South Sudan bank launches no physical cash carrying drive
September 18, 2024 (JUBA) – South Sudan’s Central Bank has launched a campaign seeking to move the country into cashless society, the head of the financial institution announced on Monday.
James Alic Garang, the Central Bank governor said the initiative aims at discouraging movement with large cash amounts. The bank also seeks to limit the maximum amount of money one withdraws and carries in public.
“The maximum limit for cash withdrawal across all channels by public institutions, government agencies, corporates, and individuals is SSP10 million. The public is urged to join the banking system by opening accounts to facilitate their receipts and payments or promote digitalization of financial services”, Garang told a news conference in the capital, Juba.
The Central Bank governor urged commercial banks and mobile money operators to make account opening seamless, especially for those traditionally excluded, and encouraged South Sudanese to embrace electronic payment platforms, including mobile money and credit and debit cards.
“There are people who think that if there are no cash in the hands, there is no money but we must educate them that cash does not have to be physical cash. It can in your computer. It can be on your phone. It can be in any other platform and it can still be cash. You can still use as a means of payment. As a result, we are encouraging our people to improve the situation where a lot of transaction take places online like bank count to bank account and mobile money across the board. As we move ahead, there are other innovations that comes as the bank remains open to exchange bureau and see what is good for the industry and the country as a whole”, he explained.
Garang urged commercial banks to ensure people open bank accounts to enhance transactions.
“All the borders, all the corridors, all the administrative units of South Sudan, must have financial services. So go out there and do your show about what you can offer. If there are areas where there are challenges, you innovate, if you don’t have power, put up a solar, if you have a security issue, the governor is there to support. So let us all go out full swing. Financial institutions will do everything to ensure that all those who do not have bank accounts create bank accounts and those who have bank accounts are able to use them so that they achieve their objectives. Let us work together, let us collaborate so we can achieve your bottom-line goal as an institution. And also, for us to achieve our bottom line good as the government which is providing services to our people”, he stressed.
The campaign for a cashless society has received mixed reactions, with some officials saying it is impractical in some remote places with no access to internet services or banking facilities.
Others have argued that 80% of the economy is predominantly the local people engaging in informal activities like those involved in menial jobs, construction, fishing, farming, charcoal making, and hunting to have enough money which would necessitate the creation of a bank count or be involved in the digital banking because of the small number of people who embraced it.
This, opponents further say, would require educating the society in the rural areas to know the value of mobile money and creating accounts in the banking facilities to facilitate transactions.
(ST)