sfms - guidelines

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INTRODUCTION: ....................................................................................................................... 3

1. CUSTOMER FUNDS TRANSFERS ................................................................................... 5

1.1. CUSTOMER TTS/MTS. ......................................................................................................... 51.1.1. IMMEDIATE APPLICATION OF FUNDS AND USE OF TRADITIONAL MEANS OF RECONCILIATION.

(IFN 100)............................................................................................................................. 51.1.2. IMMEDIATE APPLICATION OF FUNDS AND USE OF IFN MESSAGES FOR RECONCILIATION. (IFN

100, 900 & 910)........................................................... ERROR! BOOKMARK NOT DEFINED.1.1.3. RECONCILIATION OF MESSAGES WHILE APPLYING FUNDS................................................. 101.1.3.1. Direct Method ............................................................................................................... 101.1.3.1.1. Reconciliation of TT Message using IFN 910/900 & 195/196 messages ................. 111.1.3.1.2. Reconciliation of TT Message using IFN 910 & 195/196 messages......................... 141.1.3.2. Indirect Method:............................................................................................................ 161.2. MULTIPLE CUSTOMER TTS/MTS. ..................................................................................... 191.2.1. IMMEDIATE APPLICATION OF FUNDS AND USE OF TRADITIONAL MEANS OF RECONCILIATION.

(IFN 102)........................................................................................................................... 191.2.2. IMMEDIATE APPLICATION OF FUNDS AND USE OF IFN MESSAGES FOR RECONCILIATION. (IFN

102, 900 & 910)................................................................................................................. 221.2.3. RECONCILIATION OF MESSAGES WHILE APPLYING FUNDS................................................. 251.2.3.1. Direct Method ............................................................................................................... 251.2.3.1.1. RECONCILIATION OF MESSAGES WHILE APPLYING FUNDS (IFN 102, 195, 196, 900 &

910) ................................................................................................................................... 251.2.3.1.2. Reconciliation of TT Message using IFN 910 & 195/196 messages......................... 281.2.3.2. Indirect Method:............................................................................................................ 311.3. CUSTOMER REQUEST FOR TRANSFER OF FUNDS. ............................................................. 351.3.1. TRANSFER IS FOR CREDIT OF A SINGLE BENEFICIARY WHO ALSO BANKS WITH THE RECEIVER

OF THE MESSAGE. (IFN 101) .............................................................................................. 351.3.2. TRANSFER IS FOR CREDIT OF MULTIPLE BENEFICIARIES WHO ALSO BANK WITH THE BRANCH

TO WHICH THE IFN 101 MESSAGE IS ADDRESSED. .............................................................. 371.3.3. TRANSFER IS FOR CREDIT OF A SINGLE BENEFICIARY WHO BANKS WITH ANOTHER BRANCH

OF THE SAME BANK. (IFN 101, 100, 900 & 910) ................................................................ 401.3.4. TRANSFER IS FOR CREDIT OF MULTIPLE BENEFICIARIES WHO BANK WITH OTHER BRANCHES

OF THE BANK. (IFN 100, 101, 102, 900 & 910) .................................................................. 431.3.5. TRANSFER IS FOR CREDIT OF A SINGLE BENEFICIARY WHO BANKS WITH ANOTHER BANK’S

BRANCH IN THE SAME ENTER AS THE BRANCH TO WHICH THE MESSAGE IS ADDRESSED. (IFN101) ................................................................................................................................... 48

1.3.6. TRANSFER IS FOR CREDIT OF MULTIPLE BENEFICIARIES WHO BANK WITH OTHER BANKS’BRANCHES IN THE SAME ENTER AS THE BRANCH TO WHICH THE MESSAGE IS ADDRESSED.(IFN 101)........................................................................................................................... 50

1.4. THIRD PARTY INSTRUCTION OR REQUEST FOR DEBIT OF CUSTOMER’S ACCOUNT. (IFN104) ..................................................................................................................................... 52

1.5. DD RELATED MESSAGES. .................................................................................................. 531.5.1. DD ADVICES. (IFN 110) ................................................................................................... 531.5.2. DD STOP PAYMENT REQUESTS. (IFN 111) ....................................................................... 54

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1.5.3. REPLIES TO DD STOP PAYMENT REQUESTS. (IFN 112) .................................................... 54

2. INTER-BRANCH MESSAGES INVOLVING INTRA-BANK AND INTER-BANKTRANSFER OF FUNDS:.................................................................................................... 56

2.1. REQUEST FOR TRANSFER OF FUNDS FROM DAD ACCOUNT OF ONE BRANCH TO ANOTHER.(IFN 202, 210, 900 & 910)..................................................................................................... 56

2.2. REQUEST FOR TRANSFER OF FUNDS FROM DAD ACCOUNT OF ONE BRANCH TO DADACCOUNT OF TWO OR MORE BRANCHES. (IFN 203, 210, 900 & 910)................................... 59

2.3. REQUEST FOR TRANSFER OF FUNDS FROM ONE BANK’S BRANCH TO ANOTHER BANK’SBRANCH. (IFN 202, 201, 900 & 910) ..................................................................................... 68

2.4. ADVANCE NOTICE OF FUNDS EXPECTED TO BE RECEIVED. (IFN 210)............................ 72

3. COLLECTIONS:................................................................................................................. 73

3.1. ACKNOWLEDGEMENT OF RECEIPT OF COLLECTION BILLS. (IFN 410)........................... 733.2. ADVICE OF ACCEPTANCE: (IFN 412) ................................................................................ 753.3. TRACER (FATE ENQUIRY): (IFN 420) ............................................................................... 763.4. ADVICE OF FATE AND REQUEST FOR INSTRUCTIONS: (IFN 422) ..................................... 773.5. AMENDMENT OF INSTRUCTIONS: (IFN 430)...................................................................... 793.6. ADVICE OF PAYMENT: (IFN 400) ...................................................................................... 80

4. LETTERS OF CREDIT:..................................................................................................... 83

4.1. SHORT LCS (PRE-ADVICES). (IFN 705) ............................................................................ 834.2. LC ISSUE: (IFN 700 & 701) ............................................................................................... 854.3. ACKNOWLEDGEMENT OF LC MESSAGE: (IFN 730) ......................................................... 884.4. ADVICE OF ANOTHER BRANCH’S LC: (IFN 710 & 711)................................................... 894.5. TRANSFER OF LC: (IFN 720 & 721) .................................................................................. 924.6. ADVICE OF LC AMENDMENT: (IFN 707)........................................................................... 964.7. ADVICE OF PAYMENT/ACCEPTANCE/NEGOTIATION: (IFN 754) ...................................... 974.8. ADVICE OF PAYMENT: (IFN 756) ...................................................................................... 984.9. ADVICE OF DISCREPANCY: (IFN 750) ............................................................................. 1004.10. AUTHORISATION TO PAY, ACCEPT OR NEGOTIATE: (IFN 752) ................................... 1024.11. ADVICE OF DISCHARGE: (IFN 732) ............................................................................... 1034.12. ADVICE OF REFUSAL: (IFN 734).................................................................................... 106

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Introduction:SFMS: Message Usage Scenarios:

The following 5 SFMS Message usage scenarios can be envisaged:

Intra Bank Messages Inter bank Messages which do not require settlement at all Inter bank Messages which do not require immediate settlement Inter Bank Messages involving bilaterally agreed methods of settlement Inter Bank Messages involving RBI for settlement

In this write up, only the first scenario has been addressed. The remaining four scenarios wouldbe discussed later. As such, messages that can be used for relaying inter bank transactions only,such as IFN 3 category messages, which deal with inter bank forex and money market tradeconfirmations have not been discussed here. Individual messages in other categories, which arepurely inter bank in nature, for e.g., IFN 200 (Request sent to a correspondent requesting fortransfer of funds between two accounts owned by the sender), IFN 950 (Account statements sentby correspondent banks to account owners) have also not been discussed.

The various business models involving traditional methods of reconciliation and innovations thatcan be introduced by leveraging on facilities provided by SFMS have been discussed in elaboratedetail in section 1 (Customer Funds Transfers). To avoid repetition, only a single business modelhas been described in the remaining chapter. Users can decide on any of the business modelssuggested in section 1 and apply it to the transactions described in remaining sections.

Dates expressed in IFN messages will have to be in the YYYYMMDD format and amounts willhave to be expressed without use of comma as delimiter between hundreds, thousands, lakhs etc.However, to ensure clarity, all message formats given in examples express dates inDDMMYYYY format and comma has been used as delimiter in amount fields.

Where the description of a particular field differs from the standard description given in IFNmessage format publications, such descriptions have been printed in capitals. E.g., Actualdescription of field 52A field in IFN 900 message is Ordering Institution, but it has beendescribed here as CONTRAPARTY BRANCH.

All the IFS Codes (IFSC) and many of the branches referred to in the examples are fictitious.

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The scenarios, usages, practices and business models related in the following pages areindicative and not exhaustive. Suggestions for additions, improvements, deletions andmodifications to the message usage descriptions, usage scenarios, business models, examplesetc., and information regarding errors if any would be gratefully accepted and incorporated.

Kindly forward your feed back to the following address:

A.P.Raja,Project Consultant (SFMS Project),BENEFICIARIES,Masab Tank,Hyderabad 500 057.Phone : (040)3534981-4 (Extn. 2112).Fax: (040)3534981Email: [email protected]

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1. Customer Funds Transfers

1.1. Customer TTs/MTs.

IFN 100 messages should be used for relaying Customer TTs.

The following scenarios can be envisaged:

1. Immediate application of funds and use of traditional means of reconciliation.2. Immediate application of funds and use of IFN messages for reconciliation.3. Reconciliation of Messages while applying funds

1.1.1. Immediate application of funds and use of traditional means ofreconciliation. (IFN 100)

IFN 100 message is used for relaying the TT message. Reconciliation of the TT transaction isdone using the reconciliation process prevailing in the bank.

Example:

On 1.09.2001, Mr. L.P.Yadav who has an account with Andhra Bank, Masab Tank, Hyderabad,requests the bank to transfer a sum of Rs 10,000/- to the account No. 123456 of Mr. N.C.Naiduwith Andhra Bank, Mumbai Main Branch. The payment represents monthly rent for August2001, on a flat leased by Mr Yadav and Charges (if any,) at the paying branch are for thebeneficiary’s account. The instruction is received within the cut-off time prescribed by the Bankfor same day value transfers. Andhra Bank, Masab Tank TT Reference No. is TT/567/2001.

The information to be provided by Andhra Bank, Masab Tank to Andhra Bank, Mumbai in theTT message would be as follows:

Sending Branch : Andhra Bank, Masab Tank, Hyderabad(IFSC say ANDB0000456)

Receiving Branch : Andhra Bank, Main Branch, Mumbai(IFSC say ANDB0000123)

TT Reference No. : TT/567/2001TT Ordered By : L.P.YadavAmount : Rs 10,000.00Value Date : 17.10.2001Favouring : N.C.NaiduBeneficiary’s Account No. : 123456Account maintained with : Andhra Bank, Mumbai Main BranchDetails of Payment for Beneficiary : Monthly rent for August 2001Paying Bank charges to be borne by : Beneficiary

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Andhra Bank, Masab Tank sends an IFN 100 message to Andhra Bank, Mumbai Main Branchand reports the transaction by sending a credit Report to the Bank’s Reconciliation System

On receipt of a valid and authenticated IFN 100 message, Andhra Bank, Mumbai Main Branchapplies funds to Mr. Naidu’s account and reports the transaction by sending a debit report to theBank’s Reconciliation System.

Message Flow:

The extract of header and text block of the IFN 100 Message sent by Andhra Bank, Masab Tankto Andhra Bank, Mumbai Main Branch would be as follows:

Header Block:Sender ANDB0000456 Andhra Bank, Masab Tank, HyderabadReceiver ANDB0000123 Andhra Bank, MumbaiMessage Type IFN 100 Customer Transfer

Text Block:Field Description Information20 Transaction Reference No. TT/567/200132A Value Date Currency & Amount 17092001INR10,000.0050 Ordering Customer L.P.YADAV59 Beneficiary /123456

N.C.NAIDU70 Details of Payment RENT FOR AUGUST 200171A Details of Charges BEN

ANDHRABANK

MASAB TANK

ANDHRA BANKRECONCILIATION

SYSTEM

CREDITREPORT

FUNDSL.P.YADAV

IFN100

N.C.NAIDUANDHRA

BANKMUMBAI

DEBITREPORTFUNDS

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1.2.

IFN 100 message is used for relaying the TT message. SFMS branches use IFN 900 (advice ofDebit) and IFN 910 (advice of Credit) for relaying the Debit and credit reports to theReconciliation System. This would necessitate changes at system and policy level in theReconciliation mechanism of the Bank. The benefits accruing to the Bank by adopting thismethod are:

Debit entries relating to Paid TTs would normally be outstanding for a few minutes only. Outstanding Credit entries relating to TT transactions would normally represent TTs issued

but not paid. As disposal of such entries are critical from a customer service stand point, itwill now be possible to view and monitor such entries from a central location.

Example:

In the example quoted in section 1.1.1 above, Andhra Bank, Masab Tank sends an IFN 100message to Andhra Bank, Mumbai Main Branch and reports the transaction by sending an IFN910 message to the Bank’s Reconciliation System.

On receipt of a valid and authenticated IFN 100 message, Andhra Bank, Mumbai Main Branchapplies funds to Mr. Naidu’s account and reports the transaction by sending an IFN 900 messageto the Bank’s Reconciliation System (IFSC say ANDB0000999).

Message Flow:

ANDHRABANK

MASAB TANK


SYSTEM

IFN910

FUNDSL.P.YADAV

IFN100

N.C.NAIDUANDHRA

BANKMUMBAI

IFN900FUNDS

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The extract of header and text block of the IFN 910 Message sent by Andhra Bank, Masab Tankto the Reconciliation System would be as follows:

Header Block:Sender ANDB0000456 Andhra Bank, Masab Tank, HyderabadReceiver ANDB0000999 Andhra Bank Reconciliation SystemMessage Type IFN 910 Credit Advice

Text Block:Field Description Information20 Transaction Reference No. TT/567/200121 Related Reference NONREF25 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 17092001INR10,000.0052A CONTRA PARTY BRANCH ANDB0000123

The extract of header and text block of the IFN 900 Message sent by Andhra Bank, MumbaiMain Branch to the Reconciliation System would be as follows:

Header Block:Sender ANDB0000123 Andhra Bank, MumbaiReceiver ANDB0000999 Andhra Bank Reconciliation SystemMessage Type IFN 900 Debit Advice

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Text Block:Field Description Information20 Transaction Reference No. TTP/987/2001 (1)21 Related Reference TT/567/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 17092001INR10,000.00 (2)52A CONTRA PARTY BRANCH ANDB0000456

(1) This is the paying branch TT Reference No.

(2) The date to be furnished in Field 32A is the value date indicated in the original TTmessage. Even if Andhra Bank, Mumbai Main Branch were to apply funds on thenext or any subsequent day, the date in field 32A should be the one mentioned in theIFN 100 to facilitate reconciliation.

1.2.1. Reconciliation of Messages while applying funds

Reconciliation of customer payment transactions before applying funds requires changes atsystem and policy level in the Reconciliation mechanism of the Bank. The benefits accruing tothe Bank by adopting this method are:

Debit entries relating to Paid TTs would not be outstanding at all. Outstanding Credit entries relating to TT transactions would normally represent TTs issued

but not paid. As disposal of such entries are critical from a customer service stand point, itwill now be possible to view and monitor such entries from a central location.

This can be done in two ways namely the direct method and the indirect method.

1.2.1.1. Direct Method

IFN 100 messages are sent directly to the paying branch and IFN 910 message is sent to theReconciliation System. The paying branch queries the Reconciliation System before applyingfunds.

The various possible scenarios under this method have been discussed below:

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1.2.1.1.1. Reconciliation of TT Message using IFN 910/900 & 195/196 messages

The Ordering Branch uses IFN 100 message to relay the Payment Order to the Paying branchand uses an IFN 910 message to relay the credit advice to the Reconciliation System. The PayingBranch sends an IFN 195 message to the Reconciliation System requesting authorization todebit. The Reconciliation System sends an IFN 196 authorizing the debit. The Paying branchapplies funds and uses an IFN 900 message to relay the debit advice to the ReconciliationSystem.

Example:


On receipt of a valid and authenticated IFN 100 message, Andhra Bank, Mumbai Main Branchsends an IFN 195 message to the Reconciliation System requesting authorization to debit. TheReconciliation System sends an IFN 196 authorizing the debit. Andhra Bank, Mumbai MainBranch applies funds to Mr. Naidu’s account and reports the transaction by sending an IFN 900message to the Bank’s Reconciliation System.

Message Flow:

ANDHRABANK

MASAB TANK

ANDHRABANK

MUMBAI


SYSTEM

IFN910

IFN900

L.P.YADAV

IFN100

IFN195 IFN

196

N.C.NAIDU FUNDS

FUNDS

12








The extract of header and text block of the IFN 195 Query Message sent by Andhra Bank,Mumbai Main Branch to the Reconciliation System would be as follows:

Header Block:Sender ANDB0000123 Andhra Bank, MumbaiReceiver ANDB0000999 Andhra Bank Reconciliation SystemMessage Type IFN 195 Query

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Text Block:Field Description Information20 Transaction Reference No. TTP/987/200121 Related Reference TT/567/200175 Queries /18/ (Please authorize us to debit)

ANDB000045617092001INR10,000.00

The extract of header and text block of the IFN 196 Answer Message sent by the ReconciliationSystem to Andhra Bank, Mumbai Main Branch would be as follows:

Header Block:Sender ANDB0000999 Andhra Bank Reconciliation SystemReceiver ANDB0000123 Andhra Bank, MumbaiMessage Type IFN 196 Reply

Text Block:Field Description Information20 Transaction Reference No. TT/567/200121 Related Reference TTP/987/200176 Answer /10/ (We authorize you to debit)

The extract of header and text block of the IFN 900 Message sent by Andhra Bank, MumbaiMain Branch to the Reconciliation System to would be as follows:


Text Block:Field Description Information20 Transaction Reference No. TTP/987/200121 Related Reference TT/567/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 17092001INR10,000.0052A CONTRA PARTY BRANCH ANDB0000456

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1.2.1.1.2. Reconciliation of TT Message using IFN 910 & 195/196 messages

The Ordering Branch uses IFN 100 message to relay the Payment Order to the Paying branchand uses an IFN 910 message to relay the credit advice to the Reconciliation System. The PayingBranch sends an IFN 195 message to the Reconciliation System requesting authorization todebit. The Reconciliation System sends an IFN 196 authorizing the debit and treats thetransaction as reconciled without waiting for an IFN 900 from the Paying Branch. The Payingbranch applies funds. In other words, the IFN 195 message requesting authorization to debit alsoacts as an IFN 900 (Debit Advice) Message.

