New inter-bank transfer to be introduced in April

Ho, March 5, GNA - Mr Peter Samlafo, an assistant director at the Bank of Ghana (BOG) on Thursday said the inter-bank Credit Transfer System to be introduced by April this year would expand alternative payment systems and encourage more people to operate bank accounts. Mr Samlafo said this when briefing bank officials in the Volta Region at Ho as part of a nationwide education on the new credit transfer and clearing system for banks and public institutions. He said under the new system, payments could be effected through any bank in the country by people who do not operate a bank account whereas recipients of such payments would be made to open accounts into which such transfers would be lodged.

Mr Samalfo said unlike the cheque payment system, transfer recipients would not have access to the credit transfer voucher, which would be used to ensure the security of the transaction.

He, therefore, urged the banks to help make the new system efficient by ensuring that the system was not abused to the detriment of the banking system.

Mr Samlafo said it was important that banks offer alternatives to the public to choose from as far as payments are concerned because over-dependence on physical cash transactions was harmful to the economy and was rendering the banking system redundant. He said efficient and speedy payment systems promote trade, production and investments as delays tended to clog and slow down business.

Mr Samlafo said, consequently, there was the need to constantly "oil" the payment systems to facilitate specialisation, ensure stability in the banking system and to promote monetary policy implementation. Mr Seth Forson, an official in the Payments System Office of the BOG, said the Credit Transfer System was the outcome of the work of an Inter-bank Committee and not an imposition by the Central Bank.

He said under the new system, credit transfers would be made among all banks instead of intra-bank transfers, as is the case now.

Mr Forson said the Central Bank was aiming at a faster and more efficient electronic credit transfer system when the country's electronic and telecommunications system is well developed. Apart from shorter clearing time, the new system would not suffer from the lack of funds as pertains in cheque payments because banks would receive cleared funds before vouchers are accepted for transfer, he said.

The participants urged the Central Bank to ensure that the new system was not bogged down by bureaucratic bottlenecks by the various banks.