2. Creating Electronic Fund Transfer Interfaces

Oracle FLEXCUBE Investor Servicing (FC-IS) provides the AMC with the facility of interfacing with external clearing bureaus and clearing banks. The interface is facilitated through electronic funds transfer (EFT), and specific transfer instruction data can be generated as EFT files that are sent to these clearing bureaus.

In the FC-IS system, you can create transfer instructions to be sent to the clearing bank of the AMC from where transfers can be effected to the unit holder bank accounts, for the following business events:

You can also create transfer instructions to an external clearing bureau for the purpose of debiting the relevant unit holder accounts in the case of debit orders. A hand-off file can be generated with the transfer instruction information that can be sent to an external clearing bureau that will debit the relevant unit holder bank accounts and credit the AMC account as applicable.

In case of NPI payments to a trust, you can generate a single EFT file that contains all the transfer details and the total NPI amount that must be paid to charitable trusts.

This chapter describes the functions in the FC-IS system that you can use to create these transfer instructions EFT files.

This chapter contains the following sections:

2.1 Create Transfer Instruction Files

The following screens in the system facilitate the creation and generation of these transfer instructions interface files:

2.2 Few Basic Terms

You must have a clear understanding of a few basic terms before you use these screens to generate the EFT files:

Batch

A batch is a logical group of records that forms a single transfer instruction EFT file. Accordingly, one single batch can include transfer instructions records that could apply to any one of the four business events mentioned above – redemption payments, dividend payments, broker commission payments or debit orders, as of the date on which (the effective date) the hand-off files are to be generated.

Instruction Type

Each of the four business events that will result in transfer instructions being sent to the clearing bureau (for debit orders) or clearing bank (for redemption payments, dividend payments or broker commission payments), is designated within the system as an instruction type. Therefore, a single batch can contain records that pertain to a single instruction type, for a given date.

Instruction Medium

The instruction medium is the method using which the interfacing with the external entity is achieved. Therefore, the medium could be an automated clearing bureau, an electronic funds transfer, a SWIFT interface, and so on.

Taking a typical example, if the generated transfer instruction files are exported to an external clearing bank, they may need to be exported through an electronic funds transfer. In this case, the instruction medium would be EFT or electronic funds transfer.

Settlements and Link Settlement Numbers

Settlement of the records in a batch involves the debiting or crediting of the applicable bank accounts. For each account that is impacted by the debit or credit entries due to the settlement, the system generates a number known as the link settlement number. This number is typically used for tracking the record in the different stages of the settlement.

If more than one of the records retrieved for a batch are to be settled by crediting or debiting the same unit holder account, then the system internally deems the settlement to be a single one. It also assesses the number of such settlements, and displays the same.

For example, in the case of redemption payments, let us suppose that a certain unit holder A has performed redemption transactions T1 and T2, and that these transactions have been allocated on the date 3rd – April - 2000. Let us suppose that the only bank account to be credited as a result of these transactions is AC1. When you extract redemption payment records for the date 3rd - April - 2000 in this screen, the system retrieves T1 and T2. When it finds, during the process of extraction, that both the proceeds of both transactions are to be credited to a single account AC1, it deems both the transactions as a single settlement, and assigns a single link settlement number, for both these transactions.

For a single link settlement number, all the underlying transactions must be cleared or rejected together.

2.3 EFT Files Generation

Typically, it is recommended that you perform the generation of an EFT batch file after the End of Day process at the Fund Manager has been preformed by the Operator users.

You can create and generate the transfer instruction files in the system by using the following procedures, in sequence:

Refer to the Interfaces chapter of this User Manual for a detailed discussion of the interface processing functions.

Re-exporting Batch EFT File

Once a batch has been authorized, it cannot be generated again for the same instruction type, for the same date.

If the transmitted EFT batch file is misplaced due to any reason, then you can re-export the same batch again. The saved batch data is exported. You can use the Mark Batch for Re-Export screen to do this. The Interface processing function may be used again to re-transmit the EFT batch file.

2.4 EFT Batch Generation Screen

This section contains the following topics:

2.4.1 Invoking the EFT Setup Detail Screen

You can use the ‘EFT Setup Detail’ screen to generate a batch for an EFT file. You can invoke this screen by typing ‘UTDEFTSD’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

2.4.2 Generating EFT Batch in this Screen

To create a batch that can be used for generating and exporting an EFT file, you must

Select ‘New’ from the Actions menu in the Application tool bar or click new icon to enter the details of the EFT Setup Screen.

