Starting August 3rd, 2024, bank customers will encounter a significant change in their online and mobile banking experience. The Central Bank of Kenya (CBK) has announced that selecting a ‘purpose of payment’ from a predetermined list will become mandatory for all Real Time Gross Settlement (RTGS) transactions.
This new regulation, communicated to financial institutions including Standard Chartered Bank, marks a departure from the current system where customers can freely type in their payment purpose. The CBK emphasizes that the option to type will no longer be available, urging users to adapt to the new dropdown menu format.
“The Central Bank of Kenya has introduced a new regulatory requirement for all domestic RTGS payments,” a statement from Standard Chartered Bank explained. “Starting 3rd August 2024, the purpose of the payment field on your online banking and SC mobile App payment transactions will be a mandatory drop-down menu, with options for your selection.”
The banking industry is gearing up for this transition, with institutions expected to update their online platforms and mobile applications to comply with the new requirements. While the CBK asserts that this move will be pivotal in ensuring a smooth transaction process for all domestic RTGS payments, it remains to be seen how customers will adapt to the change.
To ease the transition, banks are mobilizing their customer service channels. Clients with questions or concerns are encouraged to reach out to their bank’s service managers, contact centers, or local agents for clarification on the new process.
As the deadline approaches, the financial sector watches closely to see how this regulatory change will impact transaction patterns and customer behavior in Kenya’s increasingly digital banking landscape. The CBK’s decision underscores a growing trend towards standardization and enhanced data collection in financial transactions, potentially paving the way for improved monitoring and analysis of payment flows within the country’s economy.
