GOVERNMENT has directed all public institutions, including parastatals and local authorities, to install electronic Point of Sale Terminals by July 1 to alleviate liquidity challenges.These are part of the measures introduced by the Reserve Bank Zimbabwe to promote electronic payments instead of cash. Zimbabwe is currently facing cash shortages and one of the reason cited is high demand for cash due to low usage plastic money.“Ministries, Government Departments, local authorities and parastatals are key players to the extent that they offer goods and services to the public on a cost recovery basis,” secretary in the Finance and Economic Development Ministry Willard Manungo said.
“In that respect, it is critical that such entities adopt measures necessary to reduce cash requirements for settling what is due to them by embracing the use of plastic money.
“The objective of the exercise is to ensure that electronic Point of Sale Terminals are installed and operational across the board to facilitate electronic payments from 1 July 2016.
“Institutions and departments will be expected to have embraced plastic money by 30th June 2016.”
Mr Manungo said accounting officers were required to urgently arrange for departments and institutions under their purview to work with their bankers in introducing Point of Sale Machines to reduce cash usage by the public in transacting with Government.
To promote financial sector stability, ensure the safety and soundness of the banking system and alleviate the persistent liquidity challenges in the economy, the Government has pronounced various policy measures that include the requirement for banks to moderate daily cash withdrawals and reduce charges as well as encouraging the use of electronic money transfer systems in settling daily transactions.
Public institutions were also directed public institutions to embrace multi-currency arrangements in transactions to promote financial stability. Restoration of multi-currency system is key also to reduce liquidity challenges prevailing in the economy.