The Bank of Tanzania Act

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.1
PART I
PRELIMINARY PROVISIONS
1. This Act may be cited as the Bank of Tanzania Act. 2. This Act shall apply to Mainland Tanzania as well as to
Tanzania Zanzibar. 3. In this Act, unless the context otherwise requires -
“Act” means the Bank of Tanzania Act;
“Bank” means the Bank of Tanzania referred to under section
4(1) of this Act;
“bank” means an entity that is engaged in the banking
business;
“banking business” means the business of receiving funds
from the general public through the acceptance of
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,
Short title
Application
Interpretation
CHAPTER 197
THE BANK OF TANZANIA ACT
An Act to provide for more responsive regulatory role of the Bank of
Tanzania in relation to the formulation and implementation of monetary
policy; to provide for the supervision of banks and financial institutions
and to provide for other related matters.

on and implementation of monetary
policy; to provide for the supervision of banks and financial institutions
and to provide for other related matters.

[1st July, 2006]
[GN. No. 84 of 2006]
Acts Nos. 4 of 2006
14 of 2009
11 of 2010
16 of 2015
4 of 2017
4 of 2018
10 of 2018
14 of 2019
2 of 2022
5 of 2022

st July, 2006]
[GN. No. 84 of 2006]
Acts Nos. 4 of 2006
14 of 2009
11 of 2010
16 of 2015
4 of 2017
4 of 2018
10 of 2018
14 of 2019
2 of 2022
5 of 2022

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.2
THE BANK OF TANZANIA ACT [CAP. 197 R.E.

nzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.2
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
collection and sale of credit performance information for
individuals and companies;
“credit reference databank” means a computerised
mechanism created by the Bank to receive and supply
information to banks, financial institutions, credit
reference bureaus and other institutions authorised by
the Bank, regarding the credit transactions of customers
including their off-balance sheet operations;
“clearing system” means a set of procedures whereby banks
or financial institutions present and exchange data or
documents relating to funds or securities transfer to other
financial institutions at a clearing house and includes a
mechanism for the calculation of participants’ bilateral
or multilateral net positions with a view to facilitating the
settlement of their obligations on a net or gross basis;
“Director” means a member of the Board other than the
Governor or the Deputy Governors;
“Deputy Governor” means a Deputy Governor appointed
under section 8(3);
“ex-officio member” means a member of the Board who
attends a meeting by virtue of his position;
“financial institution” means an entity engaged in the
business of banking but limited as to size, locations
served, or permitted activities, as prescribed by the Bank
or required by the terms and conditions of its licence;
“foreign exchange” means currencies and units of accounts
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;

” means the Government of the United
Republic;
“Governments” means the Government of the United
Republic and the Revolutionary Government of Zanzibar;

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.3
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
Minister responsible for financial matters of the United
Republic;
“payment system” means a system consisting of a set of
instruments, banking procedures and typically inter-
bank funds transfer systems that ensure the circulation
of money;
“public authority” means-
(a) the authority for any political sub-division of the
United Republic, including any city, municipal, town
or district council;
(b) any common services authority of which Tanzania is a
member with other countries; or
(c) any corporation, agency or enterprise specified for the
purposes of this Act by the Bank;
“settlement system” means an arrangement established
and operated by, or under the control of the Bank for
the discharge of payment obligations and settlement
obligations between settlement system participants.

rated by, or under the control of the Bank for
the discharge of payment obligations and settlement
obligations between settlement system participants.

PART II
THE BANK
4.–(1) There shall continue to exist a corporation going by the
name and style of the Bank of Tanzania. (2) The Bank of Tanzania shall be a body corporate and in
its corporate name shall-
(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. Establishment of
Bank

nd
(c) subject to the provisions of this Act, be capable of
acquiring, holding and alienating any movable or
immovable property. Establishment of
Bank

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.4
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
5.–(1) The principal functions of the Bank shall be to exercise
the functions of a central bank and, without prejudice to the
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
institutions including mortgage financing, development
financing, lease financing, licencing and revocation of licences
and deal, hold and manage gold and foreign exchange reserves
of Tanzania and regulate and supervise microfinance business. (2) The Bank shall compile, analyse, and publish the
monetary, financial, balance of payments statistics and other
statistics covering various sectors of the national economy. (3) In the pursuit of its objectives and performance of
its tasks, the Bank shall be autonomous and accountable as
provided for under this Act.

onomy. (3) In the pursuit of its objectives and performance of
its tasks, the Bank shall be autonomous and accountable as
provided for under this Act.

6.–(1) The Bank shall-
(a) regulate, monitor, and supervise the payment, clearing
and settlement system including products and services
thereof; and
(b) conduct oversight functions on the payment, clearing
and settlement systems in any bank, financial institution
or infrastructure service provider or company. (2) The Bank may-
(a) participate in any payment, clearing and settlement
systems;
(b) establish and operate any system for payment, clearing
or settlement purposes; and
(c) perform the functions assigned by or under any other
written law for the regulation of payment, clearing and
settlement systems. 7.–(1) The primary objective of the Bank shall be to formulate,
define and implement monetary policy directed to the
economic objective of maintaining domestic price stability
Principal
functions of Bank
Act No. 10 of 2018 s. 66
Regulatory and
supervisory
functions
with respect
to clearance
and settlement
systems
Formulation and
implementation
of monetary
policy

of 2018 s. 66
Regulatory and
supervisory
functions
with respect
to clearance
and settlement
systems
Formulation and
implementation
of monetary
policy

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.5
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
sound monetary, credit and banking conditions conducive to
the development of the national economy. (3) The Minister and the Governor shall, where
circumstances require, consult each other with a view
to exchanging information and seeking coordination on
economic and financial matters. 8.–(1) There shall be appointed by the President, a Governor
who shall, unless he dies, resigns, vacates or is removed from
his office for good cause or is disqualified, hold office for a
period of five years and be eligible for a re-appointment.

vacates or is removed from
his office for good cause or is disqualified, hold office for a
period of five years and be eligible for a re-appointment.

(2) A person shall not qualify to be appointed as a Governor
unless he-
(a) holds a university degree;
(b) has not less than fifteen years experience in the fields of
economics, banking, accountancy, finance or law;
(c) has been in senior managerial positions in the
government departments or institutions, private
institutions or international organisations; and
(d) has not been appointed and served as the Governor for
two consecutive terms. (3) There shall be appointed by the President, three Deputy
Governors who shall, unless one dies, resigns, vacates or is
removed from office for good cause or is disqualified, hold office
for a period of five years and be eligible for re-appointment for
a further term of five years only. (4) The appointment of the Deputy Governors shall be
made on the basis that, at least one of the appointees hails from
either side of the United Republic. Appointment
of Governor
and Deputy
Governors

be
made on the basis that, at least one of the appointees hails from
either side of the United Republic. Appointment
of Governor
and Deputy
Governors

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.6
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
9.–(1) There shall be a Board of Directors of the Bank and
subject to this Act, the Board shall be responsible for the
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
that, the Governor and any other member of the Board may
refer any matter for consideration by the Board. (2) The Board shall consist of-
(a) the Governor, who shall be the Chairman;
(b) Deputy Governors, who shall be Deputy Chairmen in
the order determined by the Governor;
(c) the Principal Secretary to the Treasury of the
Revolutionary Government of Zanzibar, who shall be
an ex-officio member;
(d) one representative from the Ministry responsible for
finance in the Government of the United Republic; and
(e) four non-executive Directors at least one of whom hails
from either side of the United Republic.

nce in the Government of the United Republic; and
(e) four non-executive Directors at least one of whom hails
from either side of the United Republic.

(3) The Permanent Secretary to the Treasury of the
Government of United Republic and the Principal Secretary
to the Treasury of the Revolutionary Government of Zanzibar,
may appoint in writing, persons in the public service to be
their representatives who shall, at any meeting for which they
are appointed, have the powers of the Permanent Secretary
or Principal Secretary, in their capacities as members of the
Board. (4) The non-executive Directors shall be appointed by the
Minister and each shall hold office, unless he dies, resigns,
vacates or is removed from office, for a term of three years, and
be eligible for re-appointment for one further term. (5) The members of the Board shall be appointed on the
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. Board of
Directors
Act No. 11 of 2010 s. 4

nd finance, banking, corporate law, accountancy or
other disciplines relevant to the functions of the Bank. Board of
Directors
Act No. 11 of 2010 s. 4

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.7
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. (7) There shall be a Secretary to the Board who shall perform
the following functions:
(a) Counsel and Secretary to the Board;
(b) writing and keeping records of proceedings of meetings
of the Board;
(c) convening and preparing meetings of the Board as may
be directed by the chairman;
(d) advising on legal matters and keeping abreast laws
governing the conduct of business of the Bank; and
(e) other function as may be directed by the Board or the
Governor.

atters and keeping abreast laws
governing the conduct of business of the Bank; and
(e) other function as may be directed by the Board or the
Governor.

10.–(1) A person shall not be qualified to be appointed as a
member of the Board, where he is-
(a) a member of the National Assembly, the House of
Representatives or a local government authority;
(b) a person who is a public servant within the meaning
of this term in the Public Service Act, other than the
Permanent Secretary to the Treasury of the Government
of the United Republic and the Principal Secretary
to the Treasury of the Revolutionary Government of
Zanzibar or their representatives for the purposes of
section 9(2)(c);
(c) a director, officer, employee, consultant, lawyer, agent
or shareholder of a bank or a financial institution in
respect of which the Bank may exercise a regulatory
power; or
(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-
Disqualification
for appointment
to Board
Cap. 298

es registered
in Tanzania. (2) A member of the Board shall be disqualified to hold
office where he-
Disqualification
for appointment
to Board
Cap. 298

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.8
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
mind;
(d) is convicted of a felony or any offence involving fraud
or dishonesty;
(e) is absent without the leave of the chairman of the Board
from three consecutive meetings of the Board; or
(f) tenders resignation. (3) A member of the Board shall not be removed from his
office on grounds other than those stated in this section. 11.–(1) The Board shall meet as often as may be required for
the conduct of its business and affairs but shall meet at least
once in every two months. (2) Meetings of the Board shall be convened, and notice given
in accordance with the by-laws of the Bank and, in addition,
the Chairman or in his absence, the Deputy Chairman, shall
convene a meeting of the Board within a reasonable time of a
requisition in that behalf by any member of the Board.

bsence, the Deputy Chairman, shall
convene a meeting of the Board within a reasonable time of a
requisition in that behalf by any member of the Board.

(3) Subject to subsection (4), quorum at meetings of the
Board shall be six members. (4) There shall be no quorum unless the Chairman or in
his absence, the Deputy Chairman and two non-executive
members are present at the meeting. (5) Where in the opinion of the Chairman or in his
absence, the Deputy Chairman, any matter or business is of
an unusual urgent nature which cannot await the convening
of a meeting consisting of the quorum, the matter may be
decided at a meeting of the Chairman or as the case may be,
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. Meetings,
quorum, conduct,
and decisions of
Board

consisting of the quorum and a decision shall be reported to an
extra ordinary meeting of the Board. Meetings,
quorum, conduct,
and decisions of
Board

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.9
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
a casting vote in addition to his deliberative vote. (8) Members of the Board referred to under paragraph (c)
of subsection (2) of section 9 shall not vote in the event when
a decision is to be reached by casting of votes.

Board referred to under paragraph (c)
of subsection (2) of section 9 shall not vote in the event when
a decision is to be reached by casting of votes.

(9) A member of the Board or its committees, who is
interested in any matter involving the Bank, or in the exercise
or proposed exercise of powers of the Bank, shall declare that
interest at a meeting of the Board or its committees, at which
that matter or the exercise or proposed exercise of the power
is considered by the Board or committee and the member of
the Board or committee shall not be entitled to attend or be
counted in a quorum present at a meeting at which the member
has interest in the matter being considered. (10) Where the decision of the Board is reached by voting,
the Governor shall inform the Minister accordingly. (11) Subject to provisions of subsection (3), an act or
proceeding by the Board shall not be invalidated by reason
of the existence of a vacancy among the members and acts
done in good faith by a member of the Board shall be valid
notwithstanding that, some defect in his appointment or
qualifications be afterwards discovered. (12) Subject to other provisions of this Act, the Board may
regulate its own procedure.

in his appointment or
qualifications be afterwards discovered. (12) Subject to other provisions of this Act, the Board may
regulate its own procedure.

