RTGS Payments Overview
A RTGS system is defined as a gross settlement system in which both processing and final settlement of funds transfer instructions can take place continuously (i.e. in real time). As it is a gross settlement system, transfers are settled individually, that is, without netting debits against credits. As it is a real-time settlement system, the system effects final settlement continuously rather than periodically, provided that a sending bank has sufficient covering balances or credit. Moreover, this settlement process is based on the real- time transfer of central bank money.
Given below is a schematic representation of how a RTGS payment is exchanged and processed in the RTGS network.
The RTGS product processor of Oracle Payments processes an RTGS payment transaction initiated by an Operations user from the in-built user interface or by customers in the bank’s Customer Channels like Internet banking or Mobile banking. The payment instructions initiated from the bank Channels are received by Oracle Payments through ReST or SOAP based interfaces. This product processor can process RTGS payments that are exchanged on SWIFT-based RTGS networks that use SWIFT messages.
An outgoing RTGS payment is processed through most of the typical processing steps applicable for a SWIFT payment and additionally some RTGS specific business validations and processing steps. After successful processing, an outward RTGS SWIFT message, say MT103, is generated and sent to the RTGS network. Likewise, Incoming RTGS payment messages from the network can be received and processed resulting in credit of a beneficiary bank account or an outward SWIFT payment to the ultimate beneficiary. The outward SWIFT payment is processed by the Cross-Border product processor which is covered by a separate user manual.
Key Features of RTGS product processor
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You can invoke “Local Payments Bank Directory Maintenance” screen by typing ‘PMDBKMNT’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
Specify the following details
Host Code
The system displays the host code of the logged-in user by default.
Branch Code
Specify the branch code from the list of values.
Bank Code
Specify the bank code.
Clearing System Code
Specify the clearing system code from the list of values.
Clearing System Proprietary
Specify the clearing system proprietary details.
Bank Name
Specify the name of the bank.
Short Name
Specify the short name of the bank.
Address
Specify the address of the bank in the four fields provided.
City
Enter the name of the city where the bank is located.
Postal Code
Enter the postal code of the city where the bank is located.
Country
Specify the country code of the bank.
Main Bank
Check this box if the bank is a Main bank.
Main Bank Code
Specify the Main Bank Code if the bank is a Main bank.
Valid From Date
Specify the date from which the bank is active in the bank directory.
Valid Till Date
Specify the date till which the bank is active in the bank directory.
SWIFT Address
Specify the SWIFT address.
International Bank Account Number Mandatory
Check this box if IBAN is mandatory.
Internal Clearing
Check this box if internal clearing is allowed.
Clearing Participation
Network
Specify the type of payment network.
Network Service ID
Specify the service id of the network.
Participant Type
Select the clearing participant type. Choose between Direct and Indirect.
Direct Bank Code
Specify the direct bank code from the list of values.
Addressee
Specify the addressee details.
Direct Debit Participation
Specify if Direct Debit Participation is allowed. Select between Yes and No values.
You can invoke “Bank Maintenance Summary” screen by typing ‘PMSBKMNT’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
You can search using one or more of the following parameters:
Once you have specified the search parameters, click ‘Search’ button. The system displays the records that match the search criteria for the following
You can maintain clearing network that supports local payments using ‘Network Maintenance’ screen.
Every network code is linked to a payment type and host code. The same Network code is allowed to be maintained with multiple host combinations.
You can invoke the ‘Network Maintenance’ screen by typing ‘PMDNWMNT’ in the field at the top right corner of the application toolbar and clicking the adjoining arrow button.Click new button on the Application toolbar..
You can specify the following fields;
Network Code
Specify a unique code for the network.
Network Description
Specify a brief description on the network code.
Host Code
Host Code is defaulted as your logged in Host.
Payment Type
Select the payment type from the drop-down list. The list displays the following values:
Network Service ID
Specify the ISO clearing identification code. Alternatively, you can select the network service ID from the option list. The list displays all valid network service IDs maintained in the system.
Proprietary Service ID
Specify the proprietary service ID if the network service ID is proprietary in nature.