The EFT Setup Screen depicts the following EFT information:

Batch Number

System Generated Information

The Batch Number is a unique identifier that is assigned to each batch that is generated in this screen. When you have extracted all the records in this screen, the Batch Number is generated when you choose the Save option and the system successfully saves the batch.

The Batch Number consists of a 20-character number, and is generated by the system according to the following logic:

Characters 1-2

‘BN’

Characters 3-4

The instruction type, ‘DO’ for debit orders, ‘RE’ for redemption pay­ments, ‘BC’ for broker commission payments and ‘DI’ for dividend payments.

Characters 5-12

The date stamp (as ‘yyyymmdd’ format)

Characters 13-20

A running serial number prefixed with zeros

Instruction Type

Alphanumeric, Mandatory

Select the type of business event that results in the EFT file transfer to the external bureau in the form of this batch. The records that will be extracted by the system in this screen will be filtered according to the instruction type that you specify here.

Instruction Type Description

When you select the instruction type, the description for the respective instruction type is displayed.

The following types are available:

For instance, if you specify the instruction type as Redemption Payouts, the system will retrieve only records of redemption transactions that have been allocated on the specified date.

The drop down list in this field contains all the instruction types that have been identified for the AMC and the interface. The instruction types are set up in the system by the implementers at installation time.

Instruction Medium

Display Only

The instruction medium is the method using which the interfacing with the external entity is achieved. Therefore, the medium could be an automated clearing bureau, an electronic funds transfer, a SWIFT interface, and so on.

Taking a typical example, if the generated transfer instruction files are exported to an external clearing bank, they may need to be exported through an electronic funds transfer. In this case, the instruction medium would be EFT or electronic funds transfer.

At the time of installation of the system, the implementers set up the different instruction mediums as applicable to the AMC. Each instruction type is mapped to an instruction medium. Therefore, when you specify the instruction type, the instruction medium that is mapped to the selected instruction type is displayed here, and it cannot be altered.

Instruction Medium Description

When you select the Instruction medium, the description for the respective instruction medium is displayed for the EFT Setup.

Entity ID

The ID of the entity involved in the transaction is displayed here.

Bank

The code of the bank, in which the transfer account is located, from which the settlement will be done for the transaction, is displayed here.

Sub Payment Mode

Select the sub payment mode from the option list.

Effective Date

Mandatory

Specify the date for which the records must be extracted for this batch.

Therefore, for redemption payments, broker commission payments and dividend payments, the date you specify here can be a past date, subject to the conditions mentioned above.

Process Date

The application date is displayed here. This is the date on which the batch record is saved in this screen.

Agent Code

Select the agent code from the option list.

Unit Holder ID

Select the ID of the respective unit holder from the option list.

Batch Description

30 Characters Maximum, Alphanumeric, Mandatory

Give a brief narrative description for the batch.

Net Amount

The net amount involved in the transaction is displayed here.

Held Back Payments?

Select ‘Yes’ or ‘No’ to specify whether any payments are held back or not.

Broker Code

Enter the broker code.

Held From

Enter from when the payment is held back.

Actual Transaction Number

The number of the allotted transaction in the system that has been extracted for this batch is displayed here.

For dividend payments and commission payments, it is the corresponding payment number. For redemption transactions, it is the actual redemption transaction number in the system. For debit orders, it is the actual system-generated Standing Instructions transaction number that is assigned when the transaction is actually generated in the system.

Mark for Re-Export

Click ‘Mark For Re-Export’ button to mark the records for re-export.

2.4.3 Reports Printed on Saving EFT Batch

When you save an EFT batch in this screen, the following reports are printed:

2.5 EFT Batch Maintenance Summary Screen

This section contains the following topics:

2.5.1 Invoking the EFT Batch Maintenance Summary Screen

After you have extracted an EFT batch, you must have another user authorize it to be effective in the system.

Before the EFT batch is authorized, you can edit it as many times as necessary. You can also delete it before it is authorized.

Invoke the ‘EFT Setup Summary’ screen by typing ‘UTSEFTSD’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

The ‘EFT Setup Summary’ screen can be used for the following operations on EFT batches:

2.5.2 Retrieving Batch in EFT Setup Summary Screen

You can retrieve a previously entered record in the EFT Setup Summary screen, as follows:

In the browser select Transaction screen and click on Summary, specify any or all of the following details in the corresponding fields:

After you have specified the required details, click the Query button. All transactions with the specified details are retrieved and displayed in the lower portion of the screen.

Note

You can also retrieve the individual record detail from the detail screen by doing query in the following manner:-

You can perform Edit, Delete, Amend, Authorize, Reverse, Confirm operations by selecting from the Action list.

You can also search the record by using combination of % and alphanumeric value.