12.–(1) The Board shall appoint a Monetary Policy Committee,
an Audit Committee and other committees as it may be
necessary for the discharge of its functions; and, subject to the
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. Standing
Committees of
Board

ommittee appointed under this section and the
terms and conditions upon which the committee shall exercise
its functions. Standing
Committees of
Board

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.10
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
each case. (3) Subject to the provisions of this Act and any directions
given by the Board in that behalf, a committee shall regulate its
own proceedings. (4) The Monetary Policy Committee established under
subsection (1) shall be composed of the Governor who shall
be Chairman or in his absence, the Deputy Governor acting
as Deputy Chairman, Deputy Governors and at least one non-
executive Director. (5) The Monetary Policy Committee shall determine on the
application of the monetary policy set out by the Board and
submit to the Board any major issues affecting the monetary
policy to take its stand.

the
application of the monetary policy set out by the Board and
submit to the Board any major issues affecting the monetary
policy to take its stand.

(6) The Monetary Policy Committee shall meet as often
as may be necessary for the performance of its functions and
promptly submit to the Board a report of its proceedings after
each meeting by submitting the minutes of the meeting. (7) The quorum at meetings of the committee mentioned in
subsection (5) shall be three members, one of whom shall be
the Chairman or in his absence, the Deputy Chairman. (8) Subject to the provisions of this Act and any directions
given by the Board in that behalf, a committee established
under subsection (1) shall keep minutes of its meetings,
reflecting its position on the issues raised and determined. 13.–(1) Subject to the provisions of this Act, the management
of the Bank and the direction of its business and affairs is
vested in the Governor and the Governor shall, in the exercise
of the functions and direction, conform with the policy and
other decisions made by the Board. Management of
Bank and powers
of Governor
and Deputy
Governors

functions and direction, conform with the policy and
other decisions made by the Board. Management of
Bank and powers
of Governor
and Deputy
Governors

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.11
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. (3) The Governor shall, subject to subsection (2), be the
principal representative of the Bank and in that capacity:
(a) represent the Bank in its relation with other institutions,
including the Government;
(b) represent the Bank, either personally or by a legal
representative in any legal proceedings to which the
Bank is a party;
(c) sign solely or jointly with other persons, agreements
concluded by the Bank, notes or securities issued by
the Bank, reports, balance sheets and other financial
statements, correspondence and other documents of
the Bank; and
(d) delegate any authority provided for in this subsection,
including the power of delegation to any member of
the Board or other officers of the Bank.

d) delegate any authority provided for in this subsection,
including the power of delegation to any member of
the Board or other officers of the Bank.

(4) Each of the Deputy Governors shall:
(a) subject to the general supervision of the Governor, be
responsible for the day to day management of business
and affairs of the Bank as determined by the Governor;
(b) discharge other duties as may be assigned to him by the
Governor. (5) The Deputy Governor acting in the capacity of Deputy
Chairman shall have full powers to act for the Governor. (6) The exercise by the Deputy Governor of any function
of the Governor shall in the absence of proof to the contrary,
be deemed to be a valid exercise of the function pursuant to
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

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

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.12
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
international bank or monetary authority to which
the Government have adhered or given support or
approval; or
(b) as a director of any corporation in Tanzania which the
Bank may, in pursuance to the provisions of section 58,
promote. (9) The President may, by order published in the Gazette,
specifically exempt any transactions or activities from
provisions of subsections (7) and (8). (10) Duties and responsibilities of each of the Deputy
Governors shall be issued in by-laws and be published in the
Gazette. 14.–(1) The salaries and allowances including retirement
allowances of the Governor and the Deputy Governors shall
be determined by the President.

te. 14.–(1) The salaries and allowances including retirement
allowances of the Governor and the Deputy Governors shall
be determined by the President.

(2) The fees, allowances and other terms of service of the
members of the Board shall be determined by the Board on
approval by the Minister. (3) The salaries, allowances, fees and other terms of services
offered under subsections (1) and (2) shall not be reduced or
otherwise diminished. 15.–(1) Subject to the general terms and conditions of service
and the establishment prescribed by the Board, the Governor
shall be responsible for the appointment, termination of
appointment and discipline of the staff of the Bank. (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. Remuneration of
Governor, Deputy
Governors and
members of
Board
Appointment of
officers and other
staff of Bank

retire and their surviving
dependants. Remuneration of
Governor, Deputy
Governors and
members of
Board
Appointment of
officers and other
staff of Bank

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.13
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
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
of his duties. 17.–(1) The authorised capital of the Bank shall be one hundred
billion shillings, provided that, it may be increased by the
amount as may be determined by the Board, and authorised
by the Minister, by notice published in the Gazette. (2) The capital of the Bank shall be subscribed and held
only by the Government of the United Republic. (3) The Bank may, having regard to the amount by which
the value of the assets of the Bank exceed its liabilities, increase
its paid-up capital by the amount payable out of the General
Reserve Fund as the Board shall, by order published in the
Gazette, direct. (4) The paid-up capital of the Bank shall not be reduced.

t of the General
Reserve Fund as the Board shall, by order published in the
Gazette, direct. (4) The paid-up capital of the Bank shall not be reduced.

18.–(1) The Bank shall establish and maintain:
(a) a General Reserve Fund;
(b) a Foreign Exchange Revaluation Reserve;
(c) other appropriate assets revaluation reserves or retained
net unrealised gains reserves set up under a decision
of the Board to reflect changes in market values of the
Bank’s major assets and in accordance with the best
international accounting practice; and
(d) other special reserves or funds from appropriation of
net profit. (2) The Bank shall transfer to the General Reserve Fund
twenty five per-centum of the net profits until the time that the
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. Secrecy
Capital, reserves
and accounts of
Bank
General Reserve
Fund, etc., and
allocation of
profits

t of its net profits to the General Reserve
Fund. Secrecy
Capital, reserves
and accounts of
Bank
General Reserve
Fund, etc., and
allocation of
profits

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.14
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
shall be retained to the General Reserve Fund, the Foreign
Exchange Revaluation Reserve and any other asset revaluation
reserve.

abilities and profits
shall be retained to the General Reserve Fund, the Foreign
Exchange Revaluation Reserve and any other asset revaluation
reserve.

(4) Unrealised profits or losses from any revaluation of
the Bank’s net assets or liabilities in gold, foreign exchange,
foreign securities or any internationally recognised reserve
asset as a result of any change in the par or other value of any
currency unit shall be transferred to a special account to be
called the Foreign Exchange Revaluation Reserve Account; the
same procedure shall be applied to market value movements
in relation to the Bank’s other major assets when any of the
underlying asset is eventually sold, any resultant realised
components shall be transferred to the income statement.

ther major assets when any of the
underlying asset is eventually sold, any resultant realised
components shall be transferred to the income statement.

