5.1.2 Detailed Flow
Issuance of Open Ended Guarantees (LCDGUONL) :
- Tenor will be defaulted as 3 years for guarantees and 3 years 30 days
- Applicable Rule will be defaulted based on product maintenance (URDG/Other than URDG)
- Expiry date derived based on tenor and cannot be modified if applicable rule is URDG
- MT760.72Z populated with expiry date related details. The FFT code SND2RECMT760 should be attached manually, else system will provide an override.
- Auto Renewal is supported only for Open ended guarantees
- Auto Renewal should be Y if applicable rule is other than URDG
- Auto Renewal can be modified as part of internal amendment (LCDGUONL)
- Open ended guarantees with Auto Renewal enabled will be picked and extended on expiry date as part of LCEOD batch
- AMND will be triggered and MT767 generated with extension details in 72Z
- FFT ‘SND2RECMT767’ should be maintained for the advice ‘GUA_AMD_INSTR’, for AMND event.
Table 5-1 Open Ended Guarantees - Issuance (LCDGUONL) and Auto Renewal - Batch (LCEOD)
| Tenor default | Applicable Rule | Expiry Date | MT760.72Z | Auto Renewal | Batch (LCEOD) | MT767.72Z |
|---|---|---|---|---|---|---|
| 3 years or 3 years 30 days | URDG | Expiry date default based on tenor. Expiry date should not be modified. | As per URDG, Expiry date is defaulted with 3 years | Y | Extension on expiry date for 3 years | As per URDG, Expiry date is extended with 3 years from current expiry date |
| 3 years or 3 years 30 days | URDG | Expiry date default based on tenor. Expiry date should not be modified. | As per URDG, Expiry date is defaulted with 3 years | N | No impact | No impact |
| 3 years or 3 years 30 days | Other than URDG | Expiry date default based on tenor. Expiry date not be modified. | Expiry date is defaulted with 3 years | Y | Extension on expiry date for 3 years | Expiry date is defaulted with 3 years from effective date and get auto extended for further 3 years |
| 3 years or 3 years 30 days | Other than URDG | Expiry date default based on tenor. Expiry date modified. Override not required. | Expiry date is <expiry date> | Y | Extension on expiry date based on existing tenor. | Expiry date is extended for tenor <existing tenor> from current expiry date |
- MT760, Tag 72Z population based on value given in FFT SND2RECMT760 as below:
| Sl.No | Scenario | Messaging impact |
|---|---|---|
| 1 | If SND2RECMT760 is provided without any description by user | Hardcoded message will be added to the FFT description |
| 2 | If SND2RECMT760 is provided with description /PHONBEN/ or /TELEBEN/ | Hardcoded message will be appended, after the code /PHONBEN/ or /TELEBEN/ |
| 3 | If SND2RECMT760 is provided with description other than /PHONBEN/ or /TELEBEN/ | Hardcoded message will be added before the FFT description |
| 4 | If SND2RECMT760 is provided with invalid codes like /PHOTEST/ | Hardcoded message will be in the beginning before the FFT description |
- Above functionality extended to Islamic Open Ended Guarantees (LIDGUONL/LIDGUAMD/LIEOD)
- Above functionality extended to simulation and handoff (LCDGUSIM/LCDGAMSM/LIDGUSIM/LIDGAMSIM)