CHAPTER 197
THE BANK OF TANZANIA ACT
.
An Act to provide for more responsive regulatory role of the Bank of AG
Tanzania in relation to the formulation and implementation of monetary  of
 O
n
policy; to provide for the supervision of banks and financial institutioinssios  
and to provide for other related matters. rm
pe
[1st Jouul
ty , 2006]
[GN. N ow.i t8h4 of 2006]
Acts Nos. 4 of 2018 ted4 of 2006 10 of 2018 bu
14 of 2009 14 of 2019 i
str
11 of 2010 2 of 2022 r d
i
16 of 2015 5 of 2022 d o
4 of 2017 ce
du
rep
ro
e 
PA y b
 m
aRT I
k
PRELIMINo
s b
oARY PROVISIONS
f th
i
Short title 1. This Act may bea rct
 ioted as the Bank of Tanzania Act.
No p
Application 2. This Act sdh. e all apply to Mainland Tanzania as well as to 
Tanzania Zsear
vnzibar.
 rets
Interpretation 3. In g
l r it
hhis Act, unless the context otherwise requires -
“A l
ia.
 Act” means the Bank of Tanzania Act;
anz “Bank” means the Bank of Tanzania referred to under section 
n
f T
a 4(1) of this Act;
nt 
o
e “bank” means an entity that is engaged in the banking 
rnm business;
ve
Go “banking business” means the business of receiving funds 
5 
02 from the general public through the acceptance of 
©2 deposits payable upon demand or after a fixed period 
or after notice, or any similar operation through the 
frequent sale or placement of bonds, certificates, notes or 
other securities, and to use the funds, in whole or in part, 
1
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
for loans or investments for the account of and at the risk 
of the person doing the business;
“Board” means the Board of Directors of the Bank established 
under section 9 of the Act; .
“credit reference bureau” means an entity specialised in the 
OAG
collection and sale of credit performance information for  
n o
f
individuals and companies; siois
“credit reference databank” means a computererp imsed 
mechanism created by the Bank to receive and ust o upply 
information to banks, financial institutio wnitsh, credit 
d
reference bureaus and other institutions bau
tuethorised by 
the Bank, regarding the credit transactiostnr
i
di s of customers 
including their off-balance sheet operoart d ions;
“clearing system” means a set of prodc
e
uecdures whereby banks 
or financial institutions prese ro
enp t and exchange data or 
documents relating to funds b oe
 rr  securities transfer to other 
financial institutions at  am acylearing house and includes a 
mechanism for the cbaol
ockulation of participants’ bilateral 
or multilateral net pios  th sitions with a view to facilitating the 
settlement of th f
ret ior obligations on a net or gross basis;
“Director” meaon ps
a a member of the Board other than the 
Governore do
. rN the Deputy Governors;
“Deputy sGero
v vernor” means a Deputy Governor appointed 
e
undhtes
 rr  section 8(3);
“exl- ori
g
l fficio member” means a member of the Board who 
. Aia attends a meeting by virtue of his position;
an
nz “financial institution” means an entity engaged in the 
 Ta
of business of banking but limited as to size, locations 
t 
en served, or permitted activities, as prescribed by the Bank 
ern
m or required by the terms and conditions of its licence;
v
 G
o “foreign exchange” means currencies and units of accounts 
25
20 other than the currency of the United Republic, and 
© claims in and to the currencies and units of accounts;
“Government” means the Government of the United 
Republic;
“Governments” means the Government of the United 
Republic and the Revolutionary Government of Zanzibar;
2
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
“Governor” means a Governor of the Bank appointed under 
section 8(1);
“member” in relation to the Board, means a member of the 
Board of Directors; .
“Minister” means, except where otherwise specified, the AG
O
Minister responsible for financial matters of the United f 
n o
Republic; io
iss
“payment system” means a system consisting of a s r
peetm of 
instruments, banking procedures and typicallyou 
t inter-
bank funds transfer systems that ensure the  cwiitrhculation 
d
of money; uteb
“public authority” means- ri
dis
t
(a) the authority for any political d sou
r b-division of the 
United Republic, including an c
duy ecity, municipal, town 
or district council; proe
(b) any common services auteh r b ority of which Tanzania is a 
member with other c o
y
mua ntries; or
(c) any corporation, a ok
bogency or enterprise specified for the 
purposes of th is 
 itsh Act by the Bank;
“settlement systemrt ”o
f means an arrangement established 
and operatedo  pb
ay, or under the control of the Bank for 
the discha.r Ned ge of payment obligations and settlement 
obligat rv
sieons between settlement system participants.
 re
igh
ts
ll r PART II
. A
an
ia THE BANK
an
z
T
Establishm oeft n t of 4.–(1) There shall continue to exist a corporation going by the 
Bank enm name and style of the Bank of Tanzania.
rn
ve (2) The Bank of Tanzania shall be a body corporate and in 
5 G
o its corporate name shall-
20
2
© (a) have perpetual succession and a common seal;
(b) be capable of suing and being sued; and
(c) subject to the provisions of this Act, be capable of 
acquiring, holding and alienating any movable or 
immovable property.
3
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
Principal 5.–(1) The principal functions of the Bank shall be to exercise 
functions of Bank
Act No. the functions of a central bank and, without prejudice to the 
10 of 2018 s. 66 generality of the foregoing, to formulate, implement and be 
responsible for monetary policy, including exchange rate policy, .
issue currency, regulate and supervise banks and financial G
OA
institutions including mortgage financing, development n o
f 
financing, lease financing, licencing and revocation of licencessiois  
and deal, hold and manage gold and foreign exchange reseermp ves 
of Tanzania and regulate and supervise microfinance b t 
tho
u siness.
(2) The Bank shall compile, analyse, and p wuiblish the 
d
monetary, financial, balance of payments statibsut
tiecs and other 
statistics covering various sectors of the nationtridis al economy.
(3) In the pursuit of its objectives da on
r d performance of 
its tasks, the Bank shall be autonomdou
cues and accountable as 
provided for under this Act. ro
 re
p
be
Regulatory and 6.–(1) The Bank shall- y a
supervisory m
functions (a) regulate, monitor, aonk o d supervise the payment, clearing 
b
with respect and settlement hsiys
 stem including products and services 
to clearance f t
and settlement thereof; and
art
 o
systems (b) conduct oo pversight functions on the payment, clearing 
and sedtt. l
Nement systems in any bank, financial institution 
or rve
sienfrastructure service provider or company.
(2) Th rets e Bank may-
(la ri)g 
h participate in any payment, clearing and settlement 
. A
l
ia systems;
anz (b) establish and operate any system for payment, clearing 
n
f T
a or settlement purposes; and
t o
en (c) perform the functions assigned by or under any other 
rnme written law for the regulation of payment, clearing and 
ov
 G settlement systems.
02
5
©2 Formulation and 7.–(1) The primary objective of the Bank shall be to formulate, 
implementation 
of monetary define and implement monetary policy directed to the 
policy economic objective of maintaining domestic price stability 
4
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
conducive to a balanced and sustainable growth of the national 
economy.
(2) Without prejudice to subsection (1), the Bank shall 
ensure the integrity of the financial system and support the .
general economic policy of the Government and promote 
OAG
sound monetary, credit and banking conditions conducive to n o
f 
the development of the national economy. siois
(3) The Minister and the Governor shall, wehrmp ere 
circumstances require, consult each other with oua
t  view 
to exchanging information and seeking coord iwni
tahtion on 
d
economic and financial matters. te
trib
u
is
Appointment 8.–(1) There shall be appointed by the Pr oers
 dident, a Governor 
of Governor 
and Deputy who shall, unless he dies, resigns, vacautcee
ds or is removed from 
Governors his office for good cause or is disqpruo
dalified, hold office for a 
period of five years and be eligibblee
 r efor a re-appointment.
(2) A person shall not quamliaf
yy  to be appointed as a Governor 
unless he- k 
oo
(a) holds a universi  b
htisy degree;
t
(b) has not less thoaf rt n fifteen years experience in the fields of 
economico sp,
a banking, accountancy, finance or law;
(c) has bde. e
Nn in senior managerial positions in the 
gosveer
vrenment departments or institutions, private 
tsi nr
estitutions or international organisations; and
( h
ld rig) has not been appointed and served as the Governor for 
l
ia.
 A two consecutive terms.
n
za (3) There shall be appointed by the President, three Deputy 
an
f T Governors who shall, unless one dies, resigns, vacates or is 
t o
en removed from office for good cause or is disqualified, hold office 
m
ern for a period of five years and be eligible for re-appointment for 
ov
 G a further term of five years only.
02
5 (4) The appointment of the Deputy Governors shall be 
©2 made on the basis that, at least one of the appointees hails from 
either side of the United Republic.
5
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
Board of 9.–(1) There shall be a Board of Directors of the Bank and 
Directors
Act No. subject to this Act, the Board shall be responsible for the 
11 of 2010 s. 4 determination of the policy of the Bank, approval of its budget 
and other functions as are specifically conferred or imposed .
upon the Board by this Act or any other written law provided AG
O
that, the Governor and any other member of the Board may f 
n o
refer any matter for consideration by the Board. iss
io
(2) The Board shall consist of- pe
rm
(a) the Governor, who shall be the Chairman; t 
ou
(b) Deputy Governors, who shall be Deputy Chiath w irmen in 
d
the order determined by the Governor; te
bu
(c) the Principal Secretary to the dT
i
isrtreasury of the 
Revolutionary Government of Za r
d noz ibar, who shall be 
an ex-officio member; uc
e
d
(d) one representative from th ro
eep Ministry responsible for 
finance in the Governme bnet
 r of the United Republic; and
(e) four non-executive Diraey m ctors at least one of whom hails 
from either side obfo t
ohk e United Republic.
(3) The Permane ntht
is  Secretary to the Treasury of the 
Government of Unrti toe
f d Republic and the Principal Secretary 
to the Treasury oof p t
ahe Revolutionary Government of Zanzibar, 
may appoint . N
e din writing, persons in the public service to be 
their represesre
vntatives who shall, at any meeting for which they 
e
are aphptso
 rinted, have the powers of the Permanent Secretary 
or Pll ri
gincipal Secretary, in their capacities as members of the 
B  A
ia.oard.
za
n
n (4) The non-executive Directors shall be appointed by the 
a
of 
T Minister and each shall hold office, unless he dies, resigns, 
t 
en vacates or is removed from office, for a term of three years, and 
rnme be eligible for re-appointment for one further term.
Gov
 (5) The members of the Board shall be appointed on the 
02
5
2 basis of merit from amongst persons who hold degrees or the 
© equivalent qualification from an institution of higher learning 
recognised in Tanzania and are experienced in economics, 
business and finance, banking, corporate law, accountancy or 
other disciplines relevant to the functions of the Bank.
6
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(6) In considering the appointment of a person to the office 
of member of the Board, regard shall be had in relation to that 
office, to the likelihood of any conflict arising between the 
interests of the Bank and any interests which that person has .
or represents.
OAG
(7) There shall be a Secretary to the Board who shall perform n o
f 
the following functions: siois
(a) Counsel and Secretary to the Board; ermp
(b) writing and keeping records of proceedings of m t 
oueetings 
of the Board; th
d w
i
(c) convening and preparing meetings of theu teb Board as may 
be directed by the chairman; str
i
di
(d) advising on legal matters and k r 
d eoeping abreast laws 
governing the conduct of busin ce
duess of the Bank; and
(e) other function as may be diprre eocted by the Board or the 
Governor.  r
y b
e
ma
Disqualification 10.–(1) A person shall notk  oo be qualified to be appointed as a 
for appointment 
to Board member of the Board, wsh bhi ere he is-
t
(a) a member rot of
f  the National Assembly, the House of 
Represenot ap
atives or a local government authority;
(b) a persdo. n
N who is a public servant within the meaning 
Cap. 298 of stehr
vies term in the Public Service Act, other than the 
tsP re
ermanent Secretary to the Treasury of the Government 
h
l ri
g of the United Republic and the Principal Secretary 
 A
l
ia. to the Treasury of the Revolutionary Government of 
n
za Zanzibar or their representatives for the purposes of 
n
f T
a section 9(2)(c);
t o
en (c) a director, officer, employee, consultant, lawyer, agent 
m
ern or shareholder of a bank or a financial institution in 
Gov
 respect of which the Bank may exercise a regulatory 
250 power; or
©2 (d) an office bearer of any of the political parties registered 
in Tanzania.
(2) A member of the Board shall be disqualified to hold 
office where he- 
7
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(a) acquires any attribute which had he not been a member, 
would disqualify him for appointment;
(b) becomes bankrupt, suspends payment or compounds 
with his creditors; .
(c) is adjudged or otherwise declared to be of unsound 
OAG
mind; of n 
(d) is convicted of a felony or any offence involving fraussdi
o 
or dishonesty; erm
i
p
(e) is absent without the leave of the chairman of thoeu
t  Board 
from three consecutive meetings of the Boardith; or
d w
(f) tenders resignation. uteb
(3) A member of the Board shall not be drise
tmri oved from his 
office on grounds other than those statedd  ion
r  this section.
e
uc
Meetings, 11.–(1) The Board shall meet as ofterond as may be required for 
quorum, conduct, p
and decisions of the conduct of its business and a ffrebe airs but shall meet at least 
Board once in every two months. ay
 
