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 Process Area

Customer Relationship
Management Processes

Retail Banking
Processes

Corporate Banking
Processes

Transactional
Processes

Treasury
Processes

Private Wealth
Management Processes

Online Channels
Processes
 Security Management
(SMS) Processes

Financial Accounting
Parameter Processes

Core Parameter
Processes

Islamic Banking Processes

 Summary

CRM processes consist of customer on-boarding and associated processes such as KYC, AML and Campaign &
Contact Management. It also includes Call Centre processes.

Retail Banking processes cover a range of service offerings such as Savings & Current Accounts, Deposits,
Consumer Loans, Mortgages, Teller Transactions - including Cash, Currency Exchange, Travellers Cheques etc.
Complete end-to-end processing is supported, from account opening/ loan origination, establishing lending
arrangement, setting up of sweeps/ standing orders, and account/contract maintenance and closure.

Corporate Banking processes support Corporate Current and Deposit Accounts, Corporate Loans, Project Loans,
Syndicated Lending, Correspondent Banking, Trade Finance & Guarantees as well as Factoring & Forfaiting
Processes.

Transactional processes consist of Payments and Cheque Processing/ Clearing. These are normally performed at
Back office as they are of high volume and operationally intensive in nature.

Treasury processes support a range of vanilla (FX, MM) as well as Derivative products (FRAs, SWAPS, CCY Swaps
etc). Customer position analysis, formulation of trading strategy, trade initiation, execution and settlement etc. are
covered.

Private Wealth Management processes covers the full life cycle of discretionary wealth management - from Asset
Allocation & Portfolio Modeling, through Client Profiling, Maintenance/Review of portfolios, performance
measurement and portfolio rebalancing. This process area also covers a range of processes related to Trading of
Securities, Derivatives, Forex and Structured Products, as well as Mutual Funds, Fiduciary placements and
administration processes such as Corporate Actions.

Online Channels processes cover user set up and maintenance associated with Personal, Corporate and Wealth
Management customers. It also includes processes specific to Retail, Corporate and Wealth Management as well
as Transactional online channels processes.
Security Management System (SMS) processes include setting up and maintenance of users and user related
parameters in the system.

Processes for maintaining parameters relating to financial accounting, accounting rules, set up of general ledger
and financial reporting.

Processes for setting up basic T24 parameters such as Interest, Fees and Tax related parameters.

Islamic Banking Processes cover the work flow of Islamic model such as Asset Request, Approval and Purchase of
Islamic Assets. Further it covers the end-to-end processing of Asset / Commodity Sale under different products
such as Fixed Profit, Variable Profit and Multi Structured. Also it covers the work flow of Vendor / Supplier
Payment.
 Note :
No of 1.Processes with Asterisk (*), are being used in more than one
Processes Verticals as Shortcut.

59

124

147

105

55

176

Note :
Online Channels Corporate 2.0 repositories to be revisited in phase
2 (Post R18)
103
 5

31

82

894
s

Business Area
Total no of processes
Release

Process Area Scenario Process

Customer Relationship Management
Processes
0.1 Retail Banking Clients
Manage Customer Engagements
(Retail)

Create Retail Customer (PW)

0.2 Corporate Banking Clients

Manage Customer Engagements
(Corporate)

Complete KYC Check (Corporate)

Create Customer Record (Corporate)

Perform AML Check (Corporate)

Setup Mandates & Signatory Groups

*
 Amend Customer Details (Corporate)

Amend Customer Charge (Corporate)

Set/ Remove Posting Restrict

(Corporate)

0.3 Private Wealth Management

Clients
0.3.1 Customer Creation
Manage Customer Engagements
(PWM)

Perform Customer Risk Profiling

Generate documents for suggested

Investment Strategies

Create Customer Record (PWM)

Perform AML/ KYC Check (PWM)

0.3.2 Portfolio Opening

Open Customer Portfolio

Build Portfolio
 Set PWM Alerts

Set Block & Restrictions

0.3.3 Portfolio closing

Close Customer Portfolio

0.4 Financial Institutions

Create Bank Customer

Create Routing Instructions

Amend Routing Instructions

Generate/ View Statement MT942

Open Internal Account *

Open Nostro Account

Open Vostro Account

0.5 Contact Management

Manage Contacts (Retail)

Amend Contacts (Retail)

Manage Contacts (PWM)

Manage Customer Contacts (Call

Centre)
 Manage Customer Complaints (PW)

Manage Customer Service Requests

(PW)
Create Customer Travel Details

Manage Customer Travel Details

0.6 Campaign Management

Manage Campaigns

Manage Opportunity Definitions

0.7 CRM Administration

Set Up Customer Profiles

Maintain Customer Relationships

Set Up Customer Group

0.8 Common Processes

Amend Customer Details
 Amend Customer Charge

Initiate Customer Mass Block

Initiate Customer Mass Unblock

Amend/ Reverse Mass Block

Initiate Bundle Arrangement Block

Initiate Bundle Arrangement Unblock

Manage Document & Image Upload

Manage Documents

Set/ Remove Posting Restrict

0.9 FATCA / CRS

Setup Common Reporting Standards
(CRS) Parameter & Report generation

Create CRS Record

Create FATCA record

 Check Aggregated Account Balances
(FATCA)

Generate Foreign Account Tax

Compliance Act (FATCA) Report

0.10 Customer Data Protection

Define Personal Data
Search Personal Data

Manage Customer Activity for

Erasure Process

Manage Rights to Personal Data

Customer Relationship Management In Scope
59 59
R18 Model Bank

Scoping
Process Description In Scope

2
Front Office user checks on the customer’s request and validate his existence
in the system. New customers will be recorded as prospects before continuing
with AML and KYC check. Existing customer’s records will be checked for cross-
selling opportunities and verified if background checks or record updates are
required. The Customer on boarding feature enables the user to choose the
activity to be performed based on the status of the prospect / Yes
Customer(existing or new).

This process describes the activities for Customer creation, using a PW

Process. Process is initiated from the homepage. Yes

8
This process begins when the Relationship Manager obtains all required
documents from the customer. New customers will be recorded as prospects,
before continuing with AML and KYC checks. In case of existing customers,
checks are made to see if any KYC/AML updates are required. The Customer
onboarding feature enables the user to choose the activity to be performed Yes
based on the status of the prospect/ Customer (existing or new).

KYC documents are obtained from the customer and checked against a KYC
Checklist. For missing documents follow up actions are captured. Yes

Once the required background checks are completed, the user creates/
updates the customer record. All inputs in the system will be approved by a
Supervisor. Subsequently, scanned documents are attached to the customer
record. This process is repeated for all associated entities. Yes

This process deals with carrying out AML Blacklist checks on databases like
OFAC (Office of Foreign Assets Control) or PEP (Politically Exposed Persons).
The results from such checks are captured in the customer record. Yes

The process depicts the set up of signatory groups and mandates. The
Customer is attached to respective signatory group and subsequently Yes
mandates are attached and applied.
This process carries out requests to amend customer related data viz., change
customer details or add /remove additional addresses as well change of the Yes
customer status.

This process is used to amend Customer charge.

Yes
This process covers executing a Customer's request or an external/ internal
request for setting/removing restrictions for posting. The restriction can be set
either at the Customer level or at an account level. Yes

10

Relationship Managers will initiate a client on-boarding process where they

capture prospect data. This data is subsequently validated by the supervisor.
Once approved the RM will complete the prospect record and initiate the
required background checks. If the prospect or customer already exists, a Yes
handover is performed.

Once all required background checks are completed the investment

representative will perform MiFID risk profiling, wherever applicable, and
investment risk profiling for the client in order to generate an investment Yes
proposal.

Once an investment strategy is defined, the Relationship Manager will

generate all required documents, including model portfolios and a Yes
confirmation is sought from the client.

Once the required background checks are completed, the user creates/
updates the Customer record. All inputs in the system will be approved by a
supervisor. Subsequently, scanned documents are attached to the customer
record. This process is repeated for all associated entities. Yes

KYC documents are obtained from the customer and checked against a KYC
Checklist. For missing documents follow up actions are captured. Yes

After a Customer record is created in the system, the Customer portfolio is set
up with required restrictions. The assets are subsequently transferred into
Customer's account. If Customer requests for building portfolio, the portfolio
is built based on the amount committed and strategy selected by the Yes
Customer.

Once the Customer portfolio is created, a further request can be placed to

create a new portfolio of securities. Customer confirms the amount for which
this portfolio needs to be built. Based on the amount and investment strategy,
bank provides a basket of possible securities for Customer's portfolio. Once
the basket of suggested securities is approved by the Customer, this portfolio Yes
is used by the bank to initiate and execute trade orders.
After the Customer portfolio is created and authenticated, Customer alert
preferences are captured in the system. Based on this setup and occurrence if
the event(s), Customer is sent appropriate alerts through the selected delivery Yes
channels.

Investment Representative decides on the type of restrictions to be set

(Holding/ Transaction restriction) by inputting the appropriate portfolio Yes
restrictions.

Request for closure triggers a series of actions viz., marking of closure in

customer's portfolio, collection of fees/ charges and transfer of assets from Yes
the client's account.

7
This process deals with the creation of a Bank Customer record in the system.
Yes
Once a record for a Financial Institution is created and settlement instructions
obtained, routing instructions are captured in the system. Yes

New settlement instructions need to be verified, approved and updated in the

system. Yes
Based on the parameter setting, MT942 can be generated for the transactions
processed in the account. This may contain transactions happened during the
day or from the last statement generated time, or can be filtered based on the Yes
amount of transaction, as per setup.

This process depicts the activities associated with setting up of internal

accounts of the Bank, which are in the nature of own-book accounts. Yes

This process describes activities associated with setting up a Nostro account.

Yes
This process describes activities associated with setting up a Vostro account.
Yes

8
This process describes how Front Office staff manages customer contacts with
T24 Contact Management functionalities. Users can record call reports,
schedule appointments, record tasks and/or register complaints. Yes

This process describes, how contacts that have been logged, can be amended
in T24. Yes
This process describes how Front Office staff manages customer contacts with
T24 Contact Management functionalities. Users can record call reports,
schedule appointments, record tasks and/or register complaints. Yes

The process describes Call Centre Agent's activities for managing customer
contacts/ requests. It also includes Cross Selling Opportunities. Yes
The process depicts the tasks involved in managing complaints from the
customer through a dedicated process workflow. Yes
The process depicts the tasks involved in managing service requests coming in
from the Customer through the Call centre. Yes
This process describes the steps involved in capturing Customer Travel plans.
Travel details like place of travel, time of travel, purpose of travel are captured
to help in internal decision making. Customer Travel details are taken into
consideration while arriving at marketing strategies, offering suitable product Yes
and services to the customers.

This process describes the steps involved in amending Customer Travel details.
Travel notifications are marked as expired and moved to history automatically
on reaching the travel end date. Unexpired Travel notifications can be Yes
manually cancelled and moved to history.

2
Campaign proposals are drafted/ approved and captured. Campaigns can be
outbound using defined delivery channels or inbound in which case only
opportunities are generated. Opportunities that are accepted will trigger pre-
defined workflows that the user will execute. Yes

In order to manage campaigns in T24, users needs to perform a series of

administrative functions to set up the basic parameters that will be used when
new campaign is launched. These also include the definition of opportunities,
setting up of rules and definition of workflows. Yes

3
Customer profile types are defined and set up in T24 with specific profiling
rules being recorded for each profile type. During the creation of a customer Yes
record these profiles are linked to a customer.

T24 allows the user to capture details of prospects and maintain the
relationships between customers using this process. Prospects can be Yes
individuals or corporate entities.

Customer groups can be created for different operational purposes. This

process describes the steps involved in creating customer group that can be
used to group economically dependent customers for assessing their risk. Yes

10
This process carries out customer requests to amend customer related data
viz., change customer details or add/ remove additional addresses, registering
Deceased customer details like date when the customer died, the date when
the bank is notified about the death and date of granting Probate. It also Yes
covers the "termination" of a customer relationship (change of status to 51).
The process deals with updation of the Charge group to which Customer
belongs. T24 by default based on the setup, allocates a charge group to the
customer on creation of customer record. However it can be updated at a
later stage which is handled through this process. Based on the charge group Yes
to which customer is associated, charges will be taken during transaction.

This process is to mark Blocking for a Customer/ Group of Customers/

Accounts based on Customer/ Account criteria. Once the blocking is in place,
this would be checked during transaction processing, which would then raise Yes
an override/ error (can be configured).

This process is to Unblock for a Customer/ Group of Customers/ Accounts

from the existing blocked ID's. Yes
This process is to Amend/ Reverse the existing blocked Customer/ Group of
Customers/ Accounts/ Bundle Arrangements along with its corresponding Yes
Currency Top Accounts.

