By Bosco Bush
In an effort to transition to a cashless society, the governor of the Bank of South Sudan (BOSS) has instructed financial institutions in the country to implement digital financial services policy.
Addressing managers of different commercial banks and mobile money operators, Central Bank Governor Dr. James Alic encourages commercial banks and mobile money operators to make account opening seamless for all customers, especially those traditionally excluded by the banking sector.
Commercial banks and mobile money operators were also directed to collaborate and develop modalities that allow customers to move funds conveniently between their bank and mobile money accounts.
Alic urges the public to embrace the use of digital or electronic means of transactions to reduce risks associated with carrying cash.
“The public is urged to join the banking system by opening bank accounts to facilitate their receipts and payments or promote digitalization of financial services,” he said.
“The public is encouraged to electronic payment platforms, including mobile money, credit and debit cards, which incurs low charges on transactions while offering convenience and establishing individual credit history,” Alic stated.
However, the BOSS Governor’s new monetary policy restricts the public and banking institutions to limit cash withdrawals of only 10 million SSP per day for a person.
“The maximum limit for cash withdrawal across all channels by public sector institutions, government spending agencies, corporates, and individual SSP 10 million,” he said.
The new policy direction underscores the significance of digitalization and deploying related Fintech applications.
The proposed financial instruments and the necessary steps to ensure their effective adoption will reduce the risks associated with carrying cash.
It will also ensure convenience and speed, while allowing the bank to exercise greater control over the cash in circulation, thereby improving the conduct of monetary policy.
On Monday, Minister of Finance and Planning, Marial Dongrin Ater, announced that all payments for government services and salaries will be made through bank accounts.
This he said, is part of the government’s efforts and policy to reduce cash transactions and promote the adoption of mobile money and electronic banking system across the country.
South Sudan is grappling with an economic crisis, inflation has surged in 2024, eroding purchasing power, and increasing the cost of living for the population.
Civil servants and members of the organized forces have relentlessly gone unpaid for over 10 months now.