National Payment System being fast tracked – BoG

Despite criticisms

Notwithstanding criticisms of the initiative, infrastructure that would allow for electronic payments under the new National Payment System are being put in place.
This was expounded upon at a press conference at the Finance Ministry on Friday, where Bank of Guyana Governor Dr Gobind Ganga laid out his expectations for the project. It was pointed out by Ganga that the project was originally of a four-year duration.
“The system is being put in place. This is a four-year project, but we’re hoping to complete this project in two years, and people start benefit,” Ganga, who was speaking on the sidelines of another Finance Ministry event, explained.
The Governor explained that while there was an old payment system administered by the bank, it was an ineffective one. He expressed expectations that the new one being implemented would conform to international standards.
“We had a payment system under the Bank of Guyana, but we didn’t have the power to ensure there could be electronic payments, digital signatures, etc. This Act recognises all of that, and makes it legal. For example, we will have more bank-to-bank transactions rather than the use of cheques. We will also reduce cash payments as we move forward. That is not to say that there is going to be an elimination of cash; cash will still be used, but we will be providing the infrastructure for electronic payments, and that will ensure that we have much more efficiency,” Ganga explained.
“For example, if the Ministry of Finance has to pay vendors out there, instead of the vendor coming to the Ministry of Finance to collect a cheque, that payment will be done directly into his bank account. That will enhance transparency and good governance,” Ganga explained.

Passage
An important bill in principle, much contention nevertheless attended the National Payment System Bill when it was passed earlier this month. Criticism had included concerns over the Bank of Guyana’s role as a regulator, and whether it had too much power.
For instance, former Minister within the Ministry of Finance, Juan Edghill, had expressed concern over Clause 18 (2) of the bill, which allows the regulator to enter the premises of someone suspected of operating without a licence and carry out searches. Edghill urged the inclusion of stipulations that such searches can be carried out only after a warrant has been obtained.
His successor in Government, Minister Jaipaul Sharma, had defended the bill in his presentation. For instance, Sharma noted that the Central Bank cannot revoke licences in a “willy-nilly” manner, but persons with grievances would instead be given time to defend their licences.
Besides urging that the general public be educated about the new system, none of the Opposition entreaties found sympathetic ears on the Government side.
The bill was eventually passed without any amendment.
A National Payment System (NPS) is an infrastructure that provides the economy with information communication technology (ICT) options for processing payments resulting from the many different types of economic transactions that take place daily. In other words, this includes e-payments, credit cards, and wire transfers.
The Bank of Guyana (BoG) has been tasked with leading the development and implementing a strategic approach to advancing the development of Guyana’s NPS by establishing the parameters to guide policy and set priorities.