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GhIPSS earmarks National Switch and several projects for 2011

By Kofi AHOVI
The Ghana Interbank Payment and Settlement System (GhIPSS) plans to roll out the national switch and many other programmes this year to significantly improve the payments system in the country.

The national switch, which will connect all the banks in the country, is aimed at making payments faster, more accessible and more secured in order to facilitate business transactions.

Apart from the national switch, Direct Debit under the Automated Clearing House system will also be introduced this year and the standards of cheques in Ghana would be reviewed with the intent of introducing additional features.

Other initiatives earmarked for the year are aimed to ensure the extensive use and deployment of e-zwich Point of Sales devices, as well as e-zwich cards in rural and urban communities.

Speaking in an interview, the Chief Executive of GhIPSS, Fred France, said the rollout of the national switch is a major project that would significantly enhance the financial sector.

He explained that the switch will create a common platform for all the banks.

He said when this is operational bank customers can use their Automated Teller Machines (ATM) cards at any ATM machines.

“Currently, it is only banks signed onto Visa that enjoy that service in Ghana, but with the national switch, any ATM can accept any card,” France said, adding that this will create a lot of convenience for both the banks and their customers.

The GhIPSS boss explained further that when the national switch becomes operational, the various mobile money services can switch transactions and that means that mobile money transfer can take place from a subscriber of one network to another network with ease.

France added that GhIPSS also hopes to use the national switch to link Ghana’s platform to that of Nigeria’s interbank payment system, as well as that of the Francophone West African Monetary Zone (UEMOA).

He said GhIPSS would also be able to switch messages between the Visa and Mastercard platforms when the system is in place.

He stressed that the national switch will greatly enhance payments not only within Ghana but across West Africa, saying that better days are ahead.

He urged the public to embrace the new developments in order to save time and cost.

On the Direct Debit, the CEO of GhIPSS, said it would soon go live, explaining however that some educational programmes would be started for banks and other institutions, such as utility providers, insurance companies and others, who regularly receive or pay lump sums of money.

“These bodies would be trained on the use and benefits of the Automated Clearing House (ACH). The ACH is like an electronic form of standing order and can be used for regular or recurring payments such as mortgage, hire purchase and utility bills,” he explained.

Another major programme that GhIPSS would embark on in the course of the year is a review of the standards of cheques in the country.

This, according to France, is to enhance confidence in the use of cheques, adding that the GhIPSS would meet with banks to look at what additional features could be added to cheques to aid the process of clearing cheques under the Codeline Cheque Clearing System (CCC).

This system allows cheques to clear in two days but GhIPSS wants to reduce the time further to 24 hours. In order to achieve this target, GhIPSS wants to strengthen the features on cheques to ensure that they are very secure.

France added that banks would be encouraged to agree to set a certain limit, so that any cheque with a value above that limit would have to be confirmed with the issuers before payment is made.

Educational campaigns would also be intensified this year, according to the boss of GhIPSS, who added that the campaign would be targeted at creating awareness and encouraging the use of e-zwich and other products.

He explained that the benefit of using cashless options, such as the e-zwich, to the economy is enormous.

He said it has the potential of reducing interest rates and therefore urged the public to embrace the educational campaign when it gets underway.

Another initiative that would be implemented this year is the use of e-zwich Point of Sales (POS) devices at fuel stations.

He bemoaned the situation where fuel stations are compelled to close by 10 pm, when they can operate for 24 hours and make more money.

He said GhIPSS would enter into a discussion with fuel station owners and Oil Marketing Companies to explore the possibility of exclusively using e-zwich cards after 10pm.

Under this initiative, the fuel stations would accept both cash and cards during the normal working hours. But after the 10pm, cash from the day’s transactions would be lodged and only e-zwich and other cards would be accepted to ensure that the fuel stations can operate for 24 hours but would not be exposed to robbery.

France said GhIPSS, which has been in operation for over three years, is moving into a higher gear this year.

He said there would be significant developments this year in the financial sector and urged the public to embrace the change in order to benefit from technology advancement, which is taking place everywhere in the world.

He said the Bank of Ghana, which set up the GhIPSS, is determined to make the payment system in Ghana very effective, as the economy expands.

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