5. Processing Funds Transfer (2024)

5.1 Introduction

A Funds Transfer (FT) contract is a transaction whereby funds aremoved from the account of one party (called the remitter) to anotherparty (called the beneficiary). Such movement of funds may involve asequence of events, but is treated as one contract.

For example, if a customer of Berliner Bank, instructs them to payPounds Sterling to Midland bank, London into the account of Mr. SilasReed. The sequence of the events that will follow, to effect the transfercan be considered an FT contract.

An FT Contract would thereforerequire information on:

• Who is the remitter?
• What is the transfer amount and currency?
• Is it a cross currency transfer?
• Are any intermediate banks involved in the transfer?
• What route should the transfer follow before it actually reachesthe beneficiary?
• When is it to be settled?
• Details of the beneficiary (name, account number etc.)
• The mode of reimbursem*nt
• The method of transfer
• The type of transfer (incoming, outgoing or internal)

Under each Product that you have defined, you can enter specific FTsbased on the needs of your customer. Each of these will constitute acontract. While products are general and serve to classify or categorizefunds transfers, contracts are customer specific and represent the actualfunds transfers that you are involved in. The attributes that you definefor a product will be inherited by all contracts linked to the product.While some of these attributes (for instance the exchange rate) inheritedfrom a product can be changed when a contract is entered involving theproduct, there are some attributes (such as accounting treatment) thatcannot be changed when the contract is entered.

This chapter contains the following sections:

• Section 5.2, "Entering Details of Funds Transfer"
• Section 5.3, "Specifying FT Contract Details"
• Section 5.4, "Description of FT Contract DetailsScreen"
• Section 5.5, "Funds Transfer"
• Section 5.6, "Viewing Settlement Route of Transfer"
• Section 5.7, "Viewing Details of Transfer Events"
• Section 5.8, "Specifying Advices for Transfer"
• Section 5.9, "Selecting User Defined Fields"
• Section 5.10, "Generating Charge Claim Advice"
• Section 5.11, "Specifying Customer Cover Details"
• Section 5.12, "Viewing OFAC Check Response"
• Section 5.13, "Capturing MIS Details"
• Section 5.14, "Viewing Change Log"
• Section 5.15, "Specifying Settlement Details"
• Section 5.16, "Viewing All Messages"
• Section 5.17, "Specifying Project Details"
• Section 5.18, "Viewing Duplication details"
• Section 5.19, "Generation of MT 210 for FundsTransfer Contract"
• Section 5.20, "Generation of MT900 and 910"
• Section 5.21, "Checks for Generation of MT103+Messages"
• Section 5.22, "Currency Cut-off Checks for FundsTransfer Transaction"
• Section 5.23, "Funds Transfers with BlacklistedBIC Codes"
• Section 5.24, "Operations that you can performon contracts"
• Section 5.25, "View Different Versions of Contract"
• Section 5.26, "Multi-level Authorization of aContract"
• Section 5.27, "Transaction Queues (TransactionStatus) Management"
• Section 5.28, "Summary Dash Board for Funds TransferTransactions"
• Section 5.29, "Examples on how to Enter Detailsof FT Contracts"
• Section 5.30, "Authorize Bulk FT Contracts"
• Section 5.31, "Maintaining MT101 Agreements withOrdering Customer"
• Section 5.32, "MT101 Transaction Input Screen"

5.2 Entering Details of Funds Transfer

Through the screens that follow in this section you can initiate allthe three major types of FT’s (incoming, outgoing and internal).

You can choose to enter the details of a transfer either by:

• Copying contract details from an existing contract and changing onlythe details that are different for the contract you are entering.
• Using your keyboard or the option lists that are available at thevarious fields to enter the details of an FT afresh.

To enter the details of a contract, you need to just enter a productcode and a few details about the beneficiary and the remitter. Dependingon the product code that you select, many of the fields will be defaulted.You can over write some of these defaults to suit the FT that you areprocessing. After specifying the details, you can save the record. Incase of internal transfer when you are saving the records, the systemchecks whether the accounts mentioned in the ‘from’ and ‘to’leg of the transaction belong to the same netting group or not. If theybelong to the same netting group, the accounting entries will not beposted. Instead the transaction will be logged for the netting batch.The system will automatically place an amount block on the debit account.However, for the credit account, the amount will be reflected only afterthe netting batch.

On authorisation, the transaction will be made available for the nettingbatch if logged for netting batch.

Refer the section ‘Maintaining Netting Group’ in the chapter‘Accounts for Inter-Branch Transactions’ in the Core ServicesUser Manual for further details about netting.

5.3 Specifying FT Contract Details

You can invoke the ‘FT Contract Details’ screen by typing‘FTDTRONL’ in the field at the top right cornerof the Application tool bar and clicking the adjoining arrow button.

Click the ‘New’ button on the application toolbar.

Enter validinputs into all the mandatory fields, or you will not be able to savethe contract. After you have entered all the details of a funds transfer,save the contract. To save a contract, Select ‘Save’ fromthe Actions menu in the Application tool bar or click save icon.

At the time of saving a funds transfer contract, the contract detailsshould be passed on to the FATCA accounts and obligations maintenance.The details should be passed on if the customer who will be the beneficiaryof the funds transfer has a reportable FATCA classification and if theproduct code used to book the funds transfer contract is present in theFATCA products, account class and instruments maintenance.

If you have multi branch operation rights, you can create new transactionsfor a different branch. However, the system will not allow you to queryor authorize a transaction which is already created in another branch.

5.4 Description of FT Contract Details Screen

The FT Contract Detailed screen as it appears, contains a header anda footer containing fields that are specific to the contract you areentering. Besides these, you will also notice four tabs and a verticalarray of icons, along the lines of which you can enter details of a transfer.Contract details are grouped into various screens according to the similaritiesthey share.

Product

This is the product that is involved in the contract you are entering.Enter the code of an authorized product defined through the Product definitiontable. Select the product code of the product to which you want the contractto be linked. The contract will inherit all the attributes of the productyou have selected.

To facilitate fast input, you need to input the product code. Click‘P’ button placed next to the Product Code field. The systemdisplays the details of primary keys. Depending on the product code,the system defaults the values against many fields.

The default values will be displayed in the screens that correspondto the four tabs on the ‘Funds Transfer Contract Input’ screen.

Product Description

Based on the product you have chosen, the system displays the descriptionof the product.

Contract Reference Number

As you click ‘P’ button, the system generates the referencenumber sequentially. This number tag is used to identify the FT contractyou are entering, it is also used in all the accounting entries and transactionsrelated to this contract. Hence the system generates a unique numberfor each contract.

The contract reference number is a combination of a three-characterbranch code, a four-character product code, a five-digit Julian Dateand a four-digit serial number. The Julian Date has the following format:

‘YYDDD’

Here, YY stands for the last two digits of the year and DDD for thenumber of day (s) that has/have elapsed in the year.

For example,

January 31, 1998 translates into the Julian date: 98031. Similarly,February 5, 1998 becomes 98036 in the Julian format. Here, 036 is arrivedat by adding the number of days elapsed in January with those elapsedin February (31+5 = 36).

User Reference

Enter a reference number for the contract. The contract will be identifiedby this number in addition to the ‘Contract Reference No’generated by the system. This number should be unique and cannot be usedto identify any other contract. By default, the Contract Reference No.generated by the system will be taken as the User Reference No.

Source Reference Number

This is the reference number of the source from which the FT contractwas uploaded.

Message Reference Number

This is a unique message identification number that will be used toidentify an incoming message coming from an external system. This isdefined as the ICN number. On upload of an incoming message into OracleFLEXCUBE, this number, given by the external system, will be stored inOracle FLEXCUBE and passed on to the contract generated as a result ofthe incoming message. If the incoming message results in an outgoingmessage, the ICN number will be linked to the outgoing message also.

This number will help you in creating a relationship between the incomingmessage, the resultant contract in Oracle FLEXCUBE, and the outgoingmessage, if any.

For instance, if an incoming MT103 results in an FT transaction, thenICN number of the incoming MT103 will be linked to the FT contract generateddue to the upload of the incoming payment message.

If an Incoming message results in an outgoing contract (outgoing message),Oracle FLEXCUBE will store the External reference number (ICN Number)at the following levels.

• Incoming Message Level
• Contract Level (Resulted due to the Incoming message)
• Outgoing message (As a result of the above contract)

The external reference number will also double up as the related referencenumber in Field 21 of the bank transfer message or MT 202. In the FundsTransfer Contract Details screen, this field will be enabled for BankTransfer Type product. The value will be validated for ‘/’at the start, ‘/’ at the end or ‘//’ in the value.

The following tags under MT 202 message will support a clearing code‘PL’:

• 52A, 52D
• 56A, 56D
• 57A, 57D
• 58A, 58D

The details of these messages will be stored in data store and willbe used during message validation.

Note

This field should not have ‘/’ at thestart or end or ‘//’ in the value.

Transaction Type Code

Specify the transaction type code.

Source Code

The system displays the source code of the source from which the FTcontract was uploaded.

Instruction Code

Select the instruction code from the adjoining option list.

Book Date

Specify the date of booking.

Version Number

Select the version number

5.4.1 Body of Screen

The FT Contract Screen is designed to contain four tabs along thelines of which you can enter details of the contract. The four tabs are:

On the contract detailed screen you will notice a vertical toolbar.The buttons on this toolbar enable you to invoke a number of functionsthat are vital to the processing of a transfer. These buttons have beenbriefly enlisted below.

After you have made the required mandatory entries and saved the record,your User ID will be displayed at the bottom of the screen. The dateand time at which you save the contract will be displayed in the DateTime field.

A user bearing a different User ID should authorize a contract thatyou have entered before the EOD is run. Once the contract is authorizedthe Id of the user who authorized the contract will be displayed. Thestatus of the contract will be marked as Authorized.

Click ‘Exit’ button to exit the screen. You will returnto the Application Browser.

5.5 Funds Transfer

This section contains the following topics:

• Section 5.5.1, "Processing Funds Transfer"
• Section 5.5.2, "Specifying Details for DebitLeg of Transfer"
• Section 5.5.3, "Specifying Details for CreditLeg of Transfer"
• Section 5.5.4, "Specifying Party Details"
• Section 5.5.5, "Capturing Additional Details"
• Section 5.5.6, "Note on Rate Pickup and MessageGeneration"
• Section 5.5.7, "Limit Amounts for Cross CurrencyTransactions for Default of Exchange Rates"
• Section 5.5.8, "How Limits are applied when Transactionis Entered"
• Section 5.5.9, "Exchange Rate for Cross CurrencyTransactions"
• Section 5.5.10, "Internal Remarks"
• Section 5.5.11, "Capturing Payment Details"
• Section 5.5.12, "Specifying Upload Details"

5.5.1 Processing Funds Transfer

While defining a product, you have defined a broad outline that willbe applicable to all transfers involving it. While processing a transfer,you need to enter information that is specific to the transfer. Thisinformation is captured through the Funds Transfer Contract Input –Main screen. From the Funds Transfer Contract Input screen, click thetab titled Main to define important contract details.

The entriesthat you make to the various fields on this screen depend on whetherthe funds involved in the contract are incoming, outgoing, or internal.Details of information that can captured through the ‘FT ContractMain’ screen have been detailed below.

5.5.2 Specifying Details for Debit Leg of Transfer

Debit Currency

Specify the currency of the remitter’s account. You can choosea valid currency code from the list of values that is available.

If you do not specify the debit currency, the currency of the accountentered in the Remitter Account field will be taken as the debit currencyfor the transfer. However, if you indicate only the GL of the remitteraccount and not the account itself in the account field, input into thecurrency field becomes mandatory.

Debit Branch

If the account of the remitter is in a branch different from yourbranch, enter the code of that branch. Choose a branch code from theadjoining option list.

This field will be defaulted with the branch code of your bank.

Note

If you have specified an account that uses an accountclass that is restricted for the prod­uct, an override is sought.

Debit Account

Specify the account number of the remitter i.e., the account to bedebited for the transfer amount. This account number should exist inthe list of accounts maintained for the branch you had specified in the‘Branch’ field.

If you are processing an incoming transfer, enter the account of thebank from which your bank has received funds (typically this will beyour nostro account in the currency of the transfer). If it is an outgoingtransfer, specify the account of the Ordering customer (the orderingcustomer of your bank). If the remitter is your bank itself, you canspecify just the GL of the account. The appropriate account will be pickedup by the system, in the currency of the transfer (the currency you specifiedin the currency field).

To view the joint holder’s details of an account and the modeof operation maintained at the account level, place the cursor on theDebit Account field and press Ctrl+J. The system displays the ‘JointHolder’ screen.

For more information on the ‘Joint Holder’ screenrefer to the section ‘Joint Holder Maintenance’ in the CoreUser Manual.

Debit Account Description

The description corresponding to the debit account selected is displayedhere. If the debit account number keyed in has only one value matchingit in the option list, then system will not open the option list on tabout and the description of the debit account will be automatically displayed.

Debit Amount

In this field, enter the amount that is being transferred. This amountis taken to be in the same currency indicated in the previous field.In the case of incoming transfers, this will be the transfer amount indicatedin the event definition by the amount tags TFR_AMT. In the case of outgoingtransfers, the amount that you enter here will be corresponding to theamount tag AMT_EQUIV, since in an outgoing transfer the actual transferamount is the amount that is being transferred to the Beneficiary.

On saving the transaction after entering all the required detailsin the system, the system validates the value of the debit amount againstthe following:

• Product transaction limit
• User Input limit

If the transaction currency and the limit currency are different,then the system converts the amount financed to limit currency and checksif the same is in excess of the product transaction limit and user inputlimit. If this holds true, the system indicates the same with below override/errormessages:

• Number of levels required for authorizing the transaction
• Transaction amount is in excess of the input limit of the user

Debit Value Date

This is the date on which the debit leg of the funds transfer becomeseffective, i.e., the value date with which the remitter’s accountis debited. This date must be earlier than or same as the credit date.

If you do not enter a debit value date, the system defaults the systemdate (today’s date).

The generation time of an outgoing transfer effected directly in theFT module, through settlements of any other module or on account of astraight through process should be checked against the cut-off time definedfor the currency involved in the transfer.

If the system time at the time of message generation for Outgoingtransfers is beyond the cut-off time, the value date of the transferis amended according to the number of days to be added.

Debit Spread

The system displays the number of spread days maintained in the ‘ValueDate Spread Detailed’ screen for a customer, product and currency.

Debit Spread Date

The system displays the debit spread date for product, customer andcurrency in this field. It is derived after adding the spread days tothe debit value date maintained in ‘Value Date Spread Details’screen.

5.5.3 Specifying Details for Credit Leg of Transfer

Credit Currency

Specify the currency in which the beneficiary is to be credited. Ifyou do not enter a credit currency, the currency of the account enteredin the ‘Credit Account’ field will be defaulted.