This process is to Block a Bundle Arrangement. Blocking a Bundle

Arrangement will block its corresponding Currency Top Accounts. Once
blocking is in place, this would be checked during transaction processing,
which would then raise an override/ error (can be configured). Yes

This process explains Unblocking of blocked Bundle Arrangement along with

its corresponding Currency Top Accounts. Yes
The process describes the activities for uploading images and documents for
customers into T24. Yes
The process describes the activities for recording new customer documents or
amending existing customer documents. Yes
This process covers executing a Customer's request or an external/ internal
request for setting/removing restrictions for posting. The restriction can be set
either at the Customer level or at an account level. Yes

5
This Process covers the Parameter setup related to common Reporting
Standards (CRS). Based on the details provided here, balances in all Accounts/
Contracts held by a Customer are updated in the reference table for Yes
generation of required reports.

This process used to capture the details such as the client type, tax related
details, Status etc which are required for the Common Reporting Standards
(CRS) regulatory reporting and to generate the required Reports through Batch Yes
processing.

For FATCA compliant bank, FATCA customer status need to be updated either
automatically or manually along with the required documents applicable for
entities and individuals.This will also require updating/ identification of FATCA
Status as US and Non US clients. Yes
This process explains how the system aggregates the account/portfolio
balances and supports due diligence requirements.
The Financial Accounts are classified in to the following three categories:

Small Accounts – Individuals with depository and custody account balance

(both) less than $50,000 (based on customer type)
Small Accounts – Entity depository and custody account balance (both) less
than $250,000 (based on Customer Type)
High Value Accounts – Accounts with sum of depository and custody account
balances more than $1 million
Other Accounts –List of all other accounts with balance or value updated in Yes
FATCA AGGREGATE BALANCES

Based on the classification it is possible to update FATCA status and collect

documents as per statutory requirements.

This process explains generating XML report based on reporting requirements.

Consolidated XML can be generated based on individual tax base records and
Account Holder Type.
System creates a base file where all details pertaining to a customer including
the aggregate balances are held. From this base file, Clients can extract any
report that is required for FATCA Reporting purposes. From this base file, users
can extract any report that is required for FATCA Reporting purposes.
The aggregated balance of the customer would be updated to a base file
called FATCA.TAX.BASE based on the relationship defined in the
FATCA.REPORTING. PARAMETER. Also aggregate balance of customers who are
RELCALCITRANT or DORMANT or NON-PARTICIPATING would be updated to a
file called FATCA.POOL.BALANCE from where this can be reported.
Based on FATCA.XML.REQUEST record Id (AGGR OR AGGR-(STATUS.TYPE))
FATCA.AGGR.TAX.BASE records will be selected and aggregated.
For UK specific xml messages, Reporting Parameter will be defined with HMRC Yes
FLAG and separate UK specific xml will be generated or IRS XML will be
generated.

4
This process describes the steps involved in flagging or unflagging data as
personal data under Customer Data Protection.
Data held in core / local reference fields of any application can be flagged as
personal data and attributes, purpose, accessibility and erasure rule defined Yes
for the same. The initial classification of data as personal data can also be
unflagged as personal data.
This process describes the steps involved in searching for data that can be
classified as personal using multiple search criteria.Attribute, purpose,
accessibility and erasure rule can be updated for the resultant data. Updating
the same in Personal Data definition is to be done manually. Yes

Customer Activity status is updated as “Active” or “Inactive” based on the

status of the underlying accounts & contracts. When there are no active
accounts or contracts for the customer, activity status of that customer is
moved to “Inactive” by an end of day process.
Personal data of the inactive customer will be erased on expiry of the
retention period, provided the "Do Not Erase" flag is not set for that customer.
This process describes the steps involved in setting the "Do Not Erase" flag for
Customer Personal Data. Do not erase process will be initiated by the bank for
customers whose personal data the bank wants to retain after the retention
period (for example a customer undergoing legal investigation). End of Yes
Relation date can be set to ensure customer is active until the date specified.
Rights of Erasure cannot be executed if Do not erase flag is set.

This process describes the steps involved in capturing and managing customer
requests related to their personal data.
Customer's request to exercise
- Rights of Erasure
- Rights of Access
- Rights of Portability
- Rights of Rectification Yes
- Rights of Restriction
- Rights of Objection
Process Area Scenario
Retail Banking Processes
1.1 Account & Deposit Processes
1.2 Teller Processes
1.3 Lending Processes
Business Area
Total no. of processes
Release

Process

1.1.1 Accounts and Deposits

Create Arrangement Account

Issue Passbook

Issue Debit Card

Issue Cheque Book

Open Deposit (AA)

Open Discounted Deposit (AA)

Create Product Bundle

Open Safe Deposit Box (SDB)

1.1.2 Account/ Deposit Administration

Update Passbook
Manage Debit Card

Amend Arrangement Account

Record notice withdrawal

Amend Product Bundle

Manage Alerts

Generate Account Statements

Generate Deposit Advices

Close Arrangement Account (AA)

Close Safe Deposit Box (SDB)

Change Primary Customer (AA)

Change Interest and Payment Schedule
(AA)
Amend Deposit (AA)

Perform Partial Withdrawal of Deposit

(AA)
Perform Pre-Closure (AA)

Perform Repayment of Deposit (AA)

Reset Inactive Account

Set Up Sweep

Stop Payment Of Cheque

Revoke Stop Payment Of Cheque

Manage Receipt/ Dispatch Of Stock

Block/ Unblock Funds

Cancel Account Sweep

Set/ Remove Posting Restrict *
Close Arrangement (Facilities - Process)

Release Funds
Generate MT112 -Status of a Request for
Stop Payment of a Cheque

1.1.3 Product Administration

Create Product Group *

Create Product *

1.1.4 Retail PW Processes

Add Joint Holder To Account (PW)

Issue Cheque Book And Debit Card (PW)

Open Account (PW)

1.2.0 Teller Financial Services

Receive/ Execute Teller Financial Services

Reverse Teller Financial Services

Transactions

1.2.1 Cash transactions

1.2.1.1 Cash Deposits
Execute FCY cash Deposit
Execute LCY Cash Deposit

1.2.1.2 Cash Withdrawals

Execute FCY Cash Withdrawal
Execute LCY Cash Withdrawal
1.2.1.3 Currency Exchange
Receive Request For Buy FCY

Execute Buy FCY Against LCY Cash

Receive Request For Sell FCY

Execute Sell FCY Against LCY Cash

Receive Request For FCY Exchange

Execute FCY Exchange

1.2.1.4 Teller- Denominations
Change Denominations
1.2.2 Travellers' Cheques
1.2.2.1 Travellers' Cheque Purchase
Receive Travellers Cheque Encashment
Request
Execute Travellers Cheque Encashment

1.2.2.2 Travellers' Cheque Sale

Receive Travellers Cheque Sale Request

Execute Travellers Cheque Sale

1.2.3 Teller Administration

1.2.3.1 Till Administration
Create New Till
Change Till User
Reopen Till

1.2.3.2 Till Transfer

Evaluate Cash Position In Vault

Transfer Cash From Till To Vault

Transfer Cash From Vault To Till
Transfer Cash Between Tills

Remit Cash To Central Bank

Receive Cash From Central Bank

1.2.3.3 Travellers' Cheque Admin

Manage Receipt Of Travellers Cheque
Stock
Travellers' Cheque Transfer From Vault To
Till
Transfer Of Stock – Other Branches

1.2.4 Teller- End of Day Activities

Perform End Of Day Activities - Nostro
Funding For Travellers' Cheques Issued

Perform End Of Day Activities - Close Till

1.2.5 Common Processes

Verify Transaction Limits
Verify Cash Deposit Transaction Limits

1.2.6 Drafts
Cancellation of LCY Draft
Revoke Stop Payment of LCY Draft
Stop Payment of LCY Draft
Issue of LCY Draft (Retail) *

Receive Request To Issue Draft *

1.3.1 Personal Loan

Check Eligibility (Personal Loan)

Perform External Credit Scoring (PL)

Perform Internal Credit Scoring (PL)

Perform Pre - Disbursal (PL)

1.3.2 Auto Loan

Check Eligibility (Auto Loan)

Perform External Credit Scoring (AL)

Perform Internal Credit Scoring (AL)

Perform Pre - Disbursal (AL)

1.3.3 Mortgage Loan

Check Eligibility (Mortgage Loan)

Perform Full Approval (External Credit

Scoring - ML)
Perform Full Approval (Internal Credit
Scoring - ML)
Perform In-principle Approval (ML)

Perform Pre - Disbursal (ML)

1.3.4 Overdraft
Attach Limit To Overdraft Account
1.3.5 Retail Loan (Manual)
Create & Disburse Retail Loan (Manual)

Create & Disburse Retail Loan (Scheduled)

1.3.6 Product Administration

Create Product *

Create Product Group *

1.3.7 Limits & Collaterals Setup

Set Risk Management Limits *

Set Up Limit (Retail)

Create And Link Collateral
Maintain/ Reverse Limit
1.3.8 Loan Maintenance
Manage And Decide On Amendments
(AA)

Pay Off Loan (Pre-Closure) (AA)

Manage Prepayments (AA)

Perform Repayment (AA)
Manage Past Due (AA)

Repay Past Due (AA)

Close Loan (AA)

Perform Reverse And Replay

Register Direct Debit Mandate For Retail

Loans (PW)

Perform Rate Review And Fixing

1.3.9 Common Processes

Create Lending Prospect

Disburse Retail Loan

Receive Loan Application

Loan Advance Repayment (Retail Loan)

Auto Disburse Retail Loan

1.3.10 Collections
Process Collection Items

Process Collection Agreement

Escalation Management (Collection

Supervisor)
1.4 Agent / Broker, Rewards & Consent
Create New Agent Arrangement

Create New Reward Arrangement

Link Agent Arrangement with Financial

Products

Link Reward Arrangement with Financial

Products

Create Consent Arrangement

Manage Consent Arrangement

Retail Banking
124
R18 Model Bank

Process Description

This Process depicts receipt of an arrangement (AR) account opening form from the customer along with
an initial deposit. Successful opening of the AR account leads to associated sub processes viz., issue of
debit card, cheque book issue, set up standing instruction/ sweep, set up overdraft limit etc.

The process relates to issuance of a passbook to a new Customer or to an existing Customer on a specific
request (for classic account).
This process describes Debit card issue as part of account opening or on receipt of an ad hoc request.

This process describes issue of cheque book to the customer either as a part of account opening process
or on receipt of an ad hoc request.
This process describes creation and funding of a fixed deposit/ bond (Fixed Floating/Short term/Long
term etc) through the "AA" module of Model Bank.
This process describes creation and funding of a discounted (interest paid in advance) fixed deposit/
bond (Fixed Floating/ Short term/ Long term etc.) through "AA" module of T24.
The process details out the tasks involved in the bundling various products like Off set mortgage, interest
compensation, interest upgrade, bonus interest, pooling of accounts etc
This process describes creation and funding of a Safe Deposit Box through the "AA" module of Model
Bank.

This process describes the activities in updating the passbook of a customer.

This process describes Debit card administration processes (cancellation/ return/ lost card reporting).

This process describes the receipt of an amendment request for an arrangement account from the
Customer and carrying out the amendments on the system.
This process describes the activities for capturing a notice withdrawal request from customer. Notice
withdrawal requirements can be captured as part of the product configuration.

The process details out the tasks involved in amending the product bundle created for a Customer.
T24 provides a facility for customer to subscribe for various types of alerts such as balance alerts etc.
This process describes the activities for subscribing, unsubscribing and amending already subscribed
alerts.

This process describes handling of a customer request for an account statement (Current period/ Past
period).
This process describes generation of an ad hoc deposit advice (AA).
The process begins with the receipt of an arrangement account closure request along with the unused
deliverables (cheque book, debit card, etc.). The details are captured in the system and the closure
activities are completed. The user has an option to pay the account closure proceeds in three modes,
namely account transfer, teller and funds transfer.

The process begins with the receipt of an Safe Deposit Box arrangement closure request along with the
deliverables (Keys etc.). The details are captured in the system and the closure activities are completed.
The user has an option to pay the Safe Deposit Box arrangement closure proceeds in three modes,
namely account transfer, teller and funds transfer.

This process describes how to change a Primary Customer for an Arrangement Account.
This process describes how to change Debit/ Credit Interest and Interest Payment Frequency (Payment
Schedule) for an Arrangement Account.
This process describes the receipt of an amendment request for a deposit from the Customer and
updating the same on the system.
This process relates to partial withdrawal of AA deposit through account transfer or cash.

