DEFINITION OF TERMS


  1. Where Bank A is the sending bank, and Bank B is the beneficiary bank
  2. Dr means Debit
  3. Cr means Credit
  4. NIBSS – Nigeria Interbank Settlement System – responsible for interbank settlement of transactions.
  5. Billing – The process of debiting the transaction fees accumulated for a period.





INTRABANK (Happens within the bank)

After balance Enquiry

Dr: Payers Account (Amount & fee) in Bank A

Cr: Payable Account (Amount & fee) in Bank A (or split the amount & fee and credit fee into a fee account)

DR: Receivable Account (Amount Only) in Bank A

Cr: Pay Beneficiary (Amount Only)

Settlement Details: (Within the bank)

DR: Receivable Account (Amount Only) in Bank A

Cr: Payable Account (Amount Only) in Bank A

 

NOTE: Receivable Account and Payable Account can also be a single transit account. This solely depends on the bank’s decision.

 

INTERBANK (Happens between two banks)

After balance Enquiry

Dr: Payers Account (Amount & fee) in Bank A

Cr: Payable Account (Amount & fee) in Bank A (or split the amount & fee and credit fee into a fee account).

Dr: Receivable Account (Amount Only) in Bank B

Cr: Pay Beneficiary (Amount Only)

Settlement Details: (To be passed by NIBSS)

Dr: Bank A CBN Account (Amount Only)

Cr: Bank B CBN Account (Amount Only)

 

 

Fee Settlement (Billing): (To be passed by NIBSS on weekly basis subject to change)

Dr: Bank A (Payer’s bank) CBN Account (fee Only)

Cr: The counterparties/stakeholders for their own share of the fee.