Automated Clearing Operations

Automated Clearing of Cheques and Cheque Derivatives

Automated Bulk Clearing Operations

• It was launched as an exclusive NIBSS service on Monday, 9th January 2006.
• Automated Bulk Clearing is an avenue through which corporate customers of a bank can deliver electronic files containing several single NEFT instructions to a bank for onward presentation at the Automated Clearing Session.
• It is an equivalent of the American ACH and the British BACS in Nigeria i.e.
• a highly reliable and efficient nationwide batch-oriented electronic funds transfer system governed by the NACHA OPERATING RULES
• the network provides for the inter-bank clearing of the electronic payments for participating depository financial institutions
• It is most often used to process low-value repetitive retail payments.
• It comes in two variants, namely:

  1. AUTOMATED DIRECT CREDITS (ADC) is designed to facilitate paperless clearing of bulk credits (salaries and pensions, shareholders’ dividends, etc)

  Automated Direct Credits enjoy the same day clearing and settlement.

  2. AUTOMATED DIRECT DEBITS (ADD) is for direct debits e.g. insurance premium payments, schedules donations, utility bill payments like water rates, electricity bills and telephone bills, etc. based on payers’ pre-authorizations.

  Automated Direct Debits enjoy three days clearing period, as local cheques; Settlement is next day.

Account Verification Service (AVS)

NIBSS introduced the Automated Account Verification Service (AVS) to eliminate the incidence of invalid Customer Details in EFT instructions. With the AVS, the Presenting Bank is able to verify the validity and correctness of Beneficiaries’ Bank Account Details prior to the processing of the actual payment instruction.