Zambia’s Central Bank on Wednesday refuted reports that it was against the introduction of village banking in the country.
The Bank of Zambia, in response to reports that the introduction of village banking was reducing the circular flow of cash, said that it welcomes the initiative of village banking and would like to see village banking groups engage with the financial sector.
However, because keeping huge sums of cash in homes has its own risks, the central bank said in a release that village banking groups were an important vehicle for not only saving but also increasing financial inclusion.
“There are already some financial institutions that have products for village banking.
All this points to the fact that the financial sector is embracing village banking,’’ it added.