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FUNDS TRANSFER & STANDING ORDERS

Second level
Third level
COURSE MAP

During the next sessions

on FUNDS TRANSFER
module, we shall be STRUCTURE
discussing FEATURES
DELIVERY

• The FUNDS TRANSFER

MODULE structure and links
• Special features of T24 EXAMPLES FUNDS TRANSFER
FUNDS TRANSFER module
• Delivery messages linked to
Funds Transfer
DELIVERY
• Other User needs such as USER NEEDS
Reports, Accounting, EOD
• Example inputs in relevant
applications, files
2
OBJECTIVE

• To understand the funds transfer mechanism

• Special features of Funds Transfer
• Setting Parameters and link tables
• Standing Orders
• Delivery in Funds Transfer
• Accounting
• End of Day processes

3
 COURSE AGENDA

SESSION I SESSION II
• STRUCTURE
– Introduction • FEATURES
– Functionalities of Funds – Special features
Transfer Module
• FEATURES
– Payment types
– Applications and Tables in the module

BREAK

SESSION III SESSION IV

• DELIVERY
– Delivery Messages and Advices • STANDING ORDERS
• USER NEEDS
– Enquiries
• EXAMPLES
– Examples and Workshop exercises

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INTRODUCTION

5
INTRODUCTION

• Used for effecting payments

– Internally from one account to another
– Externally to another bank
– Both incoming and outgoing
• Processing Standing Orders.
• Generates Delivery messages
• Produces Accounting entries
• Linked to Limits

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FUNCTIONALITIES

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WHAT DOES FT DO?
FUNCTIONALITIES

• Module Integrated with:

– Accounting
– Central Liability
– Delivery (Outgoing)
– Delivery (Incoming)
– Position Management
• Real Time Updation of

– Balances, Positions, Cash Flow, Limit

• Overnight Processing of

– Standing Order payments

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REAL TIME UPDATES
FUNCTIONALITIES

APPLIES TO
• Balances
• Positions
• Cash flows
• Limits
• Charges and Commission
• Standing Payments effected overnight

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INCOMING PAYMENTS IN FT
FUNCTIONALITIES

• Automation of Incoming Payments

– Local Clearing or via SWIFT
– Payment Verification
– Generates unauthorised Funds Transfer records
– Automatic authorisation up to a defined amount
– [Link] or OFS

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PAYMENT TYPES

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PAYMENT TYPES
PAYMENT TYPES

Some of the Payment Types supported in GLOBUS:

• Within the Branch
• Between Branches
• Cheques to banks or beneficiaries
• Between Banks via Local Clearing
– InterPay (Dutch Clearing) or CHAPS (UK Clearing)
• International Payments via Correspondents
– SWIFT or Telex
• Use for the banks own payments

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MODES OF PAYMENT
PAYMENT TYPES

• Mail Payment
• Banker’s Cheques
• Banker’s Draft
• Clearing house payment
• SWIFT
• Telex
• Local clearing
• Standing Orders
• Bulk

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FEATURES OF PAYMENT
PAYMENT TYPES

• Regular dates
• Between branches (with inter-company transfers)
• Within a branch
• Between banks via local clearing
• Cheques to be sent to beneficiary
• International payments
• Local currency
• Foreign Currency

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PAYMENT TYPES
PAYMENT TYPES

• OUTGOING PAYMENTS
• INCOMING PAYMENTS
• DIRECT DEBITS
• INTERNAL PAYMENTS

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OUTGOING PAYMENT TYPES
PAYMENT TYPES

Type Description
OC Cheque in Local Currency
OD Draft (usually foreign currency)
OT Telex or Swift
OB Mail Order payment
BC Outward by Local Clearing
OT03 SWIFT MT103 payment
OT04 SWIFT MT104 payment

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INCOMING PAYMENT TYPES
PAYMENT TYPES

Type Description
IC General Incoming Payment
IT Telex or SWIFT
IM Inward by Mail Transfer
IB Mail Payment Order
BI Inward by local clearing

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DIRECT DEBITS
PAYMENT TYPES

Type Description
DD General Incoming Payment

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INTERNAL PAYMENT TYPES
PAYMENT TYPES

Type Description
AC Account Transfer
DW Direct drawing

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PAYMENT TYPES
PAYMENT TYPES

• Payment Types are Defined in [Link] Table.