It is mandatory for you to enter a credit currency if you have indicateda GL as the credit account. You can choose a valid currency from thelist of values available for this field.

Credit Branch

Enter the branch to which you are crediting funds (i.e.) the branchinto which you are crediting the transfer amount, on behalf of the Ultimatebeneficiary. You can select a valid branch code from the adjoining optionlist.

Note

If you have specified an account that uses an accountclass that is restricted for the prod­uct, an override is sought.

Credit Account

This is the account that will be credited with the transfer amount.For an outgoing transfer it refers to the next bank in the chain (typicallyyour nostro in that currency), for the movement of funds. Depending onthe settlement route the funds will in turn be transferred to the nextbank in the chain before the ultimate beneficiary is paid. For an incomingtransfer this will be ultimate beneficiary’s account in your bank.If you specify a Trust account in this field, you will have to specifyproject related details in the ‘Project Details’ sub-screenby clicking ‘Project Details’ button. If you do not captureproject details, the system will display an error message while saving.

To view the joint holder’s details of an account and the modeof operation maintained at the account level, place the cursor on theCredit Account field and press Ctrl+J. The system displays the ‘JointHolder’ screen.

For more information on the ‘Joint Holder’ screenrefer to the section ‘Joint Holder Maintenance’ in the CoreUser Manual.

Credit Account Description

The description corresponding to the credit account selected is displayedhere.. If the credit account number keyed in has only one value matchingit in the LOV, then system will not open the LOV on tab out and the descriptionof the credit account will be automatically displayed.

Credit Amount

Indicate the amount that is to be credited to the beneficiary account.If you are effecting an outgoing cross currency transfer, you need toonly enter the credit amount; the other component of the transfer, thatis, the debit amount will be derived based on the exchange rate thatyou specify.

In the case of incoming transfers, the amount that you enter in thisfield will correspond to the amount tag AMT_EQUIV (the equivalent amountin the remitter’s account currency), while in the case of outgoingtransfers, the amount that you enter here will be corresponding to theamount tag TFR_AMT (representing the actual amount that is being remitted.

On saving the transaction after entering all the required detailsin the system, the system validates the value of the debit amount againstthe following:

• Product transaction limit
• User Input limit

If the transaction currency and the limit currency are different,then the system converts the amount financed to limit currency and checksif the same is in excess of the product transaction limit and user inputlimit. If this holds true, the system indicates the same with below override/errormessages:

• Number of levels required for authorizing the transaction

Transaction amount is in excess of the input limitof the user

Credit Value Date

This is the value date with which the Beneficiary’s accountis to be credited. The credit value date is in reality the value date(transaction date) of the transfer. This date must be later than or equalto the debit date.

The system defaults the value date as explained below:

• For incoming and internal transfers the default is the system date
• For outgoing transfers the default date is the system date + spotdays as defined in the currency table in the Core Services module ofOracle FLEXCUBE.

  Transfer Type	Remitter	Beneficiary
  Internal Transfer	For an internal transfer,it is mandatory for you to enter details of remitter of the funds. The remitter in this case can be a cus­tomeror a bank.	For an internal transfer,it is mandatory for you to enter details of beneficiary of the funds.The beneficiary of an internal transfer can be a cus­tomer or abank.
  Incoming Transfer	For an incoming transferthe remitter of the funds is always a bank. Once the debit leg currencyis chosen the system will default the nostro account main­tainedin that currency as the debit account.	The beneficiary in thecase of an incoming transfer can be either a bank or a customer.
  Outgoing Customer Transfer	For outgoing transfers,it is mandatory for you to enter details of remitter of the funds. Theremitter in this case is almost always a customer. However if you inputa bank as the remitter of such a transfer, then the system will seekan override. If you input a GL as the remit­ter, then it is mandatoryfor you to enter the details of the Ultimate beneficiary.	If it is a Nostro, thenit is man­datory for you to enter the details of the Ultimate benefi­ciary. The system automatically default s the nostromain­tained in that currency in the credit account field once youenter the credit leg currency.
  Outgoing Bank Transfer	If you are entering anoutgoing bank transfer, input into this field is manda­tory. In the case of Outgoing Bank Transfers,the remitter can be either a bank or a GL. If you enter a GL in thisfield then input into the ‘By Order Of’ field becomes mandatory.	In this case the beneficiarymust be a bank or a Managers Check Payable.
  Outgoing Own A/C Transfer	In case of Outgoing OwnA/C transfer, the remitter account has to be a ‘Nostro’ Account.It is also mandatory to main­tain the mapping of this Nostro accountwith the external account.	The beneficiary accountalso needs to be a Nostro account but with a different Bank than thatof the remitter

Credit Spread

The system displays the number of spread days maintained for a customer,product and currency as specified in the ‘Value Date Spread Detailed’screen.

Credit Spread Date

The system displays the credit spread date for product, customer andcurrency in this field. It is derived after adding the spread days tothe credit value date maintained in ‘Value Date Spread Details’screen.

IBAN for the debit and credit accounts

The IBAN or International Bank Account Number is a unique accountnumber that is used to identify a customer’s account in a financialinstitution internationally.

International Bank Account Numbers in your bank are generated in theformat of the account mask that you specify in the IBAN Masks sectionof the Branch Parameters.

You may need to provide the IBAN for the debit and credit accountsinvolved in a funds transfer transaction.

Debit IBAN

In this field, indicate the IBAN corresponding to the debit accountthat you have entered for the transaction.

Credit IBAN

In this field, indicate the IBAN corresponding to the credit accountthat you have entered for the transaction.

Virtual Account

Specify the virtual account number in this field. Based on your inputin the ‘Virtual Account Code’ field and ‘Credit Currency’fields, the physical account is populated in the ‘Credit Account’field. If no physical account is mapped to the virtual account, thenthe default physical account linked to the virtual account is derived.

Virtual Account Name

The account name of the virtual account number is displayed in thisfield.

5.5.3.1 Specifying Exchange Rate Details

The system ascertains the CIF ID based on the debit (for outgoingcustomer transfers) or credit account (for incoming customer transfers)that you specify. This, along with your specification of the CurrencyPair and the Value Date for the transaction, enables the System to automaticallyassign the exchange rate that is to be used for the FT deal, if currencyconversion is involved.

The Exchange Rate applicable for the transaction = Base Rate +/- CustomerSpread (depending on whether it is a Buy or a Sell).

The Base Rate is derived from the Mid Rate and the Buy/Sell Spreadsthat you maintain for the currency pair in the exchange rate maintenancetable. The system displays the rate type based on the specificationsdefined in the product to which the contract is linked.

Similarly, the spread that you have maintained for the specified Counterparty,Currency Pair and Tenor combination in the Customer Spread Maintenancescreen is picked up and applied for the customer involved in the deal.The tenor for an FT contract is zero (0) – therefore, you needto maintain Customer Spread for zero tenor in the Customer Spread Maintenancescreen.

If spread details for a specific counterparty (for the currency pair)are unavailable, the System looks for the customer spread maintainedfor the wildcard ALL entry. If even that is not available, then the CustomerSpread defaults to zero.

The method of spread definition – whether percentage or points– as well as the spread code are displayed based on the specificationsdefined for the product to which the contract is linked.

Note

For a customer availing any Relationship Pricingscheme, the customer specific exchange rate gets defaulted here, on clickingthe ‘Enrich’ button.

FX Contract Reference

Specify the FX Contract Reference number you need to link to the FTcontract, for the currency pair. The adjoining option list displays alist of valid FX contract reference number. Select the appropriate one.

If you specify the FX Contract Reference number, you will not be allowedto specify Rate Date and Rate Serial. You cannot Link FX Contract tothe FT contract, if 'Split Dr/Cr Liquidation' check box is checked atFT product level

Rate Reference

The Rate Reference for the currency pair can be selected from theoption list provided. If you specify the Rate Reference, you will notbe allowed to specify Rate Date and Rate Serial.

Rate Date

Rate Date is used for picking up the exchange rate for the currencypair involved in the transaction and is applicable only in the case ofcross currency transactions.You need to specify the Rate Date for thecurrency pair. The Rate Date must be less than or equal to the applicationdate. If you specify Rate Date and Rate Serial, you will not be allowedto specify Rate Reference.

Rate Serial

You can specify the Rate Serial for the Rate Date you have entered.All the rate serials existing for the selected Rate Date will appearfor selection. Select a Rate Serial from the option list provided. Ifyou have specified Rate Date and Rate Serial, you cannot specify RateReference.

Validations for the Rate Date, Rate Serial and RateReference

You cannot specify Rate Date and Rate Serial and Rate Reference simultaneously.You can specify either Rate Reference or Rate Serial and Rate Date. Tochoose Rate Reference, select from the option list provided. This listwill show all active spot FX contracts for the same currency pair asthe FT transaction. The currency pair is determined based on the producttype of the FT.

Upon choosing the FX contract, the system will default the ExchangeRate of the FX deal as the Base Rate as well as the Exchange Rate forthis FT contract. If the Rate Reference is chosen, then no Spread willbe applied to the Exchange Rate. The System will take the Exchange Rateof the FX contract as it is. There will not be any variance validationin this case.

If you specify the Rate Date and Rate Serial, then system will lookinto the Exchange Rate Maintenance and get the rate for the combination.If the Rate Serial number is not present, the system will throw up anerror saying the Rate for the Serial Number does not exist. If the RateSerial Number and Rate Date are entered, then the base rate will be defaultedwith the Rate for this combination. In addition to this, the CustomerSpread and Product Spread will be applied and the Exchange Rate willbe arrived at.

The Rate Serial will be used only if the transaction amount is lessthan the limit defined for a currency pair. The Funds Transfer ContractInput will default the Rate only if the transaction amount is less thanthe maximum amount defined for the Rate Code maintained at the FT productlevel. If the amount is more than the specified amount, then the systemwill not default the Rate. Instead, it will force you to enter the Rate.If you enter the Rate, the system will not add the Customer Spread, asthis will be the final Exchange Rate for the contract.

The rate variance validation will also be done only if the TransactionAmount is less than the Maximum Amount defined for the Rate Code maintainedat the FT product level. If the amount is more than the specified amount,the system will not perform rate variance validation. Instead, therewill be an override to specify that the transaction amount is greaterthan the maximum amount for rate variance check.

For more details on customer specific exchange rates, referthe section titled ‘Specifying Pricing Benefit Details’ inRelationship Pricing user manual.

5.5.3.2 Specifying Transaction Details

Local Currency Equivalent

The system displays the local currency equivalent of the transferamount.

Charge Bearer

There are obvious costs involved in transferring funds from one locationto another. You need to indicate who will actually bear these servicecharges. You can select an option from the option list that is available.The options available are:

• Remitter — All Charges
• Beneficiary — All Charges
• Remitter — Our Charges

This specification is inherited from the specification involving theproduct used by the contract. It can be changed for a specific FT onlyif such a change is allowed in the preferences for the product.

Message As Of

Specify the date as of when the messages are to be generated.

Rate As Of

Specify the date as of when exchange rates should be picked up andapplied to the components of a transfer.

Accounting As Of

Specify the date as of when accounting entries are posted.

Message Date

Specify the message date.

Accounting Date

Specify the date on which the accounting entries are posted.

Rate Pickup Date

Specify the date on which rate is picked up.

5.5.3.3 Specifying Other Details

Receiver

Indicate the name of the receiver or receiving institution that receivesthe message regarding the transfer of funds, if it is different fromthe Account with Institution.

For incoming FT contract created through STP, the receiver will beupdated based on the debit account

5.5.3.4 Enriching FT Contract

In case of an outgoing FT contract, specify the credit amount andclick the ‘Enrich’ button. The system displays the debitamount. Similarly, in case of an incoming FT contract, you need to specifythe debit amount. The system will display the credit amount on clicking‘Enrich’ button.

Each time you modify the transaction details such as Debit Account,Credit Account, Exchange Rate, Debit Value Date, Credit Value Date orTransaction Amount, you need to click ‘Enrich’ button beforesaving the modification.

Note

If you do not click ‘Enrich’ button beforesaving the record, the system will validate the data with the correspondingvalues as per the product, settlements and customer spread main­tenance.If the values specified on this screen do not match those in the maintenances,the system will overwrite the values entered by you.

5.5.4 Specifying Party Details

Click ‘Party Details’ tab to invoke the following screen.

Hereyou can enter the following details:

5.5.4.1 Specifying Name and Address ofOrdering Customer (By Order Of)

Indicate the name and address of the ordering customer or institutionof the transfer in the field ’By Order Of‘. Input into thisfield depends on the type of transfer that has been initiated. You canalso choose the BIC of the customer from the adjoining option list thatdisplays all the BIC maintained in Oracle FLEXCUBE. The details thatyou enter will be used to determine the settlement route of the transferand in the SWIFT messages that are generated for the transfer.

This field corresponds to field 50 in the MT 103/MT 103+ message thatwill be generated for the customer transfer. Here you can specify upto 4 lines (each of 35 characters) indicating the ordering customer’sname and address or BIC. The details in this field will be defaultedautomatically once you enter the debit account in the case of an outgoingtransfer. For instance, the IBAN of the customer will be fetched fromcustomer account and defaults the same as the first line of OrderingCustomer. Note that for an outgoing MT102, MT103, MT103+ and MT210 thefirst line should have number 1 present for option F. The customer’sname will be defaulted in the second line and the address on the third.

Country

Specify the country of the ordering customer/institution. This adjoiningoption list displays all valid country codes maintained in the system.You can choose the appropriate one.

5.5.4.2 Specifying Account with Institution

Indicate the institution where the beneficiary’s account isto be credited with the amount of the funds transfer. This is known asthe account with institution. This field corresponds to Field 57 of thepayment message.

Country

Specify the country of the beneficiary’s account with institution.This adjoining option list displays all valid country codes maintainedin the system. You can choose the appropriate one.

5.5.4.3 Specifying Details of UltimateBeneficiary of Transfer

Indicate the name and address of the ultimate beneficiary of the transfer.The ultimate beneficiary can be a customer or institution depending onthe type of transfer that you have initiated.

For incoming or internal transfers, you can select the ultimate beneficiaryfrom the option list. If you have maintained settlement instructionsfor the ultimate beneficiary the transfer will be routed through thedefault settlement route. This field corresponds to Field 59 of the customertransfer messages (MT 103/103+) and field 58 in case of a bank transfer.When you choose the credit account (in the case of an incoming transfer)the details of the ultimate beneficiary (like IBAN) will be defaultedautomatically by the system. While saving the contract, System will ValidateUltimate beneficiary (59) for a valid IBAN account number.IBANvalidation will be done in the below cases for both Ordering Customerand Ultimate beneficiary. The system will consider the IBAN valid onlyif:

• The first character is ‘/’
• The second and third characters represent a valid country code
• Both Sender’s and receiver’s countries should be forMandatory IBAN Check

Country

Specify the country of the ultimate beneficiary. This adjoining optionlist displays all valid country codes maintained in the system. You canchoose the appropriate one.