Example:


On receipt of a valid and authenticated IFN 100 message, Andhra Bank, Mumbai Main Branchsends an IFN 195 message to the Reconciliation System requesting authorization to debit. TheReconciliation System sends an IFN 196 authorizing the debit and treats the message asreconciled. Andhra Bank, Mumbai Main Branch applies funds to Mr. Naidu’s account.

Message Flow:

ANDHRABANK

MASAB TANK

ANDHRABANK

MUMBAI


SYSTEM

IFN910

L.P.YADAV

IFN100

IFN195

IFN196

N.C.NAIDU

FUNDS

FUNDS

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The extract of header and text block of the IFN 195 Query Message sent by Andhra Bank,Mumbai Main Branch to the Reconciliation System would be as follows:

Header Block:Sender ANDB0000123 Andhra Bank, MumbaiReceiver ANDB0000999 Andhra Bank Reconciliation SystemMessage Type IFN 195 Query

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ANDB000045617092001INR10,000.00

The extract of header and text block of the IFN 196 Answer Message sent by the ReconciliationSystem to Andhra Bank, Mumbai Main Branch would be as follows:

Header Block:Sender ANDB0000999 Andhra Bank Reconciliation SystemReceiver ANDB0000123 Andhra Bank, MumbaiMessage Type IFN 196 Reply

Text Block:

Field Description Information20 Transaction Reference No. TT/567/200121 Related Reference TTP/987/200175 Queries /10/ (We authorize you to debit)

1.2.1.2. Indirect Method:

Instead of sending the Payment Order to the Paying Branch, The Ordering Branch sends the IFN100 message to the Reconciliation System. The Reconciliation System in turn, relays the IFN100 message to the Paying Branch. The Paying branch applies funds and sends an IFN 900 to theReconciliation System. It is to be noted that the IFN 100 message from the Ordering Branch tothe Reconciliation System also acts as an Advice of Credit.

Example:

In the example quoted in section 1.1.1 above, Andhra Bank, Masab Tank sends an IFN 100message to the Bank’s Reconciliation System. The Bank’s Reconciliation System in turn sendsan IFN 100 message to Andhra Bank, Mumbai Main Branch.

On receipt of a valid and authenticated IFN 100 message, Andhra Bank, Mumbai Main Branchapplies funds to Mr. Naidu’s account and reports the transaction by sending an IFN 900 message

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Message Flow:

The extract of header and text block of the IFN 100 Message sent by Andhra Bank, Masab Tankto the Bank’s Reconciliation System would be as follows:

Header Block:Sender ANDB0000456 Andhra Bank, Masab Tank, HyderabadReceiver ANDB0000999 Andhra Bank, Reconciliation SystemMessage Type IFN 100 Customer Transfer

Text Block:Field Description Information20 Transaction Reference No. TT/567/200132A Value Date Currency & Amount 17092001INR10,000.0050 Ordering Customer L.P.YADAV57A Account with Bank (BRANCH) ANDB000012359 Beneficiary /123456


N.C.NAIDU

ANDHRABANK MASAB

TANK

ANDHRABANK

MUMBAI


SYSTEM

IFN100

IFN900

L.P.YADAV

IFN100

FUNDS

FUNDS

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The extract of header and text block of the IFN 100 Message sent by the Bank’s ReconciliationSystem to Andhra Bank, Mumbai Main Branch would be as follows:

Header Block:Sender ANDB0000999 Andhra Bank Reconciliation SystemReceiver ANDB0000123 Andhra Bank, MumbaiMessage Type IFN 100 Customer Transfer

Text Block:Field Description Information20 Transaction Reference No. TT/567/200132A Value Date Currency & Amount 17092001INR10,000.0050 Ordering Customer L.P.YADAV52A Ordering Bank (BRANCH) ANDB000045659 Beneficiary /123456


The extract of header and text block of the IFN 900 Message sent by Andhra Bank, MumbaiMain Branch to the Reconciliation System would be as follows:


Text Block:Field Description Information20 Transaction Reference No. TTP/987/200121 Related Reference TT/567/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 17092001INR10,000.0052A CONTRA PARTY BRANCH ANDB0000456

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1.3. Multiple Customer TTs/MTs.

IFN 102 messages should be used for relaying Multiple Customer TTs.


Immediate application of funds and use of traditional means of reconciliation. Immediate application of funds and use of IFN messages for reconciliation. Reconciliation of Messages while applying funds

1.3.1. Immediate application of funds and use of traditional means ofreconciliation. (IFN 102)

IFN 102 message is used for relaying multiple TTs in a single message. Reconciliation of the TTtransactions is done using the reconciliation process prevailing in the bank.

The Ordering Customer’s branch (Ordering Branch) sends an IFN 102 Message to the PayingBranch and sends a Credit Report to the Bank’s Reconciliation System by traditional means. ThePaying Branch applies funds to the Beneficiaries’ accounts and sends a Debit Report to theBank’s Reconciliation System by traditional means.

Example:

On 1.09.2001, M/s. XYZ Ltd request Allahabad Bank, Kolkata to transfer funds for credit oftheir employees’ accounts with Allahabad Bank, Bangalore as detailed below. The paymentsrepresent salary for the month of August 2001

Sl. No. Employee’s Name Account No. Amount (Rs)1 K.L.Ram 4567890 12,000.002 M.N.Rahim 5678901 12,500.003 O.P.Roberts 6789012 13,000.00

Charges (if any,) at the paying branch are for the remitter’s account. The instruction is receivedafter the cut-off time prescribed by the Bank for same day value transfers. Allahabad Bank,Kolkata Reference Nos. are TT/345/2001, TT/346/2001 and TT/347/2001 respectively.

While reporting multiple TTs to Reconciliation System, the practice in Allahabad Bank is thatboth the issuing branch and paying branch quote the Reference No. of the first TT. viz.,TT/345/2001 in this case.

The information to be provided by Allahabad Bank, Kolkata to Allahabad Bank, Bangalore inthe TT message would be as follows:

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Information Common to all TTs:

Sending Branch : Allahabad Bank, Kolkata(IFSC say ALLA0000123)

Receiving Branch : Allahabad Bank, Bangalore(IFSC say ALLA0000234)

TTs Ordered By : XYZ LtdSum Total of all TTs : Rs 37,500.00Value Date : 2.9.2001 *Beneficiaries bank with : Allahabad Bank, BangaloreDetails of Payment for Beneficiaries : Salary for August 2001Paying Bank charges to be borne by : Ordering Customer

* Funds cannot be applied same day value viz., 1.9.2001, because the payment instructionwas received after the cutoff time for same day value TTs)

Information relevant to individual TTs:

TT Reference No. Beneficiary Beneficiary’s Account No.TT/345/2001 K.L.Ram 4567890TT/346/2001 M.N.Rahim 5678901TT/347/2001 O.P.Roberts 6789012

Allahabad Bank, Kolkata sends an IFN 102 message to Allahabad Bank, Bangalore Branch andreports the transaction by sending a credit Report to the Bank’s Reconciliation System.

On receipt of a valid and authenticated IFN 102 message, Allahabad Bank, Bangalore appliesfunds to the beneficiaries’ accounts and reports the transaction by sending a debit report to theBank’s Reconciliation System.

Message Flow:

K.L.RAM

ALLAHABADBANK

KOLKATA

ALLAHABADBANK

BANGALORE

ALLAHABAD BANKRECONCILIATION

SYSTEM

CREDITREPORT

DEBITREPORT

IFN102

XYZ LTD

M.N.RAHIM

O.P.ROBERTS

FUNDS

FUNDS

FUNDS

FUNDS

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The extract of header and text block of the IFN 102 Message sent by Allahabad Bank, Kolkata toAllahabad Bank, Bangalore Branch would be as follows:

Header Block:Sender ALLA0000123 Allahabad Bank, KolkataReceiver ALLA0000234 Allahabad Bank, BangaloreMessage Type IFN 102 Multiple Customer Transfers

Text Block:Field Description Information20 File Reference TT/345/2001 (1)23 Bank Operation Code CREDIT51A Sending Institution IFSC Code ALLA000012350 Ordering Customer M/S XYZ LTD.,

KOLKATA71A Details of Charges OURTransaction details: 121 Transaction Reference TT/345/200132B Currency & Amount INR12,000.0059 Beneficiary /4567890

K.L.RAMTransaction details: 221 Transaction Reference TT/346/200132B Currency & Amount INR12,500.0059 Beneficiary /5678901

M.N.RAHIMTransaction details: 321 Transaction Reference TT/347/200132B Currency & Amount INR13,000.0059 Beneficiary /6789012

O.P.ROBERTSSettlement details32A Value Date, Currency & Amount 02092001INR37,500.00

(1) This is the reference to be quoted while reporting to the Reconciliation System.

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1.3.2. Immediate application of funds and use of IFN messages forreconciliation. (IFN 102, 900 & 910)

IFN 102 message is used for relaying Multiple TTs in a single message. SFMS branches use IFN900 (advice of Debit) and IFN 910 (advice of Credit) for relaying the Debit and Credit reports tothe Reconciliation System.

The Ordering Customer’s branch (Ordering Branch) sends an IFN 102 Message to the PayingBranch and reports to the Bank’s Reconciliation System by sending an IFN 910 Message. ThePaying Branch applies funds to the Beneficiary’s account and reports to the Bank’sReconciliation System by sending an IFN 900 Message.

Example:

In the example quoted in section 1.2.1 above, Allahabad Bank, Kolkata sends an IFN 102message to Allahabad Bank, Bangalore Branch and reports the transaction by sending an IFN910 Message to the Bank’s Reconciliation System.

On receipt of a valid and authenticated IFN 102 message, Allahabad Bank, Bangalore appliesfunds to the beneficiaries’ accounts and reports the transaction by sending an IFN 900 Messageto the Bank’s Reconciliation System (IFSC say ALLA0000999).

Message Flow:

K.L.RAM

ALLAHABADBANK

KOLKATA

ALLAHABADBANK

BANGALORE


SYSTEM

IFN910

IFN900

IFN102

XYZ LTD

M.N.RAHIM

O.P.ROBERTS

FUNDS

FUNDS

FUNDS

FUNDS

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Text Block:Field Description Information20 File Reference TT/345/200123 Bank Operation Code CREDIT51A Sending Institution IFSC Code ALLA000012350 Ordering Customer M/S XYZ LTD.,





The extract of header and text block of the IFN 910 Message sent by Allahabad Bank, Kolkata tothe Reconciliation System would be as follows:

Header Block:Sender ALLA0000123 Allahabad Bank, KolkataReceiver ALLA0000999 Allahabad Bank Reconciliation SystemMessage Type IFN 910 Credit Advice

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Text Block:Field Description Information20 Transaction Reference No. TT/345/200121 Related Reference NONREF25 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 02092001INR37,500.0052A CONTRA PARTY BRANCH ALLA0000234

The extract of header and text block of the IFN 900 Message sent by Allahabad Bank, BangaloreBranch to the Reconciliation System would be as follows:

Header Block:Sender ALLA0000234 Allahabad Bank, BangaloreReceiver ANDB0000999 Andhra Bank Reconciliation SystemMessage Type IFN 900 Debit Advice

Text Block:Field Description Information20 Transaction Reference No. TTP/579/2001 (1)21 Related Reference TT/345/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 02092001INR37,500.00 (2)52A CONTRA PARTY BRANCH ALLA0000123

(1) This is the paying branch TT Reference No.

(2) The date to be furnished in Field 32A is the value date indicated in the original TTmessage. Even if Allahabad Bank, Bangalore Branch were to apply funds on the nextor any subsequent day, the date in field 32A should be the one mentioned in the IFN100 to facilitate reconciliation.

In case, Allahabad Bank, Bangalore is unable to apply one or more TTs conveyed in the abovemessage, it should still send the IFN 900 Message for the full amount and vouch reversal creditsto Allahabad Bank, Kolkata separately to avoid reconciliation errors.

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1.3.3. Reconciliation of Messages while applying funds

Reconciliation of multiple customer payment transactions before applying can be achieved intwo ways namely the direct method and the indirect method.

1.3.3.1. Direct Method

IFN 102 messages are sent directly to the paying branch and IFN 910 message is sent to theReconciliation System. The paying branch queries the Reconciliation System before applyingfunds.

The various possible scenarios under this method have been discussed below:

1.3.3.1.1. Reconciliation of Messages while applying funds (IFN 102, 195,196, 900 & 910)

IFN 102 message is used for relaying the TT message. SFMS branches use IFN 910 (advice ofCredit) for relaying the credit reports to the Reconciliation System. The Paying Branch queriesthe Reconciliation System before applying funds.

The Ordering Branch uses IFN 102 message to relay the Payment Order to the Paying branchand uses an IFN 910 message to relay the credit advice to the Reconciliation System. The PayingBranch sends an IFN 195 message to the Reconciliation System requesting authorization todebit. The Reconciliation System sends an IFN 196 authorizing the debit. The Paying branchapplies funds and uses an IFN 900 message to relay the debit advice to the ReconciliationSystem.

Example:


On receipt of a valid and authenticated IFN 102 message, Allahabad Bank, Bangalore Branchsends an IFN 195 message to the Reconciliation System requesting authorization to debit. TheReconciliation System sends an IFN 196 authorizing the debit. Allahabad Bank, BangaloreBranch applies funds to beneficiaries’ accounts and reports the transaction by sending an IFN900 message to the Bank’s Reconciliation System.

26

Message Flow:





K.L.RAM

ALLAHABADBANK

KOLKATA

ALLAHABADBANK

BANGALORE


SYSTEM

IFN910

IFN900

IFN102

IFN195 IFN

196

FUNDS

FUNDSXYZ LTD

K.L.RAM

M.N.RAHIM

O.P.ROBERTS

27

Transaction details: 221 Transaction Reference TT/346/200132B Currency & Amount INR12,500.0059 Beneficiary /5678901






The extract of header and text block of the IFN 195 Query Message sent by Allahabad Bank,Bangalore Branch to the Reconciliation System would be as follows:

Header Block:Sender ALLA0000234 Allahabad Bank, BangaloreReceiver ALLA0000999 Allahabad Bank Reconciliation SystemMessage Type IFN 195 Query


ALLA000012302092001INR37,500.00

28

The extract of header and text block of the IFN 196 Answer Message sent by the ReconciliationSystem to Allahabad Bank, Bangalore Branch would be as follows:

Header Block:Sender ALLA0000999 Allahabad Bank Reconciliation SystemReceiver ALLA0000234 Allahabad Bank, BangaloreMessage Type IFN 196 Reply



Header Block:Sender ANDB0000234 Allahabad Bank, BangaloreReceiver ANDB0000999 Andhra Bank Reconciliation SystemMessage Type IFN 900 Debit Advice

Text Block:Field Description Information20 Transaction Reference No. TTP/579/200121 Related Reference TT/345/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 02092001INR37,500.0052A CONTRA PARTY BRANCH ALLA0000123

In case, Allahabad Bank, Bangalore is unable to apply one or more TTs conveyed in the abovemessage, it should still send the IFN 900 Message for the full amount and vouch reversal creditsto Allahabad Bank, Kolkata separately to avoid reconciliation errors.

1.3.3.1.2. Reconciliation of TT Message using IFN 910 & 195/196 messages

The Ordering Branch uses IFN 102 message to relay the Payment Order to the Paying branchand uses an IFN 910 message to relay the credit advice to the Reconciliation System. The PayingBranch sends an IFN 195 message to the Reconciliation System requesting authorization todebit. The Reconciliation System sends an IFN 196 authorizing the debit and treats thetransaction as reconciled without waiting for an IFN 900 from the Paying Branch. The Payingbranch applies funds.

29

Example:


On receipt of a valid and authenticated IFN 102 message, Allahabad Bank, Bangalore Branchsends an IFN 195 message to the Reconciliation System requesting authorization to debit. TheReconciliation System sends an IFN 196 authorizing the debit and treats the transaction asreconciled. Allahabad Bank, Bangalore Branch applies funds to beneficiaries’ accounts.

Message Flow:



ALLAHABADBANK

KOLKATA

ALLAHABADBANK

BANGALORE


SYSTEM

IFN910

IFN102

IFN195 IFN

196

FUNDS

FUNDSXYZ LTD

K.L.RAM

M.N.RAHIM

O.P.ROBERTS

FUNDS

FUNDS

30





O.P.ROBERTSSettlement details32A Value Date,Currency & Amount 02092001INR37,500.00




31

The extract of header and text block of the IFN 195 Query Message sent by Allahabad Bank,Bangalore Branch to the Reconciliation System would be as follows:

Header Block:Sender ALLA0000234 Allahabad Bank, BangaloreReceiver ALLA0000999 Allahabad Bank Reconciliation SystemMessage Type IFN 195 Query


ALLA000012302092001INR37,500.00

The extract of header and text block of the IFN 196 Answer Message sent by the ReconciliationSystem to Allahabad Bank, Bangalore Branch would be as follows:

Header Block:Sender ALLA0000999 Allahabad Bank Reconciliation SystemReceiver ALLA0000234 Allahabad Bank, BangaloreMessage Type IFN 196 Reply


1.3.3.2. Indirect Method:

Instead of sending the Payment Order to the Paying Branch, The Ordering Branch sends the IFN102 message to the Reconciliation System. The Reconciliation System in turn, relays the IFN102 message to the Paying Branch. The Paying branch applies funds and sends an IFN 900 to theReconciliation System. It is to be noted that the IFN 102 message from the Ordering Branch tothe Reconciliation System also acts as an Advice of Credit

Example:

In the example quoted in section 1.1.1 above, Allahabad Bank, Kolkata sends an IFN 102message to the Bank’s Reconciliation System. The Bank’s Reconciliation System in turn sendsan IFN 102 message to Allahabad Bank, Bangalore.

32

On receipt of a valid and authenticated IFN 102 message, Allahabad Bank, Bangalore appliesfunds to the beneficiaries’ accounts and reports the transaction by sending an IFN 900 Messageto the Bank’s Reconciliation System.