• Standard payment types.
• Defining new payment types.

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APPLICATIONS AND TABLES

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APPLICATIONS AND TABLES
APPLICATIONS AND TABLES

• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]

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OTHER LINKED TABLES AND APPLICATIONS
APPLICATIONS AND TABLES

• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• [Link]
• CURRENCY
• [Link]
• AGENCY

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[Link]
APPLICATIONS AND TABLES

• Payment types are described as transaction types.

• Top level parameter table used for defining default conditions for
each transaction type.
• Conditions are processed by the FT and STO application
• Bank specific new payment type by way of new Transaction type
record in [Link]
• ID can be up to ‘4’ Alpha characters. The first two characters of new
transaction type should be a Standard Transaction type Code –
example: OT - OT03 for sending

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[Link]
APPLICATIONS AND TABLES

Main purpose of [Link] can be broadly classified in

4 heads:
1. Allocation of transaction codes for debit/credit entries
2. Defaulting charge and commission for a Transaction Type
3. Define value date restrictions
4. Generation of advices

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[Link]
APPLICATIONS AND TABLES

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[Link]
APPLICATIONS AND TABLES

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[Link] AND [Link]
APPLICATIONS AND TABLES

• Defines conditions relating to various types of standard 'flat'

commissions and charges
• Charges/commissions in local currency must be entered and foreign
currency charges can also be specifically defined if required.
• Currency of the Account charged will be the Charge Currency.
• When set, the conditions are defaulted in [Link]

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[Link]
APPLICATIONS AND TABLES

• Defines the conditions relating to all types of commission used by

financial transactions within GLOBUS.
• Each commission can be defined as a flat amount or as one that
varies according to the amount transferred.
• All commission will be credited to the PL account

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[Link]
APPLICATIONS AND TABLES

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[Link]
APPLICATIONS AND TABLES

• Defines the conditions relating to various types of standard flat

charge used by financial transactions within T24.
• In all cases the charge amount will be a FLAT amount, regardless of
the monetary value of the transaction
• Charges may be varied according to the country and zone of the
relevant customer and by currency.

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[Link]
APPLICATIONS AND TABLES

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CONDITION SET UP
APPLICATIONS AND TABLES

[Link]
[Link]

MANDATORYTABLES
TABLES [Link]
[Link]
MANDATORY
[Link]
[Link]

[Link]
[Link]

[Link]
[Link]
CREATEDBY
CREATED BYSYSTEM
SYSTEM
CANBE
CAN BEMODIFIED
MODIFIED

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[Link]
APPLICATIONS AND TABLES

• Top level parameter table, established by application.

• Main function is to define the priority of data elements such as
Category, Sector, Industry when used to group business together
and determine the commission and charges applicable.
• [Link] record for [Link] application
before and after authorisation is shown in the slide. The priority for
different conditions defined in this table leads to formation of fields
in [Link] record.
• THE TABLE CREATION IS CRITICAL AS IT CAN NOT BE CHANGED.

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[Link]
APPLICATIONS AND TABLES

[Link] Record for FT

Application before it is Authorised

[Link] Record for FT

Application after it is Authorised

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[Link]
APPLICATIONS AND TABLES

• Defines the basis for formation of a group or group name

• File ID is dependent on the [Link] table tables
used for the decisions in [Link] are defined.
• Category code and sector code take top priority, residence and
target for creating a group.
• ID is a four digit numeric.

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[Link]
APPLICATIONS AND TABLES

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[Link]
APPLICATIONS AND TABLES

• Basis for adjustment of charges and commissions

• Concessions for special group of clients can be defined / used to
define special conditions applicable to a particular group of
customers or individual customers superseding other defaults.
• Special Conditions which can be defined at group level can be
divided into 4 categories:
1. Exchange spread : determine percentage of Customer Spread for a
Currency exchange
2. Commissions : Special conditions for the group to be charged either as
a flat amount or percentage of standard commission.
3. Charges : Same as commission
4. Value date : Special value date conditions applicable to special group of
customers.

