Gov’t adopts cashless payment system

The Bank of Ghana (BoG) says there is adequate infrastructure to promote government’s efforts at operating a cashless economy.

BoG stated this in response to concerns raised by operators in the financial sector regarding its directives that from July 2 commercial banks should not honour third party cheques over the counter exceeding GH¢10,000.00.

“The BoG is prepared to push and ensure all the players come on board. If we reduce the cash intensity of the economy, we will be serving a lot.

“Money supply which is about 30 percent in our country against three percent in Sweden, and it tells us that transaction cost in Ghana is very high and therefore the public need to be educated on this issue so they are able to catch up with the new trend,” Deputy Governor of Bank of Ghana, Millison Narh said.

Minister of Finance & Economic Planning, Seth Terkper, commenting on the issue during the opening ceremony of the National Payments Strategy Workshop in Accra, said government is set to adopt measures to move transactions from the manual payment system to the electronic platform.

Mr. Terkper noted that the move is to ensure security of government’s transactions and eliminate waste and leakages in transactions and payments across the country.

“In this regard we are making a financial and budget advance payment through the cash management module with the central bank to facilitate government accounting.”

He said government’s vision is to build a strong financial sector and mobilize funds to be integrated into the global financial system through regulatory and supervisory system that promotes efficiency.

He said for the past decade, the Ministry and the Bank of Ghana have been promoting safe and efficient payment systems.

“Governments and central banks across the globe are interested in electronic payment systems and their development because of its necessity for effective payment implementation of fiscal and monitory policy and promotion of financial stability,” the finance minister said.

Mr. Terkper said government institutions like the Ghana Revenue Authority, the Registrars Generals Department and the National Identification Authority have started putting the registration and other exercises including tax payer’s record on electronic platform.

He therefore tasked the financial sector to take advantage of the current situation and create opportunities and awareness on the electronic system.

“I challenge you to look for business opportunities that arise out of this, let us set new examples by making customers see the benefits that are being made from the electronic payment,” he said.

Chief Executive Officer (CEO) of Standard Chartered Bank Ghana, Jerry Kweku Bedu-Addo also urged the participants to make suggestions that would improve the payment system, bring transaction cost down and benefit consumers.

“The outcome of this workshop should push the frontiers of convenience, security and strengthen the payment system,” he said.