NDB Bank joins InterBank USD Online Payment System

Monday, 2 October 2023 00:50 - - {{hitsCtrl.values.hits}}

LankaPay CEO Channa Silva (left) and NDB SVP Personal Banking and Customer Experience Sanjaya Perera exchange the agreement. LankaPay Deputy CEO Dinuka Perera and NDB VP Branch Network Management and Product Development Zeyan Hameed are also present

NDB has announced its appointment as a member of the LankaPay USD Online Payment System.

The Sri Lanka Interbank US Dollar On-line Payment System is yet another payment product introduced by LankaPay with the aim of assisting the Central Bank of Sri Lanka (CBSL) and the economy by curtailing the foreign exchange outflow from the country when processing US Dollar transfers.

Prior to the introduction of the USD Online Payment System, any domestic interbank USD transfer needed to be convened via a Nostro account of the corresponding bank in New York. However, with the introduction of the Sri Lanka Interbank US Dollar Online Payment Facility, domestic USD transactions can now be routed locally, resulting in a drastic decrease in transaction processing fees.

Additionally, this online clearing facility is a much faster and a more convenient option of clearing USD drafts and cheques, of which the clearing process is handled by LankaPay.

LankaClear, as the operator of Sri Lanka’s National Payment Network – LankaPay, is the national payment network that functions under the guidance and supervision of CBSL.

This system offers numerous benefits to both its member banks and their customers. Primary of which is the lower transaction cost (transaction fees) for both banks and customers, as well as enhanced turnaround time (TAT) and prompt in-time zone settlements. Furthermore, the system also facilitates increasing efficiency in small-value commercial transactions by providing greater convenience for banks and reducing administrative inconveniences.

Despite the industry-wide foreign currency deficits that had prevailed in the past, due to its strategic planning and advanced data driven decision making processes the bank was able to maintain a stable foreign currency flow. To this end, NDB’s recent integration with the LankaPay USD Online Payment System will further ensure customers of efficient and seamless dollar transactions.