Quote:
Originally Posted by mdgodf
Overnight processing...day 1 debit your account and credit (money goes to) the Bank's Exchange Settlement Account at the Reserve Bank. Day 2 (overnight) Bank's ESA account is debited and funds credited to the recipient's account - assumes payee and recipient accounts are at different banks; no real time processing, that only happens within the same bank.
|
This does not negate my statement about funds being available for other uses. The money in the ESAs is "borrowed" overnight for short-term "investment" and the available supply of money in the ESFs is the means by which the Reserve Bank manipulates the level of interest rates in the economy.
My statement is that someone else besides me (the payer) and the recipient (the payee) has these funds for their own uses for the period of time claimed for clearance - not just my funds, but all funds from inter-bank transactions.
Cheers