The Central Bank of Barbados is advising the public about the use of “penny test” deposits as part of efforts to correct incorrectly formatted account information that affected salary payments.
The Bank said some commercial banks, credit unions, Government agencies and private sector employers are carrying out the test to verify that account details on file are correctly formatted.
Under the process, one cent is deposited into selected accounts to confirm that the information is valid. If the transfer is successful, the account details are confirmed as correctly formatted. If it is rejected, the information is corrected and revalidated.
The Central Bank said customers who see a one-cent deposit should not be alarmed. It added that not all institutions are conducting the test, as some resolved formatting issues prior to the transition to the BiMPay payment system.
As a result, the Bank said the absence of a penny deposit does not indicate any error in an account holder’s information. It added that customers do not need to take any action, as banks or credit unions will contact individuals directly where corrections are required.
The Bank also noted that similar validation exercises were previously carried out for selected pension payments and Government interest payments, with further checks planned for upcoming disbursements.
The Central Bank reaffirmed its commitment to working with financial institutions and Government to ensure affected workers receive their salaries promptly and to prevent further disruptions.
It also reiterated that individuals and businesses earning less than $10,000 daily do not pay to use BiMPay. (CentralBank)
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