This process describes various activities associated to perform an early closure of a AA deposit.

This process depicts activities related to repayment of a AA deposit.

In case a settlement account has been provided, transfer will happen automatically.
Otherwise a manual repayment either through cash/Funds Transfer mode needs to be executed.

This process describes the activities associated with changing the status of an account from inactive to
active.
This process involves setting up Sweep (various types viz., Maintenance, Surplus, Two way) post the
account opening process/on receipt of a specific request from the customer.
This process involves setting up a Stop payment for a cheque on receipt of a Customer request

This process is used to revoke a stop payment of a cheque registered in the system.
This process describes the activities performed by a teller to capture details of Cheque book stock
received from HO/ other branches and the subsequent dispatch/transfer of stocks to other branches.

This Process describes blocking and unblocking of funds for an account, for a specific period and
amount.
This process describes the cancellation of sweep set up for an account.
This process covers executing a Customer's request or an external/ internal request for setting/removing
restrictions for posting. The restriction can be set either at the Customer level or at an account level.
The process describes the closure of AA Account with flow of events i.e. Positive and Negative Balances
available during the closure process.
This process deals with releasing the blocked amounts.
This Process is to generate MT112-which is sent by the drawee bank (on which a cheque is drawn) to the
drawer bank or the bank acting on behalf
of the drawer bank with the details of action that have been taken while stop payment of a cheque as
referred in the Message

This process describes the activities for setting up a product group under a product line. The Product
Build set up under Arrangement Architecture is hierarchical and allows the derivation of product
structures from higher levels. For example, a Product (e.g. 15 year Fixed Rate Mortgage) will be derived
from a Product Group (e.g. Mortgages), which will be derived from a Product Line (e.g. Lending).
In addition to this structural hierarchy, the Product Builder enables the definition of “families” of
products through Product Inheritance. The purpose of a Product Group is to provide a structure and
constraints to any product derived from the group. The same process can be used for amending the
product group also.

This process describes the activities for setting up a product under the hierarchy of a product group. The
product conditions are created or existing conditions are re-used and linked to a property. Subsequently
the product set up is validated (proofed) and published, i.e., the product is now available for users to
start creating arrangement(s). The same process can be used for amending the product also.

This process indicates the activities of a Branch User, to add a joint holder to an existing account.

The process describes the activity of capturing cheque book issue details and debit card issue details.

The process describes various steps involved in account opening and account related services like
capturing debit card details.

This process facilitates capture of information for all teller financial services (TFS) in one screen, creates a
consolidated entry (if parameterised) on the Customer account, a consolidated charge and a
consolidated transaction advice. It is also possible to capture all information in one screen of TFS and
create separate entries in the Customer's account for each of them.

This process facilitates reversal of all teller financial services (TFS), captured previously, in one screen.
Also, a consolidated entry (if parameterised) on the Customer account, a consolidated charge and a
consolidated transaction advice can be generated. It is also possible to create separate entries in the
Customer's account for each of reversal.

This process is used to deposit Foreign Currency Cash into an account resulting in the generation of a
transaction receipt.
This process is used to deposit Local Currency Cash into an account resulting in the generation of a
transaction receipt.

This process describes Foreign Currency Cash withdrawal from an account.

This process describes Local Currency Cash withdrawal from an account.

The process begins with the receipt of request from a Customer, for purchase of Foreign Currency Cash
by the bank (Customer sells FCY / Bank purchases FCY ). The request is validated and the exchange rate
is confirmed to the Customer.

This process describes purchase of Foreign Currency Cash from a customer and handing over the
equivalent local currency.
The process begins with the receipt of request from a Customer, for sale of Foreign Currency Cash by the
bank (Bank sells FCY / Customer purchases FCY ). The request is validated and the exchange rate is
confirmed to the Customer.

This process describes sale of Foreign Currency Cash to a customer after receiving the equivalent local
currency.
The process begins with the receipt of request from a Customer for foreign currency exchange. The
request is validated and the exchange rate is confirmed to the Customer.
This process describes the exchange of FCY, using Teller application.

This process involves a Teller accepting cash and exchanging it for different denominations.

This process involves carrying out physical authentication of Travellers Cheque received from a Customer.

This process describes activities associated with purchase of Travellers cheques from a Customer in
exchange for local currency.

This process involves activities associated with authentication of request in case of sale of Travellers
cheques to a Customer.
This process describes activities associated with sale of Travellers cheques to a Customer in exchange for
local currency.

This process is used to create a new Till and assigning the till to a teller.
This process is used to change Till to a different user/ teller.
This process describes activities for reopening a Till as part of Start of Day activity of the Head Teller.

This process involves evaluating the available cash position in vault and deciding on the further course of
action, viz., (1) Cash required from Central Bank (2) Cash to be remitted to Central Bank or (3) Cash
sufficient for operations.

The process involves transfer of cash from Till (teller) to the vault.
This Process describes the transfer of cash from Vault (by Head teller ) to Till (Teller).
This process describes the activities relating to the transfer of cash from one teller to another teller.

This process describes placing a request for cash remittance to Central Bank, dispatching and accounting
for the cash remittance.
This process involves for raising a request to Central Bank for cash requirement, receiving and accounting
for the cash remittance.

Process for recording stock of Travellers Cheques on receipt from Head Office.

Process describes transferring stock of Travellers' Cheques from vault to Till (Teller).

Process involves receipt of an authenticated request and transfer of Travellers' Cheques stock to another
branch.

This process involves activities that a Teller has to perform for funding the Nostro account towards
Travellers' Cheques issued during the day and advise correspondent Bank accordingly.

This process describes the day end activities performed by a Teller in relation to cash and Travellers'
Cheque Balancing and closure.

The process shows automatic steps executed by the system while executing the following processes:
1. Execute LCY Cash withdrawal
2. Execute FCY Cash withdrawal
3. Execute Travellers cheque encashment
4. Execute Travellers cheque sale
5. Execute Sell FCY against LCY cash
6. Execute Buy FCY against LCY cash.
The Role based transaction limits, User group’s authorization/ override management and Authorization
levels are configured as part of the implementation requirement of the client Bank.

The Model Bank system is configured for

- 1 level of Authorization for majority of transactions (with exceptions such as 'Link collateral to limit'
etc.)
- The users rights are configured to accept overrides and input transactions without restrictions.
The process shows automatic steps executed by the system during a cash deposit transaction.
The Role based transaction limits, User group’s authorisation/ override management and Authorisation
levels are configured as part of the implementation requirement of the client Bank.

The Model Bank system is configured for

- 1 level of Authorisation for majority of transactions (with exceptions such as 'Link collateral to limit'
etc.)
- The users rights are configured to accept overrides and input transactions without restrictions.

This process deals with Cancellation of an issued Drafts based on Customer request.
This process deals with Revoke a stopped draft based on Customer request.
This process deals with stop payment of an issued Drafts based on Customer request.
The process explain the steps involved in issuance of LCY draft at the teller counter. All necessary
authentications are done before the draft is issued. The system updates the draft stock inventory upon
issuance.

The process is initiated on receipt of the draft/ bankers' cheque request by the front office. The request
is then forwarded to the back office for further processing.

This process begins with receipt of personal loan application from the front office and performing basic
Customer and product eligibility checks.
The process describes the various steps to perform an external credit check and calculate credit score,
for a personal loan.
The process describes the various activities to perform an internal credit check and calculate credit
score, for a personal loan.
This process describes the activities involved for pre-disbursal of personal loan. The limits are set up and
loan arrangement created after necessary checks.

Process begins with receiving of auto loan application from the front office and performing basic
Customer and product eligibility checks.
The process describes the various steps to perform an external credit check and calculate credit score,
for a auto loan.

The process describes the various steps to perform an internal credit check and calculate credit score, for
a auto loan.
This process describes the activities involved for pre-disbursal of auto loan. The limits are set up and loan
arrangement created after necessary checks.

The process describes the activities involved in performing the basic Customer and product eligibility
checks for a mortgage loan.
The process describes the various steps involved in performing an external credit check and calculation
of credit score, for a mortgage loan.
The process describes the various steps in performing internal credit checks and calculating the credit
score for a mortgage loan.
The process describes the activities involved in providing in-principle approval considering the credit
scores and eligibility checks for a mortgage loan.
This process describes the activities involved for pre-disbursal of a mortgage loan. The limits are set up
and loan arrangement created after necessary checks.

This process describes the activities involved in attaching a limit to an account.

This process describes the activities involved for setting up a Consumer loan (through AA Module) and
the subsequent disbursement either through an account transfer or cash.
This process describes the activities involved for setting up a Consumer loan (through AA Module) and
the subsequent scheduled disbursement either through an account transfer or cash.

This process describes the activities for setting up a product under the hierarchy of a product group. The
product conditions are created or existing conditions are re-used and linked to a property. Subsequently
the product set up is validated (proofed) and published, i.e., the product is now available for users to
start creating arrangement(s). The same process can be used for amending the product also.

This process describes the activities for setting up a product group under a product line. The Product
Build set up under Arrangement Architecture is hierarchical and allows the derivation of product
structures from higher levels. For example, a Product (e.g. 15 year Fixed Rate Mortgage) will be derived
from a Product Group (e.g. Mortgages), which will be derived from a Product Line (e.g. Lending).
In addition to this structural hierarchy, the Product Builder enables the definition of “families” of
products through Product Inheritance. The purpose of a Product Group is to provide a structure and
constraints to any product derived from the group. The same process can be used for amending the
product group.

Process for setting up Country level/ Industry level/ Currency level limit for monitoring the overall
exposure of the Bank.
This process deals with setting up a secured or unsecured limit for a Customer.
This is a process for defining particulars of collateral and linking the collateral to a limit.
Process describes the maintenance/ reversal of customer limits.

Process involves receiving request for a loan amendment, reviewing the amendment request and
executing the request. The amendments could be changes to Interest rates, interest rate types, limit
maintenance, past dues adjustments, past dues write-offs, changes to repayment schedules etc

This process is used to perform an early closure (pay off) of loan and also covers the delinking and
release of a collateral, where applicable.
Process for receiving and executing the prepayment request from Customer.
This process depicts activities related to repayment of a retail loan either through cash/ executed
automatically by the system.
This process describes the activities relating to the management of over dues of a retail loan. Various
activities could be performed viz., Adjust past due, write off past due, change repayment schedule,
change penalty interest etc.

This process deals with receiving and executing instructions from a customer for repaying past due
amount in a retail loan.
This process describes a loan contract closure carried out at the end of the term, when all instalments/
dues have been recovered. The delinking and release of collateral documents is covered in this process.
In case any direct debit is set up for the liquidation of the loan, the system checks if it is an internal DD
(for debiting an internal account) or an external DD (for raising the DD entries on the paying bank).

The process describes the reverse and replay mechanism used to amend or reverse an activity from any
date since the contract started.
AA allows throughout the term of a loan, to do any backdated activities starting from the loan start date.
Any activities that have taken place will be reversed and replayed.

This process indicates the activities involved when the Customer requests the bank to collect the loan
repayment amount from the Customer's account with another bank and provides a mandate for the
same to the retail credit officer. Based on the mandate stored, the bank can generate outward claim file.

This process describes the review and setting up of interest rates on the rate revision date, for various
interest types -Floating, Periodic and Fixed.

This process describes the activities for creation of a lending prospect. After the necessary checks, the
prospect is created.
This process describes the activities for disbursement of any type of retail loan, namely personal, auto or
mortgage. The activities for subsequent drawdowns are also covered in this process.

The process begins with the receipt of a completed loan application from the Customer. The application
could be received for personal, auto or mortgage type of loan. The application is acknowledged at the
front office and forwarded to the credit department for analysis and scoring.

This process explains the impact on AA bills when a loan repayment is made in advance.

The process describes the auto disbursement of loan amount at the time of creation and authorisation
of arrangement by giving the payout settlement account.

Standard procedure for the processing of a Collection Item of a customer with delinquent loans from
beginning to end.
Continues from ‘Process Collection Item’ process. The purpose of this is to continue the process when
customer contact has been made and an agreement has been reached to repay delinquent loans.

Involves the delegation of Collection items by the Collections Supervisor, including items escalated by
the Collections Agent.
Financial institutions encourage agents for getting additional business apart from their direct marketing
channel. Agent can be an individual or a group. The Process depicts the flow for creating an
Arrangement for Agent. The arrangement determines commissions etc.

