The Central Bank of Iran’s latest report on the transfer of state accounts to CBI has shown that 84% of the designated entities have participated in the scheme that promises more transparency and discipline in public finances.
According to CBI’s website on Wednesday, of the 1,061 entities included in the scheme, 888 of them have opened an account with the monetary regulator.
The government’s decision to move its accounts from agent banks to CBI was announced on August 2016, in line with its policies to promote transparency and avoid dodgy practices related to the expenditure of public-sector organizations.
The scattered government accounts across different lenders in the past made it pretty difficult to supervise them properly and, therefore, a number of banks labeled them as private resources and used them for loan allocation. This led to an unhealthy relationship between account holders and the banks.
However, CBI, as the banking regulator, is legally entitled to provide banking services to all public-sector organizations and all state bodies are obliged to deposit their money at CBI.
March 14, 2018 20:57
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84% of State Accounts Transferred to CBI
According to CBI’s website on Wednesday, of the 1,061 entities included in the scheme, 888 of them have opened an account with the monetary regulator
The CBI noted that as part of the new measures, not only the salaries of government employees are remunerated through the central bank, but also the account of the Organization of Targeted Subsidies, which oversees the payment of cash subsidies to million
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