Financial institutions in Ghana could face increased class action and mass tort litigation if Clause 143 of the new Banks and Specialized Deposit-Taking Institutions Bill is not managed prudently.

That is the caution of Samuel Addo Otoo, Board Chairman of Yaa Asantewaa Rural Bank and Chief Executive Officer of Easy Investment Cooperative Credit Union.

The Bank of Ghana is expected to implement new policy documents to help regulate and instill discipline in the industry and to boost public confidence.

These include the recently passed Banks and Specialized Deposit-Taking Institutions Bill.

Clause 143 of the Bill “provides for the transfer of a current or savings account which has not been operated for a period of two years to a separate register of dormant accounts”. The dormant funds shall be transferred to a special account at the central bank.

According to Mr. Otoo, the implementation of the Clause could result legal battles if care is not taken.

“The central bank will have to look at it again,” he said. “If for a period of two years you’ve traveled and cannot access your accounts and the fund is transferred to the Central Bank, it will bring a lot of litigation between the banks and their clients and will not deepen the confidence of the people in the banking sector”.

He however believes the use of electronic payment system, where people can remotely access their accounts, is a means to ensure the banking public can make deposits and withdrawals without travelling to keep the accounts active.

“The introduction of E-Banking by the various banks and other deposit would help reduce the cost of banking services, improve customer service and boost e-commerce transactions,” said Mr. Otoo.

The Bank of Ghana, in partnership with the various banks and the telecommunication companies, is rolling out a roadmap to make Ghana a cashless society by 2019 to help reduce the amount of money that the central bank spends to print, manage and decommission cash.

Mr. Otoo noted that “the promotion of a cashless economy is a collective responsibility of all stakeholders including banks, telecommunications companies, IT companies, subscriber and the general public”.

Meanwhile, Easy Investment Cooperative Credit Union is introducing the “Easy Smart Save Online-Mobile Banking” platform which offers members greater flexibility, fast and convenient access to their accounts and transactions from anywhere right from their mobile phone or tablet.

By Kofi Adu Domfeh | 3news.com | Ghana