A Rewards product line is established, whereby customers can be rewarded based on the activities they
perform on their account.
Financial institutions and agents enter into a separate contract to agree on commission terms and
conditions. In this view, there should be a separate arrangement between agents and financial
institution. This is done by Linking the Agent Arrangement and Financial Arrangement which is described
in this process workflow.

Reward arrangement will hold a link to all linked financial arrangements. Activities performed on the
account will trigger points which get accumulated and can be redeemed in the future.

This process depicts the creation of an arrangement to record consent to use personal data of a
customer under Customer Data Protection.
This process describes the steps involved in customer withdrawing or blocking consent given to use
personal data under Customer Data Protection.
In Scope
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Process Area Scenario
Corporate Banking
Processes
2.1 Account & Deposit
Processes
2.2 Trade Finance & Guarantees
2.3 Lending Processes
2.4 Factoring and Forfaiting
Business Area
Total no. of processes
Release

Process

2.1.1 Current Account

Open Current Account (Corporate)

Open Current Account - PW (Corporate)

Issue Debit Card (Corporate)

Issue Cheque Book (Corporate)

Complete Corporate Current Account Opening

Manage Account Conditions (Corporate)

Manage Mandates (Corporate)

2.1.2 Deposits
Open Contract Based Deposit (Corporate)

Open Contract Based Deposit - PW (Corporate)

2.1.3 Cash Management

Set Up/ Amend Pool & Groups (Transactional Pooling)

Cancel Account Sweep (Corporate)

Execute Intra-Day Sweep (Transactional Pooling)

Reverse a Sweep Transaction (Transactional Pooling)

Create Main Account & Set up Group Hierarchy

(Notional Pooling)

Create Sub Account (Notional Pooling)

Remove Sub Account from Notional Pooling

Setup Capitalisation Frequency & Credit Interest
(Notional Pooling)
2.1.4 Account/ Deposit Administration
Perform Pre - Closure (LD)
Perform Partial Withdrawals (LD)

Cancel Deposit (LD)

Generate Account Statements (Corporate)

Block/ Unblock Funds (Corporate)

Stop Payment of Cheque (Corporate)

Revoke Stop Payment Of Cheque (Corporate)

Close Account (Corporate)

Reset Inactive Account (Corporate)

Amend Account (Corporate)

Manage Debit Card (Corporate)

Amend Deposit (LD)

Change Account Statement Frequency (Corporate)

Set/ Remove Posting Restrict (Corporate) *

2.2.1 Import Letter of Credit

Receive Import L/C Application

Issue Import L/C

Issue Back To Back L/C

Accept Documents under Import LC (Usance)

Discrepant Documents under Import LC (Sight)

Discrepant Documents under Import LC (Usance)

Pre-Advise Import L/C

Take/ Release Margins

Amend Import L/C

Register Documents Against Import L/C (Sight)

Register Documents Against Import L/C (Usance)

Register Documents Against Import L/C (Mixed

Payment)
Discount Under Import L/C

Create Import Loan

Settle Import L/C

Cancel Import L/C

Settle Import L/C Without Documents (Sight)

Release Documents Under Trust

Settle Import LC Under Trust

Lodge Documents Under Settled L/C (Sight)

2.2.2 Export Letter of Credit
Receive Pre-Advise Export L/C

Advise Export L/C

Transfer Export L/C

Register Documents Against Export L/C (Sight/ Mixed)

Register Documents Against Export L/C (Usance)

Accept & Liquidate Documents (Usance)

Liquidate Sight Payment Under L/C (Sight)

Negotiate/ Discount Export L/C (Sight/ Usance/ Mixed)

Liquidate Negotiated/ Discounted Export L/C (Sight/

Usance/ Mixed)

Liquidate Sight & Accept Usance Under L/C (Mixed)

Perform Payment Under Reserve

Negotiate/ Discount & Liquidate Export L/C With
Waived/ Accepted Discrepancies

Provide Export Financing

Export Loan Adjustment

Amend Export L/C

Cancel Export L/C

2.2.3 Import Collection

Register Import Collection

Amend Import Collection

Accept Import Collection

Settle Import Collection

Close Import Collection/ Non Payment

2.2.4 Export Collection

Register Export Collection

Amend Export Collection

Receive Acceptance/ Rejection For Export Collection

Purchase Collection

Settle Purchase Collection

Settle Export Collection

2.2.5 Shipping Guarantee

Issue Shipping Guarantee Against L/C

Issue Shipping Guarantee Against Import Collection

Return Of Shipping Guarantee

2.2.6 Stand-by Letter of Credit (SBLC)

Issue Stand-by L/C

2.2.7 Guarantees & Bonds

Advise Guarantee

Issue Guarantee

Issue Back To Back Guarantee

Amend Guarantee
Register Claims

Execute Claims

Close Issued Guarantee

Reinstate Expired Guarantee
Register Claims Under Guarantee Received

Pay/ Reject Claim Under Guarantee Received

2.2.8 LC Reimbursement
Register LC Reimbursement Authority

Perform Reimbursement Authority Amendment

Register And Pay Claim

2.3.1 Corporate Loans

Set Up Corporate Loan

2.3.2 Project Loans

Define Commitments

Set Up Project Loan

2.3.3 Syndicated Lending

Create Facility (SL)

Define Facility (SL)

Amend Facility (SL)

Utilise facility (SL)
Collect Charges (SL)

Trade Loan In Secondary Market (SL)

Merge Loans (SL)

Split Loans (SL)

Rollover Loan (SL)

Amend/ Preclose Loan (SL)

Adjust Over Dues (SL)

Perform Partial Prepayment (SL)

Participation in Pre-Syndication (SL)

Recording of Pre-Syndication mandate (SL)

Tranchewise Repayment of Loan (SL)

Underwriting in Pre-Syndication (SL)
Buy/ Sell Contingent portion to convert facility (SL)

Buy/ Sell Non-Contingent portion to convert facility

(SL)

2.3.4 Loan Maintenance

Manage & Decide On Amendments (LD)

Manage Prepayment (LD)

Manage Early Maturity (LD)

Manage Repayment (LD)

Close Loan (LD)

2.3.5 Past Dues

2.3.5.1 Capture & Maintain Over dues
Monitor & Decide On Past Due Actions

Capture Past Due Details (Manually)

Capture Past Due (LD)

Block Automatic Repayment

Change Penalty Interest Rate/ Spread

Perform Manual Provisioning On Past Dues

Perform Financial Write-Off

2.3.5.2 Settlement/Adjustment/Write-of
Perform Past Due Adjustment
Perform Past Due Write-Off
Repay Past Due
Repay Financial Written-Off Loan
2.3.6 Limits, Collaterals & Loans Setup
Set global facility (Company Limit Structure)

Set Up Limit (Corporate)

Create & Link Collateral (Corporate)

Sub Allocate Limit

Maintain/ Reverse Limit (Corporate)

Change Customer Liability
Set Risk Management Limits *

2.3.7 Overdraft
Attach Limit To Overdraft Account (Corporate)

2.4.1 Initiation
Batching of Receivables Registers

Create Receivables Register

2.4.2 Operations
Disbursement under Batched Receivables

Disbursement under Receivables

Settlement of Receivables

2.4.3 Maintenance
Amend Receivables Register

Change Product Type (Receivables)

Corporate Banking In Scope
147 147
R18 Model Bank

Scoping
Process Description In Scope

31

The process describes the steps associated with the opening of a Corporate Current account.
Successful authorisation of account opening leads to other processes viz., image capture, initial Yes
deposit, issue of cheque book, set up Overdraft limit etc.

This process describes the opening of a current account (incl. mandates and issuing of a cheque
book), using a PW process. Yes
This process describes the issue of Debit Card either as a part of the account opening process or
on receipt of an ad hoc request. Yes
This process describes the issue of cheque book to the Corporate customer, either as a part of
the account opening process or on receipt of an ad hoc request. Yes
This process relates to handing over current account deliverables (cheque book, debit card etc.)
to the customer. The signatories and mandate of the Customer(s) is/ are captured as part of this Yes
process.

The process describes the activities related to the maintenance of account specific conditions. Yes

This process enables capturing the mandates provided by corporates for the operation of their
accounts. The mandate includes the limits for corporate signatory groups for authorisation of
transactions. The mandate id is linked to the corporate Customer record or to the account of the
customer for activation. T24 performs validation against the stored mandate when a transaction Yes
is performed for respective customer or account.

This process describes creation of a "Contract" based fixed deposit (Fixed/Floating/Discounted

etc.) through the "LD module". Yes
This process describes creation of a "Contract" based fixed deposit (Fixed/Floating/Discounted
etc.) through the "LD module" using PW. Yes
The group is created by specifying the master account. To the created group multiple accounts
are linked to create the pool. This creates a tree structure of accounts held by a Corporate. The
pooling could be either Shared or a Sweep. In case of Shared Pooling, the sum total of all
account balances are checked while performing the transaction. Yes
For a Sweep setup, the balances are transferred according to defined rules.

This process describes the cancellation of sweep set up for an account. Yes
This process describes the set up of an intra-day sweep for a customer. The customer request is
validated before performing an ad-hoc intra-day transfer. Yes
This process describes the activities for revoking a sweep transaction already executed by the
system. Reversal entries are passed during close of business. Yes
This process describes how accounts can be linked into a hierarchical structure of individual
groups. Each group consists of a main account to which other (sub accounts) can be linked. Yes

This process describes how each group consists of a main account to which other (sub accounts)
can be linked. A main account in one group can be a sub account in another higher-level group. Yes

This process describes how to remove a sub account from the group any time. Yes
This process describes how to setup capitalisation frequency & credit interest for accounts.
Yes

This process refers to premature closure of a deposit under "LD Module". Yes
This process relates to partial withdrawal of a deposit through account transfer using "LD
module". (This module does not allow for cash withdrawal.) Yes
This process describes the receipt of a cancellation request for a deposit from the Customer and
updating the same on the system. Yes
This process describes handling of a customer request for an account statement (Current period/
Past period). Yes
This Process describes blocking and unblocking of funds for an account, for a specific period and
amount. Yes
This process involves setting up a Stop payment for a cheque on receipt of a Customer request.
Yes
This process is used to revoke a stop payment of a cheque registered in the system. Yes
The process begins with the receipt of an account closure request along with the unused
deliverables (cheque book, debit card, etc.). The details are captured in the system and the
closure activities are completed. The user has an option to pay the account closure proceeds in
three modes, namely account transfer, teller and funds transfer. Yes

This process describes the activities associated with changing the status of an account from
inactive to active. Yes
This process describes the receipt of an amendment request for an account from the Customer
and updating the same on the system. Yes
This process describes Debit card administration processes (cancellation/ return/ lost card
reporting). Yes
This process describes the receipt of an amendment request for a deposit from the Customer
and updating the same on the system. Yes
This process begins with receipt of request from the Customer for change in the account
statement frequency. After authentication of the request, the request is updated in the system. Yes

This process covers executing a Customer's request or an external/ internal request for
setting/removing restrictions for posting. The restriction can be set either at the Customer level Yes
or at an account level.

64

Process depicts activities to receive & verify LC application, check if existing facilities are
sufficient to fulfil request and forwarding the application to Back Office for processing. This
process also covers an online input of LC details by the Customer through Online Channels and Yes
the subsequent submission of documents at the branch.

The process covers approval and issuance of Import LC. Various Types of LCs viz., Sight, Usance,
Negotiation, Mixed Payment (part sight and part Usance), Standby LCs can be issued. Yes

The process describes activities to issue an Import LC against the security of Export LC. In these
cases the applicant of the import LC and the beneficiary under the export LC would be the same Yes
entity.

The process covers activities in Acceptance of Usance LC documents. Yes

The process describes activities to be undertaken in case Sight LC documents are discrepant.
Discrepant documents, can be accepted with the discrepancies and sent for settlement or
rejected. Discrepant documents, upon a specific request from the Customer, can also be Yes
released on trust.

The process describes activities to be undertaken in case Usance LC documents are discrepant.
Discrepant documents, can be accepted with the discrepancies, accepted with conditions or
rejected. Discrepant documents, upon a specific request from the Customer, can also be Yes
released on trust.

Process depicts capture and approve Pre Advise if required and send out MT705 to
Correspondent Bank. Short particulars of LC are advised to the exporter's Bank through this Yes
process.

This process describes the activities of Increase/ Decrease Margin on Import LC. Yes
The process describes activities to perform internal or external amendments of Import L/C.
Certain external amendments would require beneficiary's consent. Yes
The process covers activities to be undertaken upon presentation of Sight LC documents. The
documents are registered and checked for discrepancies. In case the documents are clean, then Yes
they are accepted and sent for settlement.

The process covers activities to be undertaken upon presentation of Usance LC documents. The
documents are registered and checked for discrepancies. In case the documents are clean, then Yes
they are sent for usance acceptance.

