All Umurenge Saving and Credit Cooperatives (Umurenge Saccos) in Rwanda will soon get Cash in Transit (CIT) vehicles to ensure the security of funds that are transported between Saccos branches to commercial banks.
The response comes after Sacco members stated that they bank a lot of money in their coffers but the security of transporting the cash money remains a challenge as they have to use public transport to deposit the money.
“We have a challenge of security during the collecting and depositing of money from and to the commercial banks,” said Ernestine Mutesi, the Kagano U-Sacco president.
Mutesi was speaking at an event in which the last Sacco in the country (Kagano Sacco) was on June 10, 2024 added on the automation system which now covers all 416 sectors in the country, with over 3million account owners.
Kagano Sacco alone has collective savings of over Rwf263 million and according to its manager, Pie Micomyiza, they use moto taxis to transport the deposited money (in millions) on a daily basis.
“Though we have not been robbed, it is a risk and it is very scary even when we have to use them as the only alternative we got for now,” Micomyiza told KTPress.
In response, Cyrille Hategikimana, Director General of Banking and Non- Banking Services at the Ministry of Finance and Economic Planning (Minecofin) said that this is not a new concern but there is a solution underway.
“We working on a way to engage stakeholders for support in this exercise and in collaboration with the National Bank of Rwanda, in few days this concern of securely transporting money will not be existent,” Hategikimana said.
Hategikimana revealed that the government is already negotiating with CIT security service companies in the country to align a manner in which the issue of cash transportation is resolved.
Most Cash-In-Transit trucks are armored and bulletproof bank trucks designed for transporting currency, precious metals, bullion and valuables.
Though most CIT trucks in Rwanda are not armoured, they are accompanied by armed security guards who collect and deliver sealed containers of cash and/or valuables from a dedicated collection point and deliver to a dedicated delivery point within the borders of Rwanda on behalf of financial institutions and clients.
The valuables and cash are transported in bulletproof CIT vehicles equipped with 360° surround surveillance and crafted according to international ballistics standards. This allows them to meet the custom requirements of personal security agencies, Cash centres & banks.
Other notable benefits of using CIT:
Faster turnaround time of cash: this service uses highly trained staff that receive, process, and deliver cash within hours.
This can save a financial institution from regulator penalties of non-compliance of strict CIT regulation- back taxes, interest, and other financial penalties levied if a company fails to fulfil compliance requirements.
Reduced staff cost: This service is labour intensive and requires large staff who come with a hefty burden to manage their quality, skills, equipment, risks and welfare. CIT service providers shoulder this burden.
Lowered Insurance premiums: Service providers carry the insurance burden that you would incur if you handled cash yourself.
