise will work in tandem with international experts from CMA to support the implementation of the RIPPS ”
Speaking at the signing ceremony, the Governor of the Central Bank Mr. Francois Kanimba said the project is a milestone in the process of modernization of the Rwandan payment systems.
“The system will improve the business environment, reduce cheque-handling costs and improve risk management” Mr. Kanimba said.
According to Kanimba, it used to take between four and five working days to clear a cheque and later reduced to two days. After the project systems are implemented, the process will take about 24 hours.
Kanimba said that the system will increase liquidity and the whole economy will benefit from increased speed and circulation of money in the banking system.
The system, will also help Rwanda trade with other countries in COMESA and East African Community (EAC) like Uganda, Tanzania and Kenya.