The process covers activities to be undertaken upon presentation of Mixed Payment LC

documents. The documents are registered and checked for discrepancies. In case the documents Yes
are clean, then they are accepted and sent for settlement.
The process covers activities to perform discounting of Usance LC Bill and remitting the funds to
the exporter before maturity date of the Bill (after acceptance of the Bills by importer). Yes

This process describes the activities for creation of Import Loan. Initially, the Import LC Bill is
paid by creating an overdraft and subsequently funded through Import Loan. Yes
This process describes the settlement of Usance/Sight LC Payments.
The margin amount held in the provision account is also reversed automatically to the extent of Yes
proportionate amount of bill received under LC.

Process describes activities for cancellation of Import LC. Yes

This process highlights activities associated with honouring a reimbursement claim received
from the negotiating bank, for sight payment LCs. The documents are subsequently received by Yes
the LC issuing bank.

This process depicts release of documents under trust by the bank, where the bank at its
discretion (considering the profile of the importer), may release the document prior to payment
or acceptance of the document by the importer. Appropriate actions are performed based on Yes
Customer's acceptance or rejection.

This process describes the settlement of Usance/Sight LC Payments for LCS' released under trust.
The margin amount held in the provision account is also reversed automatically to the extent of Yes
proportionate amount of bill received under LC.

This process describes lodgement of documents received under a settled LC sight bill. Yes

The process describes activities to capture and approve Pre Advise received from the LC issuing
Bank through MT705. Short particulars of LC are advised to the exporter. Yes
The process describes activities to receive and advise the export LC established by the issuing
Bank. LC may be advised to the customer directly or through another Bank. Yes
The process depicts activities to transfer export LC on receipt of instructions from the 1st
Beneficiary. Yes
The process describes the activities to be performed upon presentation of Export L/C (Sight)
documents. Yes
The process describes the activities to be performed upon presentation of Export L/C (Usance)
documents. Yes
Process depicts activities for recording the acceptance particulars of the Issuing Bank and
liquidating the LC Bill on receipt of funds. Yes
The process depicts activities when the sight LC Bills sent for collection are realised by the LC
issuing Bank/reimbursing Bank. Yes
The Process describes activities to Negotiate/discount export LC (Sight or Usance) documents
with/ without discrepancies. Yes
The process describes activities for recording the acceptance from the Issuing Bank, for a bill
negotiated under a Letter of Credit, and the subsequent liquidation of the Bill by the Negotiating Yes
Bank on receipt of funds in the Nostro account.

The process depicts activities when the sight portion of mixed LC Bills are realised by the LC
issuing Bank/reimbursing Bank. Yes
The process describes activities if the Sight Export documents under LC having discrepancies are
negotiated under Reserve after accepting indemnity from the exporter. Yes
The process describes the activities wherein the documents under LC which have been sent for
acceptance/ collection (with discrepancies in documents) and subsequently discounted on Yes
receipt of acceptance.

The process depicts the activities to provide export packing credit or export loan if requested by
the customer. Yes
The process describes the activities for repayment of export loan on receipt of export proceeds
or funding by the exporter. Yes
The process describes the activities to receive and advise Amendment of Export LC to the
exporter. Yes
The process describes the activities to receive and advise Cancellation of Export LC to the
exporter. Yes

The process describes activities for lodging documents under Import collection (sight/ usance).
Yes
The process depicts activities of amendment to import collection document received from the
exporter's Bank. Yes
Process describes recording of the acceptance received from importer and advising the
exporter's Bank. Yes
Process describes activities to settle import collection. i.e. receive payment of import collection
(sight or usance) from importer and remit proceeds to exporter's Bank. Yes
The process describes the activities to be performed in case of refusal of payment on import
collection document by Importer and also return of documents to the exporter's Bank. Yes

The process describes activities on receipt of documents from exporter for dispatch to
importer's bank. Yes
The process describes activities for amendment requests received for export collection
documents from the exporter. Yes
The process depicts the activities of recording the acceptance/ rejection message received from
importer's Bank. Yes
The process depicts activities to discount/ purchase Export Collection Bills which are already
sent on collection. Yes
The Process describes activities for liquidation of Export Collection Bills discounted/ purchased
on receipt of payment from the importer's bank. Yes
Process describes activities to monitor payments for Export collection bill and settling the same
on receipt of the payment. Yes

Process describes activities in case of a request from Importer for issue of shipping guarantee in
lieu of shipping documents (which are yet to be received). Yes
Process describes activities in case of a request from Importer for issue of shipping guarantee in
lieu of Import Collection (which are yet to be received). Yes
This process describes activities to be undertaken on receipt of the shipping guarantee returned
by shipping agent. Yes
Process depicts Issuance of SBLC (Stand by Letter of Credit). (Only applicable to certain
countries) Yes

Process describes activities for advising the guarantee received to the beneficiary of guarantee.
On receipt of MT760, the system permits registering the message automatically. This message Yes
can be actioned further from the hold queue.

Process describes activities for issuing a Guarantee on receipt of application. The guarantee can
be a Bid Bond, Performance Bond or Generic Guarantee. Yes
The process depicts activities to issue a guarantee on receipt of a counter guarantee from
another Bank. Yes
Process for handling the request for guarantee amendment. Yes
The process describes the activities of recording the claim logged by the beneficiary/ Bank.
Yes
Process describes the activities for handling the invocation of bank guarantee by the beneficiary/
beneficiary's bank. Yes
Process for closure of guarantee on expiry/ premature closure. Yes
The process describes activities to be undertaken for reinstating expired Guarantee. Yes
The process describes the activities of registering invocation claim of Guarantee Received by the
beneficiary. Yes
Process describes the activities involved in paying or rejecting invocation claim of guarantee
received based on the response of the issuing bank. Yes

The process describes the activities performed by a LC reimbursing bank on receipt of

reimbursement advise from LC issuing banks. The reimbursement claim is captured in the system Yes
and an acknowledgement is sent out to the LC issuing bank.

This process describes the tasks involved in the processing of amendments received to an
existing reimbursement authority. Yes
This process describes the sequence of activities associated with registration and payment of
reimbursement claims received from the claiming bank. This process also describes the steps to
be followed in case the reimbursement authority is not available with the reimbursing bank. Yes

45

Process for setting up corporate loan by capturing the relevant particulars (ex: Customer ID,
currency, interest rate type, Drawdown account, liquidation account etc). Yes

Process describes activities for defining tranches to be drawn for Project Loans, record details of
tranches such as revolving/ non-revolving, fees/ charges etc. Yes
Process for setting up Project loan, executing disbursement and activating repayment schedule.
Project Progress Report and Financials are analysed for each disbursement(s) as part of
monitoring the covenants. Yes
This process is for creating facility for the customer after the pre-syndication stage process is
completed. User creates the facility and accounting entries are generated for the underwriting
fees. Any reversal of pre-syndication can be done at this stage, before creation of facility. Yes

Process describes activities for defining tranches details such as start date, amount, etc.
Yes
This process describes the amendment of an existing facility in SL. Yes
This process describes the activities for draw down from the facility. Yes
This process is for attaching the charges recoverable from the borrower. The charges so
attached are recovered by the system automatically at the defined frequency/event. Yes

This process describes the activities involved in trading in Syndicated Lending. For example,
during the lifetime of a syndicated loan it is common practice for members of the syndicate to
sell either part or all of their participation. This could lead to a new entrant as participant into
the syndicate.
The following scenarios are possible:
-Buying and selling of contingent portion (Undrawn portion of facility)
-Buying and selling of non contingent (Drawn portion of facility) portion with consideration. Yes
-Full or partial buy / sell.
-Entry of new participant in the syndicate or exit of a participant.

This process describes activities to merge loans with the same maturity date. Option is available
to affect a principal decrease on the existing loans and considers only the balance for merger.
Merger may also result in more than one drawing. For example five loans could be merged into
two. The consolidated loan(s) could be in any of the allowed currency and could have a different Yes
tenor and rate.

This process describes activities for splitting a loan. On splitting, the entire outstanding of the
loan will be split into two or more loans (with different maturity dates). Yes

Activities for extending the maturity date of the Loan is described in this process. Yes
The process describes activities for amendment/ preclosure of a loan in the SL Module.
Yes
Process describes activities to manage over dues in the SL Module. Yes
This process describes receiving and processing of a prepayment request to a Syndicated loan
contract. Yes
Activities involved in recording participation in SL like Circulation of Memo inviting for
participation, Recording the details of participation and Allotment to participants, Yes
Apportionment of devolved portion are described in this process.

Activity of recording a mandate received from the borrower in the pre-syndication stage are
described in this process. The details from the mandate like the amount requested, tenor are Yes
recorded.

This process describes the activities for repayment of loan in tranches. Yes
Activities involved in Underwriting the SL like Circulation of Info Memo to Underwriters,
Recording the willingness of Underwriters and Finalisation on the Underwriting are described in Yes
this process.
The process describes activities for converting a Bilateral facility to Syndicated facility or vice
versa by trading contingent portion of the facility.
Bilateral Facility can be converted into a Syndicated facility by trading contingent or non-
contingent portion of the facility to new participants.
Syndicated facility can be converted into a Bilateral Facility by trading all contingent and non- Yes
contingent portion under the facility such that own bank holds the entire portion (100% share).

The process describes activities for converting a Bilateral facility to Syndicated facility or vice
versa by trading non-contingent portion of the facility.
Bilateral Facility can be converted into a Syndicated facility by trading contingent or non-
contingent portion of the facility to new participants.
Syndicated facility can be converted into a Bilateral Facility by trading all contingent and non- Yes
contingent portion under the facility such that own bank holds the entire portion (100% share).

This process is for receiving request for amendments to loans, inputting the amendment type
(interest rate, terms, schedules, principal increase/ decrease, etc) and generating advice to Yes
customer.

This process is for receiving and executing the request for prepayment to a loan contract.
Yes
Process describes early maturity/ closure of loan. Yes
This process describes the activities relating to scheduled repayment to be executed
automatically on due date by the system. The accounting entries are passed online and loan Yes
account is liquidated immediately.

This process describes the activities relating to closure of the loan at the expiry of loan term,
checking for over dues if any, delinking the collateral and release of collateral documents. Yes

Process enables monitoring of the Past due contracts by querying the Past Due report and
perform the required follow up processes (ex: perform financial write-off, manual provisioning, Yes
past due adjustment etc.)

This process enables capturing of the overdue amount in unauthorised Overdraft Accounts/
Loans and others. Yes
This is an automatic process triggered at EOD as set in the overdue parameters. Yes
This process describes the blocking of automatic repayment of past dues. Normally, the system
automatically retries at Close of Business till recovery of the entire due amount. Yes

This process describes the activities required to change interest rate/ spread for PD contracts.
Yes
The process describes activities for manual provisioning of past dues e.g. set asset class (ex:
substandard, doubtful etc), set the new provision percentage. Yes
Process describes activities related to a Financial write-off. Under Financial write-off the entire
outstanding is written off. Subsequent follow-up is possible. Yes
This process is used for performing adjustment of PD. Yes
The process describes activities to perform Past Due Write-off. Yes
The process describes activities for repayment of a past due. Yes
This process supports receipt of repayment for a PD contract already written off. Yes

This process is for setting up the overall facility for corporate customers who might have been
approved multiple facilities. Yes
Process describes activities for setting up product wise limits for the customer (Ex: Limits for
Term Loan, LC, BG, etc). Yes
Collateral details are recorded and linked to the limits already established. Yes
Process describes the activities for sub allocating limits between two limits of a Customer. The
linking enables dynamic usage of the limits between the products. Yes
Process describes the maintenance/ reversal of customer limits. Yes
This process enables defining/ changing the liability Customer. Yes
Process for setting up Country level/ Industry level/ Currency level limit for monitoring the
overall exposure of the Bank. Yes

This process describes the activities involved in attaching a limit to an account. Yes
7

The individual Receivables captured are batched for further execution. Each batch
accommodates Receivables of same customer, currency and product type. (This is an optional Yes
process)

The process describes capturing of Receivables details. The Receivables received from customer
can be used for Discounting/ Collections/ Collateral. Yes

Disbursement of Batched Receivables is done through Receivables contract. For discounted

product types, the drawdown account is credited and messages sent.
In case of Part disbursement of a Batch, amount can be appropriated to all the underlying Yes
Registers either at pro rata or FIFO basis.

