Ghana’s central bank, the Bank of Ghana (BOG) says it is looking forward to the Parliament of Ghana to pass a new bill concerning financial transactions in the country. The new bill is the Payment Systems and Services Bill.
Parliament has been on the current phase of the bill for the last 2 years. The Bank of Ghana expects the Parliament of Ghana to pass this new financial bill by the end of June this year.
The Bank of Ghana believes when passed into law, the bill will help strengthen the financial regulations in the country. The bill will also give other financial institutions, other than banks, additional support to establish and operate businesses offering electronic payment services.
If passed into law, the Bill will also bring about competition in the electronic money business. This is because, it will encourage diverse innovations in the design of new payment services, as well as secure electronic money products.
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Dr Settor Amediku, the head of Payments Systems at the Bank of Ghana approves of the bill. Amediku was more happy about how the bill will bring competition to the banking and financial environment. He also added that those banks that don’t want to upgrade themselves may find themselves crashing.
“It’s going to introduce a lot of competition in the sense that non-banks are going to be licensed by the Bank of Ghana to provide payment services like the Banks. So Banks that are not ready to innovate are going to find it difficult to mobilize data and increase their income”.
Over the last few years, the government of Ghana and the Bank of Ghana have been working hand-in-hand to push for a cashless Ghanaian society. For instance, last year, they introduced the mobile money interoperability project.
This project makes it possible to send mobile money easily to people using networks, other than your own. With the introduction of the mobile money interoperability, mobile money transactions rose to 233 billion cedis, from the previous 155 billion cedis.
The passing the Payment and Services Bill will also enable local banks to issue electronic money just like the telecom companies do.