July 25, 2017

Automated Bulk Clearing Service (ABC)

Automated Bulk Clearing is an avenue through which funds transfer instructions of corporate and institutional customers of banks which have been captured electronically as a single file are presented or delivered by banks to NIBSS for processing at the Automated Clearing Session. Likewise, on an hourly basis, customers of banks issue several instructions to their bankers to debit their accounts and credit respective beneficiaries domiciled at various banks.
All these instructions are captured electronically by the customers’ bank and submitted to NIBSS via Automatic Clearing Operations and are processed in bulk. The ABC operations sorts all these instructions accordingly “bank by bank” and after each clearing session delivers each banks’ bunch of instructions originating from other banks to them, also as electronic files. Each bank acts on the basis of these instructions received to give value to their respective customers by crediting the customers’ account.
This service was launched as an exclusive NIBSS service on Monday, 9th January 2006 and leverages on the following mechanisms:

  • 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.
  • AUTOMATED DIRECT DEBITS (ADD) is designed to facilitate the remote debiting of bank account e.g. insurance premium payments, schedules donations, utility bill payments like water rates, electricity bills and telephone bills, etc. based on payers’ pre-authorizations.