Disbursement of Receivables is done through Receivables contract .For discounted product

types, the drawdown account is credited and messages sent. Yes
This process describes the settlement process for Receivables. The settlement can happen as
full, partial or rebate on settlement. Yes

Receivable Registers/Batch/ Contract can be amended for various reasons, like request from
customer, change of bill details etc. After the amendment of Register/Batch/Contract the
respective processes are triggered to complete the sequence. This process covers only the case,
where the bill has not been sent for collection. Yes

This process deals with disbursement of invoices which are under collection but not
collateralised by changing the product type which can be disbursed. Yes
Process Area Scenario
Transactional Processes
3.1 Payment Processes
3.2 Cheque Collection/ Clearing
3.3 Payment Hub
Business Area
Total no. of processes
Release

Process

3.1.1 Account to Account Transfer

Execute Nostro Account To Account Transfer

Manage Account To Account Transfer (Front

Office)

Receive Request For Account to Account

Transfer
Validate & Execute Account To Account
Transfer (Back Office)
3.1.2 Outward Payments
Execute Call Back/ Cancellation Of Outward
Remittance

Receive request for Call Back/ Cancellation of

Outward Remittance

Receive request For Outward Remittance

Reversal Of Outward Remittance

Validate & Execute Outward Remittance

3.1.3 Inward Payments

Execute Inward Remittance Through SWIFT
Execute Inward Remittance Through Nostro/
Vostro Account

Reversal/ Cancellation Of Inward Remittance

3.1.4 Drafts (Bankers Cheques)

Issue of LCY Draft (Retail) *

Manage Receipt Of Draft Stock

Perform Draft Encashment

Process Cancellation Of Draft

Process Stop Payment Of Draft

Receive LCY Draft For Settlement

Receive Request For Cancellation Of Draft

Receive Request For Revocation Of Stop

Payment Of LCY Draft

Receive Request For Stop Payment Of Draft

Receive Request To Issue Draft *

Revoke Stop Payment of LCY Draft

Settle LCY Draft

Settle LCY Draft Through Clearing

Validate & Execute Draft Issue

3.1.5 Standing Orders

Cancel Standing Order Instruction

Execute Standing Order

Receive Request For Standing Order

Set Up Standing Order

3.1.6 Direct Debits

3.1.6.1 Direct Debits (Inward)
Execute Direct Debit (Inward)

Receive Request For Direct Debit Mandate

(Inward)
Set Up Direct Debit Mandate (Inward)

3.1.6.2 Direct Debits (Outward)

Cancel Direct Debit Instruction

Execute Direct Debit (Outward)

Receive Request For Direct Debit (Outward)

Set Up Direct Debit Mandate (Outward)

3.1.7 Common Processes

Reverse Beneficiary
Set Up Beneficiary

Verify Direct Debit Transactions Limits

Verify Funds Transfer Transaction Limits

Verify Standing Order Transaction Limits

3.1.8 Bulk payment
Execute Funds Transfer Through Bulk Upload

Perform Bulk Payment Validation

Receive Bulk Payment Request

3.1.9. Reconciliation
Reconcile Nostro Accounts *

3.1.10 Payment Order

Amend Payment Order
Manual Initiation Payment Order

Automatic initiation of Payment Order

3.1.11 Process Inward Entries

Set Up/ Execute Inward Entries

3.2.1 Internal Cheques

Process Cheque Payment

Receive Internal Cheque

Verify Internal Cheque

3.2.2 External Cheques (Domestic)

Receive External Cheque (Domestic)

Process Cheque Clearing (Domestic)

Verify External Cheque (Domestic)

3.2.3 External Cheques (Outstation)

Process Cheque Clearing (Outstation)
Receive External Cheque (Outstation)

Verify External Cheque (Outstation)

3.2.4 External Cheques (Foreign Currency)

Process External Cheque (FCY)

Receive External Cheque (FCY)

Verify External Cheque (FCY)

3.2.5 Cheque Administration

Modify Cheque Settlement Date

3.3.1 SWIFT Transfer

Execute Call Back - Cancellation of Credit
Transfer (PP)

Execute Inward Credit Transfer (PP)

Execute Inward Credit transfer via Order Entry

(PP)

Execute Manual Bank Transfer (PP)

Execute Redirect Credit Transfer (PP)

Execute Standing Order (PP)

Perform Sanction Screening (PP)

Receive Electronic Payment Instruction (Bulk

Outward) (PP)

Receive Electronic Payment Instruction (Single

Outward) (PP)

Receive Request for Call Back/ Cancellation of

Outward Remittance (PP)

Reversal Of Outward Remittance (PP)

Reversal/ Cancellation Of Inward Remittance

(PP)

Send Query/ Answers/ Free Format Messages

(PP)

Validate & Execute Account To Account

Transfer (Back Office) (PP)

Validate & Execute Outward Remittance (PP)

3.3.2 SEPA Customer Transfer

Receive File from Clearing (SEPA)

Receive Electronic Payment Instruction (Single

Outward) (SEPA)

Receive Electronic Payment Instruction (Bulk

Outward) (SEPA)

Validate & Execute Outward Remittance (SEPA)

Execute Call Back - Cancellation of Credit

Transfer (SEPA)

Execute Inward Credit Transfer (SEPA)

Reversal/ Cancellation Of Inward Remittance

(SEPA)

Process Clearing Status Report (SEPA)

3.3.3 SEPA Direct Debit

Receive File from Clearing (SEPA DD)

Receive Electronic Payment Instruction (Bulk

Outward) (SEPA DD)
Execute Direct Debit Collection Request (SEPA
DD)
Manual Return/ Refund of Settled Direct
Debits (SEPA DD)

Execute Cancellation Request from Creditor

Bank (SEPA DD)

Manually Reject Collection Request (SEPA DD)

Execute Direct Debit Refund Request (SEPA

DD)

Send Cancellation Request for Outward

Collection (SEPA DD)
3.3.4 Cheque Clearing
Receive and Process Inward Cheque Clearing

Process Outward Cheque Collection

(Standalone)

3.3.5 Instant Payments

Receive and Execute Instant Payments

Receive Response from Clearing/ Direct

Participant (Instant)

Initiate Cancellation Requests (Instant)

Receive and Validate Messages (Instant)

Response to Cancellation Request from

Clearing (Instant)
Execute Inward Credit Transfer (Instant)

Execute Cancellation Request from Indirect

Participant (Instant)

Execute Cancellation Request from Clearing

(Instant)

Respond to Investigation (Instant)

Transactional Processes In Scope
105 105
R18 Model Bank

Scoping
Process Description In Scope

50

The process describes transfer between two NOSTRO accounts maintained by the bank. The
output could be generation of either a MT 200 (Financial Institutions transfer for its own Yes
account) or a MT202 (General Financial Institution transfer).

The process describes the requests received from Customers at the front office for account to
account transfers within the bank. The transactions are performed by the teller after making the Yes
necessary checks and authentications.

The process begins with the receipt of request for an account to account transfer from the
Customer at the front office. Yes
This process deals with the validation and execution of account to account transfer requests
received by the back office. Yes

The process describes the activities involved in processing of cancellation/ call back of outward
remittance at the back office.
The cancellation will be taken up after sighting the credit in the bank's Nostro account. Yes

The process begins with the receipt of cancellation of an outward remittance request from the
customer. The application is received at the front office, which is forwarded to the back office for Yes
execution after due authentications.

The process begins with the receipt of an outward remittance request from the customer. The
application is received at the front office, which is forwarded to the back office for execution. Yes

The process begins when the remitting bank erroneously remits the funds or duplicates an
outward remittance. The remitting bank reverses the erroneous transaction once the credit is
sighted in its Nostro account. The transaction is reversed in total including charges, at the same Yes
exchange rate (TT selling).

The process begins with the receipt of outward remittance request from the customer.
Necessary duplicate and AML checks are done before processing the remittance. A cover
message is automatically generated if the remitting Bank does not have a Nostro account Yes
relationship with Beneficiary Bank.

The process begins with the receipt of inward remittance for credit to a customer's/ bank's
account in the sender’s Vostro Accounts maintained with us or in the Nostro Account Yes
maintained by us.
This process deals with activities associated with execution of an inward remittance. The credit
can either be received in the Vostro account (foreign bank maintaining the account with us) or in
the Nostro account (we maintain an account with the foreign bank). Yes

The process begins with the receipt of a reversal request from the remitting bank for a
remittance sent by them. The beneficiary/ customer is requested to provide approval for Yes
reversal before remitting back the funds.

The process explain the steps involved in issuance of LCY draft at the teller counter. All necessary
authentications are done before the draft is issued. The system updates the draft stock inventory Yes
upon issuance.

This process describes activities performed by a front office Customer Service Officer on receipt
of draft inventory from Head Office. Yes
This Process describes the steps involved in settling local currency drafts across the counters by
the teller. This can be achieved either by crediting the Customer's account with the bank or Yes
settlement by cash.

This process describes the steps involved in cancellation of LCY/ FCY draft. Once a confirmation is
obtained that the draft is unpaid, for a LCY draft, immediate cancellation can be done, whilst in
case of a FCY draft, the same is carried out upon receipt of confirmation of stop payment from
the Nostro correspondent, on whom the FCY draft was issued. Yes

This process involves carrying out a stop payment of a draft. In case of a LCY draft, necessary
status updates are carried out. For FCY drafts, reversal is performed and accounting entries are
generated only upon receipt of stop payment confirmation from the correspondent bank. Yes

This process deals with Customer giving a local draft for settlement issued by his own bank. The
front office validates the request and forwards it to the back office for effecting the settlement. Yes

This process deals with Customer giving a request for cancellation of a draft. The front office
validates the request and forwards it to the back office for effecting the cancellation. Yes

The process begins with the receipt of a revocation of stop payment request of a LCY draft.
Necessary validations are carried out before forwarding the request to back office for Yes
processing.

This process deals with Customer giving a request for stop payment of a draft. The front office
validates the request and forwards it to the back office for effecting the stop payment. Yes

The process is initiated on receipt of the draft/ bankers' cheque request by the front office. The
request is then forwarded to the back office for further processing. Yes
This process describes activities associated with revocation of stop payment of a LCY draft.
Yes
This Process describes the steps involved in settling local currency drafts through funds transfer.
As part of settlement, appropriate accounting entries are passed and Customer's account is
credited. However. in case of stop payment on the draft, the system gives appropriate error Yes
message.
This Process describes the steps involved in settling local currency drafts received in local
clearing. As part of validations, incase of stop payment on the draft, the system gives Yes
appropriate error message.

The process details the activities performed by the back office to issue a draft/ bankers' cheque.
Necessary AML checks and authentications are done before the draft is issued.
In case of Local currency drafts, the system automatically updates the stock register with the
draft number. Yes

This process describes the activities associated with the cancellation of a standing order
instruction on receipt of a request from the customer. Yes
This process is carried out for execution of the standing order. The standing order can be
executed at close of business (COB) or online. The system checks for availability of funds &
posting restrictions and retries for execution T24, as per the number of times set in the system. Yes

The process begins with the receipt of Standing order request from our Customers. Necessary
verification is done before setting up the standing order. Yes
In this process, the standing order is set up based on the request of the customer. The request
can be various types, viz.fixed amount transfer, maximum balance transfer, bulk standing order
etc.Standing Order can be routed through Funds Transfer, Payment Order based on the setup Yes
chosen while capturing standing order.

The process describes the execution of the direct debit after a debit file is received from an
originating bank. Yes
This process describes the validations that are undertaken on receipt of a customer's request for
set up of an inward direct debit mandate. Yes
The process describes activities associated with registering an inward direct debit mandate in
the system. Yes

This process describes the activities associated with the cancellation of a Direct Debit mandate
(Inward/ Outward). Yes
The process describes activities associated with the execution of an outward direct debit
mandate. On the claim date, the system automatically generates a claim file along with a
Customer advice. If the claim is dishonoured, the direct debit will have to be manually marked
as returned. At this stage, the system also allows the user to resubmit the request. Yes

This process describes the validations that are undertaken on receipt of a customer's request for
set up of an outward direct debit mandate. Yes
The process describes activities associated with registering an outward direct debit mandate in
the system. Yes

This process depicts activities associated with the reversal of a beneficiary. Yes
This process depicts activities associated with setting up beneficiary information - which in turn
facilitates auto population of beneficiary details while performing transactions in FT module Yes
(account to account transfer and outgoing payments).

This process represents system activities when a direct debit transaction is executed. Yes
Process depicts the system checks that are done while executing the funds transfer transaction
limit.
The Role based transaction limits, User group’s authorization/ override management and
Authorization levels are configured as part of the implementation requirement of the client
Bank.
The Model Bank system is configured for
- 1 level of Authorization for majority of transactions (with exceptions such as 'Link collateral to Yes
limit' etc.)
- The users rights are configured to accept overrides and input transactions without restrictions.