Note

The country information is captured to enable Mantasto analyze the transactions for pos­sible money laundering activities.

For more details on Mantas, refer 'Mantas' interface document.

5.5.4.4 Capturing Remittance Information

You can specify the sender to receiver information of the transferby selecting the appropriate value from the adjoining option list. Thedetails that you enter will be populated in field 70 of the payment messageMT 103. The following values are available in the option list:

• //
• /INV/
• /IPI/
• /RFB/
• /ROC/
• /TSU/ - The code placed between slashes ('/') must be followed bythe invoice number, a slash ('/') and the amount paid.

Apart from the values provided in the list, you can also specify avalid ISO11649 creditor reference number in the Remittance Informationfield.

Validations

System validates the specified reference number and displays the errormessage, if found wrong as ‘Invalid Valuefor field RemittanceInformation’.

The Creditor Reference Number, if specified, should adhere to thefollowing:

• First 2 characters should be ‘RF’.
• ‘RF’ should be followed by 2-digit check digit.
• The total length of the Creditor Reference Number should not exceed25 characters.

If Creditor Reference Number is specified in any of the remittanceinformation fields, then during message generation the system ignoresrest of the remittance information.

5.5.4.5 Specifying Beneficiary AdvicePreferences

For outgoing remittances, you can indicate the mode of sending adviceto beneficiary here. The details specified in Ultimate Beneficiary Maintenanceget defaulted here. You can modify these values, if required.

Fax Number

Specify the fax number of the ultimate beneficiary for whom you aremaintaining details.

Mobile Number

Specify the mobile number of the ultimate beneficiary for whom youare maintaining details.

Email Address

Specify the email address of the ultimate beneficiary for whom youare maintaining details.

Note

You can specify only one of the options among faxnumber, mobile number and e-mail ad­dress.

The system generates the beneficiary advice based on the details specifiedhere, during contract initiation or during the batch for future datedremittances. ‘BEN_ADV’ message type is used for generatingthe advice. The advice generated contains the following tags:

• FAX/Email Address
• Order By(50)
• Beneficiary (59)
• Payment Details (70)
• Value date
• Currency
• Amount (Credit Amount)
• Amount in words
• Originating bank/branch address

Note

• Generic Interface is used to send out the beneficiary advice viafax or mobile.
• The advice will not be generated if beneficiary details are not specified

For more details on Ultimate Beneficiary maintenance, referthe section titled ‘Maintaining Ultimate Beneficiary details’in Settlements user manual.

5.5.5 Capturing Additional Details

Capture more information with regard to the product from ‘FundsContract Transfer Input – Other Details’ screen. From the‘Funds Transfer Contract Input’ screen, click the tab titled‘Additional Details’ to invoke the following screen.

5.5.5.1 Indicating Preferences

Oracle FLEXCUBE allows you to indicate your preferences. You can checkthe boxes corresponding to the following fields as required.

Override Overdraft

The Override Overdraft field is applicable to future dated contracts.This field is defaulted based on the specifications you made in the Processoverdraft for Autobook field on the product preference screen.

The Autobook function automatically liquidates future dated fundstransfer contracts. There could be a situation where a customer requestsyou transfer an amount that actually exceeds the balance in his account.In this field you can specify whether such future dated contracts, canbe processed when it is picked up by the autobook function, despite theoverdraft. If you check against this field the system will allow overdrawingand process such contracts.

Otherwise the auto book function will skip the contract with an errormessage. You can view all the contracts that are not processed by theAutobook function because of the overdraft in the FT Exception Report.

Remit Message

This is defaulted from the product level. If you wish to send theenvelope contents, you need to check this box.

The following validations will be carried out in Oracle FLEXCUBE ifthe ‘Remit Message’ box is checked:

• The Sender and Receiver are Remit members
• Envelope contents are mandatory
• If the ‘Remit Message’ box is checked, the value of theTransfer Type will be ‘CUST_TRANSFER’
• An override message is displayed if payment details are maintained

The remit message will be displayed in the message in Block 119 as119:REMIT.

Our Correspondent Required

If the transfer is routed through a correspondent bank, you can indicateso, by selecting this option.

After Rate Refresh

To recall, you have specified the exchange rates to be used and indicatedwhen they are to be applied to the components of the transfer. You havethe option to indicate that the rates should be picked up only afterthe rates have been refreshed and authorized for the day.

Check against this field to indicate that the standard rate as ofas of a future date can be applied to the transfer only after the rateshave been refreshed and authorized for the day. Leave it unchecked toindicate otherwise.

If you have checked against this field, the exchange rate is pickedup by the same method mentioned for the standard rate, except that therate as of booking, spot or value is picked up only after the rate refreshhas been completed and has been authorized.

When you run the Rate Update function, all contracts that requirea rate update will be displayed. It is from this screen that you canallow the refreshed rates to be applied to the components of the transfer.

Refer to the chapter titled Automatic Processes for detailsof the rate update function.

Uploaded

If the contract has been uploaded from the Oracle FLEXCUBE FT gatewayinterface then the field marked Uploaded will be automatically checkedto indicate that the contract has come from an external system. For details,refer the section ‘Specifying upload details’ in this chapter.

5.5.5.2 Specifying Check Details

Indicating the Manager’s Check number

This is the identifying number of the Manager’s check that youissue for outgoing transfers by check. This number should be unique acrosscontracts and is used as a reference for outgoing transfers.

For transfer types involving a Manager’s Check, the beneficiaryaccount field will be defaulted with the Manager’s Check payableaccount defined for the product.

Note

It is mandatory for you to enter a manager’scheck number if you have checked against Instrument Number Required inthe Product Preferences screen. On the other hand, you will not be allowedto make entries into this field, if the Managers check allowed fieldis unchecked in the FT Product Preference Screen.

Indicating a customer check number

If you are processing an outgoing transfer and need to debit a checkinto a customer account, you should indicate the identifying number ofthe check being used in the transfer.

The check number that you enter will have to match number validationsin the check book details table maintained in the Current Account andSavings Account (CASA) module of Oracle FLEXCUBE.

Delivery Mode

Select the mode of delivery of the cheque book from the adjoiningdrop-down list. This list displays the following values:

• Courier
• Branch

Note

If the delivery mode is ‘Courier’, thenyou will need to specify the delivery address.

Delivery Address 1

Specify the address to which the cheque book should be delivered.The adjoining option list maintains all valid addresses maintained inthe system. You can choose the appropriate one.

Delivery Address 2- 4

Specify the address to which the cheque book should be delivered.

5.5.5.3 Specifying Regulatory ReportingDetails

Specify the regulatory reporting details.

5.5.5.4 Specifying Multi Credit TransferDetails

Enabling Multi Credit transfer

You cannot enable or disable the Multi Credit Transfer option. Itis defaulted from the product/branch level and cannot be changed by youat the contract level. This option will be enabled for ‘Multi.Customer Transfer’ and ‘Multi Financial Institution Transfer’type of payments only and will not be enabled for other normal products.

Multi Credit Reference Number

You can assign a Multi Credit Reference number to a specific contractby clicking the option list to choose from the list of Multi Credit ReferenceNumbers that are pending closure. During contract save, the system validatesthe above-mentioned fields with existing contracts and if the currenttransfer/transaction is identical to an existing contract it is pooledtogether with the existing contract and it also assumes the same ‘ConsolAccount Reference ’ number as the existing one. [Only ConsolidationPool pending closure, will be considered] In case the above fields arenot identical or if the number of contracts in the Pool exceeds 10, thesystem generates a new ‘Consol Account Reference’. In caseyou do not specify any ‘Multi Credit Ref No’ the system wouldgenerate a ‘Consol Account Reference’ for the first time.

Note

Processed Consolidation Pools will not be consideredfor matching.

If grouping is done by the system, based on grouping criteria then‘Multi Credit Ref No’ would be NULL and ‘Consol AccountReference’ would be used to consolidate accounting entries. Incase you are doing the consolidation by yourself, the ‘Multi CreditRef No’ would be the Reference Number given by you and ‘ConsolAccount Reference’ would be used to consolidate Accounting Entries.

All Multi Financial Institution Transfer contracts would have Messaging,Accounting and Rate as of booking date only. The ‘After Rate Refresh’field will not be enabled for such contracts.

Amendment of Contract will be allowed only if Message has not beengenerated. If any of the above mentioned fields used for grouping arechanged, the contract would be tracked against a different consolidationpool depending on the new values.

During the contract authorization, payment messages will be generatedin suppressed stage. Message generation happens after the individualqueue is closed.

If you close a Consolidation Record by means of the Close Button orthe Close option from the menu, the consolidation record is liquidated.The system generates MT102, MT203 or MT201 for multi customer credittransfer, multi credit bank transfer or multi credit own account banktransfer respectively. Further, consolidated accounting entries are posted.Generation of MT102 and MT203 provides for the generation of consolidatedcover messages. One cover per each MT102/MT203 is sent along with theconsolidated amount.

During closure of consolidated record, the system triggers CINT (ConsolidationEvent for both Messaging and Accounting) event.

Consol Account Reference Number

The consol account reference number is system-generated. This numberis the reference that facilitates consolidation of the various transfersof a customer, based on the grouping criteria. It facilitates passingConsolidated Accounting entry to the Beneficiary Account/Settlement Account.

The following items are checked for consolidating transfers acrossthe system:

• Product Code
• Settlement Account
• Receiver
• Currency
• Credit Value Date
• Bank Operation code
• Sender Correspondent
• Receiver Correspondent – Line1 to 5
• Sender to Receiver Info (Tag 72) – Line1 to 6
• Message Date
• Multi Credit Ref. No
• Consol Account Reference

All transactions that have identical above-mentioned fields/itemsare validated and consolidation happens if intermediary party [tag 56]is not mentioned in any of the transaction.

The systems checks whether the beneficiary of the message is MT102/MT203 enabled and also if ‘Multi Credit Transfer’ flag isenabled at the BIC level. If the field is not enabled, the system willgenerate an error message.

Consolidation Status

The system indicates whether the consolidated contracts for a givenmulti credit reference number are pending closure (P) or closed (C).

Note

The Multi transfer message is generated upon theclosure of the reference number. How­ever upon the authorizationof each individual contract, the corresponding payment mes­sageis in the generated status. But the status of the Suppress Flag is ‘Y’for the same. Hence the Job which processes the outgoing message doesnot process these messages.

Debit Consolidation Reference Number

The system displays the contract reference number of the consol internalFT contract created for customer debit consolidation.

Message Generation

• For incoming and outgoing Existing MT102 message, processing willbe extended to handle MT102+ format.
• For outgoing MT102+, flag field 119 will be populated with STP inthe third user header block.
• For incoming MT102+ flag, field 119 will be checked for code STPin the third User header block. If value is STP then MT102+ validationswill be done before uploading transactions.

For processing outgoing MT102+, the following validations are done:

• Ordering Institution and AWI are used with letter option A.
• Sending Institution is not used.
• Bank Operation Code contains codes ‘CREDIT’ and ‘SPAY’
• Sender to Receiver Information.
• Contains INS in the beginning and followed by a valid BIC.
• Contain codes ‘REJT’ and ‘RETN’
• Must not contain ERI information.
• Must contain Account field or Beneficiary Customer
• MT102+ will not be generated on booking or authorization of a transaction. It will be generated from Outgoing Consolidation screen similar to MT102.

If with the above validation, you check the option ‘GenerateMT102+’ in addition to ‘Multi Credit Transfer ’ inthe following screen, MT102+ will be processed

• Funds Transfer Branch Parameters
• BIC
• FT Product

Outgoing Consolidation Queue

You can generate MT 102 and MT102+ message from Queue called ‘FundsTransfer Multi Customer Summary’ where Consolidation of individualMT102s is done.

You can invoke the screen by entering ‘FTSTCONS’ in the field at the top right cornerof the Application toolbar and clicking the adjoining arrow button.

In this screen, youcan query on record based on the following criteria:

• Consolidated Reference
• Product Code
• Consolidation Status
• Multi Credit Reference number
• Settlement Currency
• Settlement Branch

This Queue gives the summary of all the consolidated transactions.Drill down gives the Summary screen of the FT contract.

Close of the Consolidation Record initiated through the Close Buttonor Close option from the menu liquidates and creates MT102 and consolidateaccounting is also passed. Events called ‘CINT’ (ConsolidationEvent for both Messaging and Accounting) get triggered during closureof consolidated record.

Generation of MT102 would also generate Consolidate Cover messageif required with consolidated amount i.e. one cover per MT102 would besend with consolidate amount if cover is required.

MT203 size restrictions

• MT203 will be generated only if there are more than one transactionto consolidate
  • If only one message is consolidated, MT202 is generated. Similarly,if only one message is consolidated for MT103, system generates MT102.

• Maximum number of transactions for a MT102/MT203 is limited to teni.e. a maximum of ten transactions (FT Contracts) will be allowed tobe consolidated in a single pool. This restriction is based on the parameter‘MT102_TXN_LIMIT’ setup in CSTB parameters.
• If multiple pools have been created because of size restrictions,any subsequent amendment, deletion, reversal of contracts in these poolswill not result in the re alignment of the pools.

5.5.5.5 Specifying Other Details

External Deal Linkage Number

Select the deal reference number of the related external deal fromthe option list provided. The option list contains system generated referencenumbers for all external deals.

The exchange rate, Dr amount, Dr account, Dr currency, Cr amount andCr currency get defaulted on selecting the external deal reference number.

Note

This is applicable only for outgoing remittance transactions.

Deal Reference Number

The deal reference number associated with the selected deal linkagenumber gets displayed here.

On initiating this transaction, the amount block maintained againstthis deal reference number gets released. The amount blocks associatedwith future dated contracts are released when the corresponding batchesare run.

If the contract is deleted or reversed, the amount block gets reinstatedwith the expiry date as the expiry date maintained in External Deal linkagescreen.

Note

• The amount block released corresponds to the debit leg of the transactionand the expiry date of the amount block defaults to the debit leg valuedate of the contract.
• Only one amount block can be linked to an FT contract.
• The contract amount should be equal to the amount block maintainedin the system.
• The debit value date of the contract should be less than or equalto the expiry date of the deal.

For more details on external deal maintenance, refer sectiontitled ‘External Deal Maintenance’ in Core Services usermanual.

Unique End to End Transaction Reference

The system displays tag 121 value of category 1 and 2 SWIFT messages.

5.5.5.6 Specifying Envelope Details

Specify the envelope content.

5.5.5.7 Reversal of Outgoing Multi CreditCustomer Transfers

In case of reversal of outgoing multi credit transfer, the systempasses accounting entries based on the status of MT102 generation.

Scenario 1 - MT102 Not Generated

If MT102 is not generated, the system will pass the following accountingentries during reversal process.

Once these entries are passed, the system will adjust the total consolidatedamount and remove the corresponding contract from the consolidation queue.

