Deregister banks that host thieves, BoT told

LUDOVICK KAZOKA in Dodoma

THE government has once again directed the Bank of Tanzania (BoT) to revoke the licence of any financial institutions that will not protect customers’ savings by courting dishonest bank personnel who steal from customers’ accounts.

Speaking here on Wednesday evening, the Deputy Minister for Finance and Planning, Dr Ashatu Kijaji, stressed that financial institutions, including banks, had the duty to protect customers’ money from all forms of theft. She voiced the sentiments at an event to launch the DCB digital service, noting that some dishonest bank officials were involved in the theft of money from customers’ accounts.

The trend, she said discouraged some individuals from seeking banking services. Speaking on the step by DCB Commercial Bank Plc to adopt a digital approach of saving, the deputy minister said the measure that would enable its customers send money through their mobile phones to bank accounts for saving. She said the new system would encourage more people to bank with DCB due to its convenience.

“This will help to increase the number of people with bank accounts in the country from the current 14 per cent,” said the deputy minister before launching the DCB Digital, an event which was also attended by former Prime Minister Mizengo Pinda.

Dr Kijaji said the government recognized the contribution of financial institutions towards attaining middle income country status by 2025, saying the digital system would facilitate that goal even before the set timeframe.

“The new system will enable DCB to easily reach people in remote areas, mainly farmers and thereby to encourage them to make use of bank services,” she observed. Dr Kijaji pointed out that the introduction of such systems should go hand in hand with introduction of a system for controlling theft through the system by dishonest bank personnel to ensure customers’ savings remain safe.

The DCB Bank’s Chief Commercial Manager, Mr Saidi Kapilima, cited five products under the digital system as DCB Digital Account, Digital Fixed Account, Digital ‘Kibubu’, Digital Salary Advance and ATM Cardless Service.