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[Link]
APPLICATIONS AND TABLES

• Application level default values which will be used when

[Link] or [Link] instructions are being
processed
• This table contains Company level Default values which will be used
when processing Funds Transfers or Standing Order instructions.
• Defaults will be applicable irrespective of the Transaction Type.
• Mandatory to create one record for each Company on the System
for the FT module to function.

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[Link]
APPLICATIONS AND TABLES

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[Link]
APPLICATIONS AND TABLES

• Record created automatically by the system once a customer record

is authorised.
• Records the default charge group for a customer for variousT24
applications.
• Default charge groups are created as per the conditions defined in
[Link].
• User can change these groups in field [Link] which at
record creation stage will default to default group.
• Defaults periodic charges to be levied against a customer, by
defining the charges in a set of fields
• Also possible to default an account number for collecting charges
and commissions for FT application.

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FUNDS TRANSFER MENU
APPLICATIONS AND TABLES

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SPECIAL FEATURES

43
SPECIAL FEATURES
SPECIAL FEATURES

• FT module can perform the following special operations:

• Single Credit against Multiple Debits or Multiple Credits against a
single Debit.
• Outward payments, internal transfers and cheque payments.
• Validate Credit and Debit totals.
• Calculate single side amount if left blank.
• Calculate currency amount where the credit currency and debit
currency differ.
NOTE:
Accounting entries, Position updates, Profit / loss entries, Delivery etc
will be handled only from the [Link] application side.

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BULK TRANSFERS
SPECIAL FEATURES

• [Link]
• [Link]
• [Link]
• [Link]
• [Link]

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[Link]
SPECIAL FEATURES

• Transfer funds between accounts maintained at the same Company.

• Multiple credits of a common currency against one debit in any
currency.
• In case of different currencies, the exchange rate would default
from the CURRENCY table, if not input.
• Debit amount will be calculated by the system if left blank.
• On authorisation, individual FTS of AC Transaction type are created.

46
[Link]
SPECIAL FEATURES

• Transfer funds between accounts in the same company.

• Multiple debits of a common currency and a single credit either of
the same currency or any other currency.
• When different currencies are involved, the exchange rate, if not
input, would default from the CURRENCY table.
• Credit amount will be calculated by the system if left blank.
• On authorisation, individual FTS of AC Transaction type are
created.

47
[Link]
SPECIAL FEATURES

• Make bulk payments

• One debit against several credits of a common currency to a
Beneficiary/Beneficiaries without an ACCOUNT in the Bank
• Bank will credit its NOSTRO or Clearing accounts to execute
payments.
• FTS with OT transaction type, are created on authorisation from
which pay or cover cables can be generated automatically.
• Netting of these messages is possible.

48
[Link]
SPECIAL FEATURES

• Bulk payments
• Multiple debits of the same currency against one credit either in the
same currency or in a different currency, when the beneficiary has
no account with the bank
• Bank will credit its NOSTRO account or Clearing account to execute
payment.
• When authorised, will create FTS with OT transaction type from
which pay or cover cables can be generated automatically.
• Netting of these messages is possible .

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[Link]
SPECIAL FEATURES

• One debit supports several credits for the issuance of cheques

drawn on the NOSTRO correspondents.
• Allows the input of credits to different correspondents having the
same Currency.

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[Link]
SPECIAL FEATURES

• FT customisation to the requirements of specific local clearing

systems.
• Only for the BC transaction type within [Link]
• Linked to DELIVERY system for diversion of other payment
messages into the clearing system.
• Specifications can be redefined for the FT application.

51
[Link]
SPECIAL FEATURES

• Contains parameters required by FT module for control of local

clearing payments.
• Details specified will be used for BC, BI and BD transaction types
within [Link].
• The type of local clearing system in use is defined here.
• Essential record for allowing local clearing transactions to be used
in Funds Transfer.