Scenario 2 - MT102 Already Generated

If MT102 is already generated, during reversal, the system will displayan override ‘Message has already been generated’. If youchoose ‘OK’, the system will proceed with the reversal operation.The following accounting entries will be passed in this case.

On reversal of an individual transaction, the corresponding CINT eventwill also be reversed. The system will recalculate the consolidationpool amount.

Closure of consolidation pool is allowed for authorized transactionsonly. If you attempt to close an unauthorized transaction, the systemwill display an error message.

While marking EOTI, if there are pending consolidated transactionsin MT102 consolidation queue, the system will display a configurableoverride message. You can choose to proceed or cancel.

5.5.5.8 Indicating when Settlement Messagesshould be Generated

Indicate the day or date on which Settlement messages related to thetransfer should be generated. You can select an appropriate date fromthe option list that is available.

The options available are:

• As of Booking date
• As of Spot date
• As of Value date
• As of Debit Value Date
• As of Credit Value Date
• As of Instruction Date

If the transfer you are processing is associated with a product, themessage generation specifications you made for the product is defaulted.You can change the values that are defaulted if required.

Message as of Booking Date

If you specify ‘Booking Date’, settlement messages willbe generated as of the date you enter the contract after the contractis authorized.

Message as of Spot Date

For each currency that your bank deals with, you would have also specifieda spot date in the Currency Definition Maintenance table of the CoreServices module.

If you choose ‘Spot Date’, messages will be generatedspot days depending on the spot date you have maintained for the currencyinvolved in the transfer.

Message as of Value Date

If you specify value date, messages will be generated on the day thetransfer becomes effective.

You can enter a value date of your choice. However, it should be oneof the following:

• Today’s date
• A date in the past
• A date in the future

You can enter a date in the future only if future value dating isallowed for the product to which the transfer is associated. The ValueDate (transfer initiation date) should not be earlier than the StartDate or later than the End Date of the product involved in the transfer.

Message as of Debit Value Date

If you choose this option, the messages will be generated, as on thevalue date, with which the remitter account will be debited, will beused for the transfer. This would be earlier than the credit value date.

Message as of Credit Value Date

If you choose this option, the messages will be generated on the valuedate with which the beneficiary account will be credited, will be usedfor the transfer. The credit value date is in reality the value date(transaction date) of the transfer.

Messages can be generated only after the exchange rate for the contracthas been fixed. Thus, based on the rate pick up code that you specify,you will have to match the options for message generation.

For normal contracts (as of booking date) messages will be generatedonly after authorization. In the case of Future Valued transfers messageswill be generated as of spot date.

Message Date

This is the actual date on which the messages are to be generated.This date is computed on the basis of the input in the ‘Messageas of Field’ in the ‘Contract – Others’ screen.

5.5.5.9 Specifying when Accounting Entriesmust be passed

For the contract, you can specify whether accounting entries mustbe passed on the date of message generation (if message generation isindicated on booking date) or on the debit value date of the transaction.

If you indicate that accounting entries must be passed on the dateof message generation, the entries related to the contract will be passedon the date of message generation. If message generation is indicatedon booking date, and you have indicated that accounting entries are tobe posted on the debit value date of the transaction, the messages aregenerated on the booking date, and the accounting is deferred to thedebit value date.

The accounting date

When you make your specification in the Accounting As Of field, thesystem arrives at the date on which accounting entries will be posted,and displays it in the Accounting Date field on the FT Contract Onlinescreen. If you select ‘Message Date’, the date on which messagesare generated is taken as the accounting date. If you select ‘DebitValue Date’, the debit value date of the transaction is taken asthe accounting date.

You can only specify the Accounting As Of date if:

• Message generation is indicated to be on the booking date (the optionchosen in the Message As Of field is ‘Booking Date’). Ifmessage generation is indicated on any date other than the booking date(that is, if the option in the Message As Of field is not ‘BookingDate’), the default option in the ‘Accounting As Of’field is ‘Message Date’, (that is, accounting entries willbe passed only on the date of message generation), and it cannot be changed.
• If message generation before accounting is allowed for the productused by the contract. If allowed, and if the contract involves a customerfor whom the facility of message generation before passing of accountingentries has been set in respect of FT transactions, in the Customer InformationMaintenance, the preference is defaulted to the contract, and you canchange the default if required.

For the messages as of specific dates, you can choose accounting asof specific dates as listed in the table below.

If the parameter ‘SGEN_PARAM’ in CSTB_PARAM is set as‘Y’, the process will be as discussed below.

Message as of’’ is set to ‘Booking Date’.Suppose that ‘Accounting as of’ is chosen as ‘DebitValue Date’.

The system will trigger ‘BOOK’ event on the booking dateof the contract.

On authorization of the FT contract, the system will trigger SGENevent and generate settlement messages linked to INIT event or LIQD event.For a contract, if you have checked the option ‘After Rate Refresh’,this happens during End of Day operations. INIT and LIQD events are triggeredbased on the Debit Value Date. For these events, the system will notgenerate settlement messages.

5.5.5.10 Indicating Date on which Ratesshould be picked up

You need to specify the date as of when exchange rates should be pickedup and applied to the components of a transfer.

If the transfer you are processing is associated to a product, thepreferences you stated for the product will be defaulted. You can changethe values that are defaulted.

In the case of a contract that is liquidated as of the booking date,the rates will also be picked up as of the booking date.

For future valued transfers, you can specify the rate pick up dateas of booking date, value date or spot date. You can select one of thefollowing options:

Rate as of Booking Date

If you specify that the rates should be picked up as of the ‘BookingDate’, the exchange rates prevailing as of the date you enter thecontract is used to compute the components of the transfer.

The spread that you specify for the transfer will be applied to theexchange rates that are picked up.

Rate as of Spot Date

Specify that exchange rates can be picked up as of spot days onlyfor future dated funds transfers.

To recall, for each currency that your bank deals with, you have alsospecified a spot date in the Currency Definition Maintenance table ofthe Core Services module.

The spread that you specify for the transfer will be applied to theexchange rates to compute the components of the transfer.

We shall examine an example wherein the ‘rate as of’ isspecified as Spot Date:

A customer of your bank approaches you on 1 March 1998 (the bookingdate) to initiate a cross currency transfer for US $ 10,000. Assume theoffset currency of the transfer to be INR. Also assume that you had maintainedthe spot days for USD to be 2 days in the Currency Definition table ofthe core services module.

The transfer is to be initiated on 5, March, 1998 (the Value Date).It is therefore a future dated transfer.

Booking Date - 01/03/96

Value Date - 05/03/96

Contract Currency - USD

Contract Amount - 1000 $

Spot Days maintained for USD -2

In this case the exchange rates to be applied to the transfer willbe picked up from the currency table on 3, March, 1997, Spot days (2days) before the Value date of the transfer.

Rate as of Value Date

If you specify ‘Value date’ then the rates to be usedto process the transfer amount will be picked up on the day the transferis effected. The accounting entries for the contract will be passed asof this date.

Enter a value date of your choice. In which case, it should be oneof the following:

• Today’s date
• A date in the past
• A date in the future. You can enter a date in the future only ifFuture Dating has been allowed for the product to which this contractis linked.

The Value Date (transfer initiation date) should not be earlier thanthe Start Date or later than the End Date of the product involved inthe transfer.

Indicating that exchange rates will be ‘UserInput’

If you do not want to make the standard exchange rates applicableto a transfer you can choose ‘User Input’ from the optionlist.

In this case, the exchange rate that you enter in the exchange ratefield of the Contract Main screen is picked up to compute the componentsof the transfer.

Indicating that exchange rates are not applicable

If you are processing a transfer wherein the currency that is remittedis the same, as the currency that is credited, you can indicate thatexchange rates are not applicable to the transfer.

Rate as of Instruction Date

If you chose this option, the rate as of the date on which the customerplaced his instruction will be taken. This is similar to booking date.

Rate as of Debit Value Date

If you choose this option, the exchange rate as on the value datewith which the remitter account will be debited, will be used for thetransfer. This may be earlier than the credit value date.

Rate as of Credit Value Date

If you choose this option, the exchange rate as on the value datewith which the beneficiary account will be credited, will be used forthe transfer.

Rate Pickup Date

This is the actual date on which the rate is picked up. This dateis computed based on the input given in the ‘Rate as of’field on the ‘Contract Other’ screen.

Social Security Number

If you are processing a funds transfer on behalf of a customer ofyour bank, the Social Security Number of the customer involved in thetransaction will be defaulted from the CIF Maintenance details screen.However, if you are initiating the funds transfer for a walk-in customeryou will have to capture the walk-in customer’s SS Number.

Note

Each outgoing customer type of transfer initiatedby an individual type of customer can be tracked against the customer’sSS number. If the value of debits within a specific customer accountexceeds USD 2500, with-in a seven-day working period the system notifiesyou of the same with an override message.

For example,

Let us assume that on the 24th of September 2001, Mrs. Wendy Kliena customer of your bank initiates an outgoing FT for USD 2000. Sinceall weekends are considered as holidays at your bank, while processingthe transfer all debits against her account for six working days precedingthe 24th i.e., up to the 16th September will be tracked against her SSnumber.

Again, on the 1st of October 2001, she initiates another outgoingtransfer, which necessitates a deduction of USD 700 on her account. Whileprocessing the transfer the system checks for all debits up to the 21stof September.

An amount of USD 2000 has already been tracked against her SS numberon the 24th of September. However, since the current debit exceeds themaximum limit of USD 2500 for a running seven-day working period thetransfer will be processed only if your confirm the override.

5.5.6 Note on Rate Pickup and Message Generation

The Rate pickup and message generation codes that you specify fora transfer need to be combined in a fashion to facilitate the followingflow of events:

1. Rate pickup
2. Message Generation

Accounting entries will be passed and then messages will be generated.All the possible combinations between the rate pickup and the messagegeneration codes have been explored and detailed below.

Note

If message generation has been indicated to occurbefore accounting is done for a con­tract, the accounting entriesare posted on the Accounting As Of date. This could be either the dateof message generation or the debit value date of the transaction, asexplained in the earlier section.

Standard rate as of booking date - Message as ofSpot Date

If you select this combination:

• The amounts will be converted using the rates available in the currencytable (on the booking date). The spread will be applied to the rate,based on the spread code you specify.
• Messages will be generated Spot days before the settlement date.

Rate as of Spot - Message as of Spot

If you choose this combination:

• The contracts with this combination will not be processed in thesame manner as a normal contract. The Autobook function (a batch processexplained in the chapter 7) run either at EOD or BOD, automatically picksup the exchange rates as of spot days before settlement date and appliesthis rate to the components of the transfer and also passes accountingentries.
• Messages will also be generated by the autobook function on the spotdate.

Rate and Message as of Value Date

If you choose this combination the transfer amount will be convertedbased on;

• The rates that will be picked up on the value date and
• Messages will be generated on the value date.

Rate as of Booking Date - Message as of Booking Date

If you select this combination, the system converts the transfer andcommission amount based on the:

• Rates that are available in the Currency table at the time of contractinput
• Messages will be generated after the contract is authorized

Rate as of Spot Date - Message as of Booking Date

In this example the rate date is later than the message date and hencethis would not be allowed by the system. The message generation in OracleFLEXCUBE happens along with the accounting and therefore, the rate pick-update must be on or before the message generation date.

5.5.7 Limit Amounts for Cross Currency Transactions forDefault of Exchange Rates

Typically, the exchange rates applicable for cross currency fundstransfer transactions is defaulted by the system depending upon the preferenceindicated in the product preferences, for the product involving the transaction.

In your bank, for high-value cross currency transactions, you maywant the user to manually enter the exchange rate involved, rather thanlet the system automatically pick up a default rate during transactioninput. You can define such a preference to be applicable to cross currencytransactions involving:

• a currency pair
• a specific product, or all products
• a specific module, or all modules
• a specific branch, or all branches
• a specific Rate Code

The transaction amount limit, above which the exchange rate must beentered, for a high value transaction, could be defined in terms of anycurrency pair where the currency of the transaction is currency1 in theCCY pair defined in the maintenance.

To ensure that users manually enter exchange rates for high-valuecross currency transactions in Oracle FLEXCUBE, you must specify thelimit amounts that must be validated against for each currency pair,product, module and branch combination. You can use the Exchange RateLimits screen to specify the limits.

When you have specified these limits, the system automatically validatesthe amount each transaction for the currency pair, product, module andbranch combination, and accordingly, if the limits are exceeded, enforcesthe manual entry of exchange rates.

In case, the limit between ccy1 and ccy2 is given in ccy2, the systemwill automatically convert the transaction amount to an amount in ccy2 using standard mid rate and check against the limit amount for manualentry of exchange rates.

5.5.8 How Limits are applied when Transaction is Entered

Whenever a cross currency funds transfer or teller transaction isentered, Oracle FLEXCUBE checks for appropriate limits, in the ExchangeRate Limits Maintenance. If no limits are maintained for the currency,product, module and branch combination, then no limits are applied.

The example given below illustrates how the system identifies theappropriate limit from the Exchange Rate Limit Maintenance.

For example,

You have maintained the following amount limits for cross currencyteller and funds transfer transactions in your bank, in the ExchangeRate Limit Maintenance:

For each transaction, the corresponding limit amount to be validatedagainst is derived by checking if a limit has been maintained for thefollowing combination of parameters in sequence:

• Currency pair
• Product
• Module
• Branch

For instance, for a teller transaction involving USD-GBP and productPRD1 in branch 001, the limit amount that will be used for validationis 25000 GBP (corresponding to Number 1 in the table above).

For a funds transfer transaction involving any currency pair and productPRD3, in any branch, the limit applicable would be 20000 GBP (correspondingto Number 3 in the table)

5.5.9 Exchange Rate for Cross Currency Transactions

After the limit applicable for a cross currency transaction has beenidentified, it is validated in the following manner:

1. The limit amount, which is expressed in the limit currency,is converted to the corresponding amount in currency1, using the standardexchange rate, mid rate for comparison.
2. If the transaction amount falls below the limit amountin currency1, the limit has not been exceeded. In such a case, the exchangerate for the transaction is picked up from the Currency Rates Maintenancefor the rate code specified in the preferences of the product involvingthe transaction, and is defaulted to the transaction.
3. If the transaction amount exceeds the limit amount in currency1,the exchange rate for the transaction is not picked up according to therate code defined in the product preferences, but will have to be specifiedby the user entering the transaction. The specified rate is checkedto verify that it falls within the variance limits and the stop limitspecified for the product.

5.5.10 Internal Remarks

You can specify additional information pertaining to the contracthere. The details that you specify here can be retrieved later.

5.5.11 Capturing Payment Details

Specify the sender to receiver information of the transfer by selectingthe appropriate value from the adjoining option list. The details thatyou enter will be populated in field 72 of the payment message MT 103.

