Banks Given Deadlines To Hook To National Switch

The Bank of Ghana has given September, this year, as the deadline for all commercial and merchant banks in the country to hook on to the national switch at the Ghana Interbank Payment and Settlement System (GhIPSS).

The head of Payment System Oversight at the Central Bank, Kwame Ansah, disclosed this to Business Week in Accra last week.

According to him, all the banks were asked to hook onto the automated clearing house switch by the GhIPSS at the end of June, this year.

“However, no single bank was able to do so, so the time has been extended to September where all the electronic platforms of various banks will be connected to GhIPSS to allow for interoperability, so that users of e-switcz card or any cash withdrawal card, should be able to transfer a value of money from one bank to another through the GhIPSS platform,” he noted.

Business Week learnt that the rollout of the national switch, which will create a common platform for all the banks, is a major project that will significantly enhance the financial sector.

Prior to the commencement of national switch, banks which signed onto Visa enjoy that service in the country but with the national switch, any ATM can accept any card. Also, various mobile money services can switch transactions, allowing mobile money transfer from a subscriber of one network to another network easily.

When the national switch becomes fully operational, bank customers can use their Automated Teller Machines (ATM) cards at any ATM machine across the country to access cash. This is expected to create a lot of convenience for both the banks and their customers.

The national switch is also expected 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), and this will greatly enhance payment not only within Ghana, but across West Africa sub-region.

Source: Business Week