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No charges on VICOBA formalisation - BoT

No charges on VICOBA formalisation - BoT

THE central bank (BoT) has categorically said that there are no charges or interest fees imposed on the ongoing exercise of formalisation of Village Community Banking (VICOBA).

The central bank also said the registration exercise of Vicoba, which will take two months, from now, was waiting for proper registration system and its process plus common regulations.

BoT Manager for Microfinance and Bureau de Change Supervision Mr Victor Tarimu said the central bank thought it was not proper to charge members of Vicoba who are collectively struggling to overcome poverty.

“It is not right to charge those who don’t have even a capital...we have decided that to even compensating local government in that matter,” he said.

BoT previous before the task was shifted to their docket local government were charging 30,000/- for registration.

“BoT have removed all said charges and there are no whatsoever fees before or after registration,” he said adding: “We are currently training local government cell leaders on the process and asked them not to charge even a cent.”

And those talks about a number of fees including a charge of gain of total Vicoba deposit fee are hearsays. The registration itself takes merely two hours since it is conducted in a checklist manner which is very simplified,” he said.

The timeframe was two months from now, he said, was enough since most Vicoba are eagerly waiting for registration. The registration will be conducted by chairmen of street cells.

On another development he said the central bank have received 663 applications for tier II microfinance service providers--individuals, digital firms, and the like—which are not mobilising deposits from public.

The bank has already issued 293 licences for tier II categories as of yesterday and the remaining have minor issues to settle before completing the process.

“The individuals compromising 10 per cent of the total application we received. The central bank targeted to at least register 700 Units under tier II,” he said.

For Saccos, which required to re-register since most already did under the umbrella of co-operation society, already 241 unities out of targeted 1000 unities.

Saccos fall under tier 3 category. The registration process, according to central bank, is to recognize the microfinance service providers to safeguard members’ interest.

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Author: DAILY NEWS Reporter

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