Banks in Namibia have joined together to launch the Namibian Clearing and Settlement System or NCSS under Namclear.
Namclear is the payment clearing house and authorised payment system operator of the National Payment System (NPS) in Namibia.
"The advantages of the NCSS are immense to the banking sector as it aids with the flawless processing, payment and clearing of cheques, electronic funds transfers and the whole scope of transactions being processed," said Mpumzi Pupuma, chief executive officer of Standard Bank Namibia and chairman of the Bankers Association of Namibia.
The clearing and settlement process is an interbank process and the rules are dictated by local banking laws and regulations whose operational efficiency is determined by the policies and systems of the utilities that operate the networks and clearing house through which payments are cleared and settled.
In 2012 the Bank of Namibia had already published the NPS vision and blueprint, a strategic move that led to Namclear’s system.
"It is a known fact that over the years the banking sector has undergone significant changes as we embraced the localisation of core banking systems," explained Pupuma.
"The banking industry in Namibia therefore welcomes this localisation initiative because with such a system in place, banks can continue passing on these benefits to their customers.
"Local banks are therefore realizing the important significance of this NCSS launch and the tangible systems that automate the process. It goes without saying that real-time information and a system like this further enhances the efficiencies of banks and gives them a competitive edge and more so when it is done locally," Pupuma concluded.