The following values are available in the option list:

• //
• /INV/
• /IPI/
• /RFB/
• /ROC/

5.5.12 Specifying Upload Details

If the contract has been uploaded from the Oracle FLEXCUBE FT contractupload tables by the FT Upload function then the field marked Uploadedwill be automatically checked to indicate that the contract has comefrom an external system. The code of the source from which the contractwas uploaded will be displayed in the Source Code field. Each time contractsare uploaded, the system automatically generates a source reference number.This number will be displayed in the Source Ref Number field.

(Refer to Chapter titled The Batch Upload Function for detailson the FT Upload function)

Storing the External System Generated Reference Number

Oracle FLEXCUBE interfaces with the MUREX system, uploading and processingfunds transfer contracts from MUREX. A contract uploaded from MUREXcan result in one or more contracts in Oracle FLEXCUBE. Therefore, inorder to relate the Oracle FLEXCUBE contracts with the correspondingMUREX system generated contract, the source (MUREX) reference numberwill be stored in field 21 of MT 900 (Dr Advice) and MT 910 (Cr Advice)for handoff to customers.

Note

This feature is only available for contracts uploadedfrom the MUREX system.

MT940 (detailed account statement) and MT950 (summary statement) willalso store the source reference number in field 61 (sub-field 8) forhandoff to customers.

5.6 Viewing Settlement Route of Transfer

After entering the details of a transfer click the tab titled SettlementRoute from the contract details screen. A screen depicting the routethat you have defined for the transfer is displayed. This facility providesyou a quick means of verifying the transfer route. If the route of thetransfer is incorrect, you can delete or change the contract suitably.

Basedon the type of transfer that you have initiated and on the settlementdetails that you specify for the transfer, the fields of this screenwill be populated. We shall explore all the possible routes that a transfercan take before it reaches the ultimate beneficiary.

Ordering Customer - The name of the ordering customer (the party thathas initiated the transfer). This field will be populated only if youhave initiated a customer transfer (MT103/103+).

Ourselves - The financial institution or the branch, thereof, initiatingthe transaction on behalf of itself or its customer.

Our Correspondent - The name of the correspondent bank if the transferis routed through a correspondent.

Receiver’s Correspondent - The institution that will receivefunds on behalf of the receiver is displayed. Hence this field will bepopulated only for outgoing transfers.

Intermediary Reimbursem*nt Institute – The financial institutionbetween the Sender’s Correspondent and the Receiver’s correspondent,through which the reimbursem*nt of the transfer will take place.

Intermediary - The intermediary between the receiver and the accountwith institution.

Account With Institution - The Financial Institution at which theOrdering Party requests the Beneficiary to be paid. This field will notbe populated for incoming and internal transfers.

Receiver - This is the receiver of the message.

Ultimate Beneficiary - The Ultimate Beneficiary that you specifiedin the Contract Main screen is defaulted.

If there is one bank between the remitter and the beneficiary thenit is a one party transfer. In such a transfer, funds move directly fromthe bank of the remitter to the bank of the beneficiary.

If a correspondent bank is used to transfer funds form the bank ofthe remitter to the bank of the beneficiary then it a two party transferand so on. This has been illustrated diagrammatically,

The number of banks that areinvolved in the transfer would depend on the:

• Relationship and arrangements between the sending and receiving banks
• Customer instructions
• Location of parties
• Banking regulations of a country

5.6.1 FT Fields and Information Flow

The fields in the FT input screen that decides the direction and flowof funds and messages are:

• Ordering Customer (‘by order of’)
• Remitter (sender)
• Senders Correspondent
• Intermediary Bank
• Receiver’s correspondent
• Account with bank (beneficiary’s bank)
• Ultimate Beneficiary

The following examples illustrate how information flows in variousconditions.

An Example of a one party transfer

Girozentrale Uno Bank, Vienna, receives a letter from Wonderdrug Pharmaceuticalsordering them to pay US $ 40,000 to the National Bank, New York intothe account of Silas Reed.

At Girozentrale Uno Bank, the settlement screen will be populatedwith the following details:

An Example of a two party transfer

Vanbee Traders orders Banca Commerciale, Naples to pay, value 27 May1997, and 120,000 Francs into the account of Mr. Silas Reed with BanqueNationale de Paris, Grenoble. Banca Commerciale asks LeanderBank to makethe payment which in turn pays through Banque Nationale de Paris, Parisbranch.

At LeanderBank the settlement screen will be populated with the followingdetails:

An Example of a three party transfer

On May 10, 1997, Wendy Klien orders Leander bank Vienna to pay USdollars 20,000 to Silas Reed, whose account is with Algemene Bank Nederland(ABN), Amsterdam. The beneficiary is to be notified by phone. A covermessage for the US Dollar payment is provided through Hansen Trust Company,New York to ABN New York.

At Leander the settlement screen will be populated with the followingdetails:

An Example of a four party transfer:

G.A. Imports Naples orders Banca Italiana Milan to pay USD 500000to BNP bank, Normady to the account of Silas Reed. Banca Italiana Milanmakes the USD payment through its US Correspondent, Banca Italiana, NewYork. Payment is made to BNP Paris in favor of BNP Normandy through itsUS correspondent Bank of New York, NY.

At Banca Italiana, Milan the settlement screen will be populated withthe following details:

5.7 Viewing Details of Transfer Events

Click ‘Events’ button in the 'FT Contract Detailed Viewscreen to go to the FT Contract View Events screen. In the FT contractview events screen the list of events that have already taken place ona contract along with details of pending events is displayed. The dateon which the event took place will also be displayed.

Click ‘AccountEntries’ button to view the accounting entries for the event. Click‘Exit’ button to go back to the FT Contract Detailed Viewscreen.

5.7.1 Viewing Accounting Entries that are Passed

From FT Contract — View Events screen, click ‘AccountingEntries’ to view the Accounting Entries for the event. You canview the details of the accounting entries that were passed for the eventwhose details were displayed in the contract -- View Events screen. Theaccounting entries that are passed depend on the type of transfer thatyou initiate. The following information is provided for each event:

• Branch
• Account
• Transaction Code
• Booking Date
• Value Date
• Dr/Cr indicator
• Currency
• CCY (Currency)
• Amount in contract CCY
• Amount in local currency

All the overrides that were allowed for an event will also be displayed.

5.8 Specifying Advices for Transfer

From the ‘Funds Transfer Contract Input’ screen, click‘Advices’ button to view the ‘Advices’ screenis displayed. In this screen you can specify the advices that are tobe generated for the various events that occur during the lifecycle ofa funds transfer, after the authorization of the product.

Suppressingthe generation of an advice

By default all the advices defined for the product to which the FTis associated will be applicable to the FT.

As all the messages defaulted from the product may not be applicableto the contract you are processing, you can suppress their generation.

Select a value from the adjoining drop-down list to the relevant message.This list displays the following values:

• Yes — to suppress the generation of the message
• No — to indicate that the message should be generated

Indicating the priority with which a message shouldbe sent

Specify the priority with which an advice should be generated. Bydefault the priority of all advices is marked as ‘Normal’.You can prioritize advices into one of the following:

• Normal
• Medium
• High

Note

• You can change the priority of a message to Urgent only for PaymentAdvices.
• The ‘Priority’ of a message is a field that is availablefor processing of the message by external systems or interfaces thathandle the onward transmission to the Re­ceiver after the generationof the message. Oracle FLEXCUBE itself does not per­form any specificprocessing based on priority of the message.

After you have selected the advices to be generated for the contract,click ‘Ok’ button to save it. Click ‘Exit’ buttonto exit the screen without saving the entries. In either case, you willreturn to the FT Contract Main screen.

5.9 Selecting User Defined Fields

Click ‘Fields’ button from the ‘Contract Main’screen to invoke the ‘User Defined Fields’ screen. The listof fields and default values specified for the product to which the transactionis associated is displayed.

Add to the list offields defaulted from the product but you will not be allowed to removea field from the defaulted list.

Change the values defaulted from the product to suit the transactionyou are processing.

5.10 Generating Charge Claim Advice

For incoming FTs, the remitter bears the charges if the option ‘Charge’is set as ‘Ours’. For such contracts, you can direct theremitter to pay the defined charge amount by generating a Charge ClaimAdvice (MT191). Click ‘Charge Claim’ button from the FundsTransfer Main screen to specify details for the generation of the messageMT191.

ContractReference Number

The system displays the reference number of the contract in this field.

Event Sequence Number

The system displays the event sequence number. This indicates a numbercorresponding to the number of events for which the operation has beenperformed.

Specifying a Charge Reference Number

Enter a reference number to identify the message. The identificationshould ideally indicate the incoming FT for which it was generated. TheUser Reference of the FT is defaulted. You can change the reference thatis defaulted. The charge reference number will be displayed in field21 of the charge claim advice.

Indicating the Charge amount and currency

Enter the consolidated charge amount that is to be claimed for theFT. The charge amount is expressed in the charge currency that you specify.If all the charge components are in the same currency, the system automaticallycalculates the charge amount in the charge currency.

If the FT involves several charge components, in different currencies,you should consolidate them and express the charge amount in the collectioncurrency.

Charge Details

The details that you enter in this field are printed on the SWIFTmessage. Therefore the details that you enter here should conform toSWIFT standards. In this field you can enter specifications of the charges,interest, or other expense(s) associated with the transfer. An MT 191can contain one or more of the following codes, followed, where relevant,by the currency and amount:

• COMM — Our commission
• INT — Interest related charges
• PHON — Our telephone cost
• TELE — Charges relating to the most appropriate and efficientmeans of telecommunications available, e.g. S.W.I.F.T., telex, telephone,facsimile, as determined by the party executing the payment instruction.

Sender to Receiver Information

Here you can enter a message that the sender would like to send tothe receiver of the message.

Account with Institution

An ‘Account With Institution’ refers to the financialinstitution, at which the ordering party requests the Beneficiary tobe paid. The Account With Institution may be a branch or affiliate ofthe Receiver, or of the Intermediary, or of the Beneficiary Institution,or an entirely different financial institution.

This field corresponds to Field 57A of S.W.I.F.T. You can enter oneof the following:

• ISO Bank Identifier Code of the bank
• The branch of the Receiver’s Correspondent
• Name and address of the Receiver’s Correspondent.
• Other identification codes (for example, account number)
• Local Clearing Code of the bank

Ordering Institution

Indicate the ordering institution of the original incoming FT. The‘Ordering Institution’ is the financial institution, whichis acting on behalf of itself, or a customer, to initiate the transaction.This field corresponds to 52a of S.W.I.F.T.

In this field you can enter one of the following:

• The ISO Bank Identifier Code of the Ordering Institution
• The branch or city of the Ordering Institution
• The Name and address of the Bank
• Local Clearing Code of the bank

5.11 Specifying Customer Cover Details

You can specify the cover details associated with the customer involvedin the transfer in ‘Customer Transfer Details’ screen. Toinvoke this screen, click ‘Customer Cover Details’ buttonin ‘Funds Transfer Contract Input’ screen. For STP transfersthese details are automatically defaulted from the party details captured.

You can input details here only for if the contract is being bookedusing the product having transfer type as ‘Customer Transfer withCover’. (STP Failure cases).

You can specifythe following details in this screen:

Ordering Customer

The Ordering Customer refers to the customer ordering the transfer.Here, you can enter the name and address or the account number of thecustomer, ordering the transaction. This field corresponds to field 50of SWIFT. You will be allowed to enter details in this field only ifSTP has failed or while manually booking the FT contract using the incomingSWIFT message.

Intermediary

The ‘Intermediary’ in a payment refers to the financialinstitution between the ‘Receiver’ and the ‘AccountWith Institution’, through which the transfer must pass.

The Intermediary may be a branch or affiliate of the Receiver or theaccount with Institution, or an entirely different financial institution.This field corresponds to field 56a of a SWIFT message.

You can either enter the:

• ISO Bank Identifier Code of the bank
• The Name and address of the Bank

Ordering Institution

The Ordering Institution is the financial Institution, which is actingon behalf of itself, or a customer, to initiate the transaction. Thisfield corresponds to 52a of SWIFT. In this field, you can enter one ofthe following:

• The ISO Bank Identifier Code of the Ordering Institution
• The branch or city of the Ordering Institution
• The Name and address of the Bank

Account with Institution

An ‘Account with Institution’ refers to the financialinstitution, at which the ordering party requests the Beneficiary tobe paid. The Account With Institution may be a branch or affiliate ofthe Receiver, or of the Intermediary, or of the Beneficiary Institution,or an entirely different financial institution.

This field corresponds to Field 57A of a SWIFT message. You can enterone of the following:

• ISO Bank Identifier Code of the bank
• Branch of the Receiver’s Correspondent
• Name and address of the Receiver’s Correspondent
• Other identification codes (for example, account number)

Ultimate Beneficiary Details

The Ultimate Beneficiary refers to the customer to whom the amountof the component is to be paid. This field refers to field 59A of SWIFT.You can make entries into this field only if STP has failed or whilemanually booking the FT contract using the incoming SWIFT message. Thiswould not be applicable for Bank Transfers.

Specify the identification, name and address details of the ultimatebeneficiary involved in the transaction.

Sender to Receiver Information

This could be instructions or additional information for the Receiver,Intermediary, Account With Institution or Beneficiary Institution.

This field corresponds to field 72 of the S.W.I.F.T. message. Theformat of the message depends on the type of S.W.I.F.T. message thatis generated. Refer to the S.W.I.F.T. manual for details on the formatof the message and the code words to be used.

Remittance Information

Specify the payment details of the FT contract here.

This field corresponds to field 70 of the SWIFT message. This willbe populated only for RTGS related messages.

External reference number

Specify the reference number of the customer transfer, received fromthe originating bank.

This field corresponds to field 21 of the SWIFT message. This is thereference number (Field 21) of the incoming message received.

Currency

Specify the currency associated with the customer transfer.

Amount

Specify the amount associated with the customer transfer.

5.12 Viewing OFAC Check Response

OFAC check enables the application to call an external web serviceto perform black list check for customer and customer accounts and givewarnings appropriately while transacting with black listed customers.You can also capture your remarks before overriding the black list warning.

Click ‘OFAC Check’ button in ‘Funds Transfer ContractInput ‘Customer Account Creation’ screen to view the OFACcheck response in the ‘External System Detail’ screen Onclicking ’OFAC Check’ button, system will build the requestXML and call the web service. The ‘External System details’screen displays the response is received from the external system andyou will be also allowed to enter your remarks in this screen. The responsereceived will also be sent to Oracle FLEXCUBE Database layer for anyfurther interpretations of the same.

This button can be made visible while carrying out the actual customization.Request building response interpretation in the database layer needsto be done as part of customization to enable this.

Here, you can view/capture the following details:

External System Response

The response from the external system regarding the black listed customeris displayed here.

User Remarks

Specify your remarks regarding the black listed customer here.

