By Rennie Tembo & Andrew Mkonda

Lilongwe, July 6, Mana; Communities in Lilongwe have hailed government for its plans to gradually phase out usage of cash to digital banking and electronic transactions services.

Speaking Friday during awareness campaign organized by government through the Reserve Bank of Malawi (RBM), Senior Group Village Nthumba of Traditional Authority (TA) Kabudula said the initiative would assist to curb fraud and money laundering among others.

He said that, “With digital transactions, people, especially farmers will no longer be carrying huge sums of cash to and from the bank where in most cases, farmers have been robbed their cash and others even losing their lives.

“This electronic system will help individuals to manage their finances more effectively, such as paying their utility bills while in their homes without losing any money on transport,” Nthumba said.

He urged his subjects to embrace the digital banking services saying it was in line with government blue print of Malawi 2063.

A Shop owner in the area, Patrick Saulo thanked government for the initiative saying he would no longer be carrying huge sums of money when he wants to purchase some goods in town.

He asked government to consider sealing a deal with mobile service providers and banks so that they reduce the charges on digital transactions that people are currently paying.

Digital Financial Services Coordinator for Lilongwe and Kasungu, Dr. Ella Kangaude expressed satisfaction with the overwhelming patronage of the people.

She said many people would like to graduate from use of cash to digital system.

“What we have noted is that people are not completely blank on digital finance services, but they just want to gather more information and knowledge about the system,” Kangaude added.

The DFS awareness campaign is taking place on pilot phase in Chikwawa and Machinga in southern region, Lilongwe and Kasungu in central region and Karonga and Chitipa in the northern region.