The government has signed an agreement with selected banks to transact business on the premises of some ministries, departments and agencies (MDAs) in the country. This initiative, known as on-site banking, is to improve and facilitate the collection of non-tax revenue and introduce a more efficient method of banking. The banks are the Ghana Commercial Bank, National Investment Bank, Merchant Bank, The Trust Bank, HFC Bank, Fidelity Bank and the Prudential Bank. The MDAs involved include the Ministry of Water Resources, Works and Housing, Trade, Industry, PSD and PSI and the Interior. Others are the Ghana News Agency, Lands ,Commission , Ghana Immigration Service, Registrar-General's Department, Driver and Vehicle Licensing Authority, Births and Deaths Registry and the Land Title Registry. Signing the agreement on behalf of the government, the Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, said with the introduction of the new banking system for the MDAs, there would be an improvement in the area of domestic resource mobilisation. "Gradually, it would increase the share of non-tax revenue as a percentage of domestic revenue from the current six percent to between 10 and 12 percent in the medium term," he said. He stated that the on-site banking would also eliminate revenue leakages and enhance monitoring of district and regional collection points. The minister, however, noted that "improving non-tax revenue collection will enable the government to de-emphasise the introduction Of taxes". He said the programme was being implemented on a pilot basis, noting that "the ministry would ensure the prompt payment of revenue collected into the Consolidated Fund after receipt by the banks". "We would also ensure that the receiving banks comply with and operate within existing laws". He pledged the government's support to the banks and the MDAs involved in the programme. The Controller and Accountant General, Mr Christian Sottie, stated that the department had embarked on the programme to make its services more efficient and reliable. He said the outfit would soon introduce smart cards to pay workers in the country. Mr Sottie entreated the banks to transfer all monies collected on behalf of the MDAs into the designated accounts within 48 hours. He, however, urged the banks to develop a cordial working relationship with the staff of the MDAs to ensure the success of the programme. A representative of the National Investment Bank, Mr Daniel Gyimah, who spoke on behalf of the participating banks, said the banks would locate a payment point in each regional administration through which funds would be channeled. He expressed appreciation to the government for giving the banks an opportunity to get involved in the pilot scheme. "We promise efficient and reliable banking that would eventually be of benefit to the whole country," he added. Source: Daily Graphic