Archie Hesse, Chief Executive Officer (CEO) of the Ghana Interbank Payment Settlement Systems (GhIPSS), has advised both public and private organizations to use the Direct Credit for bulk disbursement of funds such as salaries.
This is because the Direct Credit, which is convenient and efficient, allows payments by electronic transfer directly into bank accounts, makes disbursement of bulk funds quick, safe and more secure. It requires less effort and saves time.
It also enables intended recipients to receive their funds on time.
According to Mr Hesse, Direct Credit could be used for the payment of salaries, pensions, welfare benefits, commissions, supplier payments, dividend and refunds.
It can also allow for interest payments, government payments, as well as business-to-business payments.
Last year, almost five million Direct Credit transactions worth GH¢16.5 billion were undertaken.
Between January and June this year, a total of about GH¢9.4 billion from about 2.7 million transactions took place compared to GH¢7.6 billion from 2.3 million transactions for the same period last year. This represents an increase of 23.3 percent in terms of value and 15.6 percent in terms of volume for the half year.
Mr Hesse further explained that with the electronic payment system, it was easy to trace all payments made, adding that even if the intended recipients of the funds save with different banks, funds disbursed would hit the respective accounts about the same time.
Payments made through Direct Credit would hit the accounts of the recipients the next day or the same day if Express Direct Credit is used.
“There are options for each situation and so the banks should educate their customers to use these more efficient and secured forms of payments,” he stressed.
He also entreated banks to set up systems that would enable their corporate customers to send files electronically to them to make bulk funds disbursement seamless.
Direct Credit is one of the initiatives introduced by the national payment infrastructure provider, GhIPSS.
Prior to the introduction of Direct Credit, bulk disbursement of funds was done mainly through the Real Time Gross Settlement (RTGs), however Direct Credit is a more appropriate payment system for such interbank transactions.
By Samuel Boadi