This process depicts the system activities while executing a standing order. Yes

This process details the various types of credit payments to be effected on the processing date
for a bulk upload viz., internal transfer, transfer to an external beneficiary through Yes
clearing/SWIFT and payment through a Draft.

This process deals with validations that can be performed upon a successfully uploaded file. On
performing the validation of the bulk master, if errors are encountered the payment officer can
create, modify or reject individual items. On approval of master records the system
automatically creates Funds Transfer or Direct Debit records.
Direct Debit records are created automatically by the system if debits are to be raised on Yes
external banks.

This process highlights activities associated with the upload of a bulk file (credits or debits) by a
Payment Officer received from the corporate customers. On successful upload the system Yes
creates master and individual records.

Periodically, Nostro accounts as in Bank's books will need to be reconciled with the account
statement sent by the Nostro Bank. The statements may be received via SWIFT or physically and
T24 automatically matches items and any unmatched items will need to be investigated. Yes

This process describes the activities of amending a payment order by a bank user. Yes
The Payment Order application captures the payment instructions from the customer or from
Channels or Bank internal processing and these orders are validated/ executed based on the
Payment order parameter setup available for the Bank i.e. either through Funds transfer or TPS Yes
or any 3rd party interfaces.

This process describes the steps involved in payment order initiation from different applications
for payment related activities like Standing order execution, Loan disbursement etc. On
initiation, Payment Order performs funds check and reserves the transaction amount for Yes
executing the payment.
This process describes the execution of inward entries from customer bulk file. Based on OFS
clearing mode, inward entries will be processed individually, as a batch or in bulk.
Single entry processing (CSM): One entry/request.The request message is processed online.
Batch processing (CSMBATCH): multiple entry/request. The batch message is received online,
after the header is validated further processing is handled by a background process and the
responses are asynchronous.The batch is split in individual messages which are the processed
independently of each other.
Bulk Processing (CSMBULK): multiple entry/request. OFS Clearing will split the posting message
in individual entries and will process them online in the sequence in which they are present in Yes
the request. Even if one entry fails the whole posting message is rejected.

13

The process depicts the activities at the back office for processing the internal cheques.
Necessary checks are done before processing the cheques. Cheque payment is done via Teller Yes
and cheque register is checked/ updated.

The process begins with the customer requesting a transfer from one account to another within
the bank. The request may be dropped in a drop box or handed over to the teller in person. The Yes
request is forwarded to the back office for processing.

The process begins with the receipt of internal cheque at the back office for verification. The
back office team ensures that the request is complete and all the checks are performed, before Yes
processing the transfer.

The process originates with the receipt of domestic external cheque (drawn on another bank)
from the Customer, for collection into their account. The cheque may be deposited in person at
the branches or dropped in a drop box. The branch forwards the cheque(s) to the back office for Yes
processing and clearing activities.

This process deals with activities associated with external domestic cheque clearing. The
balances are released based on the cheque clearance status. For cheques that are returned,
accounting entries are reversed, before returning the physical cheque to the Customer. Yes

The cheques received from the branches are processed and presented for clearing. The bank
sends the cheque for clearing through either Direct or Indirect method (depending upon the set Yes
up by Bank).

The process is to forward all the Outstation external cheques for collection. Based on the cheque
clearance status the balances are released to the customer. If the cheque is returned then
necessary accounting entries are passed and physical cheque is returned to the Customer. Yes
The process originates with the receipt of Outstation external cheque (where the bank does not
have a branch) from the Customer, for collection into their account. The cheque may be
deposited in person at the branches or dropped in a drop box. The branch forwards the Yes
cheque(s) to the back office for processing & collection.

The process begins with the receipt of Outstation cheques at the back office for verification. The
back office team ensures that the request is complete and all the details required for collection
are available, before processing the cheques for collection. Yes

The process identifies activities associated with the settlement of the foreign currency cheque.
Based on the cheque clearance status, identified from the Nostro statement, the balances are Yes
released/ returned.

The process describes the activities for accepting a foreign currency cheque from the Customer
(either through the branch counter or through the drop box) and making the cheque available to Yes
back office for processing.

Process describes the activities for verifying the details of cheques presented for collection,
capturing the details of foreign currency cheque, and authorisation of the cheque deposited. Yes

This process deals with activities associated with changing the value date of cheque clearing, on
account of any unforeseen events (sudden declaration of holiday by clearing house etc). Yes

42

The process describes the activities involved in processing of cancellation/ call back of outward
remittance at the back office.
The cancellation will be taken up after sighting the credit in the bank's Nostro account. Yes

This process describes the activities for the execution of 'electronically' received credit transfer
requests in favour of clients. The process also covers scenarios for 'hold for cover' and 'claims'. Yes

This process deals with activities associated with execution of an inward remittance. The credit
can either be received in the Vostro account (foreign bank maintaining the account with us) or in
the Nostro account (we maintain an account with the foreign bank). This process requires Yes
manual order entry in TPS.

The process describes transfer between two NOSTRO accounts maintained by the bank. The
output could be generation of either a MT 200 (Financial Institutions transfer for its own
account) or a MT202 (General Financial Institution transfer). Yes

This process describes the activities for the execution of 'electronically' received credit transfer
requests in favour of (3rd party) clients, which will be redirected accordingly. The process also
covers scenarios for 'hold for cover' and 'claims'. The redirect can be done via SWIFT, Target 2 or Yes
SEPA.
This process is carried out for execution of the standing order. The payments transactions are
automatically generated and will be 'routed' via 'Account to Account Transfer' or 'Outward
Remittance'. Yes

Financial institutions are required to filter or screen payment instructions before the funds are
made available to avoid any breaching of sanctions, embargoes and other measures. This
filtering needs to happen real-time before booking the payment. Therefore a system needs to be
in place wherein all payments/transactions can be monitored and filtered in a timely manner.
Filtering is necessary to stop transactions which aid: terrorist financing, illegal activities financing
etc. or fall under OFAC list or SDN list. This is an indicative list and every bank can have its own
criteria for filtering. This information is stored on the external database and not internally within Yes
the component.

This process highlights activities associated with the upload of a bulk file (credits or debits) by a
Payment Officer received from the corporate customers or an internal source (e.g. 'Salary Batch).
On successful upload the system creates master and individual records. Payment will be routed Yes
accordingly.

The process describes the activities of receiving and validating electronic transfer requests (e.g.
SWIFT). Based on the requests, the required type of transfer (e.g. Account to Account, Outward Yes
Remittance) will be determined.

The process begins with the receipt of cancellation of an outward remittance request from the
customer. The application is received at the front office, which is forwarded to the back office for Yes
execution after due authentications.

This process allows user to send cancellation requests for already processed outward
remittances. User can send a cancellation request in the form of MT192, MT195 or MT199 as
per operational procedure. Once the response is received from Beneficiary Bank, user can Yes
reverse the payment in the hub.

The process begins with the receipt of a reversal request from the remitting bank for a
remittance sent by them. The beneficiary/ customer is requested to provide approval for Yes
reversal before remitting back the funds.

This process deals with sending out the cancellation messages (MT192/MT292) for the outgoing
payments sent earlier, free format messages (MT199/MT299) and answers (MT196/MT296) to Yes
the queries (MT195/MT295) raised by sending bank.

This process deals with the validation and execution of account to account transfer requests
received by the back office. Relevant SWIFT Messages will be generated as well. Yes

The process begins with the receipt of outward remittance request from the customer.
Necessary validations (e.g. duplicate check) are done before processing the remittance. A cover
message is automatically generated if the remitting Bank does not have a Nostro account
relationship with Correspondent Bank. The payment can be done via SWIFT, Target 2 and SEPA. Yes
This process highlights activities associated with receiving and validating a file from the clearing
with different bulks (pacs.004, camt.056 etc.). It will split them in the different processes like
Inward Credit Transfer to be processed or Inward remittance to be cancelled. Yes

The process describes the activities of receiving and validating electronic transfer requests
(e.g.pain.001). Based on the requests, the required type of transfer (e.g. Account to Account,
Outward Remittance) will be determined. If a payment is incorrect it can be automatically Yes
cancelled or repaired or cancelled by an operator.

This process highlights activities associated with the upload of a bulk file (SEPA) credits from a
customer. On successful upload the system creates master and individual records. Payments will
be routed accordingly. For unsuccessful upload or payments, status reports can be sent to the
customer. Unsuccessful payments will be reversed automatically. Yes

The process begins with the receipt of outward remittance request from the customer.
Necessary validations (e.g. duplicate check) are done before processing the remittance. The Yes
payment will be sent to the SEPA Clearing.

The process describes the activities involved in processing of cancellation/ call back of outward
SEPA remittance at the back office.
The cancellation will be taken up after receiving a confirmation of the cancellation. If the Yes
cancellation request is rejected this will be monitored.

This process describes the activities for the execution of 'electronically' received SEPA credit
transfer in favour of clients. If a payment is incorrect it can be returned automatically or
manually, repaired or cancelled. If a the payments is processed successfully different Yes
confirmations like phone, SMS, email or 910 can be sent.

The process begins with the receipt of a cancellation request (e.g. camt.056) from the remitting
bank for a remittance sent by them. The related payment can be returned automatically or the
operator can provide approval for the return before remitting back the funds. If a payment
cannot be returned a Resolution of Investigation (camt.029) will be sent. Yes

This process describes the activities for the execution of 'electronically' received SEPA Clearing
Status Report (pacs.002). If a negative response is received the related payment can be
automatically returned or returned, cancelled or resubmitted by an operator. The status of the
related message will be updated conform the action taken. Yes

This process highlights activities associated with receiving and validating a file from the clearing
with different bulks (pacs.003, pacs.004 etc.). It will split them in the different processes like
Inward Collection Request to be processed or Inward collection to be cancelled. Yes

The process describes the activities of receiving and validating electronic transfer requests
(pain.008). Based on the requests, the required type of transaction (e.g. Account to Account,
Outward collection) will be determined. If a collection request is incorrect it can be
automatically cancelled else manually repaired or cancelled by an operator for SEPA DD Bulk. Yes
The process describes the activities of validating Direct Debit collection requests (pacs.003).
Based on the request received, Inward collection will be processed. Yes
This process describes the steps involved in returning a direct debit collection that was
processed earlier. Based on configuration, returns are either processed automatically or can be Yes
done manually.

The process describes the execution of a cancellation request (e.g. camt.056) for a collection
sent by the creditor bank. The related payment can be cancelled automatically or the operator Yes
can provide approval for the cancellation.

This process describes the activities for rejecting direct debit collection request which is not yet
settled. Rejection message (pacs.002) is sent for rejecting transaction which is in Warehouse. Yes

This process describes the activities of processing return requests (pain.004). Based on the
return request, system will identify the settled transaction and reverse the entries posted. Yes

The process describes the activity of cancelling outward SEPA collection by sending camt.056
within the acceptance period. Yes

The process originates with the receipt of Inward cheque from the clearing. Post validation of
cheque, the customer account will be debited and the funds will be sent to the clearing house.
Also it describes about the Return and Reject process when the customer validation fails.
Yes

The process originates with the receipt of Cheque related information through Interface which
can be either Single or Bulk file, the same gets validated and executed in TPH standalone system.
Necessary validations (e.g. duplicate check) are done before processing the request and then
the transaction will be sent to the Cheque Clearing. Yes

This process describes the activities involved in receiving instant payment requests either as
electronic transfer instructions (e.g.pain.001) or as requests from customers. Electronic transfer
instructions validated, manual requests simulated and re-simulated for confirmation.
Instant Payments initiated, necessary validations (e.g. duplicate check) performed before
processing the remittance. The payment will be sent to the Clearing/Direct Participant after time
stamping based on participation in clearing. If a payment is incorrect it can be automatically Yes
cancelled and a response sent back to originator.

This Flow describes the process of receiving response from Clearing/ Direct Participant for the
original remittance request sent. Response can be a positive or negative response. Based on the
response either the payment is completed or payment rejected and transaction reversed. Yes

This process describes the activity of cancelling an Instant Payment that was initiated and sent to
the Beneficiary Bank.
Cancellation is requested by sending camt.056 within the acceptance period to Clearing or Yes
Direct Participant based on the participation type.
This process describes the activities involved in receiving messages, validating and processing
the messages received. Yes
This process describes capturing the response from Clearing to cancellation request sent and
processing the cancellation based on the response received. Yes
This process describes the activities involved in execution of Instant Payments. In case of Direct
Participant the funds will be credited to the beneficiary account if not the request will be Yes
forwarded to Indirect Participant.

