Introduction to T24 - Funds Transfer

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Funds Transfer – Product overview

Customer Account to
Accounts Account transfer

Funds Transfer Drafts,

Bankers cheques

Internal International
Limits Accounts remittances

Delivery

Accounting
SWIFT messages Outward FT

Customer Advices Inward FT

Slide 2
Introduction

 Funds Transfer used for moving funds

 Externally for payments to and from other banks and Customer

 Internally between Accounts and Profit and Loss items

 Module Integrated with

 Accounting

 Limits

 Delivery

 Real time update of balances and cash flow

.

Slide 3
FUNDS.TRANSFER – Static Tables

CURRENCY FT.COMMISSION.TYPE

FUNDS.TRANSFER

NOSTRO. ACCOUNT

Slide 5
Funds Transfer - Mandatory details

 Id
 Unique and System Generated as FTYYDDDNNNNN
 Where volume of transactions are high, Id can be set to include Alpha
characters at the end

 Debit Account
 Account to be debited

 Debit Currency and Amount

 Currency of the account being debited and amount of transfer

 Debit Value Date

 For Interest purposes in debit account

 Debit Narrative
 Information to be printed on debit advice

Slide 6
Funds Transfer – Mandatory/Optional details

 Ordering Customer
 Customer ordering the transaction
 Mandatory if transfer is not from Customer account

 Similar details for the credit side of the transfer

 Credit Account
 Credit Currency
 Credit Amount
Defined only if Debit Currency and Debit Amount not input earlier
 Credit Value Date
 Credit Narrative

Slide 7
Funds Transfer - Optional details for cross currency transfer

 Treasury Rate
 Exchange rate defaulted from CURRENCY table

 Customer Spread
 Customer specific exchange spread

 Customer rate
 Final rate for Customer
Defaulted by adding treasury rate and spread
 User can input if treasury rate and spread are null
System then works out treasury rate and spread accordingly

 Once input is complete in FT, preview message for that activity can be
launched
 Preview button are enabled to preview the delivery message

Slide 8
Workshop - 2

 Use User Menu > Retail operations > LCY Draft issue/Acct Trfr >
Transfer between Accounts
 Effect a funds transfer for GBP 1,000
 Debit any USD account and credit a GBP account
 Apply a Customer spread 0.025
 Accept overrides, if any, and commit the record

 Through context sensitive enquiries view summary of accounting

entries at Unauthorised stage.

 Get the record authorised

 View the debit advice through Delivery preview

Slide 12
Workshop – 2 Solution

Slide 13
Workshop – 2 Solution

Slide 14
W0rkshop – 2 Solution

Slide 15
Input details for Draft Issue

 Beneficiary
 Draft to be drawn on whose favour
 Can indicate a Customer by Id or Mnemonic
 Free text for external person

 Debit Account
 Customer’s account to be debited for draft issue.
 Draft issue charges also collected from this account

 Draft Currency
 Currency of the draft

 Draft Amount
 Identifies the amount of draft

Slide 16
Input details for Draft Issue

 Draft Number
 Identification for later use

 Credit Account Number

 Internal Account Number for local currency Draft issue
 Nostro account for foreign currency Draft

 Charges
 Defaults can be set up
 Default charges can be waived
 User can also input Currency and amount of charges
in local or debit or credit currency
 Collection option from ordering customer or beneficiary

Slide 17
Workshop - 3

 Use User Menu > Retail operations > LCY Draft Issue/Acct Trfr > Draft
Issue in Local Currency
 Issue a Draft in Local Currency for USD 10,000.25 Cents
 Debit Savings account of Individual Customer in USD. Indicate Beneficiary’s
name as John Peter and suitable Payment details and Draft Number
 Accept overrides and commit the record. See the defaulted charges

 Use User Menu > Retail Operations > Account > Account Enquiries >
Account Search
 View the ledger balances of the debit account used above
 Get the record authorised and view the above enquiry once again to note
the changes to Ledger and Cleared balances

 Use User Menu > Retail operations > LCY Draft issue/Acct Trfr >
Local currency drafts Issued today
 Look at details of local currency drafts

Slide 18
Workshop – 3 Solution

Slide 19
Workshop – 3 Solution

Slide 20
Workshop – 3 Solution

Slide 21
Workshop – 4

 Use Role Based Home Pages > Home page – Remittances > Funds
Transfer > Issue of Foreign Currency Draft > Choose Transaction >
Foreign Currency Draft
 Issue a Draft for GBP 1,000 by debiting Savings Account of your Individual
Customer in USD
 Indicate Beneficiary’s name as David Peter and suitable values for payment
details and Draft number
 Input Customer rate of 2.04 for this draft. See the defaulted charges

 Get the record authorised

 Through context sensitive enquiries, view the accounting entries

 Select Delivery Preview Button

 Look at the delivery message produced as Debit advice

Slide 22
Workshop – 4 Solution

Slide 23
Workshop – 4 Solution

Slide 24
Workshop – 4 Solution

Slide 25
Issuing Drafts - MT 110 Advice of cheque

Draft / Banker’s
Cheque

Michael Dell Instruction T24 Bank

Draft /
Banker’s MT110
Cheque

Draft / Banker’s
Cheque

Payment GBP Nostro account

Mr Frank Bishop with Barclays London

Slide 26
Input details for Draft issue – with MT110

 Similar to details for foreign currency draft

 Mailing information
 Party to whom the Bank to Bank Information to be sent
 CRCUST value defaulted
Means message is for the Bank on whom the draft is drawn

 Bank to Bank Information

 Optional input and is used in Tag 72 of MT 110
 Should be a valid code word pre-defined in SWIFT.CODE.WORDS
Beginning and ending with /
 Multi value field and hence subsequent lines to begin with //
/REC/PLEASE PAY THE DRAFT AS INSTRUCTED
//IF OTHERWISE IN ORDER

Slide 27
Workshop – 5

 Use Role Based Home Pages > Home Page - Remittances > Funds
Transfer > Issue of Foreign Currency Draft > Choose Transaction >
Foreign Currency Draft with MT110
 Issue a Draft for GBP 1,000 by debiting Savings Account of your Individual
Customer in USD
 Beneficiary’s name is John Mathew
 Bank to Bank information - /REC/PLEASE HONOUR THE DRAFT ON
PRESENTATION
 Get the record authorised

 Select Delivery Preview Button

 View swift message MT110

 Use Role Based Home Pages > Home Page – Remittances > Funds
Transfer > Remittances Enquiry > Foreign Currency Drafts Issued
Today
 Look at foreign currency drafts issued today

Slide 28
Workshop – 5 Solution

Slide 29
Workshop – 5 Solution

Slide 30
Workshop – 5 Solution

Slide 31
Outward remittances - MT 103 Single customer credit transfer

Debit advice

Instruction T24 Bank

Michael Dell

MT103

Payment
GBP Nostro account
Mr Frank Bishop with Barclays London

Slide 32
Input details for Outward Remittance (MT103)

 Similar to that of inputting a foreign currency draft with MT110

 SWIFT MT103 Sent to remitting Bank when defaulted with a value of
CRCUST
 Sender to Receiver
Information field used in Tag 72 of MT 103
 Additionally, intermediary bank, if any, can be indicated

 Charges
 Defaults from pre defined setup
 User can input Currency and amount of charges

 Charges collected from

 Charges for field gets a default value of SHA
Other options are BEN and OUR

Slide 33
Workshop – 6

 Use User Menu > Corporate Operations > Funds Transfer > Outward
Remittances > Outward Remittance (MT 103)
 Effect Outward remittance of GBP 10,000 as requested by your Individual
Customer. Debit Customer’s GBP Savings account
 Choose a GBP Nostro account as Credit Account
 Indicate Beneficiary as NESTLE U.K and Sender to receive information as
/REC/PLEASE CREDIT AMOUNT VALUE DATE TODAY

 Accept the overrides and get the record authorised

 Select Delivery preview Button > View FT Messages

 View the MT 103 message

Slide 34
Workshop – 6 Solution

Slide 35
Workshop – 6 Solution

Slide 36
Workshop – 6 Solution

Slide 37
Inward remittance

 Handled through Funds Transfer

 Manually or through suitable interface.
 If interfaced, then, system creates a record in INAU status

 Inward remittances can be handled through

 Vostro Accounts
 Nostro Accounts

 Charges
 Default Commission can be pre defined
 Default charges can be waived
 Multiple charges applicable
 Commission type to indicate collection of charges from whom

Slide 38
Input details for Inward remittance thru Nostro /Vostro Accounts

 Similar to outward remittance

 Debit Account
Drop down of Nostro/Vostro accounts
 Debit Currency
 Debit amount
 Credit account
 Customer spread, if any

 Ordered by
 Name and address of the Customer who originated the transaction
Can be any valid Customer Id / Mnemonic or free text
 Information printed on advices

Slide 39
Workshop – 7

 Use User Menu > Corporate Operations > Funds Transfer > Inward
Remittances > Inward Remittances thru’ Nostro Accounts
 Credit GBP 10,000 to USD Savings Account of Individual Customer
 Choose Nostro Account from drop down
 Payment Ordered by Glaxo London. Indicate Customer spread of 0.015

 Commit the data and get the record authorised.

 Use User Menu > Corporate Operations > Funds Transfer > Enquiries
-Today’s FT transactions > Inward Remittances
 Look at the Inward remittances executed today

Slide 40
Workshop – 7 Solution

Slide 41
Workshop – 7 Solution

Slide 42
Funds Transfer - Mitigation of business risks

 For account to account transactions, involving same currency User

inputs only one amount
 Either the debit amount or the credit amount
 Minimises data entry errors

 Only one amount is specified in all transactions.

 Even in transactions involving two different currencies, and commissions
and marketing exchange profit / loss, T24 works out and fills up other
amounts
 Automated self balancing eliminates accounting errors

 System is designed to check for the possible duplicate entries

 Rules for checking whether a FT transaction is likely to be a duplicate of
another similar transaction
 Identical amounts, account number
 Attaching the record Id of EB.DUPLICATE.TYPE in Funds Transfer
transaction type condition

Slide 43
Enquiries

 Foreign Currency Drafts Issued

 Details of drafts issued in foreign currency

 Outward remittances
 Details of outward remittances

 Transfers between Nostros

 Details of Nostro transfers effected

 Inward Remittances
 Details of inward Remittances

 Enquiry of FT Reversed
 List of FT which have been reversed

Slide 44
Funds Transfer links

Currency Charges and Commission Customer

Limits
Delivery
Accounting
FUNDS TRANSFER
Account - Account
Customer Accounts
Drafts
Internal Accounts
Remittances
Profit & Loss

Slide 45
Summary

 You have learnt about

 Important features of Funds transfer

 Linkage to static tables

 Inputting transactions
Transfer of funds between accounts,
Draft issue
Inward remittance

 Viewing related print and swift messages

 Viewing enquiries

Slide 46