Towards a Legal and Regulatory Framework for South African Domestic Remittances: Some Considerations

Abstract

This paper is an exploratory study that examines the legal and regulatory framework
for domestic remittances within the South African legal context. The author makes
some proposals for consideration in the review of the National Payment System
Act No 78 of 1998 (NPS Act) with regards to domestic remittances as a retail, lowvalue
payment service. To this end, the paper provides an understanding of domestic
remittances, the transaction, process and channels used. It also contextualizes
domestic remittances within the South African National Payment System (NPS) and
finally examines the current gaps that can be remedied through the review of the NPS
Act. The author argues that if financial inclusion is to be promoted, the regulatory
framework pertaining to domestic remittances should enable, rather than inhibit the
use of domestic remittances as a payment service.