This process describes the activity of receiving cancellation request (as a Direct Participant) from
Indirect Participant, validating the request and forwarding the same to clearing. Yes

This process describes the activity of receiving a request to cancel inward credit. The
cancellation request from the initiator is forwarded to clearing who in turn forwards it to the
beneficiary bank. The cancellation request received from clearing is validated and executed or
forwarded to Indirect Participant based on participation type. Cancellation Request is rejected in Yes
case the request is received after cancel acceptance days.

This process describes the activities involved in receiving an investigation message, investigating
and responding with the payment status. Yes
Process Area Scenario
Treasury Processes
4.1 Derivatives(Own book)
4.2 Securities (Own book)

4.3 FRA
4.4 SWAPS

4.5 Money Market

4.6 Forex
4.7 Repo/Reso

4.8 Bonds
4.9 Internal Account Reconciliation

4.10 Over The Counter

Business Area
Total no. of processes
Release

Process

4.1.1 Position & Market analysis

Perform Position & Market Analysis (Derivatives/
Own Book)
4.1.2 Trade Initiation
Execute Trade (Derivatives/ Own Book)

4.1.3 Settlement
Execute Settlement (Derivatives/ Own Book)

4.1.4 Administration
Exercise Option/ Assignment (OTC)

Perform Closeout (Derivatives/ Own Book)

Manage Maturity/ Expiry (Derivatives/ Own

Book)

Trigger Exotic Options (Derivatives/ Own Book)

Create Derivatives Exchange Master *

Create Derivatives Master *

4.2.1 Position & Market Analysis
Perform Position & Market Analysis (SEC/ Own
Book)
4.2.2 Trading Initiation & Execution
Execute Trade (Sec/ Own Book)

Generate Advices & Perform Pre Matching (Sec/

Own Book)

4.2.3 Settlement
Perform Off-Market Trade/ Transfers (Own Book)

Perform Dealer Book Portfolio Transfer

Execute Settlement (Sec/Own Book)

4.2.4 Administration
Create Security Master *

Maintain Security Prices *

Set Up Broker *

Set Up Depository *

4.3.1 Position & Market Analysis

Perform Position & Market Analysis (FRA)

4.3.2 Trading Initiation & Execution

Execute Trade (FRA)

4.3.3 Confirmation
Complete Trade Data & Confirmation (FRA)

4.3.4 Settlement
Fix Rates (FRA)

Execute Settlement (FRA)

4.4.1 Position & Market Analysis

Perform Position & Market Analysis (SWAP)

4.4.2 Trading Initiation & Execution

Execute Trade (SWAP)

4.4.3 Confirmation
Complete Trade Data & Confirmation (SWAP)

4.4.4 Settlement
Reset Rates (SWAP)

Execute Settlement (SWAP)

4.5.1 Position & Market Analysis

Perform Position & Market Analysis (Money
Market)
4.5.2 Trading Initiation & Execution
Execute Trade (Money Market)

4.5.3 Confirmation
Complete Trade Data & Confirmation (Money
Market)

4.5.4 Settlement
Execute Settlement (Money Market)

Rollover/ Repayments (Money Market)

4.6.1 Position & Market analysis

Perform Position & Market Analysis (Forex)

4.6.2 Trading Initiation & Execution

Execute Internal Forex Deal
Execute Forex Trade (Bulk Order)

Execute Trade (Forex)

Receive and Initiate FX Limit Order

4.6.3 Confirmation
Verify Trade Data & Confirmation (Forex)

Verify Trade Data & Confirmation (Forex Bulk

Order)

4.6.4 Settlement
Execute Forex Settlement (NDF)

Execute Settlement (Forex)

4.7.1 Position & Market analysis

Perform Position & Market Analysis (REPO/
RESO)
4.7.2 Trading Execution
Amend Deal (REPO/ RESO)
Execute Trade (REPO/RESO)

4.7.3 Confirmation
Complete Trade Data & Confirmation (REPO/
RESO)
4.7.4 Settlement
Execute Settlement (REPO/ RESO)

Perform Repayment/ Rate Refix (REPO/ RESO)

4.8.1 Initiation
Define Bond Issue Program

4.8.2 Administration
Manage Bond Issue

4.9.1 Initiation
Open Internal Reconciliation Account

4.9.2 Maintenance
Internal Reconciliation Account Maintenance

4.9.3 Process
Reconcile Internal Account

4.10.1 Administration
Over-The-Counter ( OTC) Parameter Set Up
Treasury In Scope
55 55
R18 Model Bank

Scoping
Process Description In Scope

As part of this process, current position and market information is analysed and an
appropriate trading strategy for derivatives (own book) is formulated. Yes

This process describes the capture of an Own book or a Customer derivatives deal in the
system. In own book it's a direct trade input and for Customers the trade can be Yes
originated through an order as well.

Once a Derivatives Trade (Own Book) is completed and verified, system automatically
generates accounting entries and Trade confirmation advices. Yes

The process is triggered over the counter (OTC), when the customer requests for
exercising the option or where counterparty requests for an assignment. The option is
exercised/ assigned and system creates a closeout record. On committing the closeout
record, system creates Forex trade. System can also be parameterised to automatically Yes
exercise an Option if pre-defined conditions are met.

Comparable Buy and Sell Trades can be closed out either manually by specifying selection
criteria or automatically by the System (if so parameterised). A close out record is created
and upon authorisation, system automatically closes out the positions and generates the Yes
accounting entries.

On maturity of futures contract or expiry of options contract, system would automatically

mark the record as 'expire'. This process is for manually capturing the maturity of a Yes
futures contract or the expiry of an option contract.

For exotic options, if the Trigger is reached, this has to be manually input in T24. E.g. For
a Knockout option, when the knockout price is reached, Investment representative will
have to input that the option is triggered. Once triggered, the option will automatically
become live or expire as the case maybe. Yes

This process covers the creation of a derivatives exchange master. The details of the
exchange/ market like description, address and the margins are captured here. Yes

In this process, a derivatives master is created for all instruments(futures, stocks or

options) that will be traded in the exchange. Yes
 10

This process describes analysing the position, outstanding orders and market data to
formulate trading strategy. Yes

This process describes execution of a trade (Sec/Own book). The trade details are
captured in the system where automatic validation vis-à-vis validation of trade data for Yes
stock and cash availability, restrictions, etc., is carried out.

The process describes authorising of security trades for proprietary (own book)
portfolios. After trade authorisation, system will post accounting entries and advices to Yes
Broker & Custodian will be generated.

This process describes the activities relating to capture of data for off-market transfer
in/out of Proprietary (own book) portfolios. Yes
Process describes the transfer of assets between dealer book portfolios. The positions are
defined and transfer details are captured/ updated. Yes
This process describes settlement of a trade (Sec/Own book). On trade authorization and
once the advices and pre-matching is complete, system automatically checks for the type
of settlement to be performed (actual vs contractual). On receipt of appropriate
settlement confirmation from the depository/ custodian, trade is “settled” with the Yes
updation of cash and security positions.

The process describes capturing of new securities into the master for future trading.
Yes
The security prices are updated into the tables through external system's interface or
manually updated. Yes
Broker is opened as a Customer in T24. As part of this process, data relating to securities,
Account creation (if required) and settlement instructions are captured. Yes

Depository or Custodian is opened as a Customer in T24. As part of this process, data

relating to the custodian's Securities, Nostro accounts and SWIFT address are updated. Yes

This process involves formulation of an appropriate FRA deal strategy after analysis of
current position and market information. Yes

The process describes capturing FRA trade information details and providing trade data
to back office for further processing. Yes

This process involves verification of FRA deal details, settlements, authorisation and
confirmation of FRA. Yes
This process involves contacting the counterparty and fixing the FRA settlement interest
rate. Yes
This process describes the Settlement of FRA deals and generation of settlement
messages. Yes

This process involves formulation of an appropriate SWAP deal strategy after analysis of
current position and market information. Yes

This process describes the capturing of SWAP deal data in the system and providing trade
data to back office for further processing. Yes

This process involves verification of SWAP deal details, settlements details, authorisation
and confirmation of SWAP. Yes

This process involves contacting the counter party for periodic interest rate setting. The
system automatically generates SWIFT message confirming the rate change. Yes

This process describes the settlement of SWAP deals, posting of accounting entries and
generation of SWIFT messages. Yes

This process involves formulation of an appropriate MM deal strategy after analysis of

current position and market information. Yes

This process describes the capture of a MM deal in the system and providing trade data
to back office for further processing. Yes

This process describes the activities associated with verification of all the details of a MM
deal - viz., authorisation, settlement and matching trade confirmation with deal data. Yes

This process describes the settlement of MM call/notice deals, where a settlement date
has to be input. Once the settlement date is entered, the posting of accounting entries
and generation of SWIFT messages is an automated activity. Yes

This process details the maturity repayment or rollover of a money market deal. The
system automatically generates the accounting entries and applicable SWIFT messages. Yes

This process involves formulation of an appropriate Forex deal strategy after analysis of
current position and market information. Yes

This process describes the transfer of positions between dealers. Yes

The process describes capturing bulk Forex deals information. The bulk order creates an
order (in FX.ORDER) on authorisation. Yes
This process describes capturing of a Forex deal in the system and providing trade data to
back office for further processing. Yes
A Limit Order, is an order to close a trade when the market moves to a specified amount
to the advantage of a position.
This process describes the activities associated with receipt and initiation of FX limit Yes
orders.

This process involves verification of Forex deal details, settlements, authorisation and
matching trade confirmation with deal data. Yes
When the trade data is available to the back office, a master deal is generated to capture
the bulk order. Upon authorising the master deal, the child deals are created. Yes

The process describes the settlement of an NDF deal by applying the settlement rate (on
the rate fixing date) and arriving at the difference between notional amount and Yes
settlement amount.

This process describes the settlement of Forex deals, posting of accounting entries and
generation of SWIFT messages. Yes

This process involves formulation of an appropriate REPO/ RESO deal strategy after
analysis of current position and market information. Yes

This process highlights the amendments carried out to a REPO/RESO deal. Yes
This process describes capturing of a REPO/RESO deal in the system and providing trade
data to back office for further processing. Floating rate Repos can be input by linking
Periodic Interest table to a Repo contract for CLASSIC type of Repo contracts. Yes

Trade data is checked for completeness and confirmation sent to the counterparty. Upon
obtaining a matching trade, settlement is executed. Yes

This process describes the settlement of REPO/RESO deals, posting of accounting entries
and generation of SWIFT messages. On the repurchase date (maturity date) the system
passes the necessary accounting entries and sends appropriate SWIFT messages for Yes
settlement of cash/ securities automatically.

On early maturity either cash or assets are transferred and necessary accounting entries
are passed. This process also explains the rate refix process on due date for a floating rate Yes
Repo.

2
This process involves formulation of an appropriate bond strategy to issue a series of
bonds, where the total issue takes places over a period of time and possibly in different
currencies. The total value of the bond issue program is recorded by entering a liability Yes
commitment contract.

This process describes the activities associated with issue of bonds by the capital market
department of a bank. Yes

This process depicts the activities associated with setting up of internal reconciliation
accounts of the Bank, which are in the nature of own-book accounts. Yes

This Process is used for maintaining the reconciliation of Internal Accounts.

Yes

This process is used execute the reconciliation of Internal Accounts. Yes

1

This Process describes the order in which the Parameter tables is set for OTC Regulatory
Reporting functionality. Yes
Process Area Scenario
Private Wealth 5.1 Asset Management
Management Processes

5.1.1 Discretionary Asset Management

5.2 Trading
5.2.1 Securities
5.2.2 Derivatives
5.2.3 Forex

5.2.4 Structured Products

5.3 Administration, Static Data &
Corporate Actions
5.4 Mutual funds
5.5 Fiduciary Processes

5.6 Wealth Suite Processes

Business Area
Total no. of processes
Release

Process

5.1.1.1.Investment Policy Definition

Define Asset Allocation

5.1.1.2 Constraints & Restrictions Definition

Set Up Global Constraints

Perform Pre Trade & Post Trade Restrictions

Maintain Security Recommendation

5.1.1.3 Portfolio Modeling

Maintain Securities Model

Maintain Cash Model

Create Dynamic Model

Create Model From Portfolio

Assign Model To Investment Strategy

5.1.1.4 Comparison & Rebalancing
Perform What-If Scenario Analysis
Perform Security Rebalancing

Perform Currency Rebalancing

Perform Group Rebalancing

5.1.1.5 Order Management

Perform Bulk Order - Normal

Perform Bulk Order (Service Run)

5.1.1.6 Back Value Processing

Perform Back Value Processing

5.1.1.7 Performance
Maