Co-op Bank extends window for high value money transfers by nearly four hours

Co-op Bank has extended the Real Time Gross Settlement (RTGS) window to 4 pm for branches and 4.40 pm for Co-op Online giving its customers more flexibility to make payments. Customers can also make transfers from as early as 7 am.

“RTGS just got better! You can now send your payments: From 7:00AM (was 9:00AM) Until 4:00PM (was 3:00 PM). More time, more flexibility for your payments,” the lender announced on its social media handles.

This comes after the Central Bank of Kenya (CBK) on June 18 announced the extension of operating hours for the Kenya Electronic Payment and Settlement System (KEPSS), the national RTGS channel, effective July 1.

In a statement, CBK said the move follows extensive consultation with participants of the system and in alignment with the objectives outlined in the National Payments Strategy 2022-2025.

The KEPSS operating hours were revised to 7:00 am – 7:00 pm on all business days with the exception of public holidays and weekends.

“This strategic enhancement is aimed at improving the efficiency, accessibility, and resilience of Kenya’s payments ecosystem. By enabling earlier initiation and later completion of large-value and time-sensitive payments, this move will support the country’s transition towards a 24/7 digital economy,” CBK added.

It said the new operating hours will enhance convenience by allowing businesses, government institutions, and financial institutions to have greater flexibility to process payments, improving cash flow management and reducing end-of-day settlement risks.

At the same time, the longer operational hours will bridge the gap between traditional banking hours and the demands of a modern economy, facilitating seamless transactions across time zones and increasing the competitiveness of Kenya as a regional financial hub and thus supporting the 24/7 economy.

” By expanding the time window for settlements, CBK reinforces its commitment to greater financial inclusion, allowing more individuals and entities to engage in the formal financial system with ease,” CBK further said.

It added that this will also ensure alignment with global best practices as it will mirror the progressive steps taken by central banks globally to modernise their payment systems, enhancing regional integration and interoperability of cross-border payments.

“CBK remains committed to ensuring that the national payments infrastructure continues to meet the evolving needs of the economy and to fostering a secure, efficient, and inclusive financial system,” it said.

KEPSS allows both processing and final settlement of funds transfer instructions take place continuously in real time from one bank to another mitigating systemic settlement risk inherent in large value settlements.

It was implemented on July 29, 2005, and due to technological advances and changes in the payments landscape, it was upgraded on June 5, 2020.