Message Flow:

The extract of header and text block of the IFN 102 Message sent by Allahabad Bank, Kolkata tothe Bank’s Reconciliation System, would be as follows:

Header Block:Sender ALLA0000123 Allahabad Bank, KolkataReceiver ALLA0000999 Allahabad Bank Reconciliation SystemMessage Type IFN 102 Multiple Customer Transfers

ALLAHABADBANK

KOLKATA

ALLAHABADBANK

BANGALORE


SYSTEM

IFN102

IFN900

XYZ LTD

K.L.RAM

M.N.RAHIM

O.P.ROBERTS

IFN102

FUNDS

FUNDS

FUNDS

FUNDS

33


KOLKATA71A Details of Charges OURTransaction details: 121 Transaction Reference TT/345/200132B Currency & Amount INR12,000.0057A Account With Institution ALLA000023459 Beneficiary /4567890

K.L.RAMTransaction details: 221 Transaction Reference TT/346/200132B Currency & Amount INR12,500.0057A Account With Institution ALLA000023459 Beneficiary /5678901

M.N.RAHIMTransaction details: 321 Transaction Reference TT/347/200132B Currency & Amount INR13,000.0057A Account With Institution ALLA000023459 Beneficiary /6789012


The extract of header and text block of the IFN 102 Message sent by the Bank’s ReconciliationSystem to Allahabad Bank, Bangalore would be as follows:

Header Block:Sender ALLA0000999 Allahabad Bank Reconciliation SystemReceiver ALLA0000234 Allahabad Bank, BangaloreMessage Type IFN 102 Multiple Customer Transfers


KOLKATA71A Details of Charges OUR

34

Transaction details: 121 Transaction Reference TT/345/200132B Currency & Amount INR12,000.0059 Beneficiary /4567890



O.P.ROBERTSSettlement details32A Value Date,Currency & Amount 02092001INR37,500.00


Header Block:Sender ANDB0000234 Allahabad Bank, BangaloreReceiver ANDB0000999 Andhra Bank Reconciliation SystemMessage Type IFN 900 Debit Advice


35

1.4. Customer Request for Transfer of Funds.

SFMS also supports messages, which enable the customer of a particular branch of a bank toissue instructions through another branch of the bank to transfer funds from his accountmaintained at the first branch to his own account or a third party’s account maintained at one ofthe branches of the bank or branches of another bank in the same center as the branch to whichthe message is addressed.

The customer will have to execute a special agreement with the Account Servicing Branchauthorizing them to execute such instructions if they are guaranteed by another branch. IFN 101Messages are used for relaying such requests for transfer of funds.

IFN 101 is a very useful message which, if properly implemented, enables customers tomove funds to their own accounts or to third party accounts from remote centres. Suchrequests, if promptly executed, virtually realise Any Branch Banking.

IFN 101 (Single Customer TT) messages should be used for relaying Customer TTs.


1.4.1. Transfer is for credit of a single beneficiary who also banks with thereceiver of the message. (IFN 101)

As the beneficiary banks with the branch to which the IFN 101 message is addressed, the fundsare applied to the debit of the ordering customer. No reporting to the Bank’s ReconciliationSystem is involved since the movement of funds is from one account of the branch to another.

Example:

On 10.09.2001, M/s. ABC Ltd request Bank of Maharastra, Pune to instruct their Karad branchto debit M/s. ABC Ltd’s account with Bank of Maharastra, Karad and transfer Rs 10,000.00same day value for credit of Account No. 76543 of JK&Co with Bank of Maharastra, Karad infull settlement of Inv. 74747. ABC Ltd’s reference is PYT173314. All charges are forbeneficiary’s account.

The information to be provided by Bank of Maharastra, Pune to Bank of Maharastra, Karad inthe IFN 101 message would be as follows:

Sending Branch : Bank of Maharastra, Pune(IFSC say BOMA0000001)

Receiving Branch : Bank of Maharastra, Karad(IFSC say BOMA 0000456)

Transfer Request Reference No. : DR5678/2001Ordering Party : ABC LtdTheir Reference : PYT173314

36

Amount : Rs 10,000.00Value Date : 10.09.2001Account to be debited : 3534981Account maintained with : Bank of Maharastra, KaradBeneficiary : JK&CoBeneficiary’s Account No. : 76543Account maintained with : Bank of Maharastra, KaradDetails of Payment for Beneficiary : Full settlement of Inv. 74747Paying Bank charges to be borne by : Beneficiary

Bank of Maharastra, Pune sends an IFN 101 message to its Karad branch. On receipt of a validIFN 101 message, Bank of Maharastra, Karad debits ABC Ltd’s account and credits JK&Co’saccount and sends a debit advice to the former and a credit advice to the latter.

Message Flow:

The extract of header and text block of the IFN 101 Message sent by Bank of Maharastra, Puneto their Karad branch would be as follows:

Header Block:Sender BOMA0000001 Bank of Maharastra, PuneReceiver BOMA0000456 Bank of Maharastra, KaradMessage Type IFN 101 Request for Transfer

BANK OFMAHARASTRA

PUNE

CREDITADVICE

INSTRUCTIONABC LTD

IFN101

JK&CO BANK OFMAHARASTRA

KARAD

DEBITADVICE

ABC LTD’SACCOUNT

WITH BOM,KARAD

JK&CO’SACCOUNT

WITH BOM,KARAD

FUNDS

37

Text Block:Field Description Information20 Senders Reference No. DR5678/200121 Customer Specified Reference PYT17331450H Ordering Customer /3534981

ABC LTD30 Requested Execution Date 1009200121 Transaction Reference DR5678/200132B Currency & Amount INR10,000.0059 Beneficiary /76543

JK&CO70 Remittance Information INV. 74747 FULL SETTLEMENT71A Details of Charges BEN

1.4.2. Transfer is for credit of multiple beneficiaries who also bank with thebranch to which the IFN 101 message is addressed.

As the beneficiaries bank with the branch to which the IFN 101 message is addressed, the fundsare applied to the debit of the ordering customer. No reporting to the Bank’s ReconciliationSystem is involved since the movement of funds is from one account of the branch to otheraccounts in the same branch.

Example:

On 10.09.2001, M/s. ABC Ltd request Bank of Maharastra, Pune to instruct their Karad branchto debit M/s. ABC Ltd’s account with Bank of Maharastra, Karad and transfer Rs 10,000.00 &Rs 12,000.00 same day value for credit of Account No. 76543 of JK&Co and 9211 of AN&Co.respectively with Bank of Maharastra, Karad in full settlement of Inv. 74747 and Inv. No. 24680respectively. ABC Ltd’s reference is PYT173315. All charges are for beneficiary’s account.Bank of Maharastra, Pune Reference No. is DR5679/2001 for the IFN 101 and DR5679/01/2001and DR5679/02/2001 for the individual transactions.


Common Information:

Sending Branch : Bank of Maharastra, PuneReceiving Branch : Bank of Maharastra, KaradTransfer Request Reference No. : DR5679/2001Ordering Party : ABC LtdTheir Reference : PYT173314Value Date : 10.09.2001

38

Account to be debited : 3534981Account maintained with : Bank of Maharastra, KaradPaying Bank charges to be borne by : Beneficiaries

Information relevant to individual transactions:

Bank of MaharastraPune Reference Nos.

Amount Beneficiary AccountNo.

Payment Details forBeneficiary

DR5679/01/2001 10,000.00 JK&Co. 76543 Full settlement Inv. 74747DR5679/02/2001 12,000.00 AN&Co. 9211 Full settlement Inv. 24680

Bank of Maharastra, Pune sends an IFN 101 message to their Karad branch. On receipt of a validIFN 101 message, Bank of Maharastra, Karad debits ABC Ltd’s account and credits JK&Co andAN&Co’s accounts and sends debit advice to the instructing party and credit advices to thebeneficiaries.

Message Flow:

BANK OFMAHARASTRA

PUNEINSTRUCTION

ABC LTD

IFN101

JK&CO

BANK OFMAHARASTRA

KARAD

DEBITADVICE

ABC LTD’SACCOUNT

JK&CO’SACCOUNT FUNDS

AN&CO

CREDITADVICE

CREDITADVICE

AN&CO’SACCOUNT FUNDS

39




ABC LTD30 Requested Execution Date 10092001Transaction details 121 Transaction Reference DR5679/01/200132B Currency & Amount INR10,000.0059 Beneficiary /76543

JK&CO70 Remittance Information INV. 74747 FULL SETTLEMENT71A Details of Charges BENTransaction details 221 Transaction Reference DR5679/02/200132B Currency & Amount INR12,000.0059 Beneficiary /9211

AN&CO70 Remittance Information INV. 24680 FULL SETTLEMENT71A Details of Charges BEN

40

1.4.3. Transfer is for credit of a single beneficiary who banks with anotherbranch of the same bank. (IFN 101, 100, 900 & 910)

As the beneficiary banks with another branch of the same bank, after debiting of the orderingcustomer’s account, the branch to which the IFN 101 message is addressed sends an IFN 100message to the branch which maintains the beneficiary’s account. An IFN 910 message is usedfor reporting the inter branch credit transaction to the Bank’s Reconciliation System. Thebeneficiary’s branch applies funds on receipt of a valid IFN 100 message and reports the debittransaction to the Bank’s Reconciliation System using an IFN 900 message.

Example:

On 10.09.2001, M/s. ABC Ltd request Bank of Maharastra, Pune to instruct their Karad branchto debit M/s. ABC Ltd’s account with Bank of Maharastra, Karad and transfer Rs 10,000.00same day value for credit of Account No. 56765 of GDD Ltd with Bank of Maharastra, Satara infull settlement of Inv. 89012. ABC Ltd’s reference is PYT173316. All charges are forbeneficiary’s account. Bank of Maharastra, Pune Reference No. is DR5680/2001.


Sending Branch : Bank of Maharastra, PuneReceiving Branch : Bank of Maharastra, KaradTransfer Request Reference No. : DR5680/2001Ordering Party : ABC LtdTheir Reference : PYT173316Amount : Rs 10,000.00Value Date : 10.09.2001Account to be debited : 3534981Account maintained with : Bank of Maharastra, KaradBeneficiary : GDD LtdBeneficiary’s Account No. : 56765Account maintained with : Bank of Maharastra, Satara

(IFSC say BOMA 0000123)Details of Payment for Beneficiary : Full settlement of Inv. 89012Paying Bank charges to be borne by : Beneficiary

Bank of Maharastra, Pune sends an IFN 101 message to their Karad branch. On receipt of a validIFN 101 message, Bank of Maharastra, Karad debits ABC Ltd’s account and sends an IFN 100message (TT Ref: TT/876/2001) to Bank of Maharastra, Satara instructing them to credit theproceeds to Account No. 56765 of GDD Ltd. An IFN 910 message is sent to the Bank’sReconciliation System.

41

On receipt of a valid and authenticated IFN 100 message, Bank of Maharastra, Satara appliesfunds to GDD Ltd.’s account and reports the transaction by sending a debit report to the Bank’sReconciliation System. Their Reference is TTP/1020/2001.

Message Flow:



BANK OFMAHARASTRA

PUNE

CREDITADVICE

INSTRUCTIONABC LTD

IFN101

GDD LTD BANK OFMAHARASTRA

KARAD

DEBITADVICE

ABC LTD’SACCOUNT

GDD LTD’SACCOUNT

BANK OFMAHARASTRA

SATARAFUNDS

IFN100

FUNDS

BOMRECONCILIATION

SYSTEM

IFN910

IFN900

42


ABC LTD30 Requested Execution Date 1009200121 Transaction Reference DR5680/200132B Currency & Amount INR10,000.0057A Account with Institution BOMA000012359 Beneficiary /56765

GDD LTD70 Remittance Information INV. 89012 FULL SETTLEMENT71A Details of Charges BEN

The extract of header and text block of the IFN 100 Message sent by Bank of Maharastra, Karadto their Satara branch would be as follows:

Header Block:Sender BOMA0000456 Bank of Maharastra, KaradReceiver BOMA0000123 Bank of Maharastra, SataraMessage Type IFN 100 Customer Transfer

Text Block:Field Description Information20 Senders Reference No. TT/876/200132A Value Date, Currency & Amount 10092001INR10,000.0050 Ordering Customer ABC LTD59 Beneficiary /56765

GDD LTD70 Details of payment INV. 89012 FULL SETTLEMENT71A Details of Charges BEN

The extract of header and text block of the IFN 910 Message sent by Bank of Maharastra, Karadto the Reconciliation System (IFSC Say BOMA0000999) would be as follows:

Header Block:Sender BOMA0000456 Bank of Maharastra, KaradReceiver BOMA0000999 Bank of Maharastra Reconciliation SystemMessage Type IFN 910 Credit Advice

43

Text Block:Field Description Information20 Transaction Reference No. TT/876/200121 Related Reference NONREF25 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 10092001INR10,000.0052A CONTRA PARTY BRANCH BOMA0000123

The extract of header and text block of the IFN 900 Message sent by Bank of Maharastra, Satarato the Reconciliation System would be as follows:

Header Block:Sender BOMA0000123 Bank of Maharastra, SataraReceiver BOMA0000999 Bank of Maharastra Reconciliation SystemMessage Type IFN 900 Debit Advice

Text Block:Field Description Information20 Transaction Reference No. TTP/1020/200121 Related Reference TT/876/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 10092001INR10,000.0052A CONTRA PARTY BRANCH BOMA0000456

1.4.4. Transfer is for credit of multiple beneficiaries who bank with otherbranches of the bank. (IFN 100, 101, 102, 900 & 910)

As the beneficiaries bank with other branch(es) of the same bank, after debiting of the orderingcustomer’s account, the branch to which the IFN 101 message is addressed sends one or moreIFN 100 or IFN 102 messages to the branch(es) which maintain the beneficiaries’ accounts. IFN910 messages are used for reporting the inter branch credit transactions to the Bank’sReconciliation System. The beneficiaries’ branches apply funds on receipt of valid IFN 100 orIFN 102 messages and report the debit transaction(s) to the Bank’s Reconciliation System usingIFN 900 message(s).

Example:

On 10.09.2001, M/s. ABC Ltd request Bank of Maharastra, Pune to instruct their Karad branchto debit M/s. ABC Ltd’s account with Bank of Maharastra, Karad and transfer Rs 10,000.00 &Rs 12,000.00 same day value for credit of Account No. 76543 of JK&Co and 9211 of AN&Co.respectively with Bank of Maharastra, Satara in full settlement of Inv. 74747 and Inv. No. 24680respectively. ABC Ltd’s reference is PYT173317. All charges are for beneficiaries’accounts.

44

Bank of Maharastra, Pune Reference No. is DR5679/2001 for the IFN 101 and DR5679/01/2001and DR5679/02/2001 for the individual transactions.


Common Information:

Sending Branch : Bank of Maharastra, PuneReceiving Branch : Bank of Maharastra, KaradTransfer Request Reference No. : DR5679/2001Ordering Party : ABC LtdTheir Reference : PYT173314Value Date : 10.09.2001Account to be debited : 3534981Account maintained with : Bank of Maharastra, KaradBeneficiaries’ bank with : Bank of Maharastra, SataraPaying Bank charges to be borne by : Beneficiaries






Bank of Maharastra, Pune sends an IFN 101 message to its Karad branch. On receipt of a validIFN 101 message, Bank of Maharastra, Karad debits ABC Ltd’s account sends a debit advice tothem and sends an IFN 102 message (TT Ref: TT/877/2001) to Bank of Maharastra, Satarainstructing them to credit the proceeds to Account No. 76543 of JK&Co and 9211 of AN&Co.respectively. Bank of Maharastra, Karad Reference Nos. for the individual TTs are TT/321/2001and TT/322/2001 respectively. An IFN 910 message is sent to the Bank’s Reconciliation System.

On receipt of a valid and authenticated IFN 102 message, Bank of Maharastra, Satara appliesfunds to JK&Co and AN&Co’s accounts and reports the transaction by sending a debit report tothe Bank’s Reconciliation System and sends credit advices to the beneficiaries. Their ReferenceNo. is TTP/578/2001.

45

Message Flow:



Text Block:Field Description Information20 Senders Reference No. DR5679/200121 Customer Specified Reference PYT173315

BANK OFMAHARASTRA

PUNEINSTRUCTION

ABC LTD

IFN101

JK&CO

BANK OFMAHARASTRA

KARAD

DEBITADVICE

ABC LTD’SACCOUNT

JK&CO’SACCOUNT FUNDS

AN&CO

CREDITADVICE

CREDITADVICE

AN&CO’SACCOUNT FUNDS

FUNDS

IFN102

BANK OFMAHARASTRA

SATARA

IFN910

BOMRECONCILIATION

SYSTEM

IFN900

46

50H Ordering Customer /3534981ABC LTD

30 Requested Execution Date 10092001Transaction details 121 Transaction Reference DR5679/01/200132B Currency & Amount INR10,000.0057A Account with Institution BOMA000012359 Beneficiary /76543

JK&CO70 Remittance Information INV. 74747 FULL SETTLEMENT71A Details of Charges BENTransaction details 221 Transaction Reference DR5679/02/200132B Currency & Amount INR12,000.0057A Account with Institution BOMA000012359 Beneficiary /9211

AN&CO70 Remittance Information INV. 24680 FULL SETTLEMENT71A Details of Charges BEN

The extract of header and text block of the IFN 102 Message sent by Bank of Maharastra, Karadto their Satara branch would be as follows:

Header Block:Sender BOMA0000001 Bank of Maharastra, PuneReceiver BOMA0000456 Bank of Maharastra, KaradMessage Type IFN 102 Multiple Customer Transfer

Text Block:Field Description Information20 File Reference TT/877/200123 Bank Operation Code CREDIT51A Sending Institution IFSC Code IFSC BOMA000045650 Ordering Customer M/S ABC LTD.71A Details of Charges BENTransaction details: 121 Transaction Reference TT/321/200132B Currency & Amount INR10,000.0059 Beneficiary /76543

JK&CO70 Remittance Information INV. 74747 FULL SETTLEMENTTransaction details: 221 Transaction Reference TT/322/200132B Currency & Amount INR12,000.00

47

59 Beneficiary /9211AN&CO

70 Remittance Information INV. 24680 FULL SETTLEMENTSettlement details32A Value Date, Currency & Amount 10092001INR22,000.00

The extract of header and text block of the IFN 910 Message sent by Bank of Maharastra, Karadto the Reconciliation System would be as follows:

Header Block:Sender BOMA0000456 Bank of Maharastra, KaradReceiver BOMA0000999 Bank of Maharastra Reconciliation SystemMessage Type IFN 910 Credit Advice

Text Block:Field Description Information20 Transaction Reference No. TT/877/200121 Related Reference NONREF25 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 10092001INR22,000.0052A CONTRA PARTY BRANCH BOMA0000123

The extract of header and text block of the IFN 900 Message sent by Bank of Maharastra, Satarato the Reconciliation System would be as follows:

Header Block:Sender BOMA0000123 Bank of Maharastra, SataraReceiver BOMA0000999 Bank of Maharastra Reconciliation SystemMessage Type IFN 900 Debit Advice

Text Block:Field Description Information20 Transaction Reference No. TTP/578/200121 Related Reference TT/877/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 10092001INR22,000.0052A CONTRA PARTY BRANCH BOMA0000456

Though in the above example, all the beneficiaries have been shown to be banking with onebranch only, more often than not, beneficiaries would be banking in several branches of thebank. In such case, several IFN 100 messages (to those branches where only one beneficiary hasan account) and IFN 102 messages (to those branches where more than one beneficiaries haveaccounts) will have to be sent to the concerned branches.