(5) Both realised and unrealised gains and losses shall be
included in the profit calculation but only the residual of any net
realised profits of the Bank shall be paid within three months
of the close of each financial year, into the Consolidated Fund;
subject to the condition that, where at the end of any financial
year, any of the Governments is indebted to the Bank, the Bank
shall first apply the remainder of its net realised profits to the
reduction or discharge of the indebtedness and thereafter, the
amount as relates to the net realised profits of the Bank in the
relevant financial year shall be paid out of the Consolidated
Fund to the Treasury of the Government of the United Republic
and the Revolutionary Government of Zanzibar in accordance
with the formula agreed upon by the Governments. 19.–(1) Where the Bank’s balance sheet indicates that, the
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
Losses charged
on Consolidated
Fund

tatutory fund, the Minister shall, on behalf of the
United Republic, issue to the Bank negotiable interest-bearing
Losses charged
on Consolidated
Fund

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.15
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
deduction of the amount for the General Reserve Fund. (3) The procedure under subsection (1) for covering
the balance sheet deficit shall be applied in cases when the
resources of the General Reserve Fund, the Foreign Exchange
Revaluation Reserve, and other reserves and funds set up by
the Board according to subsection(1) of section 18 have been
exhausted. 20.–(1) The financial year of the Bank shall be the period
commencing on 1st July of each year and the accounts of the
Bank shall be closed on 30th June of each financial year. (2) The Bank’s accounting policies, procedures and
associated accounting records shall be consistent with the best
international accounting standards.

(2) The Bank’s accounting policies, procedures and
associated accounting records shall be consistent with the best
international accounting standards.

(3) The Board shall appoint or re-appoint a head of internal
audit who shall be fully compliant with international audit
standards for a period of three years as head of the internal
audit function who shall report to the Governor and to the
Audit Committee and may report to the Board. (4) The function of internal audit shall be fully compliant
with international audit standards. (5) The Board and the Governor shall adopt a yearly audit
work program and any audit and control operations to be
pursued by the head of internal audit and may direct the head
of internal audit to conduct reviews of the implementation
of the decisions by the Board and any other review deemed
necessary. (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
compliance with the Public Finance Act. Accounting,
auditing and
reporting
Act No. 14 of 2009 s. 31(a)
Cap. 348

accounting and audit standards and in
compliance with the Public Finance Act. Accounting,
auditing and
reporting
Act No. 14 of 2009 s. 31(a)
Cap. 348

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.16
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. 21.–(1) The Bank shall publish and submit to the Minister
within six months after the close of each financial year and
the Minister shall submit to the National Assembly the Bank’s
annual report comprising of-
(a) a report of the Bank’s operations and principal
functions in particular its monetary policy and other
activities throughout the year; and the balance sheet
and the profit and loss account; and
(b) associated financial statements as well as detailed notes
to the accounts for the year and the previous year’s
comparative data certified by the external auditor along
with the external auditor’s opinion. (2) The Bank shall publish, within ten business days of
the subsequent month, a monthly aggregated balance sheet
audited by the head of internal audit.

2) The Bank shall publish, within ten business days of
the subsequent month, a monthly aggregated balance sheet
audited by the head of internal audit.

(3) The Bank shall, at intervals of not more than six months
after submission of each preceding statement, publish and
submit to the Minister the monetary policy statement for the
next six months or shorter period as may be specified by the
Minister. (4) The Minister shall submit to the National Assembly the
statement submitted under the provisions of subsection (3). (5) The Bank shall, at intervals of not more than six months
following the submission of the initial report, publish and
submit to the Minister progress reports on the implementation
of monetary policy and reports on the outlook for the future
and the Minister shall submit the reports to the National
Assembly at its subsequent session. (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;
Submission of
report to National
Assembly
Act No. 14 of 2009 s. 31(b)

its policy targets;
(b) state the reasons for adopting those policies and means;
Submission of
report to National
Assembly
Act No. 14 of 2009 s. 31(b)

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.17
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
which the preceding policy statement relates, whereby
the Bank shall describe the factors inside and outside
its control that have affected the outcome of monetary
policy. (7) In addition to the reports published by the Bank under
the provisions of this section, the Bank may issue other
publications, including the statements of the Board on issues
of monetary policy as the Board considers to be in the public
interest. 22.–(1) The Bank shall be exempt from payment of any taxes,
levies or duties in respect of its profits, operations, capital,
property or documents or any transaction, deed, agreement or
promissory note to which it is a party. (2) The Bank shall be exempt from the payment of stamp or
other duties in respect of notes and coins issued as currency. 23.

e to which it is a party. (2) The Bank shall be exempt from the payment of stamp or
other duties in respect of notes and coins issued as currency. 23.

The Bank shall be placed in liquidation or wound up
pursuant to the procedure prescribed in an enactment of
Parliament but the provisions of the Companies Act and the
Companies Decree shall not apply in relation therewith. 24.–(1) The Board may make by-laws for the good order and
management of the Bank. (2) The Board shall make rules regulating travel expenses
and out of pocket allowances applicable to members of the
Board and the staff of the Bank incurred in discharging their
duties. (3) By-laws made pursuant to subsection (1) and rules
under subsection (2) may not be published in the Gazette. Exemption from
certain taxes
Liquidation and
winding up of
Bank
Cap. 212
By-laws

) and rules
under subsection (2) may not be published in the Gazette. Exemption from
certain taxes
Liquidation and
winding up of
Bank
Cap. 212
By-laws

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.18
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
PART III
CURRENCY
25. The unit of currency in Tanzania shall be the shilling each
of which shall be divided into one hundred cents. 26. The Bank shall have the sole right to issue bank notes and
coins in and for Tanzania which shall be the only legal tender
in Tanzania. 27.–(1) Bank notes and coins shall be-
(a) in denominations of the shilling or fractions thereof
expressed in cents; and
(b) of materials, forms and designs and bear inscriptions,
devices and have other characteristics, as the Bank shall
determine with the approval of the Minister. (2) The Bank shall give notice in the Gazette of the
denominations and other characteristics of the bank notes and
coins before they are circulated for use.

e Bank shall give notice in the Gazette of the
denominations and other characteristics of the bank notes and
coins before they are circulated for use.

