Wages Protection System is going to hit the foreign banks hard

Wages Protection System is going to hit the foreign banks hard

Equin0x
By Equin0x

Banks have been mandated to open accounts of million of laborers for ensuring that they receive their wages on time, every month. This is going to hugely take down the performance of several banks, who particularly do not have retail business strategy, particularly the foreign banks.

The foreign banks do not have large infra-structure to handle such huge, petty and non profitable accounts. Moreover the banker customer relationship, as has been established centuries ago, is a mutual contract (where both parties agree at their free will) and should not be a forced contract, in commercial term.

Ideally the Exchange Houses, who already have large network and also are already well specialized for such huge volume of work, could have been given this task, They could also had the ability to remit such funds to workers home countries via a standing order system.

According to an estimate, these exchange houses already handle over 70% of workers remittances.

Another important factor is the centuries old "Rule of Secrecy" where the banks are not allowed to give account information to anyone else expect the Central Bank & Court. Under the WPS, however, the labor and other ministries plan to conduct its checking, monitoring and actions, which needs extra-ordinary changes in the "Law of Secrecy".

By capital cleaning• 27 Oct 2015 21:27
capital cleaning

when is the final day for this rule?

some banks doesn't have enough facilities to accommodate on time

By Boredman• 27 Oct 2015 20:15
Boredman

So? What are you trying to conclude ?

Already all reputed firms are paying through bank only. This rule gives favour to the rest of the labour.

Do you know many man power suppliers getting money from the client but they are not paying their labour every month?

This rules should be imposed soon. It is not only to monitor the labour wages per month also it could catch the person whoever send excess money by working illegally in Qatar and sending to their home county.

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