48

1.4.5. Transfer is for credit of a single beneficiary who banks with anotherbank’s branch in the same enter as the branch to which the messageis addressed. (IFN 101)

As the beneficiary banks with the branch of another bank, the branch to which the IFN 101message is addressed uses traditional methods of payment such as pay orders. After debiting theordering customer’s account, the receiving branch sends a pay order for proceeds favouring thebeneficiary and forwards it to the beneficiary. As the funds are settled through local clearing, theBank’s Reconciliation System is not involved in settlement/reconciliation of funds.

Example:

On 10.09.2001, M/s. ABC Ltd request Bank of Maharastra, Pune to instruct their Karad branchto debit M/s. ABC Ltd’s account with Bank of Maharastra, Karad and transfer Rs 10,000.00same day value for credit of M/s GDD Ltd in full settlement of Inv. 89012. ABC Ltd’s referenceis PYT173316. All charges are for beneficiary’s account. M/s GDD Ltd bank with Bank of India,Karad.


Sending Branch : Bank of Maharastra, PuneReceiving Branch : Bank of Maharastra, KaradTransfer Request Reference No. : DR5680/2001Ordering Party : ABC LtdTheir Reference : PYT173316Amount : Rs 10,000.00Value Date : 10.09.2001Account to be debited : 3534981Account maintained with : Bank of Maharastra, KaradBeneficiary : GDD LtdBeneficiary’s Account No. : 56765Account maintained with : Union Bank of India, Karad

(IFSC say UBIN0000321)Details of Payment for Beneficiary : Full settlement of Invoice 89012

Bank of Maharastra, Pune sends an IFN 101 message to their Karad branch. On receipt of a validIFN 101 message, Bank of Maharastra, Karad debits ABC Ltd’s account and issues a pay orderfor the proceeds favouring M/s GDD Ltd and forwards it to the beneficiaries and sends a debitadvice to M/s. ABC Ltd.

49

Message Flow:



Text Block:Field Description Information20 Senders Reference No. DR5680/200121 Customer Specified Reference PYT17331650H Ordering Customer ABC LTD30 Requested Execution Date 1009200121 Transaction Reference DR5680/200132B Currency & Amount INR10,000.0057A Account with Institution UBIN000032159 Beneficiary GDD LTD70 Remittance Information INV. 89012 full settlement71A Details of Charges BEN

BANK OFMAHARASTRA

PUNEINSTRUCTION

ABC LTD

IFN101

GDD LTD BANK OFMAHARASTRA

KARAD

DEBITADVICE

ABC LTD’SACCOUNTFUNDSFUNDS

50

1.4.6. Transfer is for credit of multiple beneficiaries who bank with otherbanks’ branches in the same enter as the branch to which themessage is addressed. (IFN 101)

As the beneficiaries bank with the branch to which the IFN 101 message is addressed, the fundsare applied to the debit of the ordering customer. No reporting to the Bank’s ReconciliationSystem is involved since the movement of funds is from one account of the branch to otheraccounts in the same branch.

Example:

On 10.09.2001, M/s. ABC Ltd request Bank of Maharastra, Pune to instruct their Karad branchto debit M/s. ABC Ltd’s account with Bank of Maharastra, Karad and transfer Rs 10,000.00 &Rs 12,000.00 same day value for credit of M/s JK&Co and M/s AN&Co. in full settlement ofInv. 74747 and Inv. No. 24680 respectively. ABC Ltd’s reference is PYT173315. All charges arefor beneficiaries account. The beneficiaries bank with Bank of India, Karad. Bank of Maharastra,Pune Reference No. is DR5679/2001 for the IFN 101 and DR5679/01/2001 andDR5679/02/2001 for the individual transactions.


Common Information:

Sending Branch : Bank of Maharastra, PuneReceiving Branch : Bank of Maharastra, KaradTransfer Request Reference No. : DR5679/2001Ordering Party : ABC LtdTheir Reference : PYT173315Value Date : 10.09.2001Account to be debited : 3534981Account maintained with : Bank of Maharastra, KaradBeneficiaries’ bank with : Union Bank of India, KaradPaying Bank charges to be borne by : Beneficiaries






51

Bank of Maharastra, Pune sends an IFN 101 message to their Karad branch. Bank ofMaharastra,. On receipt of a valid IFN 101 message, Bank of Maharastra, Karad debits ABCLtd’s account and issues pay orders for the proceeds favouring M/s JK&Co. and AN&Co. andforwards it to the beneficiaries and sends a debit advice to M/s. ABC Ltd.

Message Flow:




ABC LTD30 Requested Execution Date 10092001Transaction details 121 Transaction Reference DR5680/01/200132B Currency & Amount INR10,000.0057A Account with institution UBIN000032159 Beneficiary JK&CO70 Remittance Information INV. 74747 FULL SETTLEMENT

BANK OFMAHARASTRA

PUNEINSTRUCTION

ABC LTD

IFN101

JK&CO

BANK OFMAHARASTRA

KARAD

DEBITADVICE

ABC LTD’SACCOUNT

FUNDS

AN&CO FUNDS

FUNDS

52

71A Details of Charges BENTransaction details 221 Transaction Reference DR5680/02/200132B Currency & Amount INR12,000.0057A Account with institution UBIN000032159 Beneficiary AN&CO70 Remittance Information INV. 24680 FULL SETTLEMENT71A Details of Charges BEN

1.5. Third Party Instruction or Request for Debit of Customer’sAccount. (IFN 104)

A creditor or his branch may instruct or request the debtor’s branch either directly or through anintermediary branch, to debit the debtor’s account and transfer the proceeds to the creditor’sbranch for credit to the creditor’s account. Whether the message represents an instruction or arequest depends on the terms and conditions laid down in a special agreement executed by thedebtor with the creditor and the account servicing branch.

IFN 104 messages enable banks and term lending institutions in ensuring timely repaymentof installments. This is achieved by stipulating at the time of granting of the loan, that theborrower should make prior arrangements with the account servicing institution to acceptinstructions or requests from the lender banks to transfer the installment amounts to them(lender banks).

IFN 104 message is used for relaying the instruction/request for debiting the customer andtransferring of funds. The creditor’s branch sends an IFN 104 Message to the debtor’s branch.On receipt of the message, the debtor’s branch debits his account and transfers the amount to thecreditor’s branch using an IFN 100 Message. On receipt of the IFN 100 Message, the creditor’sbranch applies funds to his account.

As such, it will be necessary to agree on the format of the mandate and also draw up countryspecific message usage rules before implementing this message type.

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1.6. DD Related Messages.

At present, there are three IFN Message Formats for relaying of information pertaining to DDrelated transactions.

1.6.1. DD Advices. (IFN 110)

IFN 110 messages are used for relaying single or multiple DD advices.

Example:

On 15.10.2001, Bank of India, Surat has drawn following DDs on Bank of India, Lucknow.

DD No. Amount (Rs.) Payee300007 1,50,000.00 FGH Ltd.300023 1,00,000.00 SD&Co.300045 2,20,000.00 ABC Charitable Trust

The extract of header and text block of the IFN 110 message sent by Bank of India, Surat wouldbe as follows:

Header Block:Sender BKID0000101 Bank of India, SuratReceiver BKID0000756 Bank of India, Lucknow.Message Type IFN 110 Advice of Cheque (DD)

Text Block:Field Description Information20 Transaction Reference No. DD ADVICESTransaction details 1.21 DD Number 30000730 Date of Issue 1510200132B Currency & Amount INR1,50,000.0059 Payee FGH LTDTransaction details 2.21 DD Number 30002330 Date of Issue 1510200132B Currency & Amount INR1,00,000.0059 Payee SD&CO.Transaction details 3.21 DD Number 30004530 Date of Issue 1510200132B Currency & Amount INR2,20,000.0059 Payee ABC CHARITABLE TRUST

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1.6.2. DD Stop Payment Requests. (IFN 111)

IFN 111 messages are used for relaying DD stop payment requests.

Example:

On 25.10.2001, the purchaser of DD No. 300045 reported to Bank of India, Surat that the DD inquestion appeared to have been lost in transit and requested for issue a duplicate in lieu. Bank ofIndia, Surat sends an IFN 111 to the drawee branch requesting for stop payment of the DD.

The extract of header and text block of the IFN 111 message sent by Bank of India, Surat wouldbe as follows:

Header Block:Sender BKID0000101 Bank of India, SuratReceiver BKID0000756 Bank of India, Lucknow.Message Type IFN 111 Request for Stop Payment

Text Block:Field Description Information20 Transaction Reference No. DD STOP PAYMENT21 DD Number 30004530 Date of Issue 1510200132B Currency & Amount INR2,20,000.0059 Payee ABC CHARITABLE TRUST75 Reason for stop payment /21/

CODE: /21/ DD lost or stolen

1.6.3. Replies to DD Stop Payment Requests. (IFN 112)

IFN 112 messages are used for replying to DD stop payment requests.

Example 1:

On 26.10.2001, Bank of India, Lucknow responds to the stop request by sending an IFN 112message advising that the DD is still unpaid and that the stop payment request has been noted.

The extract of header and text block of the IFN 112 message sent by Bank of India, Lucknowwould be as follows:

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Header Block:Sender BKID0000756 Bank of India, Lucknow.Receiver BKID0000101 Bank of India, SuratMessage Type IFN 112 Reply to Request for Stop Payment

Text Block:Field Description Information20 Transaction Reference No. DD STOP PAYMENT21 DD Number 30004530 Date of Issue 1510200132B Currency & Amount INR2,20,000.0059 Payee ABC CHARITABLE TRUST76 Reply /13/

CODE: /13/ Stop payment instruction duly recorded

Example 2:

On 26.10.2001, Bank of India, Lucknow responds to the stop request by sending an IFN 112message advising that the stop payment request cannot be accepted as the DD has already beenpaid on 20.10.2001.

The extract of header and text block of the IFN 112 message sent by Bank of India, Lucknowwould be as follows:

Header Block:Sender BKID0000756 Bank of India, Lucknow.Receiver BKID0000101 Bank of India, SuratMessage Type IFN 112 Reply to Request for Stop Payment

Text Block:Field Description Information20 Transaction Reference No. DD STOP PAYMENT21 DD Number 30004530 Date of Issue 1510200132B Currency & Amount INR2,20,000.0059 Payee ABC CHARITABLE TRUST76 Reply /12/DD PAID IN CLEARING ON

20.10.2001.

CODE: /12/ Stop payment instructions not acceptable

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2. Inter-Branch Messages involving Intra-Bank and Inter-Bank Transfer of Funds:

Often, branches of the same bank exchange messages, which involve transfer of funds to orreceipt of funds from another branch of the same bank or another bank. There are several IFNmessage formats available for relaying such messages.

Various scenarios involving such messages have been discussed below:

2.1. Request for transfer of funds from DAD account of one branchto another. (IFN 202, 210, 900 & 910)

The branch requesting for transfer of funds sends an IFN 202 message to the branch that is beingrequested to transfer the funds. The receiver of the message transfers the amount by thetraditional method of sending to the local RBI DAD, an RBI cheque for the amount with the RBITT requisition slip requesting transfer of funds.

Example:

On 10.10.2001, Canara Bank, Chennai sends an IFN 202 message to Canara Bank, New Delhirequesting transfer of Rs 10 Crores same day value from DAD account of Canara Bank withRBI, New Delhi to DAD account (No. 987654) of Canara Bank with RBI, Chennai. CanaraBank, Chennai also sends an IFN 910 message to the Bank’s Reconciliation System. TheirReference No. is TRF/789/2001. Canara Bank, Chennai also sends an IFN 210 message to RBIChennai advising them that it expects Rs 10 crores to be credited same day value into itsAccount No. 987654 through Canara Bank, New Delhi and RBI, New Delhi.

On receipt of a valid and authenticated IFN 202 message, Canara Bank, New Delhi Brancharranges with RBI New Delhi to transfer funds as requested sends an IFN 900 message to CanaraBank, Chennai advising them that the funds have been transferred and reports the transaction bysending an IFN 900 message to the Bank’s Reconciliation System. Their Reference No. isTTP/1357/2001

It is assumed that the IFSCs of the various entities are as follows:

Canara Bank Chennai : CNRB0000321Canara Bank New Delhi : CNRB0000654Canara Bank Reconciliation System : CNRB0009999RBI, Chennai : RBIN0000CHNRBI, New Delhi : RBIN0000DEL

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Message Flow:

The extract of header and text block of the IFN 202 Message sent by Canara Bank, Chennai toCanara Bank, New Delhi Branch would be as follows:

Header Block:Sender CNRB0000321 Canara Bank ChennaiReceiver CNRB0000654 Canara Bank New DelhiMessage Type IFN 202 General Financial Institution Transfer

Text Block:Field Description Information20 Transaction Reference No. TRF/789/200121 Related Reference NONREF32A Value Date Currency & Amount 10102001INR10,00,00,000.0054A Receiver’s Correspondent RBIN0000NDL57A Account With Institution RBIN0000CHN58A Beneficiary Institution CNRB0000321

The extract of header and text block of the IFN 910 Message sent by Canara Bank, Chennai tothe Reconciliation System would be as follows:

Header Block:Sender CNRB0000321 Canara Bank ChennaiReceiver CNRB0009999 Canara Bank Reconciliation SystemMessage Type IFN 910 Credit Advice

CANARABANK

CHENNAI

CANARABANK

NEW DELHI

CANARA BANKRECONCILIATION

SYSTEM

IFN910

IFN900

IFN202

RBI CHENNAIA/C CANARA

BANK

RBI NEW DELHIA/C CANARA

BANK

FUNDS

IFN210

RBICHEQUE &

TT REQUEST

IFN900

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Text Block:Field Description Information20 Transaction Reference No. TRF/789/200121 Related Reference NONREF25 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 10102001INR10,00,00,000.0052A CONTRA PARTY BRANCH CNRB0000654

The extract of header and text block of the IFN 210 Message sent by Canara Bank Chennai toRBI, Chennai would be as follows:

Header Block:Sender CNRB0000321 Canara Bank ChennaiReceiver RBIN0000CHN RBI, ChennaiMessage Type IFN 210 Notice to Receive

Text Block:Field Description Information20 Transaction Reference No. TRF/789/200125 Account Identification 98765430 Value Date 1010200121 Related Reference TRF/789/200132B Currency & Amount 10102001INR10,00,00,000.0052A Ordering Institution CNRB000065456A Intermediary RBIN0000NDL

The extract of header and text block of the IFN 900 Message sent by Canara Bank, New DelhiBranch to Canara Bank, Chennai would be as follows:

Header Block:Sender CNRB0000654 Canara Bank, New DelhiReceiver CNRB0000321 Canara Bank , ChennaiMessage Type IFN 900 Debit Advice

Text Block:Field Description Information20 Transaction Reference No. TTP/1357/200121 Related Reference TRF/789/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 10102001INR10,00,00,000.00

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The extract of header and text block of the IFN 900 Message sent by Canara Bank, New DelhiBranch to the Reconciliation System would be as follows:

Header Block:Sender CNRB0000654 Canara Bank, New DelhiReceiver CNRB0009999 Canara Bank Reconciliation SystemMessage Type IFN 900 Debit Advice

Text Block:Field Description Information20 Transaction Reference No. TTP/1357/200121 Related Reference TRF/789/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 10102001INR10,00,00,000.0052A CONTRA PARTY BRANCH CNRB0000321

2.2. Request for transfer of funds from DAD account of one branchto DAD account of two or more branches. (IFN 203, 210, 900 &910)

Funds Managers can send an IFN 203 message to a branch of the Bank requesting it to transferfunds to DAD accounts of 2 or more branches of the same bank. IFN 210 messages are sent toeach of the branches whose DAD account is being credited to advise them that their DADaccounts are being funded. The receiver of the 203 message uses traditional means fortransferring the amounts to the DAD accounts of the concerned branches and uses IFN 900messages to advise the branches whose DAD accounts are being funded. IFN 900 messages arealso used to relay debit advices to the Bank’s Reconciliation System. Receivers of IFN 210messages ensure that the funds are credited to their DAD accounts and send IFN 910 messages toadvise the Bank’s Reconciliation System of the credits.

Example:

On 10.10.2001, Central Funds Dept., Canara Bank sends an IFN 203 message to Canara Bank,New Delhi requesting transfer of Rs 25 Crores same day value from DAD account of CanaraBank with RBI, New Delhi to various DAD accounts of Canara Bank as detailed below.

DAD account with RBI, Chennai – Rs 10 CroresDAD account with RBI, Mumbai – Rs 8 CroresDAD account with RBI, Kolkata – Rs 7 Crores

Central Funds Dept., Canara Bank also sends an IFN 210 message each to the above threebranches with Reference Nos. FND/567/2001, FND/568/2001 and FND/569/2001 respectivelywhich are also the Reference Nos. for individual transactions in the IFN 203 message.

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On receipt of a valid and authenticated IFN 203 message, Canara Bank, New Delhi Brancharranges with RBI New Delhi to transfer funds as requested and reports the transaction bysending IFN 900 messages to the Bank’s Reconciliation System. It also sends IFN 300 messagesto the branches whose DAD accounts are being funded.

On receipt of valid IFN 210 messages from the funds department, the recipient branches in turnsend IFN 210 messages to the local RBI offices advising them that their accounts are beingfunded. The branches ensure that their respective DAD accounts have been credited and sendIFN 910 messages to the Bank’s Reconciliation System, advising the credits.

