Wednesday, November 30, 2022

Non-Cash transactions in an upward trend ÔÇô Mohohlo

Locals engaged in commercial transactions are increasingly choosing electronic transfers over cheques to make payments, according to the reserve bank governor, Linah Mohohlo.

Speaking at the official launch of the bank’s new set of coins, Mohohlo said that although banknotes and coins continue to be a major medium of exchange in the domestic economy, non-cash transactions, especially electronic transfers, have gained considerable ground.

Available figures show that the result of this upward trend in non-cash transactions is an average monthly cheque payments decline by over 50 percent. By the end of 2013, cheque payments have recorded a decline of about P3 billion.

Globally, non-cash transactions are becoming more common, largely as a result of advances in technology available in retail outlets today. At the same time, most Governments agencies and banks are working hard to promote non-cash payments.

“We understand that computers, smart phones and tablets are making significant inroads into our life,” a representative of one the local banks said on the sidelines of the new coins launch on Thursday.

At the same time, Mohohlo also said that congestion at banking halls for cash withdrawal has been eased, due to the increasing number and usage of Automated Teller Machines (ATMs).

“Equally important, the value of average monthly ATM withdrawals has increased by about 50 percent to P1.3 billion,” Mohohlo noted.

On a related matter, Mohohlo said that since the launch of the family of banknotes in 2009, currency in circulation has increased by 35 percent.

“This is attributable mainly to the P200 banknote, which is an indication of its popularity. In fact, by the end of 2013, the P200 banknote accounted for approximately 60 percent of all the paper money in circulation.”

The management of all local currency is now conducted at the Bank of Botswana’s new site located at the diamond park along the Airport Road.

Mohohlo says the bank’s Cash Management Centre assures efficient handling and delivery of quality service to commercial banks, and generally enhances efficiency in the national cash management cycle.

The government banker further indicated that in the not-too-distant future, the efficiency of the national payments system will be enhanced by the introduction of the cheque imaging and truncation system, which will reduce the cheque clearing cycle.

Furthermore, the Accountant General’s Office and the Botswana Unified Revenue Service will be connected to the Bank of Botswana through the electronic Botswana Interbank Settlement System.
“This will greatly improve the speed, security and efficiency of government payment transactions, as well as those of the Botswana Unified Revenue Service.”

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