Tanzania, April 29 -- Dar es Salaam. The newly introduced caps on fees for bank-to-bank transfers through the Tanzania Instant Payments System (TIPS) will strengthen liquidity in the banking industry and promote the transition towards a cashless economy, according to analysts.

The Bank of Tanzania (BoT) recently announced new fee limits for bank-to-bank transactions conducted through retail platforms and channels such as TIPS and the Tanzania Automated Clearing House (TACH). The news rates will come into effect tomorrow.

According to a circular signed by BoT deputy governor (financial stability and deepening) Sauda Msemo, transfer fees will not exceed Sh2,000 for transactions of up to Sh20 million.

Transfers ranging from Sh500,001 to S...