ACCRA, Ghana–The Ghana Co-Operative Credit Unions’ Association has announced plans to create its own inter payment and settlement platform in the near future.
According to the organization, the goal is to carry out the transactions without going through the traditional banking systems and to further help foster a cashless economy.
Nevertheless, the system is however expected to be supported by the Ghana Interbank Payment and Settlement Systems (GhIPSS).
“We are looking at linking up all the credit unions in the country to have one major payment and settlement platform or network…we are working around it for this system to start soon,” the general manager of the Ghana Credit Unions Association, Nana K. Agyepong, told Citi Business News.
According to Agyepong, discussions with the Bank of Ghana have also been fruitful.
“This is an initiative that the Central Bank is in favor of as it believes the credit unions that are actually at the grass roots mobilizing institution can encourage their members to put the money on the platform to transact business,” Agyepong added during remarks at the Annual General Meeting of the Ghana Revenue Authority Cooperative Credit Union.
Per the Bank of Ghana Act, credit unions are required to undertake inter settlement processes through universal banks, Citi Business News reported.
Figures from the Bank of Ghana show that the volume of transactions via the interbank settlement system increased from 794,282 to 889,709 between 2015 and 2016. In addition, the average value for transactions increased from 1,032,544 to 1,670,369.46 cedis over a one-year period, Citi Business News added.