m
(2) Meetings of the Boar k 
odo  shall be convened, and notice given 
in accordance with the  b
h isby-laws of the Bank and, in addition, 
t
the Chairman or inrt  oh
f is absence, the Deputy Chairman, shall 
convene a meetin pgao  of the Board within a reasonable time of a 
requisition ind t. h
Nat behalf by any member of the Board.
(3) Subsejer
vcet to subsection (4), quorum at meetings of the 
Board ssh r
e
t all be six members.
( gh
l4 ri) There shall be no quorum unless the Chairman or in 
l
h  A
iai.s absence, the Deputy Chairman and two non-executive 
anz members are present at the meeting.
 Tan
f (5) Where in the opinion of the Chairman or in his 
nt 
o
e absence, the Deputy Chairman, any matter or business is of 
ern
m an unusual urgent nature which cannot await the convening 
v
 G
o of a meeting consisting of the quorum, the matter may be 
02
5 decided at a meeting of the Chairman or as the case may be, 
©2 the Deputy Chairman and at least two Deputy Governors and 
one non-executive member and the decision shall be as valid 
and binding on the Bank as if it were a decision of a meeting 
consisting of the quorum and a decision shall be reported to an 
extra ordinary meeting of the Board.
8
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(6) Decisions of the Board shall be reached by consensus.
(7) Without prejudice to the provision of subsection (6), 
where the members of the Board fail to reach a consensus on 
any matter before the Board, the matter shall be decided by .
voting; and where the votes are equal, the Chairman shall have 
OAG
a casting vote in addition to his deliberative vote.  
n o
f
(8) Members of the Board referred to under paragraph (iscs)
io 
of subsection (2) of section 9 shall not vote in the event werhmp en 
a decision is to be reached by casting of votes. ut o
(9) A member of the Board or its committeeisth w , who is 
d
interested in any matter involving the Bank, orb uin
te the exercise 
or proposed exercise of powers of the Bank t
d, is hri all declare that 
interest at a meeting of the Board or its c or
 
