The volume of transactions through the Sri Lanka Interbank Payment System (SLIPS) operated by LankaClear (Pvt) Ltd (LCPL) grew by a significant 32% in the financial year 2010/11 from 2009/10.
According to Sunimal Weerasooriya, General Manager/CEO, LCPL, the total value of transactions cleared through SLIPS during this financial year was Rs. 346 billion.
SLIPS is currently more commonly used for salary payments, pension payments, customer account to account fund transfers, standing orders, insurance payments, credit cards settlements, dividend payments and IPO refunds, he said in a statement.
SLIPS is an online interbank electronic fund transfer system which eliminates the need for paper work in the fund transfer process. Catering mainly for low-value retail payments – up to Rs. 5 million, the system enables the electronic movement of funds from one account to another without the corresponding physical documentation.
“The system therefore enables increased levels of security by eliminating the physical movement of paper documentation, faster transfer times and lower infrastructure requirements, ensuring greater revenue generating capabilities, operational efficiencies and cost savings to banking institutions and customers,” Mr Weerasooriya said.
By popularizing the transactions through SLIPS, LCPL hopes to actively encourage a move towards paperless transactions in line with the progress in this direction being made by more developed economies. |
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