The Parliament of the United Republic of Tanzania passed the Microfinance Act of 2018 in November 2018 so as to implement the requirements of the Microfinance policy of 2017. Section 12 of the Microfinance Act gives mandate to the Bank of Tanzania (BOT) to register, supervise and regulate the businesses of microfinance service providers in Tanzania mainland.
Moreover, the law interprets that microfinance service providers shall mean an entity or a person registered or licensed to undertake microfinance under the Act including the deposit and non-deposit taking microfinance service providers.
The Bank of Tanzania prepared the Regulation to supervise and regulate the operations of microfinance service providers in accordance to different tiers as provided in the Microfinance Act 2018. Alongside other things, these regulations touches the qualifications of granting license, capitals, and administrative structures of microfinance institutions.
In accordance to Section 57 of the microfinance Act 2018, all microfinance service providers in the microfinance sector are required to submit their applications for the license or registration to the Bank of Tanzania or regulatory authority delegated in the period of 12 months after the law comes inforce, that is 1st of November, 2020. Microfinance service providers will be required to meet other requirements of the regulations within the specified period of time. However, new microfinance service providers will be able to apply for license and registration at any time.
That means; microfinance service providers are encouraged to make submission of their application for license of the Bank of Tanzania in the prescribed period of time.
Amala Core Banking is devoted to adding value to your microfinance business. This includes providing advisory support and support upon regulatory requirements of the sector. We also take this opportunity to remind all microfinance stake holders to make sure that they keep the deadlines by making the submission of their applications as early as possible.
Amala Core Banking opens door to any microfinance service providers to get our services of which among many added value services, our customers get easy access of complying with the regulations.
Visit us today at; https://amala.co.tz or dial; +255 71 262 8896.