Network BIC
Specify the network BIC. Alternatively, you can select the network BIC from the option list. The list displays all valid network BIC maintained in the system. This is used in SEPA dispatch file generation.
SWIFT Type
Specify the type of SWIFT. Select any one of the following:
Sender Notification Required
Check this box to request MT012 for the outgoing RTGS message.
Service Level
The value of the service level is SEPA.
Channel Id
This field is used to capture the Channel Id for each network.
IBAN Validation Required
Select whether IBAN validation is required from the drop down list. Options are as follows:
This field is not applicable for the network ‘BOOKTRANSFER’.
Network Participation
Select the bank’s network participation from the drop-down list. The list displays the following values:
Bank Network Identifier
Select the bank network identifier from the drop-down list. The list displays the following values:
Network Time zone
The system defaults the time zone applicable for the host.
Cutoff Hour
Specify the network cut-off hour.
Cutoff Minute
Specify the network cut-off minute.
You can view a summary of network using ‘Network Maintenance Summary’ screen. To invoke this screen, type ‘PMSNWMNT’ in the field at the top right corner of the application toolbar and click the adjoining arrow button.
You can search for the networks using one or more of the following parameters:
Once you have specified the search parameters, click ‘Search’ button. The system displays the records that match the search criteria.
Double click a record to view the detailed network maintenance screen. You can also export the details of selected records to a file using ‘Export’ button
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You can set preferences for RTGS payment networks using Network Preferences maintenance.
You can invoke the ‘Network Preferences Maintenance’ screen by typing PMDNWPRF in the field at the top right corner of the application toolbar and clicking the adjoining arrow button.Click new button on the Application toolbar.
You can specify the following fields:
Network Code
Specify the network code. Alternatively, you can select the network code from the option list. The list displays all valid network codes maintained in the system.
Network Description
The system displays the network code description.
Host Code
Host code is defaulted as the logged in Host.
Payment Type
The system displays the payment type based on the network code selected.
Transaction Type
Select the payment transaction type from the drop-down list. The list displays the following values:
FX Rate Type
Specify the FX rate type. Alternatively, you can select the FX rate type from the option list. The list displays all open and authorised exchange rate types maintained in the system.
Rate Override Variance
Specify the rate override variance. If the exchange rate provided for a payment transaction exceeds the override limit specified, then the system displays a message and the transaction is saved.
Rate Stop Variance
Specify the rate stop variance. The system displays an error message if the exchange rate exceeds the stop limit.
External Exchange Rate System Applicable
Check this box to receive the exchange rate from the external system.
Sanction Check System Required
Check this box if the transaction details has to be sent for sanction check.
Recall Allowed
Check this box if the network allows recall of an outgoing payment already sent.
Recall Days
Specify the number of days within which the payment originating bank has to recall an outgoing payment.
Return Days
Specify the number of days within which the beneficiary bank has to return an incoming payment which cannot be credited to creditor account. Return days are always be considered as working days based on Network holidays. For an incoming return processing, the system validates whether the return is being processed within the allowed number of days from incoming payment settlement date.
Recall Response Days
Specify the number of days within which the beneficiary bank has to respond to an incoming recall request.
Recall days will always be considered as working days based on Network holidays.
While doing recall response processing, it is validated whether the response is being processed within the allowed number of days from recall received date.
Faster Payment Preferences
Time-out period
You can specify time out period in seconds for receiving the response from the CI (Receiving bank) for an outward Faster payment sent earlier.
Number of Re-tries
Number of times the Faster Payment outward message can be re-sent if a response is not received for the original outward message or the previous re-tried message. This is defaulted and fixed to “1” currently.
Charge Claim Preferences
Charge Claim Limit Days
You can capture the maximum number of days after the customer/bank payment value date that the MTn91 for charge claim can be received
Click ‘Fields’ button to provide values for the UDFs associated with the screen.
You can invoke “Network Preferences Summary” screen by typing ‘PMSNWPRF’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
You can search using one or more of the following parameters:
Once you have specified the search parameters, click ‘Execute Query’ button. The system displays the records that match the search criteria for the following
The below mentioned common maintenances are used to process incoming and outgoing RTGS transactions: