Question

Customers from different Namibian banks would no longer have to wait three days for funds to reflect in their accounts after interbank transfers.

This comes as the Bank of Namibia (BoN), in its 'Understanding Nam-Payment' publication, released in the first quarter of 2021 , announced a new local payment system.

A transfer from, for example, a Letshego Bank account to a Bank Windhoek account, would now reflect on the same day as opposed to after three days previously.

NamPay is a new, domestic electronic funds transfer (EFT) system introduced by the Namibian payments industry in collaboration with the Payments Association of Namibia (PAN) and payment service providers.

NamPay would include enhanced credit streams to expedite interbank EFTs between customers, the central bank said.

"The enhanced credit stream will ensure that interbank EFT credit transactions made between 08: 00 and 16:00 can be processed and will reflect in beneficiary accounts on the same day - even after hours," the bank stated.

a) Describe the term EFT and the procedure for making an EFT payment in Namibia

b) Briefly explain the 5 common types of EFT found in Namibia.

c) Briefly explain polices that should be adopted to establish effective internal control to protect EFT transactions should include both preventive and detective measures.