5.13 Capturing MIS Details

5.14 Viewing Change Log

5.15 Specifying Settlement Details

You can capture the settlement details associated with a transferin ‘Settlement Details’ screen. Click ‘Settlement’button in ‘Funds Transfer Contract Input ‘screen to invokethe ‘Settlement Details’ screen.

TheFT transaction is settled based on the details specified in this screen.

For more details on this screen, refer the section titled ‘ProcessingSettlements’ in Settlements User Manual.

5.16 Viewing All Messages

You can view a list of all the messages generated for a particularFT contract using ‘View Messages’ screen. Click ‘AllMessages’ button on ‘Funds Transfer Contract Input’screen. You can invoke the screen by typing ‘MSDALMSG’ n the field at the top right cornerof the Application tool bar and clicking the adjoining arrow button

ContractReference Number

The system displays the reference number of the contract.

Message

The system displays a list of all messages generated for the abovecontract. The list contains the following details of each contract:

• DCN
• ESN
• Medium
• Receiver
• Name
• Test Status
• Authorization Status

Message Type

The system displays the message type.

SWIFT Message Type

The system displays the list of SWIFT Message Type.

Sub Message Type

This field displays the type of sub message type.

SWIFT Sub Message Type

The system displays SWIFT Sub message type.

From this screen, you can view the details of a particular message.Use the adjoining checkbox to select a message and click ‘Message’button. The system displays the details of the selected message on aseparate window.

5.17 Specifying Project Details

Click the ‘Project Details’ button in the ‘FundsTransfer Contract Input’ screen and invoke the ‘Project Details’screen. You will have to capture project details in this screen onlyif the credit account is a Trust account.

Specify the followingdetails:

Project Name

Specify the developer project name for which payment is being made.The adjoining option list displays all valid projects maintained in thesystem. You can select the appropriate one. Input to this field is mandatory.

If you specify the Unit ID, the system will display the correspondingproject name here.

Unit Payment

Indicate whether the transaction is a unit payment or not by choosingthe appropriate value from the adjoining drop-down list. The followingvalues are available:

• Yes
• No

Unit ID

Specify the unit ID of the project. This field will be enabled onlyif you have selected ‘Yes’ against ‘Unit Payment’.The adjoining option list displays all unit IDs along with the unit holdernames corresponding to the project name chosen. You can select the appropriateone.

Transfer Request Number

Specify the transfer request number for the payment.

5.18 Viewing Duplication details

The system checks for duplicate transactions while booking contractsbased on the number of days for duplicate check maintained at the ‘BranchParameters Maintenance’ screen and the duplication preferencesset at the product level. The system displays the duplicate contractreference number if there is a single match else it displays the overridemessage as ‘Duplicate Contracts recognized based on the productpreference’

You can view all the duplicate contracts in the ‘DuplicationDetails’ screen. Click ‘Duplication Details’ buttonin the ‘Fund Transfer Contract Input’ screen to invoke thisscreen.

Here you can viewthe following details:

• Product Type
• Event Sequence Number
• Version number
• Product
• User Reference
• Debit Value Date
• Credit value Date
• Credit Currency
• Credit Amount
• Debit Account Branch
• Debit Currrency
• Debit Amount
• Payment Details

Note

Duplication check is done based on the followingcriteria:

• Number of days that are maintained for duplicate check at the ‘BranchParameters Maintenance’ screen.
• Duplication recognition that is selected at ‘Funds TransferProduct Definition’ screen.
• The duplication details are persistent and can be viewed by the authorizertoo.
• If duplication details are not maintained at branch level for FundsTransfer, no du­plicate checks will be carried out.

5.19 Generation of MT 210 for Funds Transfer Contract

If a nostro account is being debited during the posting of accountingentries in a funds transfer contract, a Notice to Receive message (MT210) is generated by default, if this preference is indicated in thenostro account profile, in the Customer Account Maintenance screen.

If applicable, the MT 210 message will be generated whenever the nostroaccount is debited, except in the following circ*mstances:

• In the case of a funds transfer contract created due to an incomingSWIFT message, in which the Sender BIC is the Nostro Agent.
• When the nostro account is being debited when accounting entriesare being passed due to a back valued funds transfer contract, for whichthe value date is earlier than the system application date of the logged-inbranch.
• In the case of a funds transfer contract involving the nostro account,which was created due to an incoming SWIFT payment message that is mappedwith a corresponding incoming SWIFT cover message (MT 202)

When you enter a funds transfer contract, with the nostro accountas the debit account, the MT 210 specification made for the account isdefaulted to the contract. You can change this specification when youare entering the contract. If you do so, the specification made whenyou enter the contract is considered instead of the specification atthe account level. Also, an override is sought if you make any changesto this preference, which must be confirmed when the authorizer of thecontract verifies the contract.

You can view this information in the Settlements Screen, in the PaymentMessage Generation checkbox field.

5.20 Generation of MT900 and 910

Oracle FLEXCUBE generates the confirmation SWIFT messages MT900 andMT910 to be sent to owners of accounts that have been debited or crediteddue to any transaction. The MT900 is a debit confirmation message, andthe MT910, a credit confirmation message. The necessary informationin each field of the SWIFT messages is picked up from the contract settlementfield information. The SWIFT address of the customer is used for thegeneration of the debit or credit advices.

Whenever the system receives MT910, the message is verified againstfield 21 to match whether it can be taken as a cover message for a paymentmessage. In case the system finds a match, the message is taken as acover message and the payment message is processed. In case a match isnot found, the system marks the MT910 for repair.

5.21 Checks for Generation of MT103+ Messages

Upon authorization of an outgoing FT contract, Oracle FLEXCUBE generatesthe applicable MT103 message in the MT103+ format, if the MT103+ optionhas been enabled as follows:

• In the Product Preferences for the FT product used by the contract
• In the Branch Parameters for the branch at which the contract hasbeen put through
• In the BIC Code Maintenance for the counterparty of the contract
• In the Currency Definition for the account currency of the contract

The MT103 payment message is generated in MT103+ format if:

• The generation of MT 103+ has been enforced at all the levels mentionedabove, as well as if,
• All checks in respect of MT 103+ message generation (mentioned below)are successful during input

If MT 103+ has not been enforced for the branch, currency and BICcode, the MT103 payment message is generated in the original MT103 format,that is, without the code ‘STP’ in field 119 in the thirdblock of the message.

If MT 103+ has not been enforced for the product, an override is sought,and the message is displayed as ‘'103P format not enforced forthe product. Do you still want to generate message in 103p?’

If you confirm the override by clicking OK, the MT 103 message isgenerated in MT 103+ format. If you reject the override by clicking Cancel,the MT 103 message is generated in the original MT 103 format.

Checks for MT103+ format

The following checks are performed by the system for the generationof MT 103 messages in the MT 103+ format:

• Field 23E (Instruction Code) must only contain the codes CORT, INTC,SDVA and REPA
• Field 51A (Sending Institution) is not required
• Fields 52, (Ordering Institution) 54, (Receiver’s Correspondent)55, (Third Reimbursem*nt Institution) 56 (Intermediary Institution) and57 (Account With Institution) should be in format option A
• Field 53 (Sender’s Correspondent) should only be in formatoption A or B
• If field 53a is in format option B, party identifier must be used
• The sub-field 1 (Account) of either field 59 or 59A (BeneficiaryCustomer) is always mandatory
• In Field 72 (Sender to Receiver Information), the code INS must befollowed by a valid BIC
• In Field 72, the codes ACC, INS, INT, REC, REJT and RETN can be used
• Field 72 must not include ERI information
• Field 77T (Envelope Contents) is not required

In addition to these checks, for outgoing MT103/ MT103+ messages beinggenerated in response to incoming MT103/MT103+ messages, the fields 33B(Currency/Original Ordered Amount) and 36 (Exchange Rate) should havebeen unchanged through the transaction chain. When such contracts arebeing uploaded or entered, the instructed amount, instructed currency,and exchange rate are picked up from the contract settlement detailsduring outgoing MT103/MT103+ message generation, and populated in fields33B and 36.

The following tags in MT 103 message will support a clearing code‘PL’:

• 52A, 52D
• 56A, 56C, 56D
• 57A, 57C, 57D

MT 103+ message type will support 52A, 56A and 57A tags:

The details of these messages will be stored in data store and willbe used during message validation.

Generation of RTGS Messages

For FIN Y-Copy messages, the system validates whether it is a paymentmessage alone or payment + cover message. If it is a payment message,then the system will generate it as a FIN Y-copy payment message. Ifit is a payment + cover message, then the cover message alone will begenerated as a FIN Y-copy message.

The following message generation logic will be used for FIN Y-copymessages:

• The service identifier gets defaulted from the clearing network maintenanceas part of message generation and updated in field 103 of header 3.
• Field 113 in header 3 will be defaulted based on banking priorityand sender notification required field.
• The receiver of the message will be changed and defaulted with theIntermediary, (if not present, the Account with Institution (AWI) andif the AWI is not present the receiver itself). This will be applicableonly for Pay message. For Pay + cover message, the pay message receiverremains the same, while the cover message receiver will be modified anddefaulted with the receivers correspondent.
  If the receiver arrived at from the above logic, happens to be an in-directparticipant of the RTGS network, then its direct participant would bepopulated
• If the message is being sent to a TARGET1 participant, then field52 will get defaulted. TARGET1 participant will be identified if theaddressee field in clearing directory matches with TARGET1 ADDRESSEEin system static data maintenance (CSTB_PARAM).
• At the time of message generation for Direct Debits (MT204), if thedebit institution is an indirect participant then it will default itsdirect participant as the receiver. Otherwise, it will default the debitinstitution itself as the receiver.

Following are the message types for RTGS:

Checks for Generation of MT201 Messages

• The BIC code of the Debit Account and the BIC code of the CreditAccount should be different
• Debit Account currency and Credit Account Currency should be thesame.

There should not be multiple account relationship with the AWI inthe currency of transfer.

The following are the consolidation criteria’s while generatingMT201 messages:

• Value Date
• Transaction currency
• Receiver
• Credit Account

5.22 Currency Cut-off Checks for Funds Transfer Transac­tion

If currency cut-off checks are applicable for the transaction, asspecified in the preferences for the product that the transaction involves,they will be performed when you save the transaction.

The value date of the transaction is validated against the cut-offdays and cut-off time specified for the product, currency and customerinvolved in the transaction.

The checks are applied as follows:

1. Oracle FLEXCUBE checks to see if cut-off parameters havebeen maintained in the Value Dated Spread maintenance for the customerinvolved in the transaction, the product for the transaction and thecurrency of the transaction. If so, the parameters maintained for thecombination are applied to the transaction.
2. If no cut-off parameters have been maintained in the ValueDated Spread maintenance for the specific customer, product and currencycombination, Oracle FLEXCUBE checks to see if cut-off parameters havebeen maintained for the product and currency, for all customers. Ifso, the parameters maintained for the combination are applied to thetransaction.
3. If no cut-off parameters have been maintained either forthe specific customer or all customers, for the product and currencycombination, the cut-off parameters maintained in the Currency Definitionfor the currency involved in the transaction are applied.

If a transaction fails any of the currency cut-off checks, the systemdisplays a warning message informing you of the same.

You can then adopt either of the following courses of action:

• ‘Force’ the transaction for processing, without changingthe value date (this is allowed only for transactions that are uploadedby the STP function)
• Change the value date and save the transaction again

If you force the transaction without changing the value date, an overrideis given at authorization, to the user that authorizes the transaction. If the override has been configured to be an error, the transactionwould be rejected, and an appropriate reason for rejection would be soughtfrom the authorizer. If the override has been configured to be a warningmessage, the authorizer can authorize the transaction.

If you choose to change the value date, the currency cut-off checkswill be performed again, based on the new value date.

5.22.1 Exceptions for Currency Cut-off Checks

The currency cut-off checks, if applicable according to the productpreferences, are performed for all transactions involving the product,and the currency, except in the following circ*mstances:

• If the transaction is a future valued transaction. A future valuedtransaction is one for which the value date is after the Oracle FLEXCUBEapplication date, and is arrived at as follows:

Value Date = Oracle FLEXCUBE Application Date + Transfer CurrencySpot Days.

If the Currency Cut off Time is exceeded, then, the Value date isarrived at, will be incremented by one working day.

The system marks the status of all such future valued transactionsas ‘pending release’, and defers the currency cut-off checksin respect of them. The checks will subsequently be performed on thevalue date.

• If both debit and credit accounts involved in the funds transfertransaction are internal GL’s.

Future valued transactions can be invoked, authorized and force-releasedby a user with appropriate rights, other than the one that entered itinto the system.

5.23 Funds Transfers with Blacklisted BIC Codes

This section contains the following topics:

• Section 5.23.1, "Funds Transfer Transactions with BlacklistedBIC Codes"
• Section 5.23.2, "Authorizing Funds Transfer Transactionwith Blacklisted BIC Codes"
• Section 5.23.3, "Processing Uploaded PaymentTransactions with Blacklisted BIC Codes"

5.23.1 Funds Transfer Transactions with Blacklisted BICCodes

If a SWIFT BIC Code identifying a bank or a financial institutionhas been blacklisted (as specified in the BIC Code Details), an overrideis sought when a funds transfer transaction is entered which involvesany of these blacklisted codes in the party information.

The system checks for blacklisted codes when you specify any of thefollowing parties in a funds transfer settlement:

• Ordering Customer
• Ultimate Beneficiary
• Beneficiary Institution
• Ordering Institution
• Intermediary
• Intermediary Reimbursem*nt Institution
• Receiver’s Correspondent
• Account With Institution

If you specify a blacklisted BIC code in the party information, youwill be prompted for an override:

• If the override is configured as an error, you will not be able toproceed with entering the transaction, till you have changed your specificationand specified a non-blacklisted code.
• If the override is configured as a warning, you will be able to proceedwith entering the transaction, but an error is logged into the database,that a blacklisted code has been specified as part of the party information.
• If the sensitivity assigned to the override is ‘Ignore’,you will be able to proceed with entering the transaction, and no erroris logged into the database regarding the blacklisted code.

5.23.2 Authorizing Funds Transfer Transaction with BlacklistedBIC Codes

If a blacklisted code has been specified for a transaction, the authorizerof the transaction can view the same at the time of authorization. Allthe blacklisted codes specified for the transaction are displayed tothe authorizer as part of the transaction details.

At this stage, the authorizer can choose to proceed with the authorizationdespite the blacklisted codes. If so, an override is sought from theauthorizer, and the authorization can only proceed if the sensitivityof the override is configured as ‘Warning’. If the overrideis configured as an ‘Error’, the authorizer cannot authorizethe transaction.

5.23.3 Processing Uploaded Payment Transactions with BlacklistedBIC Codes

At the time of uploading payment transactions through the upload gatewaytables, if the STP process encounters transactions involving SWIFT BICcodes (in the fields containing party information) that have been blocked,the system will display an error message.

