BOG Happy With Electronic Cash Payment System

The First deputy governor of the Bank of Ghana (BOG) Mr. Aseidu Mante has stated that the Bank of Ghana has noted with satisfaction the increasing frequency of product launches in the payments sector by banks involving electronic products as this development is consistent with the bank's policy of promoting an efficient payment system based on non-cash modes of payment.

He added that an efficient and reliable payment system is an essential part of the financial infrastructure of the modern market economy as it facilitates economic activity, thereby contributing to the rate of economic development.

Mr. Aseidu Mante made this statement when he officially launched (MONDEX) an electronic cash payment system, which provides a direct equivalent of cash for transaction. It is jointly introduced by the Ghana Commercial Bank and the Agriculture Development Bank.

He noted that in view of such a payment system the Bank of Ghana has taken steps within the last ten years to improve and modernize the national payment system with the support of the international development association.

He explained that the bank has been able to redesign cheques under the programme which has improved clearing cycles throughout the country and has also completed an electronic large value funds transfer system known as the Ghana inter bank settlement system which operates under real time.

The deputy governor said that the launch of the Mondex cash product by the two major banks in the system underscores the determination of banks in Ghana to harness new telecommunicating and electronic technology for improving payment services and also demonstrates the willingness of banks to cooperate in the introduction of new products so as to reduce the risks faced by individual banks.

Mr. Mante further noted that BOG will welcome more cooperation among banks to develop the payment of infrastructure needed to move the payment system forward as no individual bank has the resources to do it alone.

He assured the originators of the central banks support in their common objective to develop and operate efficient and sound payment systems where risks are minimized through increased automation of payment and settlement systems.

In a welcome address the managing director of Ghana Commercial Bank, Mrs. Obeng Ansong said the two banks have set up the Mondex company to run the scheme territory and manage related values respectively.

She noted that the introduction of the master card as the major principal of the scheme into the Ghanaian industry is to enable other banks consider availing themselves of the product currently positioned as a worldwide cash alternative.

She assured subscribers of ensuring customer satisfaction and increasing their contribution to the development of the national economy.