INSTRUCTED, IF OTHERWISE IN ORDER

• Get the record authorised

• Using FT Advices / Messages Sub menu, look at the MT 110 message

• Using Enquiries menu - Today’s FT Transactions sub menu - Foreign Currency Drafts Issued sub menu, look at foreign currency drafts issued today

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Outward remittances - MT 103 Single customer credit transfer

Michael Dell

Our GBP Nostro account with Barclays

London T24 Bank Mr Frank Bishop Instruction Debit advice MT103 Payment

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Input details for Outward Remittance (MT103)

• Outward Remittance (MT103– Single Customer Credit Transfer) sub menu enables to effect an outward remittance by issuing a MT 103 SWIFT advice

• Inputting details is split into 2 sections (tabs / versions) to facilitate Navigation

– All mandatory fields for effecting a transfer are in first section

called Outward Remittance (MT103) while those for sending MT 103 are in second section called MT 103 details

• Filling Outward Remittance (MT103) section is similar to issuing Foreign currency draft, but with additional fields

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Input details for Outward Remittance (MT103)

• BEN.OUR.CHARGES (Charges for in Model Bank) gets a default value of SHA, while other options are BEN and OUR

– Value signifies who will bear the charges – Beneficiary or Our

ordering customer or both in their respective sides

– COMMISSION.FOR field is filled by System as SENDER or

RECEIVER

• COMMISSION.CODE, gets a default value of DEBIT PLUS CHARGES

– Option available to waive or credit less charges also • COMMISSION.TYPE field gets a default value of

OUTREMITCHG now, a FT.COMMISSION.TYPE record already set up

– Instead of allowing the System to calculate the amount, User

can input Currency and Amount of charges

BEN.OUR.CHARGES: The value entered here is used to signify who will be responsible for charges. There are three permissible values - BEN, OUR and SHA.

BEN: All transaction charges are to be borne by the beneficiary customer. OUR: All transaction charges are to be borne by the ordering customer. SHA: Transaction charges on the Sender's side are to be borne by the ordering customer and transaction charges on the Receiver's side are to be borne by the beneficiary customer

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Input details for Outward Remittance (MT103)

• The second section, MT103 details, is meant to record details of SWIFT Message MT103

– Details filled up in previous section, and relevant to SWIFT MT 103

message are automatically defaulted into this section

– Additionally, intermediary bank, if any, can be indicated in this section • SEND.TO.PARTY (SWIFT MT103 Sent to field in Model Bank) is

defaulted with a value of CRCUST to indicate that the message is for remitting Bank

• BK.TO.BK.OUT (Bank to Bank Info) field is used in Tag 72 of MT 103. – Input should begin with a /, and a valid code word pre-defined in

SWIFT.CODE.WORDS and end with /.

– Multivalue field and hence subsequent lines to begin with // • /REC/PLEASE REMIT THE INDICATED AMOUNT VALUE TODAY

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Workshop – 6

• Using Outward Remittances sub menu - Outward Remittance (MT103) sub menu, effect Outward remittance of GBP 10,000 as requested by the Individual Customer opened earlier

– Choose

• Debit account as Savings account of Individual customer in GBP • Credit Account as 23701 BARCLAYS BANK

– Indicate

• Beneficiary as NESTLE U.K

• Bank to bank information as /REC/PLEASE CREDIT AMOUNT VALUE DATE TODAY

• Accept the overrides and get the record authorised

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Inward remittance

• Inward remittance instructions received can also be handled through FT, manually or through suitable interface.

• If interfaced, then, system can create a record in INAU status • This is opposite process of Outward remittance

• These transfers may be received in sending bank’s Vostro account with us or our Nostro account with them

• Hence, two sub menus are available to handle inward remittances

– Inward Remittance thru’ Vostro Accounts – Inward Remittance thru’ Nostro Accounts

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Input details for Inward Remittance thru Vostro Accounts

• There are four mandatory fields – DEBIT.ACCOUNT

• Drop down of Vostro accounts are available for input – DEBIT.CURRENCY

– DEBIT.AMOUNT – CREDIT. ACCOUNT

• Drop down of all accounts are available

• Other fields are optional or get default value

– Commission code of CREDIT LESS CHARGES defaulted • Can be waived or made as DEBIT PLUS CHARGES if so instructed – Commission type INREMITCHG is defaulted

• Can be multivalued to include more pre defined charges from FT.COMMISSION.TYPE or COMMISSION.AMOUNT field can be manually fed with Currency and commission amount

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Workshop – 7

• Using Inward Remittances (thru Vostro Accounts) sub menu – Credit USD 10,000 to the Savings account of Individual

customer in USD

– Choose

• Vostro Account 23779 BANK OF NEWYORK, USD VOSTRO • Currency as USD

– Commit the data and get the record authorised

– Using context sensitive enquiry, look at the accounting entries

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Input details for Inward remittance thru Nostro Accounts

• Similar to Inward remittances through VOSTRO Account

• DEBIT.ACCOUNT field now has a drop down of Nostro accounts • ORDERED.BY field could have a free text or can have any valid

Customer Id

– As it is a multi value field, it can be used to enter details (name

and address) of the Customer who actually originated the transaction

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Workshop – 8

• Using Inward Remittances (thru Nostro Accounts) sub menu – Credit GBP 10,000 to the Savings Account of Individual

Customer in USD

– Choose Nostro Account 23701 BARCLAYS BANK, UK GBP

NOSTRO A/C

– Indicate ordered by customer as Glaxo London and Customer

spread of 0.015

• Commit the data and get the record authorised

– Using context sensitive enquiry, look at the accounting entries

passed

– Using Enquiry menu - Today’s FT transactions sub menu -

Inward remittances sub menu, look at the Inward remittances executed today

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Workshop – 9

• Use Limits menu – Enquiries sub menu – Liab sub menu and view the liabilities vis-à-vis limits granted to your Individual customer.

– Drill down to view details of overdrawal shown in each savings

account

– Observe that Limits were not attached to these savings

accounts and hence, when overrides were approved, System has allowed them and created default limits

• Use Limits menu – Enquiries sub menu – Customer Position sub menu and view the Customer position of your Individual customer

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FT links

FUNDS TRANSFER

Charges and Commission Currency Limits Delivery Accounting Account - Account Drafts Remittances Customer Customer Accounts

Profit & Loss Internal Accounts

In Funds transfer, account to account transfer or issue of drafts or making remittances are carried out.

Next to Customer, Account is central to all other applications in T24. We have used different types of Customer accounts including Nostro and Vostro. FT can make use of Internal accounts and PL categories also

We have used Internal accounts for Issuing drafts.

As soon as a transaction is committed in FT, System checks for account balances, limit if any sanctioned and availability thereof, and if need be, shows overrides about non availability of adequate balances.

If override is duly approved, then over drawal in account is allowed. However, it maintains details of amount overdrawn.

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Summary

• You have gained understanding of some important features of Funds Transfer application.

• You have seen how to this application is integrated with – Core - Customer, Account, Limits, Delivery, Accounting and – Other static tables like CURRENCY

In document 7. Funds Transfer (Page 33-59)