Gov’t, Banks seal deal to implement nationwide electronic payment system

The Controller and Accountant-General’s Department (CAGD) has signed a Service Level Agreement (SLA) with the Bank of Ghana and 24 commercial banks to operationalise a fully integrated Electronic Funds Transfer (EFT) system, marking a significant shift in public financial management and effectively phasing out the use of physical cheques in government transactions.

The initiative integrates the Ghana Interbank Payment and Settlement System (GHIPSS) with the Ghana Integrated Financial Management Information System (GIFMIS), creating a single, interoperable platform for processing all government payments. The system links government institutions directly with the banking sector, including ARB Apex Bank, ensuring that all transactions are traceable and secure.

Under the agreement, the integrated GHIPSS-GIFMIS platform becomes the sole authorised channel for government payments. Ministries, Departments and Agencies (MDAs), as well as Metropolitan, Municipal and District Assemblies (MMDAs), will now process payments to suppliers and third parties exclusively through electronic transfers on the platform.

Speaking at the signing ceremony, Controller and Accountant-General Kwasi Agyei described the reform as long overdue, noting that reliance on manual cheque systems has led to delays, reconciliation challenges and vulnerabilities to inefficiency and misuse.

“For too long, the public sector has depended on manual cheque books—systems that are slow, difficult to reconcile and prone to inefficiencies. That era must come to an end,” he said.

Mr Agyei emphasised that the shift to electronic payments will enhance transparency, strengthen accountability and improve control over public funds. He stressed that EFT is now mandatory, citing its benefits including faster processing, auditability, reduced leakages and improved fiscal discipline.

Deputy Minister of Finance Thomas Nyarko Ampem, speaking on behalf of the sector minister, described the reform as a key pillar of government’s fiscal consolidation agenda. He noted that inefficiencies in payment systems directly affect cash management, distort budget execution and weaken public confidence.

He added that the integrated system will provide real-time visibility over government liquidity, eliminate manual bottlenecks and create clear digital audit trails for all transactions.

Mr Ampem also indicated that the reform aligns with the Public Financial Management Act, 2016 (Act 921), its subsequent amendments, and the Treasury Single Account framework.

While acknowledging that the transition from manual cheques to a fully electronic system will be gradual, Mr Agyei assured that the process will be supported with comprehensive training, clear guidelines and structured change management.

“The shift will be phased, but firmly enforced. MDAs and MMDAs must comply. Electronic payments are now the standard,” he stated.

Mr Ampem, however, cautioned that the success of the reform will depend on strict adherence by all stakeholders, particularly financial institutions.

He said the initiative is ultimately aimed at strengthening accountability and rebuilding public trust in state institutions.

“Every cedi spent must be traceable, every transaction accountable, and every reform must deliver value to the Ghanaian people. That is how we rebuild trust and secure Ghana’s economic future,” he said.