Domiciliation of salaries .. Do bank cards remove the dinar from the pockets of employees?

6ly410 · September 16, 2020

Domiciliation of salaries .. Do bank cards remove the dinar from the pockets of employees?

Wednesday 16th September 2020 58

Baghdad: Farah Al-Khafaf

The process of resettlement of salaries has begun to reap its fruits, despite its short age and its collision with many obstacles, perhaps the most prominent of which is the lack of ATMs and the recent experience and use by employees, and between those who are welcomed and rejected, a number of factors stand for their success and development.

A member of the Parliamentary Finance Committee, Jamal Cougar, said in a special statement to Al-Sabah: “His committee supports the resettlement of salaries for its many benefits, including knowledge of the movement of money in the state, and the detection of phantom salaries.”

Cougar added, "In the past, the government at the end of every month and within one week was paying very high sums from the state treasury to pay salaries to employees and retirees, which causes a burden on the treasury, but now, after the salaries of most ministries and departments have been settled, the employee withdraws what he needs from the money, and not The total amount, which supports the provision of financial liquidity in the state treasury, which the government carries out like other businesses and projects.

The Emiratisation project aims to pay salaries to state employees through cards issued by banks operating in Iraq. The project aims to reduce the total cost of paying salaries and keeping cash within the banking system. The workers ’benefit is that they have a bank account that enables them to deal with all ATMs and points of sale in Inside and outside the country, as well as benefit from all other banking services provided by banks, such as obtaining loans and others.

Financial cards

Cougar believes that "proper localization of salaries needs incentives, facilities and laws that regulate its work," indicating that "there must be incentives for citizens to increase dealing with financial cards, including gifts that are either permanent or seasonal on specific occasions or holidays, and that is The holder of the cash card (credit card) has privileges of discounts or adding incentive points when buying a specific product or a cash withdrawal process, offset by the government's support for commercial stores and brands through tax exemption or reduction in electricity and other services wages. The name of its holder, the date of its issue and the date of its expiration date, and it is used to obtain cash from ATMs or to buy goods and services.

The first bank cards were ATM cards issued by Barclays in London in 1967, and the Chemical Bank in Long Island, New York in 1969, and in 1972 Lloyd's Bank issued the first bank card to contain a magnetic stripe encoding information, using a personal identification number (PIN) for security. .

Financial institutions

Cougar suggested that the government contract with financial companies and institutions to provide the largest number of ATMs and points of sale, to serve the citizen, saying in this regard: “This file should be referred to investment by attracting sober global financial institutions and companies, and contracting with them to provide the country with these devices and supplies. And all the accompanying operations, including continuous maintenance, without the state incurring payments and dues. "The Emiratisation system began according to a Cabinet decision on November 1, 2016, which stipulates that the salaries of all civil employees in all government institutions will be localized. The decision also stipulated that the salaries of two Iraqi ministries will be localized at the end of 2016, and at the beginning of 2017 revealed Governor of the Central Bank for allowing the banking sector to participate in the resettlement of salaries for employees and persuading government departments to distribute salaries electronically, and then during the following years the salaries of most employees and retirees were localized, and work is still underway to localize all salaries.

Make loans

In the same context, the specialist in financial affairs, Thamer Al-Azzawi, told Al-Sabah that the benefits of resettlement are more than harmful, if any, indicating that banks have begun to offer "fat" offers to employees to contract with them in the process of resettlement, including the provision of various loans, and the reduction of interest rates. Until "the process of resettlement has limited the process of transferring money in cash, as the past years witnessed armed robbery of the salaries of many departments, but now, for a year or more, we have not heard of theft operations as before." However, Al-Azzawi identified many negative points that affected In the opinions of employees, including "the lack of automatic teller machines at some banks and banks, and many of them have been constantly disrupted or not working properly due to the Internet service, as well as the unpopular culture of shopping through bank cards and the lack of offers for that", noting the possibility of addressing these points.

Financial benefits

The salary domestication system has several advantages that bring many financial and service benefits to employees, and these benefits vary from one bank to another, most notably: “Emiratization will reduce the risk of transferring the employee’s money in cash, and every employee who settles his salary will be given a special salary card through which he can withdraw his salary from various points of sale.” Locally and internationally, and the employee has complete freedom in withdrawing, depositing and transferring money according to his desire and at any time.

Al-Azzawi expected that the employee would dispense with carrying money and use bank cards almost completely within 7-10 years with the growth of electronic shopping operations, and the need for restaurants, shopping malls, malls and even filling stations to adopt these cards that provide services without risk, especially with the ease of replacement and protection. Enjoy the big

Out.