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[Link]
SPECIAL FEATURES

53
OTHER LINKED TABLES FOR CLEARING
SPECIAL FEATURES

• [Link]
– defines the conditions to be applied for incoming local clearing
transactions processed from the delivery system or from a tape
interface. If there are no conditions present for the local transction
type, the [Link] record for the FT Transaction type
will apply.
• [Link]
– contains details of bank sort codes used in the local clearing system.
The length and type of the bank sort codes are checked against the
input defined on the [Link] file.

54
DUPLICATE CONTRACT CHECKING
SPECIAL FEATURES

• T24 enables the user to check for duplicate inputs in any application
through the parameter file [Link]
• Any check for duplicate contract done will be recorded in
[Link]
• USER should set parameters based on their experience and
requirements
• For FTs, the ID of the record [Link] should be added
on [Link] (Field: [Link])

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DUPLICATE CONTRACT CHECK
SPECIAL FEATURES

FTPYMT

FTPYMT
56
DELIVERY MESSAGES
AND ADVICES

57
DELIVERY IN FT
DELIVERY MESSAGES AND ADVICES

• FT application is fully integrated with the T24 Delivery system for

advices, payment messages produced.
• SWIFT messages linked are:
– MT100
– MT103
– MT110
– MT202
– MT400
– MT900
– MT910

58
PAYMENT ADVICES
DELIVERY MESSAGES AND ADVICES

• When money is transferred the system produces Payment

Messages and accounting entries based on:
– Information input on a Funds Transfer record
– Routing information kept in the system
• Fields completed in a Funds Transfer govern the S.W.I.F.T payment
message type(s) generated.
• [Link] and its various versions can be used to produce
SWIFT messages and advices.
• All of the Delivery messages and advices can be viewed using 2
enquiries:-
– [Link] and [Link]

59
MT202
DELIVERY MESSAGES AND ADVICES

• Sent by or on behalf of the Ordering Institution directly or through

correspondent(s), to the Financial Institution of the Beneficiary
Institution.
• Used to order movement of funds to the Beneficiary Institution,
hence Bank to Bank transfer.
• All parties to the transaction must be financial institutions
• For example, Our customer- Credit Suisse, London wishes to
transfer 50,000 USD. Pay via Bray Bank, Warszaw in favour of
Commerzbank, Frankfurt.
• Produces only a MT202

60
FLOW CHART FOR MT 202
DELIVERY MESSAGES AND ADVICES

Payment Instructions

MT900 Debit advice GLOBUS T24 Bank

Commerz bank final beneficiary

MT202

Correspondent Bank Bray Bank Intermediary

61
MT 100
DELIVERY MESSAGES AND ADVICES

• Used for Customer Transfer

• Message instructs a funds transfer
• Sent by or on behalf of financial institution of the ordering
customer, to the financial institution of the beneficiary customer.
• Payment can be direct or through correspondent/s
• Ordering customer or the beneficiary customer, or both, are non-
financial institutions
• Message may only be used for clean payment instructions.
• It must not be used to advise the remitting bank of a payment for a
clean collection such as Cheque.

62
FLOWCHART FOR MT 100
DELIVERY MESSAGES AND ADVICES

• Our customer – Mr. Zenon wishes to transfer USD 10,000 to Mr Paul

in New York who has an account with the Bank of New York, New
York.
• Produces only a MT100.

INSTRUCTIONS
BENEFICIARY
CUSTOMER GLOBUSBANK
BANK BENEFICIARY
CUSTOMER GLOBUS PAUL
ZENON PAUL
ZENON
MT 900
MT 100

CORRESPONDENT BENEFICIARYBANK
BANK
BENEFICIARY
BANK BANK OF NY-NY
BANK OF NY-NY

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ENQUIRIES

64
ENQUIRY
ENQUIRIES

• Enquiry [Link] provides the links of the delivery message

with details of the Carrier along with the status if the message
delivery

65
ENQ [Link]
ENQUIRIES

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WORKSHOP

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EXAMPLES

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ACCOUNT TRANSFER
EXAMPLES

69
FT SEE
EXAMPLES

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ACCOUNT TO ACCOUNT TRF
EXAMPLES

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ENQ [Link]
EXAMPLES

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ENQ [Link]
EXAMPLES

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ENQ [Link]
EXAMPLES

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D20031203000084392242.900.1.1
EXAMPLES

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[Link]
EXAMPLES

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D200312030000842243.910.1.2
EXAMPLES

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ACCOUNT TO ACCOUNT
EXAMPLES

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FT SEE
EXAMPLES

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ACCOUNT
EXAMPLES

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ENQ [Link]
EXAMPLES

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INTERNAL ACCOUNT
EXAMPLES

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ENQ [Link]
EXAMPLES

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FT, OT
EXAMPLES

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FT, OT
EXAMPLES

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ENQ LIAB
EXAMPLES

86
ENQ LIAB
EXAMPLES

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FT
EXAMPLES

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[Link]
EXAMPLES

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[Link]
EXAMPLES

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[Link]
EXAMPLES

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ENQ [Link]
EXAMPLES

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ENQ [Link]
EXAMPLES

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900 – DEBIT ADVICE
EXAMPLES

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910 – CREDIT ADVICE
EXAMPLES

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SWIFT MSG
EXAMPLES

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ENQ [Link]
EXAMPLES

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[Link]
EXAMPLES

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[Link]
EXAMPLES

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ISSUE DRAFT OR CHEQUE
EXAMPLES

100
30 - MSG
EXAMPLES

101
50 - MSG
EXAMPLES

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[Link],DRAFT
EXAMPLES

103
[Link]
EXAMPLES

104
OUTWARD SWIFT/TELEX SCREEN
EXAMPLES

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OUTWARD SWIFT/TELEX SCREEN
EXAMPLES

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OUTWARD PAYMENT- NOSTRO
EXAMPLES

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INCOMING CHEQUE COLLECTION
EXAMPLES

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INCOMING SWIFT PAYMENT
EXAMPLES

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FOR MT103
EXAMPLES

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[Link]
EXAMPLES

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STANDING ORDERS

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INTRODUCTION

• Standing Orders comes within the Funds Transfer module as a sub

module.
• Generate Funds Transfer payments at predefined dates and with
predefined frequencies
• Instructions are recorded in a file called [Link].
• Standing orders are also used for sweeping account balances on a
regular basis.
• Account based application.

113
ID OF STANDING ORDERS

• ID of the [Link] application is ACCOUNT [Link]

Example: 21005.001
• Maximum of 999 standing orders can be defined on the same
Account.
• ID is auto generated
• [Link] 900 to 999 are used for Balance Maintenance (BM)
standing order types.

114
EXAMPLE ID

202533.001 First standing order on the Account 202533

202533.006 Sixth standing order on the Account 202533

202533.900 BM Standing order on the Account 202533

Minimum balance maintenance. (in)Å

202533.901 BM standing order on the Account 202533

Maximum balance maintenance (out)Æ

115
TABLES AND APPLICATIONS

• [Link]
• [Link]
• [Link]
• [Link]

116
VERSIONS

MAIN VERSIONS AVAILABLE:

• Maintain Minimum Balance
• Maintain Maximum Balance
• Direct Debits
• Diary Action
• Fixed Amounts
• Periodic Payments
• Periodic Payment of Interest

117
[Link]

• Table defines the types of Standing Order.

• Allows the User to define descriptions in various languages for the
Standing order types.
• Used by the application [Link]
• Must be created before starting to load Standing Order instructions.
• Types are hard-coded and any other description will be refused by
the system

118
STANDING ORDER TYPES

Balance Maintenance:
BI - Balance Inward
BO - Balance Outward
BP - Balance Principal Payment

119
STANDING ORDER TYPES

Repayment Amounts:
FI - Fixed
PP - Periodic Payment
PPI - Periodic Payment of Interest
DD - Direct Debit
Diary - Diary
OL - Operating Lease
RC - Revolving Credit