For example

You can search the record for Batch Number by using the combination of % and alphanumeric value as follows:-

2.5.3 Editing Record

You can modify the details of a record that you have already entered into the system, provided it has not been subsequently authorized. You can perform this operation as follows:

2.5.4 Viewing Record

To view a transaction that you have previously entered, you must retrieve the same in the EFT Setup Summary screen, as follows:

2.5.5 Authorizing Record

An unauthorized record must be authorized in the system for it to be processed.

To authorize a record you must first retrieve the same in the EFT Setup Summary screen.

When the checker authorizes a transaction, details of validations, if any, that were overridden by the maker of the transaction during the Save operation, are displayed. If any of these overrides results in an error, the checker must reject the transaction.

2.5.6 Amending Record

After a record is authorized, it can be modified using the Unlock operation from Action list. To make changes to a record after authorization, you must invoke the Unlock operation which is termed as Amend Operation.

2.5.7 Authorizing Amended Record

An amended record must be authorized for the amendment to be made effective in the system.

Authorization of amended records can only be done from Fund Manager Module and Agency branch Module.

The process of authorization is subsequently the same as that for normal transactions.

2.5.8 Copying Attributes

If you want to create a new record having the same attributes of an existing record, you can copy the attributes of the existing record to the new record.

To copy the attributes of an existing record to a new record:

2.6 Marking a Batch for Re-Export

Once a batch has been authorized, it cannot be generated again for the same instruction type, for the same date.

If the data is lost due to any reason, or the EFT file is misplaced, then you can re-export the same batch again. The saved data is exported again. You can use the Mark EFT Batch for Re-Export option in the Operation field, in the EFT Batch Maintenance (Summary) to do this.

Only batches that have been authorized and subsequently processed at least once can be marked for re-export.

To mark a batch for re-export in the EFT Batch Maintenance Summary screen,

2.7 Payment Clearing Screen

This section contains the following topics:

2.7.1 Invoking the Payment Clearing Detail Screen

In an exported EFT batch file, if the external clearing bureau directs that some settlements must be reconciled in the system, you can use the ‘Payment Clearing Detail’ screen to do this. You can invoke this screen by typing ‘UTDPYCLR’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button. Select ‘New’ from the Actions menu in the Application tool bar or click new icon to enter the details of the Payment Clearing screen.

2.7.2 Fields in Payment Clearing Screen

The following are the fields in the Payment Clearing Screen:

Payment Clearing

The following are the fields under Payment clearing section:

2.8 Payment Clearing Summary Screen

This section contains the following topics:

2.8.1 Invoking the Payment Clearing Summary Screen

You can invoke the ‘Payment Clearing Summary’ screen by typing ‘UTSPYCLR’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

2.8.2 Retrieving Record in Payment Clearing Summary Screens

You can retrieve a previously entered transaction in the Summary screen, as follows:

After you have specified the required details, click ‘Search’ button. All transactions with the specified details are retrieved and displayed in the lower portion of the screen.

Note

You can also retrieve the individual record detail from the detail screen by doing query in the following manner:

You can perform Edit, Delete, Amend, Authorize, Reverse, Confirm operation by selecting from the Action list.

You can also search the record by using combination of % and alphanumeric value.

For example

You can search the record for Transaction Number by using the combination of % and alphanumeric value as follows:-

2.8.3 Editing Transaction

You can modify the details of a transaction that you have already entered into the system, provided it has not been subsequently authorized. You can perform this operation as follows:

2.8.4 Viewing Transaction

To view a transaction that you have previously entered, you must retrieve the same in the Payment Clearing Summary screen, as follows:

2.8.5 Deleting Transaction

You can delete only unauthorized transactions in the system.

To delete a transaction that you have previously entered, you must retrieve the same in the Payment Clearing Summary screen, as follows:

2.8.6 Authorizing Transaction

An unauthorized transaction must be authorized in the system for it to be processed.

To authorize a transaction, you must first retrieve the same in the Payment Clearing Summary screen.

When the checker authorizes a transaction, details of validations, if any, that were overridden by the maker of the transaction during the Save operation, are displayed. If any of these overrides results in an error, the checker must reject the transaction.

2.8.7 Amending Transaction

After a transaction is authorized, it can be modified using the Unlock operation from Action list. To make changes to a transaction after authorization, you must invoke the Unlock operation which is termed as Amend Operation.

2.8.8 Authorizing Amended Transactions

2.8.9 Copying Attributes

If you want to create a new transaction having the same attributes of an existing transaction, you can copy the attributes of the existing transaction to the new transaction.

To copy the attributes of an existing transaction to a new transaction:

2.8.10 To Clear or Reject Settlement