The STP will check for blocked BIC codes in following fields of apayment transaction that is being uploaded:

• Field 53A
• Field 58A (Beneficiary Institution)
• Field 52A (Ordering Institution)
• Field 56A (Intermediary)
• Field 54A (Receiver’s Correspondent)
• Field 57A (Account with Institution)

If the STP process detects a blocked BIC code in any of the aboveparty details, you will be prompted with an override:

• If the override is configured as an error, the STP process will rejectthe payment transaction that is being uploaded.
• If the override is configured as a warning, the STP will log theerror and proceed with the upload process.

5.24 Operations that you can perform on contracts

You can perform the following operations on a contract:

• Copy a contract
• Amend a contract
• Delete a contract
• Reverse a contract
• Authorize a contract
• Liquidate a contract
• Print the details of a contract
• View contract details
• Place a contract on hold

Refer to the User Manual on Common Procedures, as well as the section‘Verifying and authorizing a funds transfer transaction’,later in this chapter, for details of these operations.

5.25 View Different Versions of Contract

When you enter a contract, it is allotted the version number 1. Fromthen on each amendment results in the next version of the contract beingcreated. When you come to the Detailed View screen of a contract, thelatest version will be displayed. To navigate between the various versionsuse the arrows to move to the previous version and to the next version.

This section contains the following topics:

• Section 5.25.1, "Verifying and Authorizing FundsTransfer Transaction"
• Section 5.25.2, "Viewing Transaction to be Authorized"
• Section 5.25.3, "Specifying Details in RekeyFields"
• Section 5.25.4, "Verifying Transaction"
• Section 5.25.5, "Rejecting Transaction"
• Section 5.25.6, "Amending Transaction that has‘failed verification’"
• Section 5.25.7, "Deleting Transaction that has‘failed verification’"
• Section 5.25.8, "Authorizing Verified Transaction"

5.25.1 Verifying and Authorizing Funds Transfer Transaction

Every funds transfer transaction that you enter manually must be verifiedand authorized. Only a user who has appropriate rights can perform theverification and authorization functions. Such a user is called an authorizer.

You can invoke the ‘Funds Transfer Contract Authorization’screen by typing ‘FTDTRAUT’ in the field at the top right cornerof the Application tool bar and clicking the adjoining arrow button.

Before a transaction is authorized, it must be verified. Verificationis the process of checking the details of the transaction and ensuringtheir correctness. If any of the details are incorrect, the transactioncould either be amended or rejected by the authorizer. After verification,the transaction can be authorized, or rejected, as is deemed necessary.

You can use the FT Contract Authorization screen to verify and authorizea funds transfer contract that has been entered manually through theFT Contract Online screen.

5.25.2 Viewing Transaction to be Authorized

To verify a transaction, you must first display its details in theFT Contract Authorization screen. To do so, you must:

1. Select the Contract Reference Number assigned to the contractby Oracle FLEXCUBE, in the Contract Ref No field
2. Specify the appropriate values for the rekey fields designatedin the preferences for the product that the transaction involves

If you key in an incorrect value for any of the rekey fields, youcannot proceed with the verification and authorization process. You willnot be able to navigate out of the rekey field for which you specifiedan incorrect value.

When you have specified the correct values for the rekey fields, thetransaction details are displayed in the Contract Authorization screen.

5.25.3 Specifying Details in Rekey Fields

The system displays the default values in the following fields. However,you can modify them.

• Transfer Currency
• Transfer Amount
• Value Date
• Credit Account
• Debit Account
• Reject Reason

To view the joint holder’s details of an account and the modeof operation maintained at the account level, place the cursor on theDebit Account or Credit Account field and press Ctrl+J. The system displaysthe ‘Joint Holder’ screen.

For more information on the ‘Joint Holder’ screenrefer to the section ‘Joint Holder Maintenance’ in the CoreUser Manual.

Generate Message

You can control the generation of payment messages for events at thecontract level by checking or un-checking this option. By default, thischeckbox is unchecked. However, you can check this box to generate paymentmessages for contracts upon authorization.

5.25.4 Verifying Transaction

After you have displayed the details of the transaction in the FTContract Authorization screen, you can verify the displayed details toensure their correctness.

The contract will be displayed in view mode in the ‘FT ContractOnline’ screen if invoked from the authorization screen.

5.25.5 Rejecting Transaction

During verification, if any details are found to be incorrect, youcan reject the transaction. You must specify your reasons for rejection,as mandatory information.

If you wish to reject the transaction, click ‘Reject’button in the Contract Authorization screen.

A rejected transaction is marked for repair by the system, with thereasons for rejection you have specified. Such a transaction is markedas one that has ‘failed verification’.

Any user with appropriate ‘amend’ or ‘delete’rights can retrieve a transaction that has ‘failed verification’in the Funds Transfer Summary screen, and make changes to it, or deleteit.

Oracle FLEXCUBE maintains an audit log of transactions that are rejected. The following details are stored for each rejected transaction:

• User ID of the authorizer who rejected the transaction
• Date on which the transaction was rejected, with the time stamp
• Reason for rejection

5.25.6 Amending Transaction that has ‘failed verification’

To recall, any user with appropriate ‘amend’ rights canretrieve a transaction that has ‘failed verification’ inthe Funds Transfer Summary screen, and make changes to it.

5.25.7 Deleting Transaction that has ‘failed verification’

A user with appropriate ‘delete’ rights can retrieve atransaction that has ‘failed verification’ in the Funds TransferSummary screen, and delete it. Oracle FLEXCUBE records the followingdetails as part of the audit trail when a ‘failed verification’transaction is deleted:

• Transaction Reference Number of the deleted transaction
• User ID of the user who deleted the transaction
• Date on which the transaction was deleted, with the time stamp

These details can be found in the SMS Exception Report

5.25.8 Authorizing Verified Transaction

If the details of a transaction are found to be correct in all respectsduring verification, you can authorize it. Use the ‘Authorize’button in the FT Contract Authorization screen to perform the authorization. This is considered to be the final authorization for the transaction.

Note

At any point during the verification and authorizationprocess, you can cancel the entire operation without affecting the statusof the transaction. Close the window to cancel the operation.

You cannot authorise a contract in the following cases:

• the contract has multilevel of authorization pending, the same willbe done using the ‘Multilevel Authorization Detailed’ screen
• the level of authorization is greater than or equal to ‘N’
• the ‘Nth’ or the final level of the users authorisationlimit is less than the difference between amount financed and sum ofthe limits of all the users involved in authorizing a transaction, thiscase holds good when the ‘Cumulative’ field is checked inthe ‘Product Transaction Limits Maintenance’ screen
• the transaction amount is greater than the authoriser’s authorisationlimit if the ‘Cumulative’ field is unchecked in the ‘ProductTransaction Limits Maintenance’ screen

5.26 Multi-level Authorization of a Contract

High value contracts may require multilevel of authorization. Thelevels of authorizations are defined in the ‘Product TransactionLimits’ screen. You can use the ‘Multilevel AuthorizationDetailed’ screen for authoring a contract n-1 times.

However, final authorization can take place only in the contract screen.

For more details, refer the ‘Multilevel Authorizationof Contract/Loan Account’ section in the ‘Procedures’User Manual.

5.27 Transaction Queues (Transaction Status) Manage­ment

The status of a funds transfer transaction (which appears in the rightbottom of the FT contract screen) indicates the stage in the processingcycle in which the transaction currently stands. The status also indicatesthe operations that are possible on a funds transfer transaction withrespect to its processing. This is distinct from the ‘ContractStatus’ which can be any of Y, A, L, V or H (standing for yet tobe Initiated, Active, Liquidated, Reversed and Hold).

Funds transfer transactions that have been entered manually can bein any of the following (process) statuses:

• Processed (Liquidated)
• Cancelled
• Suppressed
• Funding Exception
• Pending Release
• Pending Authorization
• Failed Verification
• Hold

The table below explains the operations that are possible on a fundstransfer transaction when it is in any of the states listed above:

To view a summary of funds transfer transactions queues, use the PaymentTransactions User Summary screen.

The following details are displayed for each transaction in a queue:

• Contract and Authorization Status
• Contract (Processing status)
• Contract Ref No
• Debit account, currency, value date and amount
• Credit account, currency, value date and amount

5.28 Summary Dash Board for Funds Transfer Transac­tions

To view a summary of funds transfer transactions that has been sortedaccording to status queues, you can also use the Dash Board Summary screen.In this screen, the following details are displayed for each type ofqueue:

• The name of each process queue or status
• The time stamp corresponding to the last action performed for thequeue
• Number of Outstanding Items in a Queue
• The Inbound Message Count (this is the number of inbound SWIFT messagesreceived on the application date after the Beginning of Day Run)
• The time when the Summary Dash Board Information was last refreshed

You can invoke the ‘Dash Board Summary’ screen by typing‘FTDDSHBD’ in the field at the top right cornerof the Application tool bar and clicking the adjoining arrow button.

Choosing the transaction currency

Choose to view the transaction queues summary for any transactioncurrency, or for all currencies.

Choosing the transaction type

To view transaction status queues for manually entered funds transferschose ‘Manual’ in the ‘Manual/STP’ field. Toview transaction status queues for funds transfers uploaded through theSTP function chose ‘STP’ in the ‘Manual/STP’field. To view both types, choose ‘Both’. When you choose,all transaction queues pertaining to the type selected are displayedon the screen.

Viewing Transaction Summaries

To view the transaction summary for each transaction queue for manuallyentered transactions, click ‘Payment’ button. The FT Summaryscreen is opened, with transaction-wise details.

To view the transaction summary for each transaction queue for STPtransactions, click ‘Message’ button. The Incoming Browseris displayed.

Refreshing the Dash Board Information

Refresh the information displayed in the Dash Board by clicking onthe ‘Refresh’ button in the Dash Board Summary screen.

5.29 Examples on how to Enter Details of FT Contracts

We shall now venture into actually entering an FT Contract using OracleFLEXCUBE.

This section contains the following topics:

• Section 5.29.1, "Outgoing Customer Transfer"
• Section 5.29.2, "Outgoing Bank Transfer for OwnAccount"

5.29.1 Outgoing Customer Transfer

Let us assume that Silas Reed, a customer of your bank (American Bank)requests you to effect a transfer on his behalf for 1000 £ fromhis USD account (AS1302614) on 03-01-2000 (the value date), to WendyKlien’s account with Chasebank London as a birthday gift. You willhave to effect an outgoing transfer as funds are going out from yourbank. You are initiating the transfer on behalf of your customer thereforean MT 100 will be generated as it is a customer transfer.

In order to enter the details of this contract quickly onto the FTcontract screens we shall link this contract to a product that you havealready created, which caters to outgoing customer transfers. Assumethat you had assigned a product code FOCT to the product. So at the productprompt choose FOCT. The system will automatically generate a referencenumber for the contract; you can specify a reference number of your choiceat the User Reference Number prompt. Based on the product you have linkedthis contract to, the product type is defaulted in the Product type field.In this case it will be Outgoing.

Therefore the debit currency is USD and the credit currency is GBP.Since your customer wishes to transfer 1000 £, enter 1,000.00 atthe Credit Amount field. Since we have not checked against the ‘AfterRate refresh’ field, the standard rate you specified for the currencypair (here USD-GBP) in the Currency table will be applied to the 1000£.This exchange rate will be displayed in the Exchange Rate field (1.4000000).Based on the exchange rate the system automatically computes the equivalentof 1000 £ in USD (1,400.00 USD). This amount will be displayed inthe Debit Amount field.

Therefore you will have to credit the Nostro account of ChasebankLondon with 1,400.00 USD and credit the account of Silas Reed (AS1302614)for 1000 £ in the Debit account field.

We shall specify that the rates to be applied to the transfer amountare to be picked up as of the Value date and that Messages are to begenerated as of Value date.

The value date for the contract is 03-JAN-2000. Based on the Spotdate you specified for the USD, the value date will be defaulted. Forour example assume that the Spot date maintained for USD is 2 days. Thereforethe Value date is 05-JAN-2000.

Since the transfer is not effected through a Managers check or a Check,you need not enter anything in these fields, as they are not applicableto the transfer you are entering.

For the charges incurred to effect the transfer, let us charge theRemitter (Silas Reed). Therefore you will have to choose Remitter OurCharge in the Charge Bearer field.

Under Payment Details you can specify information that Silas Reedwould like to send to Wendy Klien, as to the reason of the payment. Inthis case you can specify Birthday Gift in this field.

In the By Order of Field you can specify the name and address of SilasReed, who is the ordering Customer. At Ultimate Beneficiary Details youcan specify the name and address of Wendy Klien (the Ultimate Beneficiaryof the transfer).

A screen depicting the entries that you will have to make, on theFT Contract screens to effect this transfer successfully, has been capturedbelow:

Earlier we had specified that the Rates and Message as of to be Valuedate. Therefore the rates to be applied to the transfer amount will beapplied on 05-JAN-00, and an MT 100 (payment order) from American Bank,NY, will be sent to Chasebank, London, on 05-JAN-00.

Viewing the Settlement Route of the transfer

In the Settlement Route screen you can view the route that the transferwill take before it actually reaches Wendy Klien. In our case AmericanBank has a Correspondent relationship with Chasebank, London. Thereforefunds will pass from the account of Silas Reed (the ordering Customer)with American Bank, NY, to Chasebank, London. Chasebank will in turncredit the account of Wendy Klien.

Specifying Settlement Details for the transfer

So far, we have discussed the basic information about a transfer,which is captured through the Funds Transfer Contract Details screen.Click ‘Settlement’ button to invoke the settlement screen.

SpecifyingAccount Details for the transfer

The details of the two accounts, involved in the transfer will bedisplayed. In our example Silas Reed bears the charges incurred to effectthe transfer. Therefore Silas Reed’s account together with thecurrency of the account to be debited for charges will be displayed.Here you can view details for each component item applicable to thistransfer.

Verifying signatures online

You can choose to verify customer signatures while you are processinga debit transaction involving a customer account. You can also chooseto verify signatures while initiating a DD, a telegraphic transfer, ora Charge payment. Click ‘Signature Verification’ button inthe ‘Settlement Details – Account Details’ screen.The Signature Verification screen will be displayed.

In this screenall the relevant details pertaining to the particular account signatorywill be displayed. You can verify the account signatory details you havereceived against the details available in the instrument.

Specifying Message Details for a transfer

We shall settle this contract by means of a message. Therefore clickon the radio button next to Message. The payment message you specifiedon the Contract Main screen will be defaulted here.

Since the funds in our example move from the account of Silas Reed(a non-financial institution) with American Bank, NY, to the accountof Wendy Klien (a non-financial institution) with Chasebank, London;it is a customer transfer. Therefore an MT 103 (Payment Order) will begenerated.

Specifying Party details for the transfer

You have two tabs to specify the parties’ details. You can specifythe name and address of the following parties in these screens.

