SA banks encourage people to use internet banking

South African banks on Friday warned people not to carry huge sums of money but to transfer money electronically.

This comes after some South African clubs were robbed of their money. On Friday South African Banking Risk Information Centre (SABRIC), acting on behalf of the banking industry warned members of stokvel social clubs to be extra cautious during the festive season.

"It is very distressing that bank clients, who are the victims of stokvel robberies are often injured or even killed during these incidents, which is why we urge them to find safer ways to transact, such as internet transfers or mobile banking, instead of carrying large amounts of cash," said Kalyani Pillay, CEO of SABRIC.

Stokvels are invitation only clubs of 12 or more people serving as rotating credit unions or saving scheme in South Africa where members contribute fixed sums of money to a central fund on a weekly, fortnightly or monthly basis.

SABRIC said between 2014 and December 15, 2017, 53 stokvel robbery incidents were reported, with 77 percent of incidents occurring during the festive season.

Pillay said criminals know that people would be winding down their business and some clubs paying out cash. The banking industry warned the people to avoid high risk days like Monday and month ends. They also called for the electronic use in bank transfers as opposed to carrying huge sums of money.

The banks also advised people to carry little money. Businesses were advised to avoid routine days and times of visiting the banks. They also advised some business to pay contract workers through banks accounts and avoid cash payment in the public view.

SOURCE: Xinhua