d mmittees, at which 
that matter or the exercise or proposdeud
c eexercise of the power 
is considered by the Board or comepm
roittee and the member of 
the Board or committee shall noe  b tr be entitled to attend or be 
counted in a quorum present a
  maty a meeting at which the member 
has interest in the matterb bo
oeking considered.
(10) Where the dectihsis i on of the Board is reached by voting, 
the Governor shall f
ar
it noform the Minister accordingly.
(11) Subject ot po provisions of subsection (3), an act or 
proceeding bedy
.  Nthe Board shall not be invalidated by reason 
of the exissetre
vnce of a vacancy among the members and acts 
e
done in r
hts 
 good faith by a member of the Board shall be valid 
notlwl rii
gthstanding that, some defect in his appointment or 
q  A
iau. alifications be afterwards discovered.
an
nz (12) Subject to other provisions of this Act, the Board may 
 Ta
of regulate its own procedure.
nt e
Stanrndme ing 12.–(1) The Board shall appoint a Monetary Policy Committee, 
oCvommittees of 
 GBoard an Audit Committee and other committees as it may be 
250 necessary for the discharge of its functions; and, subject to the 
©2 provisions of this Act, specify the composition and functions 
of every committee appointed under this section and the 
terms and conditions upon which the committee shall exercise 
its functions.
9
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(2) A committee shall report to the Board at its next regular 
meeting on the proceedings and actions of the committee, and 
the Board may approve, vary or reverse any decision of the 
committee or may give directions affecting any action of the .
committee as the Board may deem fit in the circumstances of G
OA
each case. n o
f 
(3) Subject to the provisions of this Act and any direction io
isss 
given by the Board in that behalf, a committee shall regulpaet
rem its 
own proceedings. t 
ou
(4) The Monetary Policy Committee establis hwiethd under 
d
subsection (1) shall be composed of the Govebrun
teor who shall 
be Chairman or in his absence, the Deputydi sG
tri overnor acting 
as Deputy Chairman, Deputy Governors a onr
 
d d at least one non-
executive Director. e
du
c
(5) The Monetary Policy Comm r
eiptt
oee shall determine on the 
application of the monetary po  r
 bleicy set out by the Board and 
submit to the Board any ma mjo
ayr issues affecting the monetary 
policy to take its stand. ok
bo
(6) The Monetary is 
 thPolicy Committee shall meet as often 
as may be necessarryt o f
for the performance of its functions and 
promptly submit a
o  pto the Board a report of its proceedings after 
each meeting db. 
N
e y submitting the minutes of the meeting.
(7) Thes eqr
vuorum at meetings of the committee mentioned in 
e
subsechttsi
 or n (5) shall be three members, one of whom shall be 
the ig
llC r hairman or in his absence, the Deputy Chairman.
a. 
A
i (8) Subject to the provisions of this Act and any directions 
an
nz given by the Board in that behalf, a committee established 
a
of 
T under subsection (1) shall keep minutes of its meetings, 
en
t reflecting its position on the issues raised and determined.
rnm
oMv
e
 G anagement of 13.–(1) Subject to the provisions of this Act, the management 
25 Bank and powers 
0 of Governor of the Bank and the direction of its business and affairs is 
©2
and Deputy vested in the Governor and the Governor shall, in the exercise 
Governors of the functions and direction, conform with the policy and 
other decisions made by the Board.
10
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(2) The Governor shall, unless the Board determines 
otherwise, exercise powers, perform functions and execute 
duties of the Bank, other than any function specifically 
conferred on the Board, and authorise expenditure within the .
budget approved by the Board.
OAG
(3) The Governor shall, subject to subsection (2), be the f 
n o
principal representative of the Bank and in that capacity: iss
io
(a) represent the Bank in its relation with other instituptei
romns, 
including the Government; ut o
(b) represent the Bank, either personally or th
d w
bi y a legal 
representative in any legal proceedingbsu 
tteo which the 
Bank is a party; ri
dis
t
(c) sign solely or jointly with other dp oe
r rsons, agreements 
concluded by the Bank, notes coedu r securities issued by 
the Bank, reports, balancee ps
rhoeets and other financial 
statements, corresponde bne
 cre and other documents of 
the Bank; and ay
 m
(d) delegate any authbo
k
oroity provided for in this subsection, 
including the is 
 pthower of delegation to any member of 
the Board orrt  oo
fther officers of the Bank.
(4) Each of the p aDeputy Governors shall:
(a) subject.  N
o
ed to the general supervision of the Governor, be 
resperovs nsible for the day to day management of business 
 re
htsand affairs of the Bank as determined by the Governor;
(lb ri)gl  discharge other duties as may be assigned to him by the 
ia.
 A Governor.
an
nz (5) The Deputy Governor acting in the capacity of Deputy 
of 
Ta Chairman shall have full powers to act for the Governor.
en
t (6) The exercise by the Deputy Governor of any function 
ern
m of the Governor shall in the absence of proof to the contrary, 
ov
 G be deemed to be a valid exercise of the function pursuant to 
02
5
2 subsection (5).
© (7) The Governor and the Deputy Governors shall, while 
in the service of the Bank, work full time and shall not, while 
holding their respective offices, occupy or hold any other paid 
11
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
or unpaid office or employment or engage in any professional 
or private enterprises activities.
(8) Subsection (7) shall not prohibit the Governor or Deputy 
Governor from becoming or acting: .
(a) as a governor, director or member of the Board of any 
OAG
international bank or monetary authority to which  of
 
n
the Government have adhered or given support iossr
io 
approval; or pe
rm
(b) as a director of any corporation in Tanzania w t 
ohuich the 
Bank may, in pursuance to the provisions of  wsie
thction 58, 
d
promote. uteb
(9) The President may, by order publishdedtr iis in the Gazette, 
specifically exempt any transactions  
d o
rr activities from 
provisions of subsections (7) and (8). ce
du
(10) Duties and responsibilitieeps
r o of each of the Deputy 
Governors shall be issued in by-el ar b ws and be published in the 
Gazette. may
 