• Intermediary Reimbursem*nt Institution
• Intermediary
• Receiver Correspondent
• Account with Institution
• Ordering Institution
• Beneficiary Institution
• Ordering Customer
• Ultimate Beneficiary

Cover Parties

Specify the local clearing external counterparty details, such asthe counterparty name and account details etc. You need to specify thisif a cover is required for the contract.

Other Details

The system displays the default details as mentioned in the settlementinstruction maintained for the customer, currency, product and modulecombination. The details specified in the respective fields are usedin the message MT103.

Specifying the tax applicable for the transfer

Now in order to specify the tax that is applicable to the contractwe you are entering click ‘Tax’ button on the Contract Mainscreen. Here, the tax specifications you made for the product to whichthis contract is linked will be defaulted. You can waive the tax to belevied on the transfer amount. To do so, click against the box next toWaive All.

Specifying the charges that are to be collected toeffect the transfer

Click ‘Tax’ button in the Funds Transfer Contract Inputscreen to specify the charges and fees that are applicable to the transfer.Here, all the details of the charges applicable to the transfer you haveentered are displayed. You can choose to waive them or charge Silas Reedfor them.

You can choose to waive the charge levied on the component. Checkagainst the Waiver option for COMPST. The specified tax will be waived.

After you have defined all, the relevant details of the transfer youcan save it either by Selecting ‘Save’ from the Actions menuin the Application tool bar or clicking save icon.

5.29.1.1 Bank Transfer

The Aragones Bank requests Edward Fowles Bank, London to transferUSD 10000 to the account of beneficiary institution Noble Financial Serviceswith Anton Miller Bank, London. The transfer is to be made effectiveon 3rd June 2001.

Edward Fowles Bank has a correspondent relationship with Anton MillerBank, London, and therefore, no cover is required for the funds transfermessage.

The charges are to be borne by Aragones Bank. A Payment Order, MT100 must be generated on the value date of the contract, from EdwardFowles Bank London, to Anton Miller Bank, London.

The parties involved are as follows:

Your specifications in the Funds Transfer Input Screen would be asfollows:

Your specifications in the Settlement Message Details screen wouldbe as follows:

Message Details tab

The first Parties tab:

The second Parties tab:

5.29.1.2 Outgoing Customer Transfer withCover

Mr. Albert Williams asks Fina Bank, London to transfer USD 10000 tothe account of Mr. Alfred Werker with Gemm Bank, London. Fina Bank, Londondoes not have an accounting relationship with Gemm Bank. Therefore,it will route the payment through CSN Global Bank, London.

The transfer is to be made effective on 22nd September 2001. Thecharges are to be borne by the beneficiary.

An MT 103 will be generated as on the value date, from Fina Bank,London, to Gemm Bank, London. Also, a cover message will be sent toCSN Global Bank London, as on the value date.

The parties involved are as follows:

Your specifications in the Funds Transfer Input Screen would be asfollows:

In the Settlement Route tab, you can view the Sender’s Correspondent(CSN Global Bank) in the Our Correspondent field.

Your specifications in the Settlement Message Details screen wouldbe as follows:

Message Details tab:

The first Parties tab:

The second Parties tab:

The Cover Parties tab:

5.29.2 Outgoing Bank Transfer for Own Account

Barclays Bank, London holds the nostro account with Chase bank, Manhattanand Citi Bank, New Jersey. It wants to transfer USD 100000 from ChaseManhattan’s account to Citi Bank in New Jersey. The transfer isto be made effective on 15th December, 2001.

So, in order to process this transfer, Barclays Bank credits ChaseManhattan’s replicated account in its books and debits Citi Bank’sreplicated account in its books. In the same process it sends out anOutgoing MT 200 to Chase Manhattan Bank.

When Chase Manhattan Bank receives the Incoming MT 200 from BarclaysLondon, it debits the nostro of Barclays London and sends out an MT 202to Citi Bank, New Jersey.

Also Citi Bank, New Jersey will receive an MT 210 (Receive Notice).

The parties involved in the contract are as follows:

Your specifications in the Funds Transfer Input Screen would be asfollows:

Your specifications in the Settlement Message Details screen wouldbe as follows:

The first Parties tab:

The second Parties tab:

5.29.2.1 Incoming Customer Transfer

Mrs. Catherine Crenshaw asks Fina Bank, London to transfer USD 10000to the account of Mrs. Wendy Klein with Gemm Bank, London. At Gemm Bank,this is an incoming transfer and the bank receives an incoming messagefrom Fina Bank for the same.

The transfer is to be made effective on 15th December, 2001. Thecharges are to be borne by the beneficiary.

Gemm Bank receives an MT 103 from Fina Bank, as on the value dateof the contract. Gemm Bank also receives an MT 202, for transfer withcover.

The parties involved in the contract are as follows:

Your specifications in the Funds Transfer Input Screen would be asfollows:

Your specifications in the Settlement Message Details screen wouldbe as follows:

Message Details tab:

The first Parties tab:

The second Parties tab:

5.30 Authorize Bulk FT Contracts

This section contains the following topics:

• Section 5.30.1, "Authorizing Bulk FT Contracts"
• Section 5.30.2, "Indicating Ignore Overrides"
• Section 5.30.3, "Indicating Generate Messages"
• Section 5.30.4, "Authorizing Contracts"
• Section 5.30.5, "Viewing Errors "
• Section 5.30.6, "Viewing Settlement Details "
• Section 5.30.7, "Viewing Contract Details"

5.30.1 Authorizing Bulk FT Contracts

Typically, FT contracts have to be authorized in the respective ContractOnline (Summary) screens. This method of authorizing the contracts canbe quite cumbersome, especially if the volume of transactions is large.In view of this, Oracle FLEXCUBE allows bulk authorization of all unauthorizedFT contracts from the ‘Bulk Authorization Detailed’ screen.

You can invoke the ‘Bulk Authorization Detailed’ screenby typing CSDBLAUD’ in the field at the top right cornerof the Application tool bar and clicking the adjoining arrow button.

Select a module fromthe drop-down list and click ‘Fetch’ button to get the detailsof unauthorized FT contracts.

This screen has the following features:

• You can view all the unauthorized FT contracts through this screen
• You can authorize the contracts in a single action
• The system will authorize only the current branch contracts not createdby you.
• You have the option to ignore the overrides associated with the contractand to specify messages generation associated with the events upon authorization.
• If an error is encountered while authorizing the contract, the systemwill skip that contract and process the next contract.
• For each contract, you can view the error encountered during authorization(if any) using the ‘View Error’ option.
• You can view the contract details of an unauthorized contract throughthis screen.
• You can view the settlement account details for each contract throughthis screen.
• You can query for specific records based on certain criteria

Note

Contracts with mandatory re-key fields would be displayedhere, but without the re-key op­tion being available. Global Interdictcheck would also not be available.

5.30.2 Indicating Ignore Overrides

Indicate whether or not overrides should be ignored during authorizationof the contract. If this option is unchecked, and if there are any overridesfor which confirmation or dual authorization is required, then the contractwill be skipped with an error ‘Overrides not confirmed’ uponauthorization. Otherwise, the contracts will be authorized without generatingerrors.

5.30.3 Indicating Generate Messages

Control the generation of payment messages for events at the contractlevel by checking or unchecking this option. Checking this box will generatepayment messages for contracts upon authorization.

5.30.4 Authorizing Contracts

You can either opt to authorize all the contracts that are displayedor choose only certain contracts for authorization.

• To authorize only specific contracts, check against the boxes positionedbefore each contract reference number.
• If all the contracts that are displayed have to be authorized, checkagainst the box positioned before ‘Contract Ref No’.

After selecting the contracts, click ‘Authorize’ buttonto authorize the contracts.

5.30.5 Viewing Errors

If the system encounters any errors during the authorization of aparticular contract, it will record the error and move on to the nextcontract.

Click the ‘View Error’ button to view the details of theerrors recorded. In this screen, system will display the reference numberof the contracts, which could not be authorized, and the reason for thefailure of the authorization.

5.30.6 Viewing Settlement Details

The settlement account details of each contract will be displayedin the ‘Settlement Instructions section of the Bulk AuthorizationDetailed screen. Click on the contract for which you want to view thesettlement details and it will be displayed in the ‘SettlementInstructions’ section. For each amount tag, the following settlementdetails are displayed:

• Amount Tag
• Tag Currency
• Settlement account currency
• Settlement Branch
• Settlement Account
• Pay Receive Indicator
• Inter Reimbursing Institution
• Receivers Correspondent
• Intermediary
• Account with Institution
• Ordering Institution
• Ordering Customer
• Beneficiary Institution
• Ultimate Beneficiary

Note

The settlement details for the latest event of thecontract are displayed.

5.30.6.1 Fund Asset Management

The settlements processing is enabled only if ‘Allow CorporateAccess’ has been checked while defining branch parameters in theBranch Parameters – Detail View screen.

• If ‘Allow Corporate Access’ is checked for a fund branchand the fund is Portfolio type, then during settlement processing, thesettlement account is chosen based on the settlement instructions maintainedfor the counterparty.
• Even if ‘Allow Corporate Access’ is not checked for afund branch, the system picks up the customer settlement account in theaccounting entries of a Fund Transfer Contract. All other componentsincluding charges will pick up the bank account values maintained forthe fund in the accounting entries.
• If the corporate account exists in a different branch, then the Interbranch account/GL maintenance is used for resolving the bridge account.

5.30.7 Viewing Contract Details

The details of the unauthorized contracts can be viewed by selectingthe contract reference number in this screen.

5.31 Maintaining MT101 Agreements with Ordering Cus­tomer

You can maintain agreements with the ordering customer for MT101 throughthe ‘MT101 Customer Agreements’ screen. You can invoke the‘MT101 Customer Agreements’ screen by typing ‘FTDCXFRA’ in the field at the top right cornerof the Application tool bar and clicking the adjoining arrow button.

You need tocapture the following information in this screen:

Customer Number

Specify the customer number.

Incoming MT101

Select this option if it is incoming MT101.

Outgoing MT101

Select this option if it is outgoing MT101.

Customer Identifier

Here the Instructing Parties authorized to debit Ordering customer’saccount for incoming MT101 is listed.

Ordering Customer Identifier

Here the Party Identifiers for the Ordering customer are listed. Theseidentifiers are used to look up the customer no in an Incoming MT101message.

5.32 MT101 Transaction Input Screen

You can input the details for Outgoing MT101 through the ‘SwiftMT101 Outgoing Maintenance’ screen. You can invoke the ‘SwiftMT101 Outgoing Maintenance’ screen by typing ‘FTDMT101’ in the field at the top right cornerof the Application tool bar and clicking the adjoining arrow button.

You need to capturethe following information in this screen:

Customer Number

Specify the customer number.

Customer Specified Reference

Provide the reference number of the specified customer.

Senders Reference

On pressing the New button system would generate a reference numberwhich would be populated in the Sender’s reference field. Thisreference number would be populated in the outgoing MT101 SWIFT message.

Receiver

Specify the receiver number. This field will be populated based onthe maintenance in ‘Bilateral Agreement’ Screen.

5.32.0.1 Specifying Instructing PartyDetails

Specify the following details for the instructing party

Identifier Code

Specify the identifier code of the instructing party. The option listshows only BEIs.

Party Identifier

Specify the party identifier code.

Requested Execution Date

Specify the requested execution date.

Authorization

Specify the additional security provisions.

For instance a digital signature between the ordering customer/instructingparty and the account servicing financial institution.

5.32.0.2 Specifying Ordering CustomerDetails

Specify the following details for the ordering customer

Account Number

Specify the account number of the ordering customer. The option listshows only BEIs.

Identifier Code

Specify the identifier code of the ordering customer.

Party Identifier

Specify the party identifier of the ordering customer.

Address Line

Specify the address of the ordering customer.

5.32.0.3 Specifying Account ServicingInstitution Details

Specify the following details for the account servicing institution

National Clearing Code

Specify the national clearing code.

BIC Code

Specify the BIC code.

Transaction Reference Number

Specify the reference number of the transaction.

FX Deal Reference Number

Specify the reference number of the deal.

Transaction Currency

Specify the currency used for transaction.

Transaction Amount

Specify the amount of transaction.

Exchange Rate

Specify the exchange rate.

Other Details

Specify the other details in the following screen. To invoke the ‘OtherDetails’ screen click ‘Other Details’ button.

Here you can maintainthe other details for the outgoing MT101.

Click ‘Message’ button to view the SWIFT message generatedin the ‘Messages’ screen.

Click ‘View Message’button the following screen will display the full message.

5.32.1 Viewing FT Contract

You can view the FT contract using ‘Funds Transfer ContractSummary’ screen. To invoke this screen, type ‘FTSTRONL’ in the field at the top right cornerof the Application tool bar and click the adjoining arrow button.

You can click ‘Search’button to view all the pending functions. However, you can to filteryour search based on any of the following criteria:

Authorization Status

Select the authorization status of the contract from the drop-downlist.

Process Status

Select the process status from the drop-down list.

Product

Select the product code from the option list.

Consolidated Account Reference

Select the consolidated reference number from the option list.

Debit Amount

Specify the amount debited.

Credit Amount

Specify the amount credited.

Counterparty

Select the contract amount from the option list..

Contract Status

Select the status of the contract for which you want to check thepending function from the drop-down list.

Reference Number

Select the contract reference number from the option list.

User Reference

Select the user reference number from the option list.

Receiver

Select the receiver from the option list.

Source Code

Select the source from the option list.

Debit Consolidation Reference Number

You can specify the console contract reference number. This is usedfor retrieving the list of contracts for which the corresponding singledebit contract has been created.

Debit Currency

Specify the debit currency.

Credit Currency

Specify the credit currency from the option list.

Source Reference

Select the source reference number from the option list from the optionlist.

Branch

Select the branch code for which you want to check the contract fromthe option list.

When you click ‘Search’ button the records matching thespecified search criteria are displayed. For each record fetched by thesystem based on your query criteria, the following details are displayed:

• Product
• Contract Reference Number
• Event Sequence Number
• Contract Status
• Authorization Status
• Debit Amount
• Transfer Amount
• Debit Currency
• Transfer Currency
• Debit Account
• Credit Account
• Debit Value Date
• Credit Value Date
• FX Contract Reference
• Source Reference
• Source Reference Number
• Receiver
• Ordering Customer
• Ordering Institution
• Account with Institution
• Ultimate Beneficiary
• Consolidated Account Reference Number
• Source Code
• Counterparty
• User Reference
• Branch Code
• Process Status
• Debit Consolidation Reference Number

Click ‘Advanced Search’ to display the screen below:

You can query a contract basedon any of the following details:

• Authorization Status
• Contract Status
• Process Status
• Reference Number
• Product
• Source
• Consolidated Reference
• Debit Currency
• Debit Amount
• Credit Currency
• Credit Amount
• Source Reference
• Counterparty
• Branch