28.–(1) Subject to the provisions of this section-
(a) bank notes shall be legal tender at their face value for
the payment of any amount;
(b) coins shall be legal tender at their face value in the case
of-
(i) a shilling, or any multiple of a shilling, for the
payment of any amount;
(ii) coins having a face value of fifty cents or below,
for the payment of any amount not exceeding five
hundred shillings. (2) Subject to section 29, the Bank shall have power, on
giving reasonable notice in the Gazette, to call in any notes or
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. Currency and its
issue
Issuance of bank
notes and coins
Notification of
notes and coins
Legal tender

piration of the notice,
cease to be legal tender. Currency and its
issue
Issuance of bank
notes and coins
Notification of
notes and coins
Legal tender

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.19
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. 29.–(1) A person shall not be entitled to recover from the Bank
the value of any lost, stolen or imperfect bank note or coin, or
of any bank note that has been mutilated or of any coin that
has been tampered with. (2) Without prejudice to subsection (1), the Bank may
decide on any value that may be awarded to any person who
present to the Bank, a bank note which is the subject of any
events referred to in subsection (1). (3) The circumstances in which and conditions and
limitations upon which, the value of any lost, stolen or
imperfect notes or coins, mutilated notes or coins which have
been tampered with, may be refunded as of grace by the Bank
and shall be within the absolute discretion of the Bank.

tilated notes or coins which have
been tampered with, may be refunded as of grace by the Bank
and shall be within the absolute discretion of the Bank.

(4) For the purposes of this section, a coin shall be deemed
to have been tampered with where the coin has been impaired,
diminished or lightened otherwise than by fair wear and
tear, or has been defaced by stamping, engraving or piercing
whether or not it has been diminished or lightened. 30. The Bank may melt down, break up or deface any coin and
deface or destroy any bank note which has been called in or
tampered with. PART IV
OTHER OPERATIONS OF THE BANK
31.–(1) The Bank shall be the banker, and act as the fiscal agent
of the Governments. (2) The Bank may, subject to arrangements as may be made
with the authority concerned, act as banker and fiscal agent for
any public authority. Lost and
damaged
currency
Destruction of
coins and notes
The Bank as
banker to
Governments
and other public
authorities

gent for
any public authority. Lost and
damaged
currency
Destruction of
coins and notes
The Bank as
banker to
Governments
and other public
authorities

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.20
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
32.–(1) The Bank in its capacity as a banker and fiscal agent of
the Governments or of any public authority, shall be the official
depository of the Governments or public authority concerned
and accept deposits and effect payments for the account of the
Governments or public authority.

itory of the Governments or public authority concerned
and accept deposits and effect payments for the account of the
Governments or public authority.

(2) Without prejudice to subsection (1), the Bank may, after
consultation with the Governments or the public authority
and the bank concerned, select any other bank to be the official
depository of the Governments or the public authority and in
respect therewith shall-
(a) maintain and operate special official accounts in
accordance with arrangements made between the Bank
and the Governments or public authority concerned;
(b) act as agent of the Governments for servicing the public
debt, including the issuance of payment of interest on
and the redemption of bonds and other securities of
the Governments;
(c) pay, remit, collect or accept for deposit or custody
funds in Tanzania or abroad;
(d) purchase, sell, transfer or accept for custody cheques,
bills of exchange and other securities;
(e) collect the proceeds, whether principal or interest
resulting from the sale of accruing to the interest of the
Government or public authority of securities or other
property; and
(f) purchase, sell, transfer or accept for custody gold or
foreign exchange. (3) The Government and public authorities shall open and
deposit their moneys with the Bank.

transfer or accept for custody gold or
foreign exchange. (3) The Government and public authorities shall open and
deposit their moneys with the Bank.

(4) The Bank may make regulations for the better carrying
out of the provisions of this section. 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. Functions as
banker and fiscal
agent
Act No. 4 of 2017 s. 4
Bank fee

the Governments at rates and on cost recovery basis
as the Bank shall determine. Functions as
banker and fiscal
agent
Act No. 4 of 2017 s. 4
Bank fee

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.21
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
34.–(1) Subject to the provisions of this section, the Bank may-
(a) make direct advances to the Governments for the
purposes of offsetting fluctuations between receipts
from-
(i) voted funds which originated from the
Consolidated Fund;
(ii) unspent funds from various sources; and
(iii) payments of the Governments; and
(b) purchase, hold and sell Treasury bills issued by the
Governments which mature not later than twelve
months from the date of issue. (2) An advance made to the Governments under this
section shall-
(a) be made solely for the purpose of providing temporary
accommodation to the Governments and accordingly,
be repayable within one hundred and eighty days; and
(b) bear interest at market rates as determined by the Bank.

to the Governments and accordingly,
be repayable within one hundred and eighty days; and
(b) bear interest at market rates as determined by the Bank.

(3) For purposes of this section and section 35:
“voted funds” means receipts from budgeted revenues of the
Governments which are deposited in and paid from the
Consolidated Fund;
“unspent funds” means receipts of the Governments from
various sources which are deposited in and paid from the
deposit accounts other than the Consolidated Fund. 35.–(1) Subject to the provisions of this section, the Bank may,
for the purpose of offsetting fluctuations between receipts from
the voted and unspent funds and payment of the Governments,
purchase, hold and sell negotiable stocks, bonds or similar
debt obligations or other securities issued by the Governments
which shall bear interest at the market rate as determined by
the Bank and mature not later than twelve months from the
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
Direct advances
and other short
term credit to the
Governments, etc. Acts Nos. 4 of 2018 s. 4
14 of 2019 s. 10
Operation in
Government
securities, etc. Acts Nos. 4 of 2018 s. 5
10 of 2018 s.66
5 of 2022 s. 6

ments, etc. Acts Nos. 4 of 2018 s. 4
14 of 2019 s. 10
Operation in
Government
securities, etc. Acts Nos. 4 of 2018 s. 5
10 of 2018 s.66
5 of 2022 s. 6

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.22
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. 36.–(1) For the purposes of section 35, the budgeted domestic
revenues of the Governments shall be the actual collected
revenues of the previous fiscal year. (2) Collected revenues shall include taxes, levies, duties,
fees, profits and income from any investment or undertaking
and any contribution to the revenue of the Governments from
any political sub-division of the United Republic, excluding
loans, grants and other forms of economic aid and borrowing
whether of short or long term. 37. Except as provided in sections 34 and 35, the Bank shall not
extend any credit directly or indirectly to the Governments or
any public authority. 38.–(1) The Bank may open accounts, accept deposits and
collect money and other monetary claims for and on account
of banks and financial institutions and generally act as a banker
to banks and financial institutions.

ey and other monetary claims for and on account
of banks and financial institutions and generally act as a banker
to banks and financial institutions.