oo
k
Remuneration of 14.–(1) The salaries asn bhi d allowances including retirement 
Governor, Deputy t
Governors and allowances of the G f
rt o v ernor and the Deputy Governors shall 
members of be determined boy p t
ahe President.
Board (2) The fee N
ds. , allowances and other terms of service of the 
members soerf
v ethe Board shall be determined by the Board on 
approvtas lr 
eby the Minister.
(l3 ri)g 
hThe salaries, allowances, fees and other terms of services 
l
oiaff. 
Aered under subsections (1) and (2) shall not be reduced or 
anz otherwise diminished.
 Tan
Appointmnt 
ofent of 15.–(1) Subject to the general terms and conditions of service 
officemrse and other 
staeffrn of Bank and the establishment prescribed by the Board, the Governor 
ov shall be responsible for the appointment, termination of 
5 G
02 appointment and discipline of the staff of the Bank.
©2 (2) The powers of the Board to make provisions for the 
staff of the Bank shall include power to provide for benefits 
for or in respect of staff who die or retire and their surviving 
dependants.
12
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
Secrecy 16. Except for purposes of the performance of his functions, 
when required by law or authorised by the Board, a member of 
the Board or staff of the Bank shall not disclose any information 
relating to the Bank or to any transaction or customer of the .
Bank acquired in the course of employment or the discharge AG
O
of his duties. of n 
ss
io
Capital, reserves 17.–(1) The authorised capital of the Bank shall be one hun i
and accounts of edrmred 
Bank billion shillings, provided that, it may be increased utb 
p
o y the 
amount as may be determined by the Board, and aituh w thorised 
by the Minister, by notice published in the Gazeuttee
d.
(2) The capital of the Bank shall be subis
ib
stcrribed and held 
only by the Government of the United Re poru
 dblic.
(3) The Bank may, having regard touc et
dhe amount by which 
the value of the assets of the Bank expcroe
ded its liabilities, increase 
its paid-up capital by the amoubnet
 r epayable out of the General 
Reserve Fund as the Board shy a all, by order published in the 
Gazette, direct. k m
oo
(4) The paid-up capi b
hitsa
 l of the Bank shall not be reduced.
t
t o
f 
General Reserve 18.–(1) The Bank p sah
r all establish and maintain:
Fund, etc., and No
allocation of (a) a Gened.r al Reserve Fund;
profits (b) a Forveee ign Exchange Revaluation Reserve;
(c) so rt
ehser appropriate assets revaluation reserves or retained 
ht
 rig net unrealised gains reserves set up under a decision 
ll
. A of the Board to reflect changes in market values of the 
an
ia
z Bank’s major assets and in accordance with the best 
n
 Ta international accounting practice; and
of
nt (d) other special reserves or funds from appropriation of 
me
rn net profit.
ov
e (2) The Bank shall transfer to the General Reserve Fund 
5 G
02 twenty five per-centum of the net profits until the time that the 
©2 total capital of the Bank reach a sum equivalent to at least ten 
per-centum of the total assets of the Bank less its assets in gold 
and foreign currencies, thereafter the Bank shall transfer not 
less than ten percent of its net profits to the General Reserve 
Fund.
13
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(3) The Board shall determine, whenever the authorised 
capital, the General Reserve Fund, the Foreign Exchange 
Revaluation Reserve and other appropriate asset revaluation 
reserves or retained net unrealised gains reserves set up by the .
Board are below five per cent of monetary liabilities and profits G
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shall be retained to the General Reserve Fund, the Foreign  
n o
f
Exchange Revaluation Reserve and any other asset revaluatiosniois  
reserve. rm
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(4) Unrealised profits or losses from any revalu t 
oaution of 
the Bank’s net assets or liabilities in gold, foreign ieth w xchange, 
d
foreign securities or any internationally recobgun
teised reserve 
asset as a result of any change in the par or ottrhidis er value of any 
currency unit shall be transferred to a sp  
d oe
r cial account to be 
called the Foreign Exchange Revaluati c
doune Reserve Account; the 
same procedure shall be applied teop 
rmo arket value movements 
in relation to the Bank’s other me r b ajor assets when any of the 
underlying asset is eventua y
 ml
aly sold, any resultant realised 
components shall be tranbsof
oekrred to the income statement.
(5) Both realised a tnh
ids  unrealised gains and losses shall be 
included in the profirt o c
f alculation but only the residual of any net 
realised profits of p tao he Bank shall be paid within three months 
of the close of .e Ned ach financial year, into the Consolidated Fund; 
subject to stehr
ve condition that, where at the end of any financial 
e
year, ansy rht  of the Governments is indebted to the Bank, the Bank 
shalll lr i
gfirst apply the remainder of its net realised profits to the 
r A
iae. duction or discharge of the indebtedness and thereafter, the 
an
nz amount as relates to the net realised profits of the Bank in the 
f T
a
o relevant financial year shall be paid out of the Consolidated 
nt e Fund to the Treasury of the Government of the United Republic 
m
ern and the Revolutionary Government of Zanzibar in accordance 
v
 G
o with the formula agreed upon by the Governments.
5
20
2
© Losses charged 19.–(1) Where the Bank’s balance sheet indicates that, the 
on Consolidated 
Fund amount of its assets is less than the amount of its liabilities 
and the statutory fund, the Minister shall, on behalf of the 
United Republic, issue to the Bank negotiable interest-bearing 
14
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
securities at market determined interest rates with a fixed 
maturity date to the amount necessary to restore the Bank’s 
level of paid up capital.
(2) The securities issued shall be redeemed from the .
annual excess of the Bank’s revenue over expenditure prior to G
OA
deduction of the amount for the General Reserve Fund. n o
f 
(3) The procedure under subsection (1) for coverinsgiois  
the balance sheet deficit shall be applied in cases whe rm
pne the 
resources of the General Reserve Fund, the Foreign Eoxuc
t hange 
Revaluation Reserve, and other reserves and fundws itshet up by 
d 
the Board according to subsection(1) of sectiobnu 
t1e 8 have been 
exhausted. tri
r d
is
 o
Accounting, 20.–(1) The financial year of the Bancked shall be the period 
auditing and u
reporting commencing on 1st July of each yeparor
d and the accounts of the 
Act No. Bank shall be closed on 30th Junee  r
e
b of each financial year.
14 of 2009 s. 
31(a) (2) The Bank’s accounmtain
y g policies, procedures and 
associated accounting recorkd oo s shall be consistent with the best 
international accountinigs h  bstandards.
t
(3) The Board shrta ol
fl  appoint or re-appoint a head of internal 
audit who shall a
o  bpe fully compliant with international audit 
standards for N
d .a  period of three years as head of the internal 
audit func r
seti
voen who shall report to the Governor and to the 
Audit Cs or
e
t mmittee and may report to the Board.
( gh
l4 ri) The function of internal audit shall be fully compliant 
l
wia.i 
Ath international audit standards.
anz (5) The Board and the Governor shall adopt a yearly audit 
 Tan
f work program and any audit and control operations to be 
o
en
t pursued by the head of internal audit and may direct the head 
m
ern of internal audit to conduct reviews of the implementation 
v
 G
o of the decisions by the Board and any other review deemed 
250 necessary.
©2 (6) The annual external audit of the Bank shall be performed 
by the Controller and Auditor-General in accordance 
with international accounting and audit standards and in 
Cap. 348 compliance with the Public Finance Act.
15
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(7) The Bank shall, within three months of the close of the 
financial year, submit to the Controller and Auditor-General 
accounts for auditing. 
Submission of 21.–(1) The Bank shall publish and submit to the Minister G.
report to National A
Assembly within six months after the close of each financial year and O
n o
f 
Act No. the Minister shall submit to the National Assembly the Banks’sio 
14 of 2009 s. s
31(b) annual report comprising of- i
erm
(a) a report of the Bank’s operations and pruit 
p
o ncipal 
functions in particular its monetary policy w ia
thnd other 
activities throughout the year; and the ubtea
dlance sheet 
and the profit and loss account; and tribis
(b) associated financial statements as w ore
 dll as detailed notes 
to the accounts for the year aun
d
ced the previous year’s 
comparative data certified bypr toh
d e external auditor along 
with the external auditor  re
b’se opinion.
(2) The Bank shall publimsah
y,  within ten business days of 
the subsequent month, ao om
k onthly aggregated balance sheet 
audited by the head of hiins
 tbernal audit.
t
(3) The Bank shartl ol,
f  at intervals of not more than six months 
after submission a
o  pof each preceding statement, publish and 
submit to thed .M 
N inister the monetary policy statement for the 
next six meorvn
e
s ths or shorter period as may be specified by the 
Ministetsr r.
e
( gh
l4 ri) The Minister shall submit to the National Assembly the 
l
st.a Aia tement submitted under the provisions of subsection (3).
za
n (5) The Bank shall, at intervals of not more than six months 
an
f T following the submission of the initial report, publish and 
nt 
o
e submit to the Minister progress reports on the implementation 
rnme of monetary policy and reports on the outlook for the future 
Gov
 and the Minister shall submit the reports to the National 
250 Assembly at its subsequent session.
©2 (6) The Monetary Policy Statement shall:
(a) specify the policies and means by which the Bank 
intends to achieve its policy targets;
(b) state the reasons for adopting those policies and means;
16
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(c) contain a statement of how the Bank considers 
monetary policy to be formulated and implemented 
during the next twelve months; and
(d) contain a review and assessment of the implementation .
by the Bank of monetary policy during the period to 
OAG
which the preceding policy statement relates, whereby of n 
the Bank shall describe the factors inside and outsiidsse
io 
its control that have affected the outcome of monpee
rtmary 
policy. t 
ou
(7) In addition to the reports published by the B ith
 wank under 
d
the provisions of this section, the Bank mbauy
te issue other 
publications, including the statements of the ri
dis 
tBoard on issues 
of monetary policy as the Board considedr os
r  to be in the public 
interest. e
du
c
ro
ep
Exemption from 22.–(1) The Bank shall be exembpet
 r from payment of any taxes, 
certain taxes levies or duties in respect omfa yi ts profits, operations, capital, 
property or documents oro a
 
okny transaction, deed, agreement or 
promissory note to whhics
 hbi  it is a party.
t
(2) The Bank shartllo 
fb  e exempt from the payment of stamp or 
other duties in reo spp
a ect of notes and coins issued as currency.
N
d. 
Liquidation and 23. The B e
earnv k shall be placed in liquidation or wound up 
winding up of 
Bank pursuans tr
e sto the procedure prescribed in an enactment of 
t
Cap. 212 Parl iraigm
h ent but the provisions of the Companies Act and the 
C ll
.o Ampanies Decree shall not apply in relation therewith.
nia
za
By-laws anT 24.–(1) The Board may make by-laws for the good order and 
t o
f management of the Bank.
en
nm (2) The Board shall make rules regulating travel expenses 
ve
r
o and out of pocket allowances applicable to members of the 
5 G2 Board and the staff of the Bank incurred in discharging their 
0
©2 duties.
(3) By-laws made pursuant to subsection (1) and rules 
under subsection (2) may not be published in the Gazette.
17
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
PART III
CURRENCY
Currency and its 25. The unit of currency in Tanzania shall be the shilling each .
issue of which shall be divided into one hundred cents. AG
 O
 of
on
Issuance of bank 26. The Bank shall have the sole right to issue bank notes anssdi  
notes and coins i
coins in and for Tanzania which shall be the only legal tpeen
rmder 
in Tanzania. t 
tho
u
wi
 
Notification of 27.–(1) Bank notes and coins shall be- ted
notes and coins u
(a) in denominations of the shilling or isftrr
iabctions thereof 
expressed in cents; and  d
 or
(b) of materials, forms and designusc ea
dnd bear inscriptions, 
devices and have other charapcrot
deristics, as the Bank shall 
determine with the appro  re
beval of the Minister.
 
