DEFINITION OF TERMS
- Where Bank A is the sending bank, and Bank B is the beneficiary bank
- Dr means Debit
- Cr means Credit
- NIBSS – Nigeria Interbank Settlement System – responsible for interbank settlement of transactions.
- Billing – The process of debiting the transaction fees accumulated for a period.
Token Generation (Token Expires after 72 hours)
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)
Upon token redemption
DR: Receivable Account (Amount Only) in Bank A
CR: Pay Beneficiary (Amount Only)
Transaction Settlement Process: (This process will be done within the bank)
DR: Payable Account (Amount Only) in Bank A
CR: Receivable Account (Amount Only) in Bank A
Fee (Billing) Settlement Process: (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.
NOTE: Receivable Account and Payable Account can also be a single transit account. This solely depends on the bank’s decision.
Token Generation (Token Expires after 72 hours)
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).
Upon token redemption
DR: Receivable Account (Amount Only) in Bank B
CR: Pay Beneficiary (Amount Only)
Transaction Settlement Process: (To be passed by NIBSS)
DR: Bank A CBN Account (Amount Only)
CR: Bank B CBN Account (Amount Only)
Fee (Billing) Settlement Process: (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.