By Gary Hatigeva
THE proposed Payment System Bill 2018 has been highlighted to put in place mechanisms that look to link the transactional interactions of commercial banks, with anticipations to include the use of Auto Teller Machines.
Presented before the Bills and Legislation Committee (BLC) yesterday, the bill is looking to make sufficient and safer transactions and exchange activities electronically, between payment system operators under the proposed legislation.
In his presentation on the Bill, Chief Manager Currency and Banking Office (CBO), Daniel Haridi revealed that apart from the other electronic aspects of transactions both at commercial and small scale levels captured, the proposed system is also looking through regulations, to connect the systems of Auto Teller Machines (ATMs).
When interviewed on this, the Chief Manager also confirmed that with mandatory status that will be given to the Central Bank, the institute is expected to create regulations to oversee various existing instruments and transactional activities under the commercial banks operating the country.
He added that with the regulations provided for under the bill if enacted, it will become compulsory for all commercial banks operating within the country, to connect and recognise their various systems.
Mr Haridi explained that with this proposal, it means that ATM card holders of one banks, can access money or make transactions through ATM systems of another commercial bank, provided they are operational licence holders under the new Payment System Bill if it is passed and enacted.
“With the current systems especially on ATM systems, Bank A will only accept and deal with its own customers and the same with bank B and so forth, but regulations if put in place, may enable an open transaction between A, B and C and the others,” Haridi explained.
This intention comes as part of the Payment System Bill that is proposing amendments and repeal of Part 6 of the Principle Central Bank of Solomon Islands Act, with anticipations for it to transform the current manual system to a more sufficient and safer payment system.
The bill according to officials will only provide the general aspects of functions and mandatory status given to CBSI and certain provisions governing the establishment and operation of the proposed Payment System.
The proposal is also an initiative of the World Bank, which comes as part of a regional project that is also introduced in the Vanuatu and Samoan jurisdictions, and something CBSI officials revealed to have been in operation in Fiji and Papua New Guinea.