(2) The Bank shall givem a
ynotice in the Gazette of the 
denominations and other c  
ooh
karacteristics of the bank notes and 
coins before they are ci  b
thrisculated for use.
 of
 
rt
Legal tender 28.–(1) Subject to p athe provisions of this section-
(a) bank n No
d.o tes shall be legal tender at their face value for 
thee prva
eyment of any amount;
(b) c roes isns shall be legal tender at their face value in the case 
ht
 rig of-
ll
. A (i) a shilling, or any multiple of a shilling, for the 
ia
za
n payment of any amount;
 Tan
f (ii) coins having a face value of fifty cents or below, 
nt 
o for the payment of any amount not exceeding five 
e
rnm hundred shillings.
e
ov (2) Subject to section 29, the Bank shall have power, on 
 G
02
5 giving reasonable notice in the Gazette, to call in any notes or 
©2 coins issued by it on payment of the face value thereof.
(3) Notes or coins with respect to which a notice has been 
given under this section shall, on the expiration of the notice, 
cease to be legal tender.
18
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(4) This section shall not be construed as precluding the 
Bank from making payment for any notes or coins called in 
accordance with subsection (3) which are delivered to the 
Bank after they have ceased to be legal tender.
AG.
Lost and 29.–(1) A person shall not be entitled to recover from the Bank O
of 
damaged  
currency the value of any lost, stolen or imperfect bank note or coin, osrio
n
s  
of any bank note that has been mutilated or of any coine rtmh
i at 
has been tampered with. ut 
p
o
(2) Without prejudice to subsection (1), the Bith w ank may 
decide on any value that may be awarded to an d
uyte person who 
present to the Bank, a bank note which is tihstre
ib subject of any 
events referred to in subsection (1).  or
 d
(3) The circumstances in whichu 
d
ceand conditions and 
limitations upon which, the valupero 
dof any lost, stolen or 
imperfect notes or coins, mutilabtee
 rde notes or coins which have 
been tampered with, may bem rae
yf unded as of grace by the Bank 
and shall be within the abos
 
oklute discretion of the Bank.
(4) For the purposehsi so
 bf this section, a coin shall be deemed 
t
to have been tamperrt eod
f  with where the coin has been impaired, 
diminished or oli pg
ahtened otherwise than by fair wear and 
tear, or has bde.e 
Nn defaced by stamping, engraving or piercing 
whether ore rnv
e
s ot it has been diminished or lightened.
e
s r
Destruction of 30. Thht
 rig e Bank may melt down, break up or deface any coin and 
coins and notes deAfall. ce or destroy any bank note which has been called in or 
anz tiaampered with.
n
f T
a
t o PART IV
men
ern OTHER OPERATIONS OF THE BANK
v
5 G
o
02 The Bank as 31.–(1) The Bank shall be the banker, and act as the fiscal agent 
©2 banker to 
Governments of the Governments.
and other public (2) The Bank may, subject to arrangements as may be made 
authorities with the authority concerned, act as banker and fiscal agent for 
any public authority.
19
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
Functions as 32.–(1) The Bank in its capacity as a banker and fiscal agent of 
banker and fiscal 
agent the Governments or of any public authority, shall be the official 
Act No. depository of the Governments or public authority concerned 
4 of 2017 s. 4 and accept deposits and effect payments for the account of the .
Governments or public authority. G
OA
(2) Without prejudice to subsection (1), the Bank may, after  of
 
n
consultation with the Governments or the public authoriistsy
io 
and the bank concerned, select any other bank to be the o rm
pffie cial 
depository of the Governments or the public authorityu ta o nd in 
respect therewith shall- th
d w
i
(a) maintain and operate special officiablu 
teaccounts in 
accordance with arrangements made b ri
dis
tetween the Bank 
and the Governments or public aud toh
r ority concerned;
(b) act as agent of the Government ce
dsu for servicing the public 
debt, including the issuanceep 
roo f payment of interest on 
and the redemption of beo r b nds and other securities of 
the Governments; ay
 m
(c) pay, remit, collecbto 
okor accept for deposit or custody 
funds in Tanzaniisa  th  or abroad;
(d) purchase, sertl lo,
f transfer or accept for custody cheques, 
bills of exoc ph
aange and other securities;
(e) collec . N
etd the proceeds, whether principal or interest 
ressuerl
vting from the sale of accruing to the interest of the 
 re
htsGovernment or public authority of securities or other 
l ri
g
l property; and
a. 
A
i (f) purchase, sell, transfer or accept for custody gold or 
n
nz
a foreign exchange.
Ta
of (3) The Government and public authorities shall open and 
t 
en deposit their moneys with the Bank.
ern
m (4) The Bank may make regulations for the better carrying 
ov
 G out of the provisions of this section.
25
©20
Bank fee 33. The Bank may charge fee for its services as banker or fiscal 
agent of the Governments at rates and on cost recovery basis 
as the Bank shall determine.
20
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
Direct advances 34.–(1) Subject to the provisions of this section, the Bank may-
and other short 
term credit to the (a) make direct advances to the Governments for the 
Governments, etc. purposes of offsetting fluctuations between receipts 
Acts Nos.
4 of 2018 s. 4 from- .
14 of 2019 s. 10 (i) voted funds which originated from the AG
Consolidated Fund; of 
O
n 
(ii) unspent funds from various sources; and iss
io
(iii) payments of the Governments; and rm
pe
(b) purchase, hold and sell Treasury bills issued t
o ub y the 
Governments which mature not later th th
 wai n twelve 
d
months from the date of issue. bu
te
(2) An advance made to the Governmistd erints under this 
section shall- r 
d o
(a) be made solely for the purpose uoced f providing temporary 
accommodation to the Govepe
rronments and accordingly, 
be repayable within one heu r b ndred and eighty days; and
(b) bear interest at marke a
 mt r
yates as determined by the Bank.
(3) For purposes of thbiso 
oskection and section 35:
“voted funds” means r s
 the
i c eipts from budgeted revenues of the 
Governments w f
art
h oich are deposited in and paid from the 
Consolidated  pFund;
“unspent fund. N
o
ed s” means receipts of the Governments from 
variousse sr
vources which are deposited in and paid from the 
e
dep r
hots
 sit accounts other than the Consolidated Fund.
 rig
Operation in 35. A
ll
ia .–(1) Subject to the provisions of this section, the Bank may, 
Government ansecurities, etc. z for the purpose of offsetting fluctuations between receipts from 
n
Acts Nos. f T
a the voted and unspent funds and payment of the Governments, 
4 of 2018 ts .on  5
10 of 20e18 s.66 purchase, hold and sell negotiable stocks, bonds or similar 
5 ofr n2me 022 s. 6 debt obligations or other securities issued by the Governments 
Gov
 which shall bear interest at the market rate as determined by 
02
5 the Bank and mature not later than twelve months from the 
©2 date of issue.
(2) The total amount outstanding at any time of advances 
made by the Bank under this section and section 34 shall not 
21
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
exceed eighteen percentum of the budgeted domestic revenues 
of Governments as defined in section 36.
Meaning of 36.–(1) For the purposes of section 35, the budgeted domestic 
annual budgeted 
revenue revenues of the Governments shall be the actual collected .
AG
Act No. revenues of the previous fiscal year. of 
O
16 of 2015 s. 4 n o
5 of 2022 s. 7 (2) Collected revenues shall include taxes, levies, dutiesssi, 
fees, profits and income from any investment or undertaekrmin
i g 
and any contribution to the revenue of the Governmenout
ts p from 
any political sub-division of the United Republic, ieth w xcluding 
loans, grants and other forms of economic aid aunted
d  borrowing 
whether of short or long term. rib
 di
st
or
Prohibition of 37. Except as provided in sections 34 ancde d3
 5, the Bank shall not 
other credit to 
Governments, etc. extend any credit directly or indirectroldy
u to the Governments or 
any public authority. p
 re
y b
e
a
Financial 38.–(1) The Bank may opke mn accounts, accept deposits and 
relations with o
other banks collect money and other  bmos onetary claims for and on account 
i
of banks and financiaolf 
tihnstitutions and generally act as a banker 
to banks and finan rt 
o p
acial institutions.
(2) Subject.  Nto the provisions of this Act, the Bank may 
provide addrviet
dional services to banks and financial institutions, 
includin rge 
sienterbank clearings and the provision of safe deposit 
facilitihetss.
ll r
ig
 A
Re-discounts etc. n3ia9
. .–(1) The Bank may, on terms and conditions as it may 
za
an prescribe, purchase, sell and rediscount on behalf of banks, bills 
f T
t o of exchange, promissory notes and other credit instruments so 
n
me long as the instruments bear the endorsement or acceptance of 
ernv a bank, and matures within one hundred and eighty days from 
Go
5 the date of acquisition or rediscount by the Bank.
02
©2 (2) The Bank shall set limits of access to the rediscount 
facilities.
Loans and 40.–(1) The Bank may, on terms and conditions as it may 
advances prescribe, grant loans and advances to banks and financial 
22
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
institutions for a period not exceeding three months against 
the collateral of:
(a) credit instruments satisfying the requirements of 
section 39; .
(b) treasury bills satisfying the requirements of section 39; AG
or of 
O
n 
(c) other credit instruments or securities prescribed by th io
isse 
Bank. rm
pe
(2) For the purposes of this section, the word “fioun
t ancial 
institution” shall include the Deposit Insura wni
tche Fund 
d
established under the law regulating banksb ua
tend financial 
institutions in the United Republic. ri
ist
 or
 d
Bank as lender of 41. The Bank shall be a lender of laucset
d resort and at penal 
last resort interest rates published each year, grparon
dt advances or contingent 
commitments on an exceptionable 
 breasis to banks and financial 
institutions in Tanzania that ya ma re deemed to be solvent but 
illiquid where-  
oo
k
(a) in the opinion o b
hfi st
 he Board, the advance or commitment 
t
is necessary hoaf rt ving regard to the financial condition of 
the banko  op
ar the financial institution and its systemic 
signifidc.a 
Nnce to the stability in the financial market; 
(b) in stehr
vee opinion of the Bank, the bank is solvent and 
p rrets ovides adequate collateral and the request for 
ighl r financial assistance is based on the need to improve 
l
ia.
 A liquidity; 
za
n (c) available collateral is insufficient and the Minister has 
n
f T
a on behalf of the Government concurred in writing on 
o
en
t the advance or commitment proposed by the Bank to 
ern
m that effect;
Gov
 (d) the Minister on behalf of the Government has 
250 confirmed in writing that, separate funds or debt 
©2 securities in bearer form with interest at market rates 
will be made available to the Bank by the Governments 
to cover the advance or full amount of the commitment 
given in the event that it is realised; and
23
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(e) the Bank approves upon consent of the Board, each 
loan and guarantee or other contingent commitment 
of the Bank or the benefit of a bank or other financial 
institution pursuant to this section.
G.
A
Bank not to 42.–(1) Except as provided in sections 39, 40 and 41, the Bank of 
O
extend credit  
shall not extend credit directly or indirectly to banks ansdios  n
financial institutions. i
erm
(2) The Bank shall determine and publish the t p
oruates of 
interest for rediscounting instruments and grantinwgit
h
  loans or 
advances to banks and financial institutions. ute
d
str
ib
Bank may 43.–(1) For monetary policy purposes, the di
oBr ank may purchase, 
purchase, hold 
and sell securities hold and sell securities issued by any o d
cef t
 he Governments or 
authority for a political sub-divisionro do
u f the United Republic, 
but the purchases shall not be made er
e tpo finance any Government 
budget deficit of either of the Gay o
bvernments and shall be made 
on the secondary market at km mo arket rates.
(2) The Bank mayi s be
oqually purchase and sell its own 
negotiable debt secur th
rt o
fi ties.
44.–(1) Subject too 
pa
Control of . N  the provisions of this section, the Bank may 
banking activities require ban d
er
kves and financial institutions to maintain minimum 
cash balarens ces with the Bank as reserves against the deposit and 
otherig hli
tsabilities of the banks and financial institutions and in 
thaAtll .  rrespect, prescribe the currency or the currencies in which 
ant
iahe balances shall be held.
nz
Ta (2) The Bank may prescribe different ratios for different 
f 
t o kinds of deposits and other liabilities and may prescribe the 
en
nm methods of computing the amount of the reserves which ratios 
er
ov and methods shall apply uniformly to banks and financial 
5 G2 institutions and may exclude certain liabilities from this 
20© calculation.
(3) A requirement or increase in the ratios shall take effect 
on the expiration of at least thirty days notice to the banks and 
financial institutions.
24
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(4) The Bank shall impose on any bank or financial 
institution that fails to maintain the minimum balances 
required under this section, a daily penalty charge on the 
amount of the deficiency of greater than 0.2 per centum or .
three times the average yearly lending rate of the bank or the G
OA
financial institution divided by 360, and the charge may be of n 
recovered by deduction from any balance of, or money owinissg
io 
to the bank or financial institution concerned or recoverpee
rdm as 
civil debt. ut 
tho
 w
i
Liquid assets 45. A bank or financial institution shall muatien
d tain liquid 
ratio assets at levels prescribed by the Bank in accotrribis dance with the 
Cap. 342 provisions of the Banking and Financial In  d
 orstitutions Act.
ce
d
Submission and 46.–(1) A bank or financial instri
u
otdution and any affiliate 
publication of 
information shall furnish to the Bank, at a timreepe  and in a manner as may 
be prescribed by the Bank, ayt h
b e information as the Bank 
may require for the propoek r
m discharge of its functions and 
responsibilities under thisi bs
o Act.
(2) Where any b oaf
 nthk or financial institution contravenes 
t
or fails to compl y
r
pa with any requirement of this section, the 
bank or finand.c 
Nioal institution concerned and an officer who 
is in defaultrv ee on conviction shall be liable under section 66 of 
Cap. 342 the Bans kr
eisng and Financial Institutions Act to a default fine 
stipul t
gahted thereunder.
All r
i
Power to conduct n4ia
. 
a 7.–(1) Notwithstanding any provision to the contrary 
examinations ofn z
banks or finaTnacial contained in any written law, the Bank shall have power to 
 
institutiont so
f access to any oral and documented information, including 
Act No.en
2 of n2m022 s. 26 information in computers, books, minutes, accounts, cash 
r
ov
e securities, documents, vouchers as well as any other things in 
 G
25 the possession or custody or under the control of a bank or 
20© financial institution or its affiliate, which relate to the business 
of the bank or financial institution or to anti-money laundering 
Cap. 423 and countering terrorist financing matters pursuant to the 
Anti-Money Laundering Act.
25
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(2) The Bank may carry out, at a times as it may consider 
Cap. 342 necessary, an examination of any bank or financial institution 
in accordance with the provisions of the Banking and Financial 
Institutions Act.
G.
A
Credit reference 48.–(1) The Bank shall create a credit reference system designed  O
system  of
to collect and provide information on the payment record sosfi
o n
the clients of banks and financial institutions, savingse ramni d 
credit schemes and other entities engaged in a regular p
o ub
t asis in 
the extension of credit within the United Republic. th
 w
i
(2) The credit reference system shall consistetdu  of a credit 
reference databank administered by the Bank atnribis d private credit 
reference bureaus operating under the co onr
 dditions prescribed 
by the Bank. ed
uc
(3) The banks and financial pirno
dstitutions shall, having 
ascertained the proper identity obef
  rteheir customers, individuals 
as well as representatives of mc
 
auystomers that are legal entities, 
report to the credit referenkc oo e databank detailed information 
about credit facilities exs bhi tended to each client, in the format 
t
and with the freque f 
rtn ocy as the Bank may prescribe.
(4) The Banko  ps
ahall have and exercise powers to mandate 
a standardize N
dd.  method or technology for the assignment of 
a unique iedrvs eentification number to each client by banks and 
financitas lr 
einstitutions.
( g
l5 ri) h The information received from banks and financial 
l
iian. s
Atitutions shall be consolidated by the Bank with a view to 
anz determine, at a minimum, the total indebtedness and payment 
 Tan
f performance of each client and may provide to each reporting 
t o
en institution for internal control and monitoring purposes.
ern
m (6) The Bank may require banks and financial institutions 
ov
 G report to the credit reference databank other information 
5
02 relevant to their clients’ operations including, but not limited 
©2 to information on electronic payment instruments and 
cheques that are returned or refused for lack of funds, fraud 
or any other information required by the credit reference 
databank.
26
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(7) The Bank may require any savings and credit institution 
or scheme and any other entity engaged in the extension 
of credit to report any information required by the credit 
reference databank. .
(8) The Bank shall have and exercise powers to license and 
OAG
regulate operations of private credit reference bureaux that n o
f 
access information from the credit reference databank. siois
(9) The clients of institutions providing informatipoen
rm to 
the Bank shall execute a written consent to the institutuit o ons to 
obtain from exchange with or disclose information w ri
tehlating to 
d
the clients to banks, financial institutions or crueteb dit reference 
bureaux. tri
dis
(10) The information collected, exchandg oe
r d with or disclosed 
to banks, financial institutions or cr e
due
cdit reference bureaux 
shall be used only for the purpose eopf
ro verifying accuracy of the 
information, conducting credit b ei
 nr vestigations and executing 
and performing loan or cred mit
a ay greement.
k
oo
Administrative 49.–(1) Where a privha
b
ist e credit reference bureau is found 
penalty t
involved in gross or f 
r t roepeated violation of consumer protection 
regulations or fao ipl
as to furnish correct information that may 
be required bdy. 
N the credit reference databank, the Bank may 
impose onse tr
vhee private credit reference bureau a penalty charge 
of not le rsets s than five hundred thousand shillings for every day 
durli
h
 nrigg which the non-compliance continues or withdraws its 
l  A
l
iaic. ence.
za
n (2) The Bank may use the credit reference databank to 
an
f T monitor the credit activities of any individual institution and 
nt 
o
e the credit market for purposes of publication of periodical 
ern
m information.
ov
 G (3) The banks and financial institutions may request 
250 information from the credit reference databank or a credit 
©2 information bureau regarding payment record of prospective 
clients, and in relation therewith banks and financial 
institutions shall observe that, written loan applications are 
signed by prospective client and filed for review by the Bank in 
the course of periodic examinations.
27
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
External reserves, 50.–(1) The Bank shall, subject to the provisions of this Act, 
gold and foreign 
exchange formulate, determine and implement the exchange rate policy 
in the United Republic with a view to attaining its primary 
monetary objective stated in section 7. .
(2) In order to ensure a smooth and effective coordination 
OAG
with the Government’s economic policy, the Governor shall of n 
consult with the Minister on the exchange rate policy anissd
io 
on any major draft decision on the exchange rate policyp ew
rmith 
reasons thereon. ut 
ith
o
 w
Reserve of 51.–(1) The Bank shall use best endeavors tote du maintain a 
external assets reserve of external assets at a level which is, at mtribis inimum, equal 
to four months imports requirements and otrh 
d
 e requirements of 
international transactions of the Uniteudc eR
d epublic for the same 
period of time. pro
d
(2) Subject to the provisions o  re
bfe subsection (4), the reserve of 
external assets shall consist amnayy  of the following:
(a) gold; k 
oo
(b) foreign exchanges  bhi in the form of:
t
(i) demanrd
f 
t o or time deposits with foreign central 
banko sp
a or with the Bank’s agents or correspondent 
adb. r
Noad;
(ii) ervs de ocuments and instruments customarily used 
 rets for the making of payments or transfers in 
gh
l ri international transactions;
l
ia.
 A (iii) notes or coins; and
anz (c) securities or guarantees by foreign governments or 
 Tan
f international institutions and organisations.
o
en
t (3) The Bank shall determine the type and form of foreign 
m
ern exchange and the kinds of securities which may be held in the 
ov
 G reserve of external assets.
02
5 (4) The Bank may include in its reserve of external assets 
©2 any internationally recognised reserve assets being a reserve 
asset not referred to in subsection (2), including:
(a) the reserve position of the United Republic in the 
International Monetary Fund; and
28
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(b) holdings and special drawing rights of the United 
Republic, which the Bank, after consultation with the 
International Monetary Fund, considers suitable for 
inclusion in the reserve. .
AG
Dealing in gold 52.–(1) Subject to the provisions of this section, the Bank may: of 
O
and foreign  
currencies (a) import, export, buy, sell, hold or otherwise deal in golsdsi;
on
(b) acquire and transfer balances in foreign currenecrmie
i s, 
hold balances with foreign central banks or wt p
ouith the 
Bank’s agents or correspondents abroad, ainth w d invest 
balances in marketable foreign securitiesu;t ea
dnd
(c) acquire, hold, transfer, and effect traisntr
isbactions of any 
kind in foreign exchange. or 
d
 
(2) The Bank may engage in foreignc edu exchange transactions 
with- d
pro
(a) banks and financial institue r
e
b tions;
(b) the Governments; y 
ma
(c) a public authority; k 
oo
(d) foreign central bhias
 nb ks, foreign banks or foreign financial 
t
institutions;rt o
f 
(e) foreign o pg
aovernments or agencies of foreign 
govern.m Nd ents;
(f) inteerrv
e
s national financial organisations or institutions; 
sa rt ned
(lg ri)g 
h any other person the Bank may prescribe by notice in 
Al
a. i the Gazette.
n
za (3) The buying and selling rates in transactions authorised 
n
f T
a by this section shall be in accordance with international 
t o
en agreements to which the United Republic is a party or to which 
rnme the United Republic is associated.
ov
25
 G
0 Exchange control 53. The Bank shall perform functions in the administration of 
©2 any law relating to the control of the import, export, purchase, 
sale or other transaction in foreign exchange and gold as may 
be stipulated thereof.
29
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
Payments 54. The Bank shall administer any payments agreement entered 
agreements into by the Governments.
Fiscal and 55. The Bank shall be the fiscal agent for the Governments’ 
depository for 
Government’s transactions with international financial organisations or AG.
transactions, etc. institutions of which the Government of the United Republic O
n o
f 
is a member.
iss
io
rm
Miscellaneous 56.–(1) The Bank may open accounts for, accept deposuitt  
pferom, 
powers and 
functions and collect money and other monetary claims foitrh oand on 
account of foreign central banks, foreign banks da wte nd foreign 
financial institutions and may generally act as trbibs aunker to banks 
and institutions. or 
di
(2) A foreign currency reserves held coend
  deposit or managed 
by the Bank shall be immune frorm
u
od any legal proceedings 
including an order for executionre,pe  attachment or any other 
similar process issued by any  b
acyourt for enforcing payment by 
the Bank in relation to foreoikg 
mn currency reserves.
is 
bo
Relations 57.–(1) The Bank shaf tlho l, for the purposes of compilation and 
with private 
enterprises, publication of thpe
r t a balance of payments statistics meeting 
 
organisations and international .s Nt
oandards, compile information from public 
bodies offices and rf
d
verom banks and financial institutions and, to the 
extent strreis cetly necessary, from private enterprises, organisations 
and bigoh
tds ies.
. A(
ll2 r) Public offices, banks and financial institutions shall, 
ana
iat a request by the Bank, provide any information the Bank 
nz
Ta considers necessary for compilation of any monetary, financial 
t o
f or other statistics on the financial sector.
n
nm
e (3) A private enterprise, organisation and body shall, 
er
ov at a request of the Bank, provide any information the Bank 
25
 G considers necessary for the compilation of the balance of 
©20 payments statistics.
(4) Where a bank or financial institution fails to comply with 
any requirement of this section, the Bank may impose on the 
relevant bank or financial institution a penalty of not exceeding 
five hundred thousand shillings for every day during which 
30
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
non-compliance continues and the charge may be recovered by 
deduction from any balance of, or moneys owing to the bank or 
financial institution concerned or by institution of a suit.
(5) A private enterprise, organisation or body that fails to .
comply with a requirement by the Bank made pursuant to G
OA
the provisions of subsection (3) shall be subject to a penalty  of
 
