The VANKLIA system is an electronic payment system that facilitates interbank fund transfers within Vanuatu and the Reserve Bank is the owner and operator of the system.
The System contains two core components to facilitate payment;
- Real-Time Settlement (RTGS) - settles high-value and high-priority payments submitted by Participants (the commercial banks) in real time. Customers can instruct the bank to make a RTGS payment on their behalf using funds available in their bank account and settlement is instantaneous once it is put into VANKLIA.
Once payment is complete, it is irrevocable and cannot be dishonored or reversed.
Before Vanklia, how are payments made?
- Automatic Clearing House (ACH) – is an electronic clearing system that enables clearance and settlement of cheque and direct credit payments four times per day from Monday to Friday. The first bulk clearing is from 8:40am to 10:00am, second from 10:10am to 11:30am, third from 11:40 am to 1:00pm and the final clearing session from 1:10pm to 3:45pm.
ACH operates in two modes;
- Electronic Funds Transfer (EFT) – this session will only be available between Open-For-Business and Initial Cutoff and will be able to process direct Credits.
- Instant Funds Transfer (IFT) – a single low value credit transfer payment instruction which is executed by the ACH immediately on receipt from the originating Participant but are settled only in Deferred Net Settlement (DNS) mode in regular clearing sessions during the period between Open-For-Business at 8.30am and Initial Cutoff at 4.00pm on operating days.
In both modes ACH calculates the multilateral net positions, and submits a Net Settlement Instruction (NSI) to RTGS for the RTGS to undertake the Settlement.
