5.1.1 Returns Processing as per B+4 Settlement Batches

The Beneficiary bank must credit the beneficiary or return the transaction to the originating bank within B+4 hours or else it has to be returned as NEFT Outgoing transactions (pacs.008.001.09), wherein B is Batch number received in the inbound pacs.008.001.09 message. Return cutoff time is captured in India Payments Common Preferences.

The Return can be initiated for the following reasons:

• Inward Credit to a NRE account from a Non-NRE account
• Invalid Beneficiary account
• Rejection/Cancellation from the Incoming Exception queues

Returns (Cancel action) can be done from any Queue where user can input the Return reason Code and Return Reason.

- The following screen is launched to handle returns manually and generate pacs.004.001.10 within B+2 cutoff time.

Figure 5-1 Cancel Details

Description of "Figure 5-1 Cancel Details"

On approving Cancel Action from Exception Queues, Inbound transaction is liquidated to Return GL and the transaction is marked as 'Return Initiated'.

Event	Dr/Cr	Account	Account Type	Amount Tag
DRLQ	Dr	Network Clearing GL	GL	XFER_AMT
CRLQ	Cr	Intermediary GL	GL	XFER_AMT
DRLQ	Dr	Intermediary GL	GL	XFER_AMT
CRLQ	Cr	Return GL	GL	XFER_AMT

Maintain a source code as INBOUNDN0 with Prefunded GL flag checked and Prefunded GL as Return GL. Source Network Preferences for transaction Type 'Outgoing' is to be maintained.

An outbound transaction is auto created on processing the return of incoming NEFT transactions, with 'Prefunded GL' flag checked. Outbound transaction Reference is populated as Return reference of the original inbound transaction. The mapping for the outbound transaction is detailed in the below table:

Outbound Transaction Fields	Mapping Details
Host Code, Transaction Branch & Network Code	Same as Inbound Transaction
Source Code	INBOUNDN02
Transaction Reference	Return Reference
UTR Number	Return Reference
Source Reference	Inbound Transaction Reference
Return of Inbound Flag	Marked as Yes
Prefunded Flag	Checked
Booking Date	Current Date
Value Date	Current Date
Activation Date	Current Date
Transaction Currency & Amount	As received in Inbound Transaction
Debtor Details	Beneficiary Details of Inbound transaction
Beneficiary Details	Debtor Details of Inbound Transaction
Beneficiary Bank Details	Debtor Bank Details of Inbound Transaction
Additional Details - Debtor Address	Beneficiary Address Details of inbound transaction
Additional Details - Beneficiary Address	Debtor Address Details of inbound transaction
Sender to Receiver Information	Third line populated as Return of <Source Code of Original Inbound Transaction>

Event	Dr/Cr	Account	Account Type	Amount Tag
DRLQ	Dr	Return GL	GL	XFER_AMT
CRLQ	Cr	Intermediary GL	GL	XFER_AMT
DRLQ	Dr	Intermediary GL	GL	XFER_AMT
CRLQ	Cr	Network Clearing GL	GL	XFER_AMT

All manual rejection within B+4 settlement batch generates pacs.004 message. Any manual rejection/cancellation beyond B+4 settlement batches generate pacs.008.001.09 message.