n
not exceeding one hundred thousand shillings for every diassy
io 
during which non-compliance continues.
 pe
rm
t
ou
Relations with 58.–(1) Subject to subsection (2), the Bank may, inith order to 
corporations  w
effectively promote the functions of the Bank,u tes
dubscribe to, 
hold, and sell shares or acquire an interest in rib
is tany corporation 
established for the purposes of promoting  
 o trh
d e development of 
financial markets or of improving the fiucnea
dncial machinery and 
payment systems in the United Rep d
puroblic.
(2) The total value of the Ban e
be
 kr ’s holding of any shares or 
interest shall not at any time exmcaye ed fifty percent of the aggregate 
of the Bank’s paid up capit k
oaol  and of its General Reserve Fund.
s bi
Interest on 59.–(1) On minimumf t h o cash balances required, the Bank may 
deposit balances t
and blocked not pay interest o r
 npa balances deposited with the Bank.
accounts (2) The BankN od. may, where circumstances render it desirable 
and prudenertv 
eso to do, pay interest at market rate, and subject 
to qualifirecss ation as it may determine, on the balances in any 
amounht rig t with the Bank which is a blocked account within the 
m. eAall ning of the prevailing foreign exchange regulations.
ia
za
n
Advice to anT 60.–(1) The Bank shall advise the Governments when in the 
Governme nt o
ft s Bank’s opinion, any matter relating to its functions, powers 
en
nm and duties is likely to affect the fiscal policy and the national 
er
ov economic growth or the achievement of the principal objectives 
 G
25 of the Bank.
0
©2 (2) The Governments may seek opinion and advice on 
draft Governments’ budget, financial legislation and any other 
matter affecting the functions, powers and duties of the Bank 
or any proposals, measures or transactions relating thereto, 
and the Bank shall give the advice accordingly.
31
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
Prohibited 61.–(1) The Bank shall not-
operations (a) save as expressly authorised by this Act, engage in trade, 
own or acquire any direct interest in any commercial, 
agricultural, industrial or similar undertaking except .
in the course of obtaining satisfaction for any debt due AG
O
to the Bank;  
n o
f
(b) purchase, acquire or lease immovable property for ainssy
io 
purpose except as premises for the Bank, incluedrmp ing 
reasonable provision for anticipated future requiorue
t ments 
or for the use by members of the Board or its itshtaff;
d w
(c) guarantee any loan, advance or invebsut
tement unless 
expressly authorised by this Act. i
dis
tr
(2) Where, in the case provided ino r d paragraph (a) of 
subsection (1), the Bank acquires any uicneterest, it shall dispose 
of the same at the earliest suitable opro
d
e portunity.
e r
PARay
 b
 m T V
k
MISCELLA Nbo
oEOUS PROVISIONS
hisf t
Limitation on 62. The Governmearnt
 ots shall not hold or maintain any reserve 
external holdings of external ass eNtos
 p except to the extent necessary for working 
balances. d.
erv
e
es
Prohibited 63. Sa  r
hvtse with the written consent of the Bank, a bank shall 
banking names notl l rbi
ge registered hereafter under the provisions of any law, 
bay. 
A
i  a name which includes any of the words “central”, “state,” 
an
nz “government” and” reserve”.
 Ta
of
Banks, entct e ., 64. In the discharge of its functions under this Act and in the 
deemnmed to be 
puebrlic service for administration of any law, the Bank, members of the Board 
ov
 Gcertain purposes and staff of the Bank shall be treated as holding office in the 
02
5 public service.
©2
Immunity of 65.–(1) Notwithstanding the provisions of any other law, an 
members of 
Board, staff and action or other proceedings shall not lie or be instituted against 
employees of any member of the Board of the Bank, official or employee of the 
Bank
32
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
Bank for or in respect of any act or thing done or omitted to be 
done in good faith in the exercise of powers conferred by this Act.
(2) An official or other member of the staff authorised to 
make decisions on behalf of the Bank having an equivalent .
interest in any matter involving the Bank shall be required to 
OAG
report that matter to the supervisor and shall not be entitled to  
n o
f
make decisions related to that matter. io
miss
er
Immunity of 66. Notwithstanding anything to the contrary in anyo 
p
uwt ritten 
Bank law, where any judgement or order has been obtain weithd against 
the Bank, an execution or attachment or procesutse 
din whatever 
nature, shall not be issued against the Bansktri  ibor against any 
property or asset of the Bank, but the Ban d
 or
 k shall cause to be 
paid the amounts as may, by judgemeuncte 
dor order, be awarded 
against the Bank to the person entitlreodd .
e r
ep
Immunity of 67.–(1) The assets of the Govaeyr 
bnment including any local or 
assets managed 
by Bank foreign currency held on odk e
mposit or managed by the Bank, 
shall be immune from isa bn
oy enforcement proceedings and an 
execution, attachme onf
 tth or any other similar process shall not 
t
be issued by any r
 pcaourt for enforcing payment by the Bank in 
relation to andy. 
Naosset held on account of the Government and 
a person sehrva
ell not be individually liable under any order for 
paymen tr es bsy the Bank or any officer of the Bank in relation to 
the asshet rig t held on account of the Government.
A(ll. 2) Where in relation to any asset of the Government held 
nbiaza y the Bank proceedings have been instituted in any court 
n
 Ta for enforcement or procuring execution by attachment or 
f
Cap. 5 nt 
o any other similar process, the provisions of the Government 
me
rn Proceedings Act, shall apply mutatis mutandis in relation to 
ov
e proceedings against the Bank or any officer of the Bank.
5 G2
©20 Overriding effect 68. In the event of conflict arising from the provisions of this 
Act and any other Act relating to the exercise of power and 
performance of functions of the Bank, the provisions of this 
Act shall prevail.
33
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
Waiver for non- 69. The Board shall prescribe rules to be applied by the Bank 
compliance on the waiver of compliance or penalties for non-compliance 
of the provisions of this Act or regulations and any matter that 
is economically or otherwise important shall be referred to the .
Board for determination. AG
of 
O
 
Powers to make 70.–(1) The Minister may make regulations necessary ossri
o n
regulations desirable to give effect to the provisions of this Act. erm
i
(2) Regulations made under subsection (1) sohu
ta pll be 
published in the Gazette. th
 w
i
(3) The Board may make by-laws, rules and isstuedu e directions, 
orders and circulars regulating the manniesrtr
i bby which the 
objective of this Act may be carried on.  or
 d
(4) The by-laws, rules, directions, ordceeu rds and circulars issued 
under subsection (3) may not be pupbrol
dished in the Gazette.
e
e r
Repeal and 71.–(1) [Repeals the Bank of Tya a nb zania Act].
savings
Act No. (2) Notwithstanding theo kr e
mpeal of the Bank of Tanzania Act-
1 of 1995 (a) regulations, ruleiss ,b 
oorders, by-laws, directions or other 
subsidiary leg th
 oifs
 lation made, given or issued under that 
t
Act and w r
 phaich are in force immediately before the date 
of comi o
d. n
Ng into operation of this Act shall remain in force 
unteirlv t
ehey are revoked, cancelled or varied by regulations, 
s
sr ur
eles, orders, by-laws, directions or other subsidiary 
ht
 rig legislation made, given or issued under this Act;
. A(
llb) appointments made under that Act and which have not 
nia
za been revoked immediately before coming into operation 
n
 Ta of this Act shall remain in force until they are revoked or 
 ofnt fresh appointments are made under this Act; and
e
rnm (c) legal proceedings instituted or orders made under that 
veo Act shall continue and be deemed to be proceedings or 
 G
02
5 orders made under the provisions of this Act.
©2
 
34