As part of its financial deepening and payment services reform agenda, CBSI recognised the need for an efficient national payments system that can cater for both high value and retail payments; using the electronic platform.
Under Sections 26 and 27 of the CBSI Act 2012, the Central Bank is given the power to provide facilities, including intra-day credit, to payment, clearing and securities settlement systems, and their participants, to ensure the safety, soundness and efficiency of the system.
In its report last year, the bank said safety of the payment system is critical to development of Solomon Islands and to assist the Bank.
As such, a Memorandum of Understanding (MOU) was entered into with the International Financial Corporation (IFC) to progress the National Payment System Reform Project with the objective of establishing national payment system in Solomon Islands.
The main aspects of the project amongst other important functions include the development of a national payments system vision, a national payments system development plan, a national payments system act, guideline for legal draftsmen and stakeholder communication program.
World Bank and IFC payment experts conducted two workshops for the project.
“The project however still has a long way to go before completion.”
Meanwhile the report stated that in 2013, a monthly average of 22,500 cheques with a total average value of $870 million passed through their Clearing House.
By EDNAL PALMER