(2) Subject to the provisions of this Act, the Bank may
provide additional services to banks and financial institutions,
including interbank clearings and the provision of safe deposit
facilities. 39.–(1) The Bank may, on terms and conditions as it may
prescribe, purchase, sell and rediscount on behalf of banks, bills
of exchange, promissory notes and other credit instruments so
long as the instruments bear the endorsement or acceptance of
a bank, and matures within one hundred and eighty days from
the date of acquisition or rediscount by the Bank. (2) The Bank shall set limits of access to the rediscount
facilities. 40.–(1) The Bank may, on terms and conditions as it may
prescribe, grant loans and advances to banks and financial
Meaning of
annual budgeted
revenue
Act No. 16 of 2015 s. 4
5 of 2022 s. 7
Prohibition of
other credit to
Governments, etc. Financial
relations with
other banks
Re-discounts etc. Loans and
advances

of 2015 s. 4
5 of 2022 s. 7
Prohibition of
other credit to
Governments, etc. Financial
relations with
other banks
Re-discounts etc. Loans and
advances

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.23
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;
or
(c) other credit instruments or securities prescribed by the
Bank. (2) For the purposes of this section, the word “financial
institution” shall include the Deposit Insurance Fund
established under the law regulating banks and financial
institutions in the United Republic. 41.

nstitution” shall include the Deposit Insurance Fund
established under the law regulating banks and financial
institutions in the United Republic. 41.

The Bank shall be a lender of last resort and at penal
interest rates published each year, grant advances or contingent
commitments on an exceptional basis to banks and financial
institutions in Tanzania that are deemed to be solvent but
illiquid where-
(a) in the opinion of the Board, the advance or commitment
is necessary having regard to the financial condition of
the bank or the financial institution and its systemic
significance to the stability in the financial market;
(b) in the opinion of the Bank, the bank is solvent and
provides adequate collateral and the request for
financial assistance is based on the need to improve
liquidity;
(c) available collateral is insufficient and the Minister has
on behalf of the Government concurred in writing on
the advance or commitment proposed by the Bank to
that effect;
(d) the Minister on behalf of the Government has
confirmed in writing that, separate funds or debt
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
Bank as lender of
last resort

ank by the Governments
to cover the advance or full amount of the commitment
given in the event that it is realised; and
Bank as lender of
last resort

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.24
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. 42.–(1) Except as provided in sections 39, 40 and 41, the Bank
shall not extend credit directly or indirectly to banks and
financial institutions. (2) The Bank shall determine and publish the rates of
interest for rediscounting instruments and granting loans or
advances to banks and financial institutions. 43.–(1) For monetary policy purposes, the Bank may purchase,
hold and sell securities issued by any of the Governments or
authority for a political sub-division of the United Republic,
but the purchases shall not be made to finance any Government
budget deficit of either of the Governments and shall be made
on the secondary market at market rates. (2) The Bank may equally purchase and sell its own
negotiable debt securities.

Governments and shall be made
on the secondary market at market rates. (2) The Bank may equally purchase and sell its own
negotiable debt securities.

44.–(1) Subject to the provisions of this section, the Bank may
require banks and financial institutions to maintain minimum
cash balances with the Bank as reserves against the deposit and
other liabilities of the banks and financial institutions and in
that respect, prescribe the currency or the currencies in which
the balances shall be held. (2) The Bank may prescribe different ratios for different
kinds of deposits and other liabilities and may prescribe the
methods of computing the amount of the reserves which ratios
and methods shall apply uniformly to banks and financial
institutions and may exclude certain liabilities from this
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. Bank not to
extend credit
Bank may
purchase, hold
and sell securities
Control of
banking activities

ys notice to the banks and
financial institutions. Bank not to
extend credit
Bank may
purchase, hold
and sell securities
Control of
banking activities

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.25
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
financial institution divided by 360, and the charge may be
recovered by deduction from any balance of, or money owing
to the bank or financial institution concerned or recovered as
civil debt. 45. A bank or financial institution shall maintain liquid
assets at levels prescribed by the Bank in accordance with the
provisions of the Banking and Financial Institutions Act. 46.–(1) A bank or financial institution and any affiliate
shall furnish to the Bank, at a time and in a manner as may
be prescribed by the Bank, the information as the Bank
may require for the proper discharge of its functions and
responsibilities under this Act.

may
be prescribed by the Bank, the information as the Bank
may require for the proper discharge of its functions and
responsibilities under this Act.

(2) Where any bank or financial institution contravenes
or fails to comply with any requirement of this section, the
bank or financial institution concerned and an officer who
is in default on conviction shall be liable under section 66 of
the Banking and Financial Institutions Act to a default fine
stipulated thereunder. 47.–(1) Notwithstanding any provision to the contrary
contained in any written law, the Bank shall have power to
access to any oral and documented information, including
information in computers, books, minutes, accounts, cash
securities, documents, vouchers as well as any other things in
the possession or custody or under the control of a bank or
financial institution or its affiliate, which relate to the business
of the bank or financial institution or to anti-money laundering
and countering terrorist financing matters pursuant to the
Anti-Money Laundering Act. Liquid assets
ratio
Cap. 342
Submission and
publication of
information
Cap. 342
Power to conduct
examinations of
banks or financial
institutions
Act No. 2 of 2022 s. 26
Cap. 423

2
Submission and
publication of
information
Cap. 342
Power to conduct
examinations of
banks or financial
institutions
Act No. 2 of 2022 s. 26
Cap. 423

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.26
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
(2) The Bank may carry out, at a times as it may consider
necessary, an examination of any bank or financial institution
in accordance with the provisions of the Banking and Financial
Institutions Act. 48.–(1) The Bank shall create a credit reference system designed
to collect and provide information on the payment record of
the clients of banks and financial institutions, savings and
credit schemes and other entities engaged in a regular basis in
the extension of credit within the United Republic. (2) The credit reference system shall consist of a credit
reference databank administered by the Bank and private credit
reference bureaus operating under the conditions prescribed
by the Bank.

st of a credit
reference databank administered by the Bank and private credit
reference bureaus operating under the conditions prescribed
by the Bank.

