There is a growing demand for express cheque clearing services by individuals and businesses to meet pressing needs, the Ghana Interbank Payment and Settlement Systems (GhIPSS) latest half-year statistics on clearing house, e-zwich, gh-link, GIP & Mobile Money Interoperability, published by the central bank has revealed.
Express Direct Credit implies that the transfer is effected on the same day if the mandate is issued before 11-o’clock in the morning.
According to the report, 36 percent of the value for all cheques cleared between January and June 2018 were through the express clearing system.
As at June 2018, the value of cheques cleared through the Automated Clearing House was GH₵73.2billion, out of which GH₵26.2billion was christened ‘express cheques’. This represents an improvement in the 2017 value of cheques designated as ‘express cheques’.
In June 2017, the value of cheques cleared through the Automated Clearing House was GH₵64.4billion, of which GH₵19.8billion was designated as express cheques -representing 31 percent of the value for all cheques.
The volume of express direct credit also increased, from 203,393 in June 2017 to 252,004 in June 2018.
The high demand for express cheque clearing also reflects the value of bank transfers done through Automated Clearing House (ACH) Direct Credit.
Also, the value of ACH Direct Credit hit GH¢11.02billion in the first half of this year. This is about 43 percent higher than the value of transactions recorded for the same period last year, which stood at GH¢7.7billion.
This volume was 29 percent higher at about 2.9 million transactions in the first half of this year, compared to 2.2 million transactions for the same period last year. The higher growth in value suggests an increased confidence in the payment system, as more people are using it for higher value transactions.
Direct Credit, which is one of the two forms of Automated Clearing House (ACH), is a simple, secure and reliable service that enables individuals, large and small organisations to make payments by electronic transfer directly into a bank account.
It involves a debit to an account in the sender´s bank and transfer of the amount of money directly into the beneficiary´s account in another bank.
The electronic nature of the Direct Credit makes disbursement of bulk funds quicker, safer, more secure and requires less effort and saves time. It also enables intended recipients to receive their funds on time.
Direct Credit is used for payment of salaries, pensions, welfare benefits, commissions, supplier payments, dividend and refunds among others. It is also suitable for interest payments, government payments, as well as business-to-business payments.
The use of Direct Credit to make payments started slowly but has caught on as a convenient and reliable mode of interbank transfers, especially for bulk payments.