The electronic payment project will be completed by the end of this year
05-09-2017 12:13 PM
[/size]Baghdad News -
It is expected that the end of the current year will complete the project of automation of salaries or what is known as electronic settlement through the use of smart card, as all the employees of Iraq, about 4.5 million represent 10% of the total population of smart cardholders, and receive salaries from banks through this card Of various uses.
The Council of Ministers requested that the Ministry of Planning and Development Cooperation coordinate with the Ministry of Finance and the Central Bank of Iraq to issue a unified job number for employees in the State departments, for adoption mainly in government databases. The Council of Ministers also granted the employee the freedom to choose a bank approved by the Central Bank in the process of settling salaries to open a bank account in preparation for receipt of his salary through the account electronically under a bank card.
The project is considered an important step that will contribute to the events of qualitative change in the nature of life of Iraqis with the presence of such a large number of employees, as the economist Abdul Zahra al-Hindawi, that «the country is witnessing a real savings movement by citizens in banks, whether governmental or private, Employees represent the largest mass of traded cash in the domestic market. However, this trading is not considered an investment, but it is about securing the requirements of the Iraqi family daily. Therefore, the entry of a large monetary bloc in the banking portfolios with a clear vision to invest these funds in a developmental way would move the economy significantly in light of the financial crisis that has plagued the country since 2014, and the establishment of banking policies must be of sound development dimensions ».
He added that «the project pays to encourage employees to save, especially in light of the widespread culture of hoarding funds and the lack of confidence between citizens and banks, especially private banks», adding that «banks to work on the principle of competition between them through services and benefits provided to customers and compete in the annual interest rate On the money deposited, which drives the citizen to move towards the bank that gives a higher rate of interest than others, as well as other services that banks can offer to attract depositors of smart card holders, such as granting loans and banking facilities ».
He pointed out that «this experience will face challenges, as we will find fear in the staff of the failure of banks to meet their obligations to depositors», pointing to «the need to be selected banks for this task guaranteed by a government». The task of selecting the Central Bank of Iraq as the sectoral sector supervising the banking sector, he announced that he chose 16 banks, some of which are government and some of the private banks to take over the task, and that the selection process was in accordance with global standards and the level of the bank will be the guarantor of any of these banks May face problems or lag in the fulfillment of its obligations to the extent that he expressed his willingness to pay dues instead of the bank stagnant ».
He stressed the importance of mechanisms and procedures to reassure employees about this new experience which they have not yet mastered. "The presence of ATMs in public markets and important commercial centers, as well as the headquarters of government ministries and departments, is essential for the cardholder to shop for," he said. .
He pointed out that «the experience of the project to settle the salaries electronically is very important», pointing out that «the urgent need to ensure all the requirements for success and the banks to invest this step by improving the performance and diversification of banking services and development, to become more effective in the process of development construction, Banking is one of its main pillars ».
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And considered many of the managers of private banks that the localization of salaries of state employees electronically a step bear important implications, which will be reflected positively on the performance of banks in terms of securing liquidity and restore confidence between the citizen and the sector, which has witnessed in recent years the decline reflected the results on the reality of the Iraqi economy, stressing the ability of banks to implement expansion programs The base of its services to citizens in a form that strengthens the investment base of the sector to reflect its results on the financial sector in general.