(3) The banks and financial institutions shall, having
ascertained the proper identity of their customers, individuals
as well as representatives of customers that are legal entities,
report to the credit reference databank detailed information
about credit facilities extended to each client, in the format
and with the frequency as the Bank may prescribe. (4) The Bank shall have and exercise powers to mandate
a standardized method or technology for the assignment of
a unique identification number to each client by banks and
financial institutions. (5) The information received from banks and financial
institutions shall be consolidated by the Bank with a view to
determine, at a minimum, the total indebtedness and payment
performance of each client and may provide to each reporting
institution for internal control and monitoring purposes.

total indebtedness and payment
performance of each client and may provide to each reporting
institution for internal control and monitoring purposes.

(6) The Bank may require banks and financial institutions
report to the credit reference databank other information
relevant to their clients’ operations including, but not limited
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. Cap. 342
Credit reference
system

are returned or refused for lack of funds, fraud
or any other information required by the credit reference
databank. Cap. 342
Credit reference
system

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.27
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
regulate operations of private credit reference bureaux that
access information from the credit reference databank. (9) The clients of institutions providing information to
the Bank shall execute a written consent to the institutions to
obtain from exchange with or disclose information relating to
the clients to banks, financial institutions or credit reference
bureaux. (10) The information collected, exchanged with or disclosed
to banks, financial institutions or credit reference bureaux
shall be used only for the purpose of verifying accuracy of the
information, conducting credit investigations and executing
and performing loan or credit agreement.

only for the purpose of verifying accuracy of the
information, conducting credit investigations and executing
and performing loan or credit agreement.

49.–(1) Where a private credit reference bureau is found
involved in gross or repeated violation of consumer protection
regulations or fails to furnish correct information that may
be required by the credit reference databank, the Bank may
impose on the private credit reference bureau a penalty charge
of not less than five hundred thousand shillings for every day
during which the non-compliance continues or withdraws its
licence. (2) The Bank may use the credit reference databank to
monitor the credit activities of any individual institution and
the credit market for purposes of publication of periodical
information. (3) The banks and financial institutions may request
information from the credit reference databank or a credit
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. Administrative
penalty

ten loan applications are
signed by prospective client and filed for review by the Bank in
the course of periodic examinations. Administrative
penalty

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.28
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
50.–(1) The Bank shall, subject to the provisions of this Act,
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
with the Government’s economic policy, the Governor shall
consult with the Minister on the exchange rate policy and
on any major draft decision on the exchange rate policy with
reasons thereon. 51.–(1) The Bank shall use best endeavors to maintain a
reserve of external assets at a level which is, at minimum, equal
to four months imports requirements and the requirements of
international transactions of the United Republic for the same
period of time.

imum, equal
to four months imports requirements and the requirements of
international transactions of the United Republic for the same
period of time.

(2) Subject to the provisions of subsection (4), the reserve of
external assets shall consist any of the following:
(a) gold;
(b) foreign exchange in the form of:
(i) demand or time deposits with foreign central
banks or with the Bank’s agents or correspondent
abroad;
(ii) documents and instruments customarily used
for the making of payments or transfers in
international transactions;
(iii) notes or coins; and
(c) securities or guarantees by foreign governments or
international institutions and organisations. (3) The Bank shall determine the type and form of foreign
exchange and the kinds of securities which may be held in the
reserve of external assets. (4) The Bank may include in its reserve of external assets
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
External reserves,
gold and foreign
exchange
Reserve of
external assets

eserve position of the United Republic in the
International Monetary Fund; and
External reserves,
gold and foreign
exchange
Reserve of
external assets

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.29
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. 52.–(1) Subject to the provisions of this section, the Bank may:
(a) import, export, buy, sell, hold or otherwise deal in gold;
(b) acquire and transfer balances in foreign currencies,
hold balances with foreign central banks or with the
Bank’s agents or correspondents abroad, and invest
balances in marketable foreign securities; and
(c) acquire, hold, transfer, and effect transactions of any
kind in foreign exchange.

broad, and invest
balances in marketable foreign securities; and
(c) acquire, hold, transfer, and effect transactions of any
kind in foreign exchange.

(2) The Bank may engage in foreign exchange transactions
with-
(a) banks and financial institutions;
(b) the Governments;
(c) a public authority;
(d) foreign central banks, foreign banks or foreign financial
institutions;
(e) foreign governments or agencies of foreign
governments;
(f) international financial organisations or institutions;
and
(g) any other person the Bank may prescribe by notice in
the Gazette. (3) The buying and selling rates in transactions authorised
by this section shall be in accordance with international
agreements to which the United Republic is a party or to which
the United Republic is associated. 53. The Bank shall perform functions in the administration of
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. Dealing in gold
and foreign
currencies
Exchange control

purchase,
sale or other transaction in foreign exchange and gold as may
be stipulated thereof. Dealing in gold
and foreign
currencies
Exchange control

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.30
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
54. The Bank shall administer any payments agreement entered
into by the Governments. 55. The Bank shall be the fiscal agent for the Governments’
transactions with international financial organisations or
institutions of which the Government of the United Republic
is a member. 56.–(1) The Bank may open accounts for, accept deposit from,
and collect money and other monetary claims for and on
account of foreign central banks, foreign banks and foreign
financial institutions and may generally act as banker to banks
and institutions. (2) A foreign currency reserves held on deposit or managed
by the Bank shall be immune from any legal proceedings
including an order for execution, attachment or any other
similar process issued by any court for enforcing payment by
the Bank in relation to foreign currency reserves.

for execution, attachment or any other
similar process issued by any court for enforcing payment by
the Bank in relation to foreign currency reserves.