120
BALANCE MAINTENANCE

BALANCE INWARD: BI
• Transfers funds from one account to another, if the balance
outstanding falls below the minimum balance specified.
• For restoration of minimum balance
• Sequence number must be between 900 to 999. It must be assigned
by the user.
• Payment Method to be used is AC

121
BALANCE OUTWARD

BALANCE OUTWARD (BO):

• Transfer of funds when the balance exceeds a specified amount
• Funds can be transferred to an external account also
• Sequence number must be between 900 to 999 and is to be
assigned by the user.
• Payment Method to be used is OT

122
STANDING ORDER TYPES

BALANCE PRINCIPAL – BP:

• Payment is date specific
• The system will draw down the excess amount and effect payment
as specified in the instruction.
• Sequence No. should be between 900-999.
• Should be assigned by the user.

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STANDING ORDER TYPES

Fixed: FI (debit)
• Fixed amount
• Regular basis
• Customer authorisation
• Fields relevant:
– [Link].
– [Link]
– [Link]

124
STANDING ORDER TYPES

FIXED - FI (Credit)
• Customer’s account will be periodically credited with a fixed amount.
• Funds from external systems.
• [Link] must be FI
• Payment method must be AC
• [Link] will be treated as debit account.
• [Link] must be set to “Y”

125
STANDING ORDER TYPES

PERIODIC PAYMENT (PP)

• Customer instruction to pay bills received from third parties on
presentation.
• The amount may vary.
• No definite frequency.
• Amount in STO during the next working day, beginning of day
process, the payment will be made and the payments program will
delete the amount from the STO.
• The debit value date, credit value date and the processing date will
be the date on which the STO execution is done.

126
STANDING ORDER TYPES

PERIODIC PAYMENT INTEREST:

• PPI: Here the customer may give instruction/order to the bank to
pay out any interest capitalized to another account which may be
internal or external to T24.
• The amount is retrieved from [Link] and [Link].CR2
files. Definite frequency needs to be set.

127
STANDING ORDER TYPES

DIARY:
• Define any type of Diary instructions on a specific Account.
• Similar to maintaining a tracer system. For Example, Review
interest rate daily and invest USD10000 if the rate is above 10%.

• If this type is chosen then field [Link] is mandatory.

128
STANDING ORDER TYPES

DIRECT DEBIT: DD.

• The customer may give a mandate to the bank and authorize the
bank to accept direct debits, received on his account.

129
BULK STANDING ORDER- [Link]

• Allows outgoing payments to be bulked together for different

creditors from one account, i.e. one debit, lots of credits.
• Only FI types allowed.
• One-Off payments
• Associated frequency payments (example: monthly payment of staff
salaries)

• May be run on-line or as an end-of-day process.

130
[Link]

131
[Link]

132
[Link]

• Used for running Bulk Standing Orders on-line

• Allows one or more Bulk Standing Orders to be executed.
• ID of the [Link] s which are to be processed - Field -
[Link] must be entered by the user.
• Field [Link] should be set to 'YES'
• Date in Field [Link] must be less than or equal to the
date of execution.
• Bulk Standing Order to be executed must be held on the Live
[Link] file.

133
[Link]

134
STO- MINIMUM BALANCE

135
STO- MINIMUM BALALNCE

136
STO-DIARY

137
STO-FI

138
STO-PERIODIC PAYMENT

139
ENQ STO

140
EXAMPLES

141
MAXIMUM BALANCE

142
BALANCE PAYMENT

143
FIXED AMOUNT - DEBIT

144
FI - CREDIT

145
FI - CREDIT

146
PERIODIC PAYMENT

147
STO –SEE - PP

148
DIARY ACTION

149
DIARY ACTION

150
PERIODIC PAYMENT INTEREST

151
DIRECT DEBIT

152
ENQ %[Link]

153
SUMMARY

• We have now made an attempt to understand the functionalities of

Funds Transfer module along with the various Delivery and Advices
linked
• You should now be able to make transfers for your Customer
Accounts as well as the Internal Accounts for your Bank
• We also have an idea of the Standing order sub- module within FT
Module of T24 and can appreciate the operations that can be done
through this.

154