It is assumed that the IFSC codes of the various entities are as follows:

Canara Bank Chennai : CNRB0000321Canara Bank Kolkata : CNRB0000789Canara Bank Mumbai : CNRB0000876Canara Bank New Delhi : CNRB0000654Canara Bank Funds Department : CNRB0005555Canara BankRBI, Chennai : RBIN0000CHNRBI, Kolkata : RBIN0000CALRBI, Mumbai : RBIN0000MUMRBI, New Delhi : RBIN0000NDL

And Account Nos. of Canara Bank’s accounts with various RBI Offices are as follows:

RBI, Chennai : CHNCAN135RBI, Kolkata : CALCAN357RBI, Mumbai : MUMCAN579RBI, New Delhi : NDLCAN791

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Message Flow:

The extract of header and text block of the IFN 203 Message sent by Central Funds Dept.,Canara Bank to Canara Bank, New Delhi Branch would be as follows:

Header Block:Sender CNRB0005555 Canara Bank, Central Funds Dept.Receiver CNRB0000654 Canara Bank, New Delhi BranchMessage Type IFN 203 Multiple Financial Institution Transfer

Text Block:Field Description Information19 Sum of Amounts 25,00,00,000.0030 Value Date 1010200154A Receiver’s Correspondent RBIN0000NDL

CANARABANKFUNDS DEPT.

CANARABANK

NEW DELHI

CANARA BANKRECONCILIATION

SYSTEM

IFN910

IFN203

RBI CHENNAIA/C CANARA

BANK

RBI N. DELHIA/C CANARA

BANK

RBI MUMBAIA/C CANARA

BANK

IFN910 IFN

910

CANARABANK

CHENNAI

IFN900 IFN

900 IFN900

FUNDS

FUNDS

FUNDS

RBICHEQUE &

TT REQUEST

RBI KOLKATAA/C CANARA

BANK

IFN210IFN

210IFN210

IFN210

CANARABANK

MUMBAICANARABANK

KOLKATA

IFN210

IFN210

IFN900

IFN900

IFN900

62

Transaction Details 120 Transaction Reference No. FND/567/200132B Currency & Amount 10102001INR10,00,00,000.0057A Account With Institution RBIN0000CHN58A Beneficiary Institution CNRB0000321Transaction Details 220 Transaction Reference No. FND/568/200132B Currency & Amount 10102001INR8,00,00,000.0057A Account With Institution RBIN0000MUM58A Beneficiary Institution CNRB0000876Transaction Details 320 Transaction Reference No. FND/569/200132B Currency & Amount 10102001INR7,00,00,000.0057A Account With Institution RBIN0000CAL58A Beneficiary Institution CNRB0000789

The extract of header and text block of the IFN 210 Message sent by Central Funds Dept.,Canara Bank to Canara Bank Chennai, would be as follows:

Header Block:Sender CNRB0005555 Canara Bank, Central Funds Dept.Receiver CNRB0000321 Canara Bank, Chennai BranchMessage Type IFN 210 Notice to Receive

Text Block:Field Description Information20 Transaction Reference No. FND/567/200125 Account Identification RBIN0000CHN30 Value Date 1010200121 Related Reference FND/567/200132B Currency & Amount 10102001INR10,00,00,000.0052A Ordering Institution CNRB0000654

The extract of header and text block of the IFN 210 Message sent by Central Funds Dept.,Canara Bank to Canara Bank Mumbai, would be as follows:

Header Block:Sender CNRB0005555 Canara Bank, Central Funds Dept.Receiver CNRB0000876 Canara Bank, Mumbai BranchMessage Type IFN 210 Notice to Receive

Text Block:Field Description Information20 Transaction Reference No. FND/568/200125 Account Identification RBIN0000MUM

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30 Value Date 1010200121 Related Reference FND/568/200132B Currency & Amount 10102001INR8,00,00,000.0052A Ordering Institution CNRB0000654

The extract of header and text block of the IFN 210 Message sent by Central Funds Dept.,Canara Bank to Canara Bank Kolkata, would be as follows:

Header Block:Sender CNRB0005555 Canara Bank, Central Funds Dept.Receiver CNRB0000789 Canara Bank, Kolkata BranchMessage Type IFN 210 Notice to Receive

Text Block:Field Description Information20 Transaction Reference No. FND/569/200125 Account Identification RBIN0000CAL30 Value Date 1010200121 Related Reference FND/569/200132B Currency & Amount 10102001INR7,00,00,000.0052A Ordering Institution CNRB0000654

The extract of header and text block of the IFN 210 Message sent by Canara Bank Chennai, toRBI, Chennai would be as follows:

Header Block:Sender CNRB0000321 Canara Bank, Chennai BranchReceiver RBIN0000CHN RBI, ChennaiMessage Type IFN 210 Notice to Receive

Text Block:Field Description Information20 Transaction Reference No. FND/567/200125 Account Identification CHNCAN13530 Value Date 1010200121 Related Reference FND/567/200132B Currency & Amount 10102001INR10,00,00,000.0052A Ordering Institution CNRB0000654

The extract of header and text block of the IFN 210 Message sent by Canara Bank Mumbai, toRBI, Mumbai would be as follows:

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Header Block:Sender CNRB0000876 Canara Bank, Mumbai BranchReceiver RBIN0000MUM RBI, MumbaiMessage Type IFN 210 Notice to Receive

Text Block:Field Description Information20 Transaction Reference No. FND/568/200125 Account Identification MUMCAN57930 Value Date 1010200121 Related Reference FND/568/200132B Currency & Amount 10102001INR8,00,00,000.0052A Ordering Institution CNRB0000654

The extract of header and text block of the IFN 210 Message sent by Canara Bank Kolkata, toRBI Kolkata would be as follows:

Header Block:Sender CNRB0000789 Canara Bank, Kolkata BranchReceiver RBIN0000CAL RBI, KolkataMessage Type IFN 210 Notice to Receive

Text Block:Field Description Information20 Transaction Reference No. FND/569/200125 Account Identification CALCAN35730 Value Date 1010200121 Related Reference FND/569/200132B Currency & Amount 10102001INR7,00,00,000.0052A Ordering Institution CNRB0000654

The extract of header and text block of the IFN 910 Message sent by Canara Bank, Chennai tothe Reconciliation System would be as follows:

Header Block:Sender CNRB0000321 Canara Bank, Chennai BranchReceiver CNRB0009999 Canara Bank Reconciliation SystemMessage Type IFN 910 Credit Advice

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Text Block:Field Description Information20 Transaction Reference No. TRF/567/200121 Related Reference TRF/567/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 10102001INR10,00,00,000.0052A CONTRA PARTY BRANCH CNRB0000654

The extract of header and text block of the IFN 910 Message sent by Canara Bank, Mumbai tothe Reconciliation System would be as follows:

Header Block:Sender CNRB0000876 Canara Bank, Mumbai BranchReceiver CNRB0009999 Canara Bank Reconciliation SystemMessage Type IFN 910 Credit Advice


The extract of header and text block of the IFN 910 Message sent by Canara Bank, Kolkata tothe Reconciliation System would be as follows:

Header Block:Sender CNRB0000789 Canara Bank, Kolkata BranchReceiver CNRB0009999 Canara Bank Reconciliation SystemMessage Type IFN 910 Credit Advice


The extract of header and text block of the IFN 900 Messages sent by Canara Bank, New DelhiBranch to Canara Bank, Chenai would be as follows:

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Header Block:Sender CNRB0000654 Canara Bank, New Delhi BranchReceiver CNRB0000321 Canara Bank, ChennaiMessage Type IFN 900 Debit Advice

Text Block:Field Description Information20 Transaction Reference No. TRF/567/200121 Related Reference NONREF25 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 10102001INR10,00,00,000.00

The extract of header and text block of the IFN 900 Messages sent by Canara Bank, New DelhiBranch to Canara Bank, Mumbai would be as follows:

Header Block:Sender CNRB0000654 Canara Bank, New Delhi BranchReceiver CNRB0000876 Canara Bank, MumbaiMessage Type IFN 900 Debit Advice


The extract of header and text block of the IFN 900 Messages sent by Canara Bank, New DelhiBranch to Canara Bank, Kolkata would be as follows:

Header Block:Sender CNRB0000654 Canara Bank, New Delhi BranchReceiver CNRB0000789 Canara Bank, KolkataMessage Type IFN 900 Debit Advice


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The extract of header and text block of the IFN 900 Messages sent by Canara Bank, New DelhiBranch to the Reconciliation System would be as follows:

1.Header Block:Sender CNRB0000654 Canara Bank, New Delhi BranchReceiver CNRB0009999 Canara Bank Reconciliation SystemMessage Type IFN 900 Debit Advice






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2.3. Request for transfer of funds from one bank’s branch toanother bank’s branch. (IFN 202, 201, 900 & 910)

IFN 202 messages can be used to instruct a branch to transfer funds using traditional methods toanother Bank’s branch. Usually the proceeds of such remittances represent shortfalls in currentaccounts maintained by bank branches with the branch of another bank, which maintains theclearing house in the centre where the branch requesting transfer of funds is located.

Example:

On 15.10.2001, Bank of Baroda, Mysore sends an IFN 202 message to Bank of Baroda, Mumbairequesting transfer of Rs 2 Crores same day value to State Bank of India, Mumbai. The proceedsrepresent funds borrowed by Bank of Baroda, Mysore from State Bank of India, Mysore (whichmanages the Mysore Bankers’ Clearing House) to make up the short fall in the current accountmaintained by Bank of Baroda, Mysore with State Bank of India, Mysore. Bank of Baroda,Mysore also sends an IFN 910 message to the Bank’s Reconciliation System. Their ReferenceNo. is TTDISC/234/2001.

State Bank of India, Mysore sends an IFN 210 message with Reference No. TTRECV/765/2001to State Bank of India, Mumbai advising that a sum of Rs 2 Crores same day value is expected tobe credited to the latter’s account by Bank of Baroda, Mumbai.

On receipt of a valid and authenticated IFN 202 message, Bank of Baroda, Mumbai arranges totransfer funds as requested using traditional means and reports the transaction by sending an IFN900 message to the Bank’s Reconciliation System. It also sends an IFN 900 message to itsMysore Branch advising that the transfer request has been executed. Their Reference No. isTTP/2468/2001

On receipt of funds, State Bank of India, Mumbai cross checks the amount and particulars withthe information contained in the IFN 210 message to ascertain that the expected amount isreceived in full and sends an IFN 910 message to the Bank’s Reconciliation System. It also sendsan IFN 910 message to State Bank of India, Mysore confirming receipt of funds. State Bank ofIndia, Mysore responds to the IFN 910 message by sending an IFN 900 message to the Bank’sReconciliation System. SBI Mumbai Reference No. is TTR/3542/2001

It is assumed that the IFSC codes of the various entities are as follows:

Bank of Baroda, Mysore : BARB0000MYSBank of Baroda, Mumbai : BARB0000MUMBank of Baroda Reconciliation System : BARB0000RECState Bank of India, Mysore : SBIN0000876State Bank of India, Mumbai : SBIN0000001State Bank of India Reconciliation System : SBIN0009999

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Message Flow:

The extract of header and text block of the IFN 202 Message sent by Bank of Baroda, Mysore toBank of Baroda, Mumbai would be as follows:

Header Block:Sender BARB0000MYS Bank of Baroda, MysoreReceiver BARB0000MUM Bank of Baroda, MumbaiMessage Type IFN 202 General Financial Institution Transfer

BOB MYSORE

BOB MUMBAI

BANK OF BARODARECONCILIATION

SYSTEM

IFN910

IFN900

IFN202

FUNDS

BOB MYSOREA/C WITH SBI

MYSORE

SBI MYSORE

SBIRECONCILIATION

SYSTEM

FUNDS

IFN900

SBI MUMBAI

IFN910

IFN210

IFN910

IFN900

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Text Block:Field Description Information20 Transaction Reference No. TTDISC/234/200121 Related Reference NONREF32A Value Date Currency & Amount 15102001INR2,00,00,000.0053D Sender’s Correspondent OUR DAD ACCOUNT WITH RBI

MUMBAI58A Beneficiary Institution SBIN0000001

The extract of header and text block of the IFN 910 Message sent by Bank of Baroda, Mysore toBank of Baroda’s Reconciliation System would be as follows:

Header Block:Sender BARB0000MYS Bank of Baroda, MysoreReceiver BARB0000REC Bank of Baroda Reconciliation SystemMessage Type IFN 910 Credit Advice

Text Block:Field Description Information20 Transaction Reference No. TTDISC/234/200121 Related Reference TTDISC/234/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 15102001INR2,00,00,000.0052A CONTRA PARTY BRANCH BARB0000MUM

The extract of header and text block of the IFN 210 Message sent by State Bank of India,Mysore to State Bank of India, Mumbai would be as follows:

Header Block:Sender SBIN0000876 State Bank of India, MysoreReceiver SBIN0000001 State Bank of India, MumbaiMessage Type IFN 210 Notice to Receive

Text Block:Field Description Information20 Transaction Reference No. TTRECV/765/200130 Value Date 1510200121 Related Reference TTRECV/765/200125 Account Identification OUR DAD ACCOUNT WITH RBI

MUMBAI32B Currency & Amount INR2,00,00,000.0052A Ordering Institution BARB0000MYS

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The extract of header and text block of the IFN 900 Message sent by Bank of Baroda, Mumbai toBank of Baroda Mysore would be as follows:

Header Block:Sender BARB0000MUM Bank of Baroda, MumbaiReceiver BARB0000MYS Bank of Baroda, MysoreMessage Type IFN 900 Debit Advice

Text Block:Field Description Information20 Transaction Reference No. TTP/2468/200121 Related Reference TTDISC/234/200125 Account Identification OUR DAD ACCOUNT WITH RBI

MUMBAI32A Value Date Currency & Amount 15102001INR2,00,00,000.00

The extract of header and text block of the IFN 900 Message sent by Bank of Baroda, Mumbai toBank of Baroda’s Reconciliation System would be as follows:

Header Block:Sender BARB0000MUM Bank of Baroda, MumbaiReceiver BARB0000REC Bank of Baroda Reconciliation SystemMessage Type IFN 900 Debit Advice

Text Block:Field Description Information20 Transaction Reference No. TTP/2468/200121 Related Reference TTDISC/234/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 15102001INR2,00,00,000.0052A CONTRA PARTY BRANCH BARB0000MYS

The extract of header and text block of the IFN 910 Message sent by State Bank of India,Mumbai to State Bank of India’s Reconciliation System would be as follows:

Header Block:Sender SBIN0000001 State Bank of India, MumbaiReceiver SBIN0009999 State Bank of India Reconciliation systemMessage Type IFN 910 Credit Advice

Text Block:Field Description Information20 Transaction Reference No. TTR/3542/200121 Related Reference TTRECV/765/2001

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25 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 15102001INR2,00,00,000.0052A CONTRA PARTY BRANCH SBIN0000876

The extract of header and text block of the IFN 910 Message sent by State Bank of India,Mumbai to State Bank of India, Mysore would be as follows:

Header Block:Sender SBIN0000001 State Bank of India, MumbaiReceiver SBIN0000876 State Bank of India, MysoreMessage Type IFN 910 Credit Advice

Text Block:Field Description Information20 Transaction Reference No. TTR/3542/200121 Related Reference TTRECV/765/200125 Account Identification OUR DAD ACOUNT WITH RBI

MUMBAI32A Value Date Currency & Amount 15102001INR2,00,00,000.0052A Ordering Institution BARB0000MYS56A Intermediary BARB0000MUM

The extract of header and text block of the IFN 900 Message sent by State Bank of India,Mysore to State Bank of India’s Reconciliation System would be as follows:

Field Description Information20 Transaction Reference No. TTR/3542/200121 Related Reference TTRECV/765/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 15102001INR2,00,00,000.0052A CONTRA PARTY BRANCH SBIN0000001

2.4. Advance Notice of Funds Expected to be Received. (IFN 210)

Branches can use IFN 210 messages to advice another branch to give advance notice of fundsexpected to be credited by another branch of the same bank or another bank. Examples of suchmessages and the message flows have been illustrated in sections 2.1, 2.2 and 2.3 above.

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3. Collections:SFMS has several message types for relaying information relating to collection bills. All suchmessages belong to category 4 of IFN viz., they all begin with the number 4 such as 400, 410,430 etc. Interpretation of information provided in all category 4 messages is subject to ICCUniform Rules for Collections.

Some of the possible uses of SFMS message types in relaying information relating to collectionbill transactions have been detailed below:

3.1. Acknowledgement of Receipt of Collection Bills. (IFN 410)

IFN 410 messages are used for relaying acknowledgement of receipt of one or more collectionbills.

Example:

M/s Baroda Supari Supplies who bank with Corporation Bank, Baroda purchases supariregularly from M/s SK Supari Co. whose bankers are Corporation Bank, Udupi. On 15.10.2001,M/s SK Supari Co. submits documents relating to their bill No. BSS/654/2001 to their bankers.The details of the bil1 are as follows.

Drawee : M/s Baroda Supari SuppliesBill Date : 15.10.2001Amount : Rs 1,00,000/-Terms : Documents against AcceptanceTenor : 60 days from bill date

Corporation Bank, Udupi sends the bill under their Reference No. OBC/791/2001 to their Barodabranch.

Corporation Bank Receives the bill. Its Reference No. is IBC/680/2001. While acknowledgingthe Bill, Corporation Bank, Baroda will have to furnish the following details:

Sender of the Message : Corporation Bank, Baroda(IFSC say CORP0000456)

Receiver of the Message : Corporation Bank, Udupi(IFSC say CORP0000321)

Sender’s Reference No. : IBC/680/2001Receiver’s Reference No. : OBC/791/2001Bill Amount : Rs 1,00,000.00Tenor : 60 days from Date of Bill of ExchangeCorporation Bank, Baroda sends an IFN 410 message to their Udupi branch acknowledgingreceipt of the collection bill and enclosures.

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Message Flow:

The Extract of header and text block of the IFN 410 message sent by Corporation Bank, Barodato their Udupi branch would appear as follows:

Header Block:Sender CORP0000456 Corporation Bank, BarodaReceiver CORP0000321 Corporation Bank, UdupiMessage Type IFN 410 Acknowledgement

Text Block:Field Description Information20 Transaction Reference No. IBC/680/200121 Related Reference (1) OBC/791/200132K Amount Acknowledged D060BEINR1,00,000.00 (2)

(1) Corporation Bank, Udupi Reference No.(2) 60 D (Days) from BE (Date of the Bill of Exchange viz., 15.10.2001)

CORPORATIONBANKUDUPI

DOCUMENTSSK SUPARI CO

IFN410

CORPORATIONBANK

BARODA

DOCUMENTS

75

3.2. Advice of Acceptance: (IFN 412)

IFN 412 messages are used to relay advices of acceptance.