57.–(1) The Bank shall, for the purposes of compilation and
publication of the balance of payments statistics meeting
international standards, compile information from public
offices and from banks and financial institutions and, to the
extent strictly necessary, from private enterprises, organisations
and bodies. (2) Public offices, banks and financial institutions shall,
at a request by the Bank, provide any information the Bank
considers necessary for compilation of any monetary, financial
or other statistics on the financial sector. (3) A private enterprise, organisation and body shall,
at a request of the Bank, provide any information the Bank
considers necessary for the compilation of the balance of
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
Payments
agreements
Fiscal and
depository for
Government’s
transactions, etc. Miscellaneous
powers and
functions
Relations
with private
enterprises,
organisations and
bodies

cal and
depository for
Government’s
transactions, etc. Miscellaneous
powers and
functions
Relations
with private
enterprises,
organisations and
bodies

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.31
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
the provisions of subsection (3) shall be subject to a penalty
not exceeding one hundred thousand shillings for every day
during which non-compliance continues. 58.–(1) Subject to subsection (2), the Bank may, in order to
effectively promote the functions of the Bank, subscribe to,
hold, and sell shares or acquire an interest in any corporation
established for the purposes of promoting the development of
financial markets or of improving the financial machinery and
payment systems in the United Republic. (2) The total value of the Bank’s holding of any shares or
interest shall not at any time exceed fifty percent of the aggregate
of the Bank’s paid up capital and of its General Reserve Fund.

g of any shares or
interest shall not at any time exceed fifty percent of the aggregate
of the Bank’s paid up capital and of its General Reserve Fund.

59.–(1) On minimum cash balances required, the Bank may
not pay interest on balances deposited with the Bank. (2) The Bank may, where circumstances render it desirable
and prudent so to do, pay interest at market rate, and subject
to qualification as it may determine, on the balances in any
amount with the Bank which is a blocked account within the
meaning of the prevailing foreign exchange regulations. 60.–(1) The Bank shall advise the Governments when in the
Bank’s opinion, any matter relating to its functions, powers
and duties is likely to affect the fiscal policy and the national
economic growth or the achievement of the principal objectives
of the Bank. (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. Relations with
corporations
Interest on
deposit balances
and blocked
accounts
Advice to
Governments

o,
and the Bank shall give the advice accordingly. Relations with
corporations
Interest on
deposit balances
and blocked
accounts
Advice to
Governments

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.32
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
61.–(1) The Bank shall not-
(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
to the Bank;
(b) purchase, acquire or lease immovable property for any
purpose except as premises for the Bank, including
reasonable provision for anticipated future requirements
or for the use by members of the Board or its staff;
(c) guarantee any loan, advance or investment unless
expressly authorised by this Act. (2) Where, in the case provided in paragraph (a) of
subsection (1), the Bank acquires any interest, it shall dispose
of the same at the earliest suitable opportunity. PART V
MISCELLANEOUS PROVISIONS
62. The Governments shall not hold or maintain any reserve
of external assets except to the extent necessary for working
balances. 63.

EOUS PROVISIONS
62. The Governments shall not hold or maintain any reserve
of external assets except to the extent necessary for working
balances. 63.

Save with the written consent of the Bank, a bank shall
not be registered hereafter under the provisions of any law,
by a name which includes any of the words “central”, “state,”
“government” and” reserve”. 64. In the discharge of its functions under this Act and in the
administration of any law, the Bank, members of the Board
and staff of the Bank shall be treated as holding office in the
public service. 65.–(1) Notwithstanding the provisions of any other law, an
action or other proceedings shall not lie or be instituted against
any member of the Board of the Bank, official or employee of the
Prohibited
operations
Limitation on
external holdings
Prohibited
banking names
Banks, etc.,
deemed to be
public service for
certain purposes
Immunity of
members of
Board, staff and
employees of
Bank

dings
Prohibited
banking names
Banks, etc.,
deemed to be
public service for
certain purposes
Immunity of
members of
Board, staff and
employees of
Bank

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.33
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
report that matter to the supervisor and shall not be entitled to
make decisions related to that matter. 66. Notwithstanding anything to the contrary in any written
law, where any judgement or order has been obtained against
the Bank, an execution or attachment or process in whatever
nature, shall not be issued against the Bank or against any
property or asset of the Bank, but the Bank shall cause to be
paid the amounts as may, by judgement or order, be awarded
against the Bank to the person entitled.

asset of the Bank, but the Bank shall cause to be
paid the amounts as may, by judgement or order, be awarded
against the Bank to the person entitled.

67.–(1) The assets of the Government including any local or
foreign currency held on deposit or managed by the Bank,
shall be immune from any enforcement proceedings and an
execution, attachment or any other similar process shall not
be issued by any court for enforcing payment by the Bank in
relation to any asset held on account of the Government and
a person shall not be individually liable under any order for
payment by the Bank or any officer of the Bank in relation to
the asset held on account of the Government. (2) Where in relation to any asset of the Government held
by the Bank proceedings have been instituted in any court
for enforcement or procuring execution by attachment or
any other similar process, the provisions of the Government
Proceedings Act, shall apply mutatis mutandis in relation to
proceedings against the Bank or any officer of the Bank. 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. Immunity of
Bank
Immunity of
assets managed
by Bank
Cap. 5
Overriding effect

mance of functions of the Bank, the provisions of this
Act shall prevail. Immunity of
Bank
Immunity of
assets managed
by Bank
Cap. 5
Overriding effect

©2025 Government of Tanzania. All rights reserved. No part of this book may be reproduced or distributed without permission of OAG.34
THE BANK OF TANZANIA ACT [CAP. 197 R.E. 2023]
69. The Board shall prescribe rules to be applied by the Bank
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. 70.–(1) The Minister may make regulations necessary or
desirable to give effect to the provisions of this Act. (2) Regulations made under subsection (1) shall be
published in the Gazette. (3) The Board may make by-laws, rules and issue directions,
orders and circulars regulating the manner by which the
objective of this Act may be carried on. (4) The by-laws, rules, directions, orders and circulars issued
under subsection (3) may not be published in the Gazette. 71.–(1) [Repeals the Bank of Tanzania Act].

, rules, directions, orders and circulars issued
under subsection (3) may not be published in the Gazette. 71.–(1) [Repeals the Bank of Tanzania Act].

(2) Notwithstanding the repeal of the Bank of Tanzania Act-
(a) regulations, rules, orders, by-laws, directions or other
subsidiary legislation made, given or issued under that
Act and which are in force immediately before the date
of coming into operation of this Act shall remain in force
until they are revoked, cancelled or varied by regulations,
rules, orders, by-laws, directions or other subsidiary
legislation made, given or issued under this Act;
(b) appointments made under that Act and which have not
been revoked immediately before coming into operation
of this Act shall remain in force until they are revoked or
fresh appointments are made under this Act; and
(c) legal proceedings instituted or orders made under that
Act shall continue and be deemed to be proceedings or
orders made under the provisions of this Act. Waiver for non-
compliance
Powers to make
regulations
Repeal and
savings
Act No. 1 of 1995