BSP clarifies rural banking fees
May 31, 2021 11:10 am
The Bank of the South Pacific has assured the government and people in rural communities that it remains committed to continuing banking service for rural areas.
Recent reports have stated that rural banking fees are paid to BSP by the Government under an Agreement to provide banking services to the rural communities through Post Fiji’s post offices and agencies.
In response to this, BSP Financial Group says it is happy with its partnership with the Government and Post Fiji to deliver transactional banking services to the rural communities that include many maritime islands as far as Rotuma, Ono-i-Lau, Lakeba, and Kadavu.
It says in terms of this arrangement with Post Fiji for rural banking services, BSP receives $3.52 per transaction from the Government as stated by the Attorney General and Minister for Economy, Aiyaz Sayed-Khiayum in Parliament, last Wednesday.
BSP Financial Group further clarifies that $3.52 paid by the Government is split between BSP and Post Fiji.
BSP retains $1.00 (28%) while it passes $2.52 (72%) to Post Fiji for using its infrastructure in taking banking to the rural communities. T
It adds that BSP receives only $1.00 per transaction to support and modernize its electronic capabilities to support the rural banking services.
The BSP Financial group says despite, this business segment being unprofitable and subsidized by other divisions, the bank is committed to its financial inclusion strategy for the unbanked rural population, congruent with its Value of “Community and the Vanua”.