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No disruption for banking services

6 December 2016

Despite the disruption of the 14 November 2016 earthquake, providers and agencies conducted their business as usual in unusual circumstances. We are not aware of any issues with payroll payments or payments to beneficiaries. Thanks to our banking services providers and agencies’ staff who worked quietly behind the scenes to ensure daily banking tasks were conducted without disruption.

This is a good time to review business continuity for banking services - check out Schedule 10 of the Services Agreements. If you work remotely and don’t have access to your banking files you will find the contact details of providers, as well as other information in relation to the AoG Banking Services solution, on inSource. Don’t hesitate to contact by email if there are concerns or highlights that you would like to share with us regarding the contract performance.
 

Reminder of changes in electronic payments

Changes are being made to payment processing across the New Zealand banking industry. Payments New Zealand has instructed that from 28 November 2016, all electronic credits (automatic payments, bill payments and direct credits) will be treated as cleared funds. This means the total value of these payments will be available for immediate use.

This also means banks will no longer be able to dishonour electronic credits due to insufficient funds. While direct debits will continue being processed out of accounts at the end of the day, inward direct debits (money coming into an account) will be visible more frequently throughout the day.

Here’s our recommended checklist for agencies:

  • Check whether your agency has sufficient internal controls in place for checking and authorizing payments and making sure all payment details are correct at submission.
  • Ensure there are sufficient checks and processes in place for paying new payees or for changing payment details of existing payees.
  • Check if you need to change any payment schedules, to ensure that payroll is processed at a consistent time, so staff are not affected by differing payment times or dates.
  • If a duplicate or erroneous payment has been submitted contact the appropriate help desk for advice, as soon as possible as electronic credits can no longer be dishonored.

 

Last updated 12 December 2016