All Set For Common ATM Usage

Very soon, all universal banks in the country will be connected to a common switch, one of the numerous payment systems of the Central Bank, as the software meant for the programme has been designed.

According to a source at the Bank of Ghana, the software had been shown and demonstrated to all the 24 banks operating in the country and the regulator of the banking industry was thus awaiting their response in order to kick start the programme.

“It is up to the banks to subscribe to the software so that we can begin the common switch platform,” the source noted.

It sated further that the building which would house the head office of the department and also supervise the common switch platform was almost ready.

The use of a common switch by all the universal banks indicates that customers can withdraw cash at all Automated Teller Machines (ATMs) irrespective of the bank with which one saves.

This means, for instance, that customers of Stanbic Bank Ghana can withdraw cash from ATMs belonging to Stanchart, Barclays, Ghana Commercial Bank or Zenith Bank Ghana Limited.

The same applies to clients of the National Investment Bank or United Bank for Africa or Unibank who can also withdraw monies from any other bank's ATM across the country.

The move is expected to ease sufferings of customers who travel lengthy distance to withdraw monies at the banks.

Among the payment systems which would be introduced alongside the common switch are the biometric smart card, the code line check truncation, and the automated clearing house system.

According to the First Deputy Governor of the Bank of Ghana, Dr. Mahamudu Bawuamia, the smart card is one of the comprehensive payment systems which is meant to create a common payment platform for all the banks.

Additionally, it will help reduce the over reliance on cash, bank notes and coins for business transactions as well as establish various commonalities within the banking system as far as payments are concerned.

The automated clearing house system will allow the clearing of electronic debits and credit easily.

Dr. Bawuamia told CITY& BUSINESS GUIDE in an interview that the payment systems were aimed at growing the economy by extending a suite of services to the unbanked segments of the population.

Also, part of the comprehensive payment system is the rural bank interconnectivity project, where all rural banks will be connected to a common switch.

By Charles Nixon Yeboah