Example:

Let us assume that in the example quoted in section 3.1 above, the drawees accepted the bill.

While advising their Udipi branch, Corporation Bank, Baroda will have to furnish the followingdetails:

Sender of the Message : Corporation Bank, BarodaReceiver of the Message : Corporation Bank, UdupiSender’s Reference No. : IBC/680/2001Receiver’s Reference No. : OBC/791/2001Bill Amount : Rs 1,00,000.00Due Date (1) : 15.12.2001

(1) As the due date has been crystallized, tenor need not be indicated

Corporation Bank, Baroda would then send an IFN 412 message to Corporation Bank, Udupiadvising them of acceptance.

Message Flow:



IFN412

CORPORATIONBANK

BARODA

BARODASUPARI

SUPPLIES

PRESENTATION

ACCEPTANCE

DOCUMENTS

76


Header Block:Sender CORP0000456 Corporation Bank, BarodaReceiver CORP0000321 Corporation Bank, UdupiMessage Type IFN 412 Advice of Acceptance

Text Block:Field Description Information20 Transaction Reference No. IBC/680/200121 Related Reference OBC/791/200132A Maturity, Currency, Amount

Accepted15122001INR1,00,000.00

3.3. Tracer (Fate Enquiry): (IFN 420)

IFN 420 messages are used to enquire fate of bills sent for collection.

Example:

Let us assume that in the example quoted in section 3.1 above, Corporation Bank, Udupi, did notreceive advice of acceptance within a reasonable period. They would then send an IFN 420message to Corporation Bank, Baroda requesting them to advise fate. The information to beprovided in the message will be as follows:

Sender of the Message : Corporation Bank, UdupiReceiver of the Message : Corporation Bank, BarodaSender’s Reference No. : OBC/791/2001Receiver’s Reference No. : IBC/680/2001Bill Amount : Rs 1,00,000.00Tenor : 60 days from Date of Bill of Exchange

77

Message Flow:

The Extract of header and text block of the IFN 420 message sent by Corporation Bank, Udupi totheir Baroda branch would appear as follows:

Header Block:Sender CORP0000321 Corporation Bank, UdupiReceiver CORP0000456 Corporation Bank, BarodaMessage Type IFN 420 Tracer

Text Block:Field Description Information20 Transaction Reference No. OBC/791/200121 Related Reference IBC/680/200132K Amount Traced D060BEINR1,00,000.00

3.4. Advice of Fate and Request for Instructions: (IFN 422)

IFN 422 messages are used to relay advices of fate and request for instructions. Though thismessage is normally sent in response to a tracer, it could also be sent as an advice of non-payment/non-acceptance without waiting for a tracer.



IFN420

CORPORATIONBANK

BARODA

DOCUMENTS

78

Example:

Let us assume that in the example quoted in section 3.1 above, the drawees refused to accept thebill demanding that the tenor of the bill be changed to 90 days instead of 60 days from the date ofthe bill of exchange. Corporation Bank, Baroda would then send an IFN 422 message toCorporation Bank, Udupi advising them of non-acceptance, reasons thereof, seeking freshinstructions.

While advising their Udipi branch, Corporation Bank, Baroda will have to furnish the followingdetails:

Sender of the Message : Corporation Bank, BarodaReceiver of the Message : Corporation Bank, UdupiSender’s Reference No. : IBC/680/2001Receiver’s Reference No. : OBC/791/2001Bill Amount : Rs 1,00,000.00Tenor : 60 days from Date of Bill of ExchangeReason for non-acceptance : Drawees want the tenor of the bill be changed to 90 days

instead of 60 days from the date of the bill of exchange

Message Flow:




IFN422

CORPORATIONBANK

BARODA

DOCUMENTS

BARODASUPARI

SUPPLIES

PRESENTATION

NON-ACCEPTANCE

IFN420

79

Header Block:Sender CORP0000456 Corporation Bank, BarodaReceiver CORP0000321 Corporation Bank, UdupiMessage Type IFN 422 Advice of Fate & Request for Instructions

Text Block:Field Description Information20 Transaction Reference No. IBC/680/200121 Related Reference OBC/791/200132K Amount of Collection D060BEINR1,00,000.0075 Queries DRAWEES WANT THE TENOR

CHANGED TO 90 INSTEAD OF60 DAYS FROM DATE OF BILLOF EXCHANGE. PL.ADVISEREVISED INSTRUCTONS.

3.5. Amendment of Instructions: (IFN 430)

IFN 430 messages are used to relay amendments to the instructions of a collection item.

Example:

Let us assume that in the example quoted in section 3.4 above, the drawers agreed to changetenor of the bill to 90 days instead of 60 days from the date of the bill of exchange. CorporationBank, Udupi would then send an IFN 430 message to Corporation Bank, Baroda advising themof amended instructions. The information to be provided in the message will be as follows:

Sender of the Message : Corporation Bank, UdupiReceiver of the Message : Corporation Bank, BarodaSender’s Reference No. : OBC/791/2001Receiver’s Reference No. : IBC/680/2001Bill Amount : Rs 1,00,000.00Original Tenor : 60 days from Date of Bill of ExchangeAmended Tenor : 90 days from Date of Bill of Exchange

80

Message Flow:


Header Block:Sender CORP0000321 Corporation Bank, UdupiReceiver CORP0000456 Corporation Bank, BarodaMessage Type IFN 430 Amendment of Instructions

Text Block:Field Description Information20 Transaction Reference No. OBC/791/200121 Related Reference IBC/680/200132K Existing Maturity Date.

Currency amountD060BEINR1,00,000.00

33K Amended Maturity Date.Currency amount

D090BEINR1,00,000.00

3.6. Advice of Payment: (IFN 400)

IFN 400 messages are used to relay advice of payment of a collection item.

Let us assume that the bill in example quoted in section 3.5 above is retired by the drawees on14.01.2002. Corporation Bank, Baroda would then send an IFN 400 message to CorporationBank, Udupi advising them that the bill has been paid and that they have been credited throughthe Inter Branch Account for Rs 99,500.00 being proceeds of collection after deducting theircommission of Rs 500.00. They would also send an IFN 910 message to the Bank’sReconciliation System for Rs 99,500.00 and a debit advice to M/s Baroda Supari Suppies.



IFN422

CORPORATIONBANK

BARODA

DOCUMENTS

BARODASUPARI

SUPPLIES

PRESENTATION

NON-ACCEPTANCE

IFN430

81

Corporation Bank, Baroda will have to furnish the following details:

Sender of the Message : Corporation Bank, BarodaReceiver of the Message : Corporation Bank, UdupiSender’s Reference No. : IBC/680/2001Receiver’s Reference No. : OBC/791/2001Bill Amount : Rs 1,00,000.00Tenor : 90 days from Date of Bill of ExchangeDate of Payment : 14.1.2002Charges Deducted : Rs 500.00Proceeds Remitted : Rs 99,500.00

On receipt of a valid IFN 400 message, Corporation Bank, Udupi would credit the proceeds toM/s SK Supari Co.’s account and send them a credit advice and send an IFN 900 message to theBank’s Reconciliation System for Rs 99,500.00.

Message Flow:


IFN900

CREDITADVICE


DOCUMENTS

IFN400

CORPORATIONBANK

BARODA

DOCUMENTS

BARODASUPARI

SUPPLIES

DOCUMENTS

CORPORATION BANKRECONCILIATION

SYSTEM

IFN910

S.K. SUPARI CO

S.K. SUPARICO’S

ACCOUNT

DEBITADVICE

BARODASUPARI

SUPPLIES’ACCOUNT

FUNDS

FUNDS

82

Header Block:Sender CORP0000456 Corporation Bank, BarodaReceiver CORP0000321 Corporation Bank, UdupiMessage Type IFN 400 Advice of Payment

Text Block:Field Description Information20 Transaction Reference No. IBC/680/200121 Related Reference OBC/791/200132K Amount Collected D090BE INR1,00,000.0033A Proceeds Remitted 14012002INR99,500.0071B Details of Charges /COMM/INR500.00

The extract of header and text block of the IFN 910 Message sent by Corporation Bank, Barodato the Reconciliation System would be as follows:

Header Block:Sender CORP0000456 Corporation Bank, BarodaReceiver CORP0000999 Corporation Bank Reconciliation SystemMessage Type IFN 910 Credit Advice

Text Block:Field Description Information20 Transaction Reference No. IBC/680/200121 Related Reference NONREF25 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 14012002INR99,500.0052A CONTRA PARTY BRANCH CORP0000321

The extract of header and text block of the IFN 900 Message sent by Corporation Bank, UdupiBranch to the Reconciliation System would be as follows:

Header Block:Sender CORP0000321 Corporation Bank, UdupiReceiver CORP0000999 Corporation Bank Reconciliation SystemMessage Type IFN 900 Debit Advice

Text Block:Field Description Information20 Transaction Reference No. OBC/791/200121 Related Reference IBC/680/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 14012002INR99,500.0052A CONTRA PARTY BRANCH CORP0000456

83

4. Letters of Credit:All messages relating to Letters of Credit and Guarantee transactions are grouped under category7 of IFN. Interpretation of information provided in all category 7 messages relating to LCs issubject to ICC Uniform Customs and Practice for Documentary Credits (Latest Revision).

Some of the possible uses of SFMS message types in relaying information relating to LCtransactions have been discussed below:

4.1. Short LCs (Pre-Advices). (IFN 705)

IFN 705 messages are used for relaying Short LCs.

Example:

M/s Super Auto Corporation, 123, Manish Auto Market, 16, Grant Road, Mumbai 400 007 whobank with Syndicate Bank, Mumbai (IFSC say SYND0000011) purchases Automobile spareparts from M/s Uttam Singh Agarwal & Sons, USA House, 206/B, Kashmir Gate, New Delhi.110024, whose bankers are Syndicate Bank, New Delhi (IFSC say SYND0000022). On15.10.2001, M/s Super Auto Corporation, request their bankers to issue a short cable transferableLC favoring M/s Uttam Singh Agarwal & Sons. The details of the LC are as follows.

Date and Place of Expiry : 31.12.2001, New DelhiLatest Date for Shipment : 25.12.2001Amount : Rs 2,00,000/-Descrption of Goods : 100 Nos. API Clutch Discs for Premier Padmini

100 Nos. API Clutch Discs for Ambassador Nova100 Nos. API Clutch Discs for Mahindra MM540200 Nos. KAP Rear Axle Shafts for Premier Padmini200 Nos. KAP Rear Axle Shafts for Ambassador Nova

Syndicate Bank, Mumbai issues and the LC (No. ILC/3254/2001) and advises the short LCthrough its New Delhi branch.

84

Message Flow:

The Extract of header and text block of the IFN 705 message sent by Syndicate Bank, Mumbai totheir New Delhi branch would appear as follows:

Header Block:Sender SYND0000011 Syndicate Bank, MumbaiReceiver SYND0000022 Syndicate Bank, New DelhiMessage Type IFN 705 Pre-Advice

Text Block:Field Description Information40A Form of Documentary Credit IRREVOCABLE TRANFERABLE20 Documentary Credit No. ILC/3254/200131D Date and Place of Expiry 31122001NEW DELHI50 Applicant SUPER AUTO CORPORATION

123, MANISH AUTO MARKET,16, GRANT ROAD,MUMBAI 400 007

59 Beneficiary UTTAM SINGH AGARAWAL &SONS, USA HOUSE,206/B,KASHMIR GATENEW DELHI 110 024

32B Currency and Amount INR2,00,000.0044C Latest Date of Shipment 25122001

SYNDICATEBANK

MUMBAILC REQUEST

IFN705

SYNDICATEBANK

NEW DELHI

UTTAM SINGHAGARWAL &

SONSLC ADVICE

SUPER AUTOCORPORATION

85

45A Description of Goods 100 NOS. API CLUTCH DISCSFOR PREMIER PADMINI100 NOS. API CLUTCH DISCSFOR AMBASSADOR NOVA100 NOS. API CLUTCH DISCSFOR MAHINDRA MM540200 NOS. REAR AXLE SHAFTSFOR PREMIER PADMINI200 NOS. REAR AXLE SHAFTSFOR AMBASSADOR NOVA

4.2. LC Issue: (IFN 700 & 701)

IFN 700 and IFN 701 messages are used to relay LC messages. IFN 701 messages are used forcontinuation of an LC message when the entire LC information cannot be conveyed in a singleIFN 700 message.

Example:

The beneficiaries of the LC in the example quoted in section 4.1 above, M/s Uttam SinghAgarwal & Sons, request the openers to arrange for relaying a detailed LC message.

The other details of the LC are as follows:

Draft Particulars : Sight Drafts (in duplicate)for 100% FOB value to be drawn onthe Opening Bank

Part shipments : Not allowedTranshipment : Not allowedDescription of Goods : 100 Nos. API Clutch Discs for Premier Padmini

at Rs 325/- per Pc.100 Nos. API Clutch Discs for Ambassador Novaat Rs 350/- per Pc

100 Nos. API Clutch Discs for Mahindra MM540at Rs 425/- per Pc200 Nos. KAP Rear Axle Shafts for Premier Padminiat Rs 200/- per Pc200 Nos. KAP Rear Axle Shafts for Ambassador Novaat Rs 250/- per Pc

Goods to be dispatched from : New DelhiGoods to be dispatched to : MumbaiDocument Required : Invoices 3 copies

Lorry Receipt of any IBA Approved Road Transport OperatorPacking List 3 Copies.

86

Additional Conditions : Immediately after dispatch, a copy of the Lorry Receipt to befaxed to the openers.Carbon copies of invoices acceptable but not Xerox copies.

The openers request their bankers to advise full LC particulars to the beneficiaries. On25.10.2001, Syndicate Bank, Mumbai sends an IFN 700 message and uses an IFN 701 messageto relay Desrciption of Goods.

Message Flow:

The Extract of header and text block of the IFN 700 and IFN 701 messages sent by SyndicateBank, Mumbai to their New Delhi branch would appear as follows:

Header Block:Sender SYND0000011 Syndicate Bank, MumbaiReceiver SYND0000022 Syndicate Bank, New DelhiMessage Type IFN 700 Advice of Documentary Credit

Text Block:Field Description Information27 Sequence of Total 1/240A Form of Documentary Credit IRREVOCABLE TRANFERABLE20 Documentary Credit No. ILC/3254/200123 Reference to Pre-Advice ILC/3254/200131C Date of Issue 1510200131D Date and Place of Expiry 31122001NEW DELHI50 Applicant SUPER AUTO CORPORATION


SYNDICATEBANK

MUMBAILC REQUEST

IFN700

SYNDICATEBANK

NEW DELHI


SONSLC ADVICE


IFN701

87

59 Beneficiary UTTAM SINGH AGARAWAL &SONS, USA HOUSE,206/B,KASHMIR GATENEW DELHI 110 024

32B Currency and Amount INR2,00,000.0041D Available with .. by .. ANYBANK

NEGOTIATION42C Drafts at .. SIGHT (IN DUPLICATE) FOR 100

PCT FOB VALUE42A Drawee SYND000001143P Part shipments PROHIBITED43T Transhipment PROHIBITED44A DISPATCH FROM .. NEW DELHI44B For Transporation to .. MUMBAI44C Latest Date of Shipment 2512200146A Documents Required INVOICES – 3 COPIES

LORRY RECEIPT OF ANY IBAAPPROVED ROAD TRANSPORTOPERATOR - ORIGINALPACKING LIST – 3 COPIES

47A Additional Conditions 1. IMMEDIATELY AFTERDISPATCH COPY OF THE

LORRY RECEIPT TO BE FAXEDTO THE OPENERS.2. CARBON COPIES OF

INVOICES ACCEPTABLE BUTXEROX COPIES NOTACCEPTABLE

71B Charges ALL CHARGES FORBENEFIARIES’ ACCOUNT

49 Confirmation Instructions CONFIRM


88

Text Block:Field Description Information27 Sequence of Total 2/220 Documentary Credit No. ILC/3254/200145B Description of Goods 100 NOS. API CLUTCH DISCS

FOR PREMIER PADMINI AT RS325/- PER PC100 NOS. API CLUTCH DISCSFOR AMBASSADOR NOVA ATRS 350/- PER PC100 NOS. API CLUTCH DISCSFOR MAHINDRA MM540 AT RS425/- PER PC200 NOS. REAR AXLE SHAFTSFOR PREMIER PADMINI AT RS200/- PER PC200 NOS. REAR AXLE SHAFTSFOR AMBASSADOR NOVA ATRS 250/- PER PC

4.3. Acknowledgement of LC Message: (IFN 730)

IFN 730 message is used to Acknowledge LC messages and other messages related to LCs.

Example:

The receivers of the LC message in the example quoted in section 4.1 above, Syndicate BankNew Delhi acknowledge the LC message by sending an IFN 730 message to Syndicate Bank,Mumbai.

Message Flow:

SYNDICATEBANK

MUMBAILC REQUEST

IFN700

SYNDICATEBANK

NEW DELHI


IFN701


SONSLC ADVICE

IFN730

89

The Extract of header and text block of the IFN 730 message sent by Syndicate Bank, New Delhi(Quoting their Inward LC Reference No. LCADV/1025/2001) to their Mumbai branch wouldappear as follows:

Header Block:Sender SYND0000022 Syndicate Bank, New DelhiReceiver SYND0000011 Syndicate Bank, MumbaiMessage Type IFN 730 Acknowledgement

Text Block:Field Description Information20 Sender’sReference LCADV/1025/200121 Receiver’s Reference ILC/3254/200130 Date of the Message being

Acknowledged25102001

4.4. Advice of Another Branch’s LC: (IFN 710 & 711)

IFN 710 and IFN 711 messages are used to advice LC messages of another branch. IFN 711messages are used for continuation of an LC message when the entire LC information cannot beconveyed in a single IFN 710 message.

Example:

The beneficiaries of the LC in the example quoted in section 4.1 above, M/s Uttam SinghAgarwal & Sons, have recently transferred their account to Kashmir Gate Branch of SyndicateBank. They request the openers to arrange advising the LC through their bankers. On29.10.2001, Syndicate Bank, Mumbai send an IFN 799 Free format message to their New DelhiBranch to advise the LC through their Kashmir Gate Branch.

The Extract of header and text block of the IFN 799 message sent by Syndicate Bank, Mumbai totheir New Delhi branch would appear as follows:


90

Text Block:

Field Description Information20 Documentary Credit No. ILC/3254/200179 Narrative THE BENEFICIARIES OF OUR

ABOVE REFERRED LCRELAYED TO YOU ON15.10.2001 HAVE REQUESTEDTHAT THE LC BE ADVISEDTHOUGH OUR KASHMIR GATEBRANCH. PLEASE ARRANGEACCORDINGLY.

On 30.10.2001, Syndicate Bank, New Delhi sends an IFN 710 and IFN 711 message to relay theLC (Their Reference LCADV/1025/2001) to Syndicate Bank, Kashmir Gate Branch (IFSC SaySYND.

Message Flow:

SYNDICATEBANK

MUMBAILC REQUEST

IFN700

SYNDICATEBANK

NEW DELHI


IFN701

IFN710

SYNDICATEBANK

KASHMIR GATE


SONSLC ADVICE

IFN711

IFN799

IFN730

91

The Extract of header and text block of the IFN 710 and IFN 711 messages sent by SyndicateBank, New Delhi to their Kashmir Gate branch would appear as follows:

Header Block:Sender SYND0000022 Syndicate Bank, New DelhiReceiver SYND0000420 Syndicate Bank, Kashmir GateMessage Type IFN 710 Advice of Third Bank’s Documentary Credit

Text Block:Field Description Information27 Sequence of Total 1/240A Form of Documentary Credit IRREVOCABLE TRANFERABLE21 Sender’s Reference LCADV/1025/200120 Documentary Credit No. ILC/3254/200123 Reference to Pre-Advice ILC/3254/200131C Date of Issue 1510200131D Date and Place of Expiry 31122001NEW DELHI52A Issuing Bank SYND000001150 Applicant SUPER AUTO CORPORATION


59 Beneficiary UTTAM SINGH AGARAWAL &SONS, USA HOUSE,206/B, KASHMIR GATENEW DELHI 110 024






LORRY RECEIPT TO BE FAXED

92

TO THE OPENERS.2. CARBON COPIES OF




N.B: The message is very similar to an IFN 700 message. The only 2 additional fields inthe IFN 710 message are Fields are 21 and 52A.

Header Block:Sender SYND0000022 Syndicate Bank, New DelhiReceiver SYND0000420 Syndicate Bank, Kashmir GateMessage Type IFN 711 Advice of Third Bank’s Documentary Credit



4.5. Transfer of LC: (IFN 720 & 721)

IFN 720 and IFN 721 messages are used to advice LC particulars to a beneficiary in whose namethe LC has been transferred. IFN 721 messages are used for continuation of an LC messagewhen the entire LC information cannot be conveyed in a single IFN 720 message.

93

Example:

On 5.11.2001, the beneficiaries of the LC in the example quoted in section 4.1 above, M/s UttamSingh Agarwal & Sons, request the advising bank to transfer the LC in favour of M/s SatnamSingh Arora & Sons, 25/12, G.T.Road, Goraya who bank with Syndicate Bank, Goraya(IFSCsay SYND0000579).

On the same day, Syndicate Bank, Kashmir Gate sends an IFN 720 and IFN 721 message to theirGoraya Branch, transferring the LC in favour od M/s Satnam Singh Arora & Sons.

Message Flow:

SYNDICATEBANK

MUMBAILC REQUEST

IFN700

SYNDICATEBANK

NEW DELHI


IFN701

IFN710

SYNDICATEBANK

KASHMIR GATE


SONS

LC ADVICE

IFN711

IFN799

TRANSFER REQUEST

IFN720

SYNDICATEBANK

GORAYA

SATNAMSINGH ARORA

& SONSLC ADVICE

IFN721

IFN730

94

The Extract of header and text block of the IFN 720 and IFN 721 messages sent by SyndicateBank, Kashmir Gate branch (Their Ref. LCADV/679/2001) to their Goraya branch would appearas follows:

Header Block:Sender SYND0000420 Syndicate Bank, Kashmir GateReceiver SYND0000579 Syndicate Bank, GorayaMessage Type IFN 720 Transfer of Documentary Credit

Text Block:Field Description Information27 Sequence of Total 1/240A Form of Documentary Credit IRREVOCABLE TRANFERABLE21 Sender’s Reference LCADV/679/200120 Documentary Credit No. ILC/3254/200131C Date of Issue 1510200131D Date and Place of Expiry 31122001NEW DELHI52A Issuing Bank SYND000001150 First Beneficiary UTTAM SINGH AGARAWAL &

SONS, USA HOUSE,206/B,KASHMIR GATENEW DELHI 110 024

59 Second Beneficiary SATNAM SINGH ARORA &SONS, 25/12, G.T.ROAD,GORAYA.






LORRY RECEIPT TO BE FAXEDTO THE OPENERS.2. CARBON COPIES OF

95




N.B: The message is very similar to an IFN 700 message. The only 2 additional fields inthe IFN 720 message are Fields are 21 and 52A. And in the Field 50, the name of theoriginal beneficiary is shown instead of the openers and in Field 59, the name of thetransferee is shown instead of the transferor. If the LC were to be transferred again, Field50 would contain the present transferee (viz., Satnam Singh Arora & Sons) will be shownand the new transferees name will appear in Field 59.

Header Block:Sender SYND0000022 Syndicate Bank, New DelhiReceiver SYND0000420 Syndicate Bank, Kashmir GateMessage Type IFN 721 Transfer of Documentary Credit



96

4.6. Advice of LC Amendment: (IFN 707)

IFN 707 messages are used to advice amendments to LC messages.

Example:

On 15.11.2001, the beneficiaries of the LC in the example quoted in section 4.1 above, M/sUttam Singh Agarwal & Sons, request the openers to amend the LC and extend the Last date forshipment to 31.12.2001 and date of expiry of LC to 7.1.2002 and advise it to the secondbeneficiaries viz., Satnam Singh Arora & Sons through Syndicate Bank, Goraya. On openers’request, Syndicate Bank, Mumbai amends the LC accordingly and sends an IFN 707 message totheir Goraya Branch.

Message Flow:

The Extract of header and text block of the IFN 707 sent by Syndicate Bank, Mumbai (TheirRef. LCAMD/786/2001) to their Goraya branch would appear as follows:

Header Block:Sender SYND0000011 Syndicate Bank, MumbaiReceiver SYND0000579 Syndicate Bank, GorayaMessage Type IFN 707 Amendment of a Documentary Credit

SYNDICATEBANK

MUMBAIAMENDMENT REQUESTSUPER AUTO

CORPORATION

IFN707

SYNDICATEBANK

GORAYA

SATNAMSINGH ARORA

& SONSAMENDMENT ADVICE

97

Text Block:Field Description Information20 Sender’s Reference LCAMD/786/200121 Receiver’s Reference NONREF (1)59 Second Beneficiary SATNAM SINGH ARORA &

SONS, 25/12, G.T.ROAD,GORAYA.

31E New Date of Expiry 3112200144C Latest Date of Shipment 07012002

(1) As the IFN 720 and IFN 721 messages would have been sent by Syndicate Bank,Kashmir Gate to Syndicate Bank, Goraya, the latter would not have sent an IFN730 message to Syndicate Bank, Mumbai. As such, Syndicate Bank, Mumbaiwould have to use NONREF in Field 21.

4.7. Advice of Payment/Acceptance/Negotiation: (IFN 754)

IFN 754 message is used to relay advice of Payment/Acceptance/Negotiation of bills covered byan LC. The message is usually sent by the paying/accepting/negotiating bank to the issuing bankWhether an IFN 754 message conveys advice of Payment, Acceptance or Negotiation dependson the nature of the LC.

If the LC is available by Payment, Deferred Payment or Mixed Payment, then IFN 754message conveys advice of payment.

If the LC is available by Acceptance, then IFN 754 message conveys advice of acceptance. If the LC is available by Negotiation, then IFN 754 message conveys advice of negotiation.

Example:

On 5.01.2002, the beneficiaries (Transferees) of the LC in the example quoted in section 4.5above, M/s Satnam Singh Arora & Sons, 25/12, G.T.Road, Goraya submit a bill (their Ref.OB/2468) for Rs 2,00,000/- under the LC for negotiation to Syndicate Bank, Goraya.

Syndicate Bank, Goraya negotiate the bill and send an IFN 754 advice of negotiation message totheir Mumbai branch.

98

Message Flow:

The Extract of header and text block of the IFN 754 sent by Syndicate Bank, Goraya (Their Ref.LCBP/135/2001) to their Mumbai branch would appear as follows:

Header Block:Sender SYND0000579 Syndicate Bank, GorayaReceiver SYND0000011 Syndicate Bank, MumbaiMessage Type IFN 754 Advice of Negotiation

Text Block:Field Description Information20 Sender’s Reference LCBP/135/200121 Receiver’s Reference ILC/3254/200132A Principal Amount Negotiated 05012002INR2,00,000.00

4.8. Advice of Payment: (IFN 756)

IFN 756 message is used to relay advice of Payment of a bill drawn under and LC. IFN 756message is often confused with IFN 754 as both messages can be used as advices of payment. Itis therefore important to note that IFN 754 is sent to the issuing bank by a bank that pays thebeneficiary of an LC available by payment whereas IFN 756 messages are sent by the issuingbank to a bank, which has negotiated/accepted/paid a bill under an LC.

SYNDICATEBANK

MUMBAI


IFN754

SYNDICATEBANK

GORAYA

SATNAMSINGH ARORA

& SONS

DOCUMENTS

FUNDS

99

Example:

In the example quoted in section 4.7 above, Syndicate Bank, Goraya forwards the documentspertaining to the bill negotiated by it to its Mumbai branch who having examined and found thebill to be in order, take up the bill on 11.01.2002 and send an IFN 756 message advising them ofpayment of the bill. It also sends an IFN 910 message to the Bank’s Reconciliation System and anotice to the applicants viz., M/s Super Auto Corporation, to retire the bill.

On receipt of a valid and authenticated IFN 756, Syndicate Bank, Goraya passes necessaryadjustment entries in its LC Bills Account and sends an IFN 900 message to the Bank’sReconciliation System.

Message Flow:

The Extract of header and text block of the IFN 756 sent by Syndicate Bank, Mumbai (TheirReference LCBR 9753/2001) to their Goraya branch would appear as follows:

Header Block:Sender SYND0000011 Syndicate Bank, MumbaiReceiver SYND0000579 Syndicate Bank, GorayaMessage Type IFN 756 Advice of Payment

Text Block:Field Description Information20 Sender’s Reference LCBR 9753/200121 Receiver’s Reference LCBP/135/200132B Total Amount Claimed INR2,00,000.0033A Amount Paid 11012002 INR2,00,000.00

SYNDICATEBANK

MUMBAI


IFN756

SYNDICATEBANK

GORAYA

SATNAMSINGH ARORA

& SONS

DOCUMENTS

FUNDS

DOCUMENTS


SYSTEM

IFN910

IFN900

100

The extract of header and text block of the IFN 910 Message sent by Syndicate Bank, Mumbai tothe Reconciliation System (IFSC say SYND0009999) would be as follows:

Header Block:Sender SYND0000011 Syndicate Bank, MumbaiReceiver SYND0009999 Syndicate Bank, Reconciliation SystemMessage Type IFN 910 Credit Advice

Text Block:Field Description Information20 Transaction Reference No. LCBR 9753/200121 Related Reference LCBP/135/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 11012002 INR2,00,000.0052A CONTRA PARTY BRANCH SYND0000579

The extract of header and text block of the IFN 900 Message sent by Syndicate Bank, GorayaBranch to the Reconciliation System would be as follows:

Header Block:Sender SYND0000579 Syndicate Bank, GorayaReceiver SYND0009999 Syndicate Bank, Reconciliation SystemMessage Type IFN 900 DebitAdvice

Text Block:Field Description Information20 Transaction Reference No. LCBP/135/200121 Related Reference LCBR 9753/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 11012002 INR2,00,000.0052A CONTRA PARTY BRANCH SYND0000011

4.9. Advice of Discrepancy: (IFN 750)

IFN 750 messages are used to advice discrepancies in documents submitted for negotiation/payment/acceptance under an LC. The message is sent by the negotiating/paying/accepting bankto the issuing bank requesting for authorization to negotiate/pay/accept.

101

Example:

On 5.01.2002, the beneficiaries (Transferees) of the LC in the example quoted in section 7.5above, M/s Satnam Singh Arora & Sons, 25/12, G.T.Road, Goraya submit a bill (their Ref.OB/2468) for Rs 2,00,000/- under the LC for negotiation to Syndicate Bank, Goraya.

On scrutinizing the documents, Syndicate Bank, Goraya find that the goods were dispatched on2.1.2002, viz., after the latest date of shipment, which is, 31.12.2001 after the amendmentmentioned in section vi. above. They therefore send an IFN 750 advice of discrepancy messageto their Mumbai branch on 5.01.2002, requesting permission to negotiate.

Message Flow:

The Extract of header and text block of the IFN 750 sent by Syndicate Bank, Goraya to theirMumbai branch would appear as follows:

Header Block:Sender SYND0000579 Syndicate Bank, GorayaReceiver SYND0000011 Syndicate Bank, MumbaiMessage Type IFN 750 Advice of Discrepancy

Text Block:Field Description Information20 Sender’s Reference LCBP/135/200121 Receiver’s Reference ILC/3254/200132B Principal Amount Negotiated INR2,00,000.0077J Discrepancies SHIPMENT EFFECTED ON

2.1.2002

SYNDICATEBANK

MUMBAI


IFN750

SYNDICATEBANK

GORAYA

SATNAMSINGH ARORA

& SONS

DOCUMENTS

FUNDS

102

4.10. Authorisation to Pay, Accept or Negotiate: (IFN 752)

IFN 752 message is used to convey authorisation to negotiate/pay/accept documents withdiscrepancies submitted under an LC. It is normally sent by the issuing bank in response to anIFN 750 advice of discrepancy message.

Example:

If the discrepancies mentioned in the IFN 750 message discussed in the example quoted insection 4.9 above, are acceptable to the applicants of the LC, Syndicate Bank, Mumbai wouldsend an IFN 752 message to their Goraya branch authorising them to negotiate the discrepantdocuments.

Message Flow:

The Extract of header and text block of the IFN 752 sent by Syndicate Bank, Mumbai to theirGoraya branch would appear as follows:

Header Block:Sender SYND0000011 Syndicate Bank, MumbaiReceiver SYND0000579 Syndicate Bank, GorayaMessage Type IFN 754 Advice of Negotiation

Text Block:Field Description Information20 LC Number ILC/3254/200121 Presenting Bank’s Reference LCBP/135/200123 Further Identification NEGOTIATE30 Date of advice of

Discrepancy05012002

SYNDICATEBANK

MUMBAI


IFN750

SYNDICATEBANK

GORAYA

SATNAMSINGH ARORA

& SONS

DOCUMENTS

FUNDS

ADVICE OF DISCREPANCY

INSTRUCTION

IFN752

103

4.11. Advice of Discharge: (IFN 732)

IFN 732 messages are normally sent by the issuing bank to advise the negotiating bank that thedocuments negotiated with discrepant documents have been taken up. In such cases, thenegotiating bank would have proceeded with negotiation of the bill with discrepant documentswithout referring discrepancies to the issuing bank through an IFN 750 message. Instead, thediscrepancy would be mentioned in the IFN 754 advice of Negotiation and the issuing bankwould be requested to take up the documents.

Example:

Let us assume that in the example quoted in section 4.9 above, Syndicate Bank, Goraya branchproceeds to negotiate the bill on 5.1.2002 in spite of the discrepancies in the supportingdocuments and sends an IFN 754 advice of negotiation on the same day, requesting theirMumbai branch to take up the documents and forwards the documents to Syndicate Bank,Mumbai. The discrepancies are acceptable to the applicants of the LC. Syndicate Bank, MumbaiON 11.01.2002, send an IFN 732 message to their Goraya branch advising them that thedocuments have been taken up in spite of the discrepancies. They also send an IFN 910 messageto the Bank’s Reconciliation System.

On receipt of a valid and authenticated IFN 732 message, Syndicate Bank, Goraya passesnecessary adjustment entries in its LC Bills Account and sends an IFN 900 message to theBank’s Reconciliation System.

Message Flow:

SYNDICATEBANK

MUMBAI


IFN732

SYNDICATEBANK

GORAYA

SATNAMSINGH ARORA

& SONS

DOCUMENTS

FUNDS

DOCUMENTS


SYSTEM

IFN910

IFN900

IFN754


ACCEPTANCE

104

The Extract of header and text block of the IFN 754 sent by Syndicate Bank, Goraya to theirMumbai branch would appear as follows:


Text Block:Field Description Information20 Sender’s Reference LCBP/135/200121 Receiver’s Reference ILC/3254/200132A Principal Amount Negotiated 05012002INR2,00,000.0072 Sender to Receiver

InformationWE HAVE NEGOTIATED INSPITE OF THE FOLLOWINGDISCREPANCY: LAST DATEFOR SHIPMENT EXCEEDED BY2 DAYS. KINDLY ADVISEDISCHARGE ASAP.


Header Block:Sender SYND0000011 Syndicate Bank, MumbaiReceiver SYND0000579 Syndicate Bank, GorayaMessage Type IFN 732 Advice of Discharge

Text Block:Field Description Information20 LC Number ILC/3254/200121 Presenting Bank’s Reference LCBP/135/200130 Date of Advice of Payment/

Acceptance/Negotiation05012002

32B Amount of Utilisation INR2,00,000.0072 Sender to Receiver

InformationWE HAVE TODAY CREDITEDYOU THRU INTER BRANCHACCOUNT FOR RS 2,00,000/-

105

The extract of header and text block of the IFN 910 Message sent by Syndicate Bank, Mumbai tothe Reconciliation System (IFSC say SYND0009999) would be as follows:

Header Block:Sender SYND0000011 Syndicate Bank, MumbaiReceiver SYND0009999 Syndicate Bank, Reconciliation SystemMessage Type IFN 910 Credit Advice

Text Block:Field Description Information20 Transaction Reference No. LCBR 9753/200121 Related Reference LCBP/135/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 11012002 INR2,00,000.0052A CONTRA PARTY BRANCH SYND0000579

The extract of header and text block of the IFN 900 Message sent by Syndicate Bank, GorayaBranch to the Reconciliation System would be as follows:

Header Block:Sender SYND0000579 Syndicate Bank, GorayaReceiver SYND0009999 Syndicate Bank, Reconciliation SystemMessage Type IFN 900 Debit Advice

Text Block:Field Description Information20 Transaction Reference No. LCBP/135/200121 Related Reference LCBR 9753/200125 Account Identification INTER BRANCH ACCOUNT32A Value Date Currency & Amount 11012002 INR2,00,000.0052A CONTRA PARTY BRANCH SYND0000011

106

4.12. Advice of Refusal: (IFN 734)

IFN 734 messages are normally sent by the issuing bank to advise the paying/negotiating bankthat the documents paid/negotiated with discrepancies in the documents forwarded are notacceptable and that the documents are either being held at the negotiating bank’s risk or is beingreturned to them. In such cases, the paying/negotiating bank would have proceeded withpayment/negotiation of the bill with discrepant documents without referring discrepancies to theissuing bank through an IFN 750 message. Instead, the discrepancy would be mentioned in theIFN 754 advice of Payment/Negotiation/Acceptance and the issuing bank would be requested totake up the documents.

Example:

Let us assume that in the example quoted in section 4.9 above, Syndicate Bank, Goraya branchproceeds to negotiate the bill on 5.1.2002 in spite of the discrepancies in the supportingdocuments and sends an IFN 754 advice of negotiation on the same day, requesting theirMumbai branch to take up the documents and forwards the documents to Syndicate Bank,Mumbai. The discrepancies are not acceptable to the applicants of the LC. Syndicate Bank,Mumbai on 11.01.2002, sends an IFN 734 message to their Goraya branch advising them that thediscrepancies are not acceptable and that documents are being held at their risk and disposal.

Message Flow:

SYNDICATEBANK

MUMBAI


IFN734

SYNDICATEBANK

GORAYA

SATNAMSINGH ARORA

& SONS

DOCUMENTS

FUNDS

DOCUMENTS


SYSTEM

IFN910

IFN900

IFN754


REFUSAL

107

The Extract of header and text block of the IFN 754 sent by Syndicate Bank, Goraya (to theirMumbai branch would appear as follows:


Text Block:Field Description Information20 Sender’s Reference LCBP/135/200121 Receiver’s Reference ILC/3254/200132A Principal Amount Negotiated 05012002INR2,00,000.0072 Sender to Receiver

InformationWE HAVE NEGOTIATED INSPITE OF THE FOLLOWINGDISCREPANCY: LAST DATEFOR SHIPMENT EXCEEDED BY2 DAYS. KINDLY DISCHARGEUS ASAP.


Header Block:Sender SYND0000011 Syndicate Bank, MumbaiReceiver SYND0000579 Syndicate Bank, GorayaMessage Type IFN 734 Advice of Refusal

Text Block:Field Description Information20 LC Number LCBR 9753/200121 Presenting Bank’s Reference LCBP/135/200132A Date and Amount of

Utilisation05012002 INR2,00,000.00

77J Discrepancies LAST DATE FOR SHIPMENTEXCEEDED BY 2 DAYS.

77B Disposal of Documents DOCUMENTS HELD AT YOURRISK. ADVISE DISPOSAL ASAP

108

5. Guarantees:SFMS provides message types for Issuing or Requesting for issuing of a guarantee,acknowledgement of a guarantee message, amendments to a guarantee and advice of reduction orrelease.

5.1. Issue of Guarantee:

IFN 760 messages are used to relay guarantees.

Example:

On 10.11.2001, M/s National Power Systems request State Bank of Mysore, Hosur (IFSC SaySBMY0000765) to issue a Bank Guarantee for Rs 1,00,000/- favouring State Bank of Mysore,Nagpur Branch (IFSC Say SBMY0000345).

The details of the guarantee are as follows:

M/s National Power Systems have agreed to supply and install 2 X 25.0 KVA UPS Systems withBattery at State Bank of Mysore, Nagpur branch Premises in terms of their Order No. SBM/01-02/1305 Dated 06.10.2001. As per the order terms, M/s National Power Systems have to arrangefor issue of a Bank Guarantee for Rs 1,00,000/-, valid up to 10.02.2002, indemnifying them (viz.,State Bank of Mysore, Nagpur) from any loss or damage caused by M/s National PowerSystems’ inability to execute the order as per order terms.

After obtaining a counter guarantee from M/s National Power Systems, State Bank of Mysore,Hosur send an IFN 760 message to SBM Nagpur, (Their Ref. BG/310/2001) undertaking to paythe receiver of the message up to Rs 1 lakh in case of breach of purchase order terms by M/sNational Power Systems.

Message Flow:

STATE BANK OFMYSOREHOSUR

NATIONALPOWER

SYSTEMS

IFN760

STATE BANK OFMYSORENAGPUR

COUNTER GUARANTEE

REQUEST TO ISSUE GUARANTEE

109

The Extract of header and text block of the IFN 760 message sent by State Bank of Mysore,Hosur to their Nagpur branch would appear as follows:

Header Block:Sender SBMY0000765 State Bank of Mysore, HosurReceiver SBMY0000345 State Bank of Mysore, NagpurMessage Type IFN 760 Guarantee

Text Block:Field Description Information27 Sequence of Total 1/120 Transaction Ref. Number BG/310/200123 Further Identification ISSUE (1)30 Date (OF ISSUE) 1011200177C Details of Guarantee (2)AMOUNT OF GUARANTEE RS. 98,800/-GUARNTEE COVER FROM 24.08.2001 TO 22.07.2002. (3)THIS DEED OF GUARANTEE EXECUTED BY THE STATE BANK OFMYSORE, AN ASSOCIATE OF STATE BANK OF INDIA, UNDER THESTATE BANK OF INDIA SUBSIDIARY ACT 1959, HAVING ITS HEADOFFICE AT KEMPEGOWDA ROAD, BANGALORE – 560 009 ANDAMONGST OTHER PLACES, A BRANCH AT HOSUR, TAMILNADU(HEREINAFTER REFERRED TO AS BANK) IN FAVOUR OF STATE BANKOF MYSORE, NAGPUR (HEREINAFTER REFERRED TO ASBENEFICIARIES ) FOR AN AMOUNT NOT EXCEEDING RS.1,00,000/-(RUPEES ONE LAKH ONLY) AT THE REQUEST OF M/S NATIONALPOWER SYSTEMS BANGALORE ROAD, HOSUR (HEREINAFTERREFERRED TO AS VENDOR).IN CONSIDERATION OF BENEFICIARIES HAVING AGREED TO ACCEPTTHIS BANK GUARANTEE OF RS.1,00,000/- (RUPEES ONE LAKHONLY)REQUIRED FROM VENDOR TOWARDS SATISFACTORY PERFORM-ANCE FOR THE SUPPLY OF 1 SET OF 2 X 25.0 KVA UPS SYSTEMS WITHBATTERY INSTALLED AT BENEFICIARIES PREMISES, ACCORDIING TOTHE TERMS AND CONDITIONS OF THE PURCHASE ORDER NO.SBM/01-02/1305 DATED 26.10.2001, THE BANK DOES HEREBYUNDERTAKE TO PAY BENEFICIARIES, AN AMOUNT NOT EXCEEDINGRS.1,00,000/- (RUPEES ONE LAKHONLY) AGAINST ANY LOSS OFDAMAGE CAUSED TO OR SUFFERED OR WOULD BE CAUSED TO ORSUFFERED BY BENEFICIARIES BY REASON OF ANY BREACH BY THESAID VENDOR OF ANY OF THE TERMS AND CONDITIONS OF THESAID PURCHASE ORDER.

110

WE, STATE BANK OF MYSORE, HOSUR, DO HEREBY UNDERTAKE TOPAY THE AMOUNTS DUE AND PAYABLE UNDER THIS GURANTEEWITHOUT ANY DEMUR ON A DEMAND FROM BENEFICIARIESSTATING THAT THE AMOUNT CLAIMED IS DUE BY WAY OF LOSS ORDAMAGE CAUSED TO OR SUFFERED BY BENEFICIARIES BY REASONOR ANY BREACH BY THE VENDOR OF ANY OF THE TERMS ANDCONDITIONS OF THE SAID PURCHASE ORDER.ANY SUCH DEMAND MADE ON THE BANK SHALL BE CONCLUSIVEAS REGARDS THE AMOUNT DUE AND PAYABLE BY THE BANKUNDER THIS GURANTEE.NOT WITHSTANDING ANYTHING CONTAINED HEREIN:.A. OUR LIABILITY UNDER THIS BANK GUARANTEE SHALL NOT BEEXCEED EXCEEDING RS.1,00,000/- (RUPEES ONE LAKHONLY)B. THIS BANK GUARANTEE SHALL BE VALID UPTO 10.02.2002 ANDTHEREAFTER CEASES TO BE IN EFFECT IN ALL RESPECTS, WHETHEROR NOT THE ORIGINAL BANK GUARANTEE IS RETURNED TO US ANDC. WE ARE LIABLE TO PAY THE GUARANTEED AMOUNT OR ANYPART THEREOF UNDER THIS BANK GUARANTEE ONLY IF YOU SERVEUPON US A WRITTEN CLAIM OR DEMAND ON OR BEFORE 10.02.2002

(1) The words “ISSUE” in field 23 indicate that the sender of the message is issuing theguarantee and that the receiver of the message is the party being indemnified. If thewords “REQUEST” appears in field 23, then it indicates that the receiver of themessage is being requested to issue a guarantee on behalf of the sender of themessage.

(2) The column for field 77C has been widened to carry the rather lengthy guaranteemessage.

(3) In SFMS, blank lines are not allowed. It is therefore necessary to use a “.”to indicateblank lines.

5.2. Request to issue a Guarantee:

IFN 760 messages are also used to relay requests sent by one branch to another requesting thereceiver to issue a guarantee on behalf of the sender of the message.

Example:

In the example given in section 5.1 above, let us assume that the beneficiary is not State Bank ofMysore, Nagpur but a Nagpur based company say SSR Ltd. State Bank of Mysore, Hosur wouldthen send an IFN 960 message to its Nagpur branch, requesting the latter to issue the guaranteeon its behalf.

111

Message Flow:


Header Block:Sender SBMY0000765 State Bank of Mysore,HosurReceiver SBMY0000345 State Bank of Mysore, NagpurMessage Type IFN 760 Guarantee

Text Block:Field Description Information27 Sequence of Total 1/120 Transaction Ref. Number BG/310/200123 Further Identification REQUEST (1)30 Date (FOR ISSUE) 10112001 (2)77C Details of GuaranteeAMOUNT OF GUARANTEE RS. 98,800/-GUARNTEE COVER FROM 24.08.2001 TO 22.07.2002.THIS DEED OF GUARANTEE EXECUTED BY THE STATE BANK OFMYSORE, AN ASSOCIATE OF STATE BANK OF INDIA, UNDER THESTATE BANK OF INDIA SUBSIDIARY ACT 1959, HAVING ITS HEADOFFICE AT KEMPEGOWDA ROAD, BANGALORE – 560 009 ANDAMONGST OTHER PLACES, A BRANCH AT NAGPUR (HEREINAFTERREFERRED TO AS BANK) IN FAVOUR OF M/S SSR LTD., NAGPUR(HEREINAFTER REFERRED TO AS BENEFICIARIES ) FOR AN AMOUNTNOT EXCEEDING RS.1,00,000/- (RUPEES ONE LAKH ONLY) AT THE


NATIONALPOWER

SYSTEMS

IFN760


COUNTER GUARANTEE


SSR LTD GUARANTEE

112

REQUEST OF M/S NATIONAL POWER SYSTEMS BANGALORE ROAD,HOSUR (HEREINAFTER REFERRED TO AS VENDOR).IN CONSIDERATION OF BENEFICIARIES HAVING AGREED TO ACCEPTTHIS BANK GUARANTEE OF RS.1,00,000/- (RUPEES ONE LAKHONLY)REQUIRED FROM VENDOR TOWARDS SATISFACTORY PERFORM-ANCE FOR THE SUPPLY OF 1 SET OF 2 X 25.0 KVA UPS SYSTEMS WITHBATTERY INSTALLED AT BENEFICIARIES PREMISES, ACCORDIING TOTHE TERMS AND CONDITIONS OF THE PURCHASE ORDER NO.SBM/01-02/1305 DATED 26.10.2001, THE BANK DOES HEREBYUNDERTAKE TO PAY BENEFICIARIES, AN AMOUNT NOT EXCEEDINGRS.1,00,000/- (RUPEES ONE LAKH ONLY) AGAINST ANY LOSS OFDAMAGE CAUSED TO OR SUFFERED OR WOULD BE CAUSED TO ORSUFFERED BY BENEFICIARIES BY REASON OF ANY BREACH BY THESAID VENDOR OF ANY OF THE TERMS AND CONDITIONS OF THESAID PURCHASE ORDER.WE, STATE BANK OF MYSORE, NAGPUR, DO HEREBY UNDERTAKE TOPAY THE AMOUNTS DUE AND PAYABLE UNDER THIS GURANTEEWITHOUT ANY DEMUR ON A DEMAND FROM BENEFICIARIESSTATING THAT THE AMOUNT CLAIMED IS DUE BY WAY OF LOSS ORDAMAGE CAUSED TO OR SUFFERED BY BENEFICIARIES BY REASONOR ANY BREACH BY THE VENDOR OF ANY OF THE TERMS ANDCONDITIONS OF THE SAID PURCHASE ORDER.ANY SUCH DEMAND MADE ON THE BANK SHALL BE CONCLUSIVEAS REGARDS THE AMOUNT DUE AND PAYABLE BY THE BANKUNDER THIS GURANTEE.NOT WITHSTANDING ANYTHING CONTAINED HEREIN:.A. OUR LIABILITY UNDER THIS BANK GUARANTEE SHALL NOT BEEXCEED EXCEEDING RS.1,00,000/- (RUPEES ONE LAKH ONLY)B. THIS BANK GUARANTEE SHALL BE VALID UPTO 10.02.2002 ANDTHEREAFTER CEASES TO BE IN EFFECT IN ALL RESPECTS, WHETHEROR NOT THE ORIGINAL BANK GUARANTEE IS RETURNED TO US ANDC. WE ARE LIABLE TO PAY THE GUARANTEED AMOUNT OR ANYPART THEREOF UNDER THIS BANK GUARANTEE ONLY IF YOU SERVEUPON US A WRITTEN CLAIM OR DEMAND ON OR BEFORE 10.02.2002

(1) The words “REQUEST” in field 23, indicates that the receiver of the message is beingrequested to issue a guarantee on behalf of the sender of the message

(2) The date on which the receiver should issue the guarantee.(3) The guarantee has been worded as it would appear if the receiver were to issue the

guarantee. It can also be worded as if sender was issuing the guarantee. The receiverwould effect the necessary changes.

113

5.3. Acknowledgement of Guarantee Message:IFN 760 messages are used to relay amendments to a guarantee.

Example:

In the example given in section 5.2 above, Stata Bank of Mysore would send an IFN 768message to acknowledge the guarantee message.

Message Flow:

The Extract of header and text block of the IFN 768 message sent by State Bank of Mysore,Nagpur to their Hosur branch would appear as follows:

Header Block:Sender SBMY0000345 State Bank of Mysore, NagpurReceiver SBMY0000765 State Bank of Mysore, HosurMessage Type IFN 768 Guarantee Acknowledgement

Text Block:Field Description Information20 Transaction Ref. Number BG/102/200121 Related Reference BG/310/200130 Date of messsage being ack-

nowledged10112001


NATIONALPOWER

SYSTEMS

IFN767


COUNTER GUARANTEE


SSR LTD GUARANTEE

IFN768

114

5.4. Guarantee Amendment:

IFN 760 messages are used to relay amendments to a guarantee.

Example:

In the example given in section 5.2 above, let us assume that on 31.1.2002, M/s National PowerSystems, request State Bank of Mysore, Hosur to extend the validity period of the guarantee upto 31.3.2001. State Bank of Mysore, Hosur would then send an IFN 767 message to its Nagpurbranch, requesting the latter to advise M/s SSR Ltd of the amendment to the guarantee.

Message Flow:


Header Block:Sender SBMY0000765 State Bank of Mysore,HosurReceiver SBMY0000345 State Bank of Mysore, NagpurMessage Type IFN 767 Guarantee Amendment

Text Block:Field Description Information27 Sequence of Total 1/120 Transaction Ref. Number BG/310-AMD1/200121 Related Reference BG/310/200123 Further Identification REQUEST30 Date (FOR AMENDMENT) 3101200126E Number of Amendment 1


NATIONALPOWER

SYSTEMS

IFN767


AMENDED COUNTER GUARANTEE

REQUEST TO AMEND GUARANTEE

SSR LTD GUARANTEE AMENDMENT

115

31C Date of Request to Issue 1011200177C Amendment DetailsTHE GUARANTEE HAS BEEN AMENDED AS FOLLOWS..1. THE VALIDITY PERIOD OF THE GUARANTEE HAS BEEN EXTENDEDUP TO 31.3.2002.2. THE BANK GUARANTEE SHALL BE VALID UPTO 31.03.2002 ANDTHEREAFTER CEASE TO BE IN EFFECT IN ALL RESPECTS, WHETHEROR NOT THE ORIGINAL BANK GUARANTEE IS RETURNED TO US ANDWE ARE LIABLE TO PAY THE GUARANTEED AMOUNT OR ANY PARTTHEREOF UNDER THIS BANK GUARANTEE ONLY IF YOU SERVEUPON US A WRITTEN CLAIM OR DEMAND ON OR BEFORE 31.03.20023. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED.

5.5. Advice of Reduction or Release:

Header Block:Sender SBMY0000345 State Bank of Mysore, NagpurReceiver SBMY0000765 State Bank of Mysore, HosurMessage Type IFN 769 Advice of Reduction

Text Block:Field Description Information20 Transaction Ref. Number BG/102/200121 Related Reference BG/310/200130 Date of Reduction/Release 3101200133B Amount Reduced/Released 1

6. Debit Credit Advices:

7. Opinion Reports:

7.1. Request for Opinion Report

Header Block:Sender SBMY0000345 State Bank of Mysore, NagpurReceiver SBMY0000765 State Bank of Mysore, HosurMessage Type IFN 985 Status Enquiry

Text Block:

116

Field Description Information20 Transaction Ref. Number BG/102/200159 Enquired Party 3101200175 Queries 1

7.2. Opinion Reports:

Header Block:Sender SBMY0000345 State Bank of Mysore, NagpurReceiver SBMY0000765 State Bank of Mysore, HosurMessage Type IFN 986 Status Report

Text Block:

Field Description Information20 Transaction Ref. Number BG/102/200159 Enquired Party 3101200179 Narrative 1

sfms - guidelines

Documents

funds ifn

transfer of funds

immediate application

reconciliation ofmessages

reconciliation of tt

customer funds transfers

use of ifnmessages

indirect method