BoG begins online payment service for Collateral Registry System

The Bank of Ghana (BoG) has introduced an online payment service for the Collateral Registry web-based system.

The move according to the BoG is to address the inconveniences associated with the existing pre-paid mode of payment.

In a statement, the central bank said: “This online payment service affords clients of the Collateral Registry the option to pay for the services rendered by either Mobile Money or Visa/MasterCard.”

Under the statutory Mandate of the Borrowers and Lenders Act 2008 (Act) 773, the Bank of Ghana operationalized the establishment of the Ghana Collateral Registry in February, 2010, to register charges and collaterals created by borrowers, to secure credit facilities provided by lenders.

The Registry provides the legal framework for credit, improve standards of disclosure of information by borrowers and lenders, prohibits certain credit practices and promotes a consistent enforcement framework related to credit, and provides for related matters.

This was pursuant to its mandate to regulate, supervise and direct the banking and credit system, and ensure the smooth operation of the financial sector.

The Collateral Registry operates a 24/7 web-based system, which serves lending institutions and the general public.

The use of some services of the Registry requires payment. The current modes of payment are the post-paid mode and the pre-paid mode, which require a deposit to be made at the Bank of Ghana.

However, the introduction of this online payment service is to address the inconveniences associated with the existing mode of payment, while enabling payments to be made through online and digitally to meet safety precautions of COVID-19.