Iraqi Central Bank giving, State banks until next September, to adapt herself with electronic systems

01/08/2016 13:43

Economy News:

The CBI gave Monday, State banks until next September, to adapt herself with systems and electronic trading, while the proportion of beneficiaries and users of those dealings in Iraq "not later than" 10 percent, outweighed the potential contribution of expanded use of orientation and take advantage of 77% of the mass of cash outside banks and get rid of cash circulation problems.

The Central Bank Governor said, agency relations, in a press interview Monday that "the payments system represents an important pillar of the banking and financial sector," adding that "consists of two phases, the first involving the total transactions between banks and companies within a system sorted out and clearing operations and liquidation of myriad of daily banking transactions.

Added the relationship, that "the second phase is a retail payment system of daily transactions for individuals to repay their obligations through the e-card or mobile phone etc", stating that "the role of the Central Bank is surveillance beyond the domain of existence in a nationwide banking and large size takes careful organization.

The Governor said that "the role of the Central Bank may be an operator or a partner or using electronic banking system," he said, adding that "the future role of the Central Bank is supervising system to the task of running a company or group of companies belonging to the private sector."

He felt the relationship, to apply the electronic transaction system requires to provide the required infrastructure, "pointing out that" the legislative legal structure that regulates banking in all its details.

The Governor of the Central Bank, said that "the Central Bank conducted a comprehensive audit of banking laws and regulations in force and an initial drafting of the required legislation in this field, online payment system and controls issued jointly by infrastructure for retail payment system", stating that "$ 20 trillion dinars monthly are dealt with under this system is fast and accurate and supports national economy, away from a lot of problems."

Promised relationship, that "retail payment system is awesome and very sophisticated and helps the Bank to follow all these processes and prevent violations and abuses, and is updated until the end of 2015 and is not in any trouble," pointing out that "the Central Bank is currently working with the World Bank to review and assess national payment system, where three data sites were formed across Iraq, as well as one location outside Iraq to recover from."

Central Bank Governor went on, saying that "Iraq needs a comprehensive banking systems followed by banks to manage the system from achieving its objectives," revealing "lack of State banks for such electronic system although it has hundreds of branches.

"The relations gave banks until next September, adapted within this electronic system", noting that "the Central Bank is the regulatory side through the issuance of credit cards and electronic controls there are a lot of companies that presented their offers to work on the processing of these cards because the Central Bank owns national PBX that regulates these processes, is an incubator for electronic banking.

The Governor went on, saying that "the Bank put a solid plan will start at the beginning of 2017 to organize such operations," expressing regret "due to the low percentage of beneficiaries and users in Iraq who do not exceed ten percent and eight percent of those who have very limited operations such as receiving compensation only, and that only two percent of Iraqis are using smart cards.

The relationship, expressed his belief that "the trends will help expand financial inclusion through more citizens to these systems and thus benefit from the money supply in the hands of people that reach 77 percent out of the system, as well as get rid of cash circulation problems."

The Central Bank Governor was to select the 2017 launch date for electronic currency through aldinaralalktroni or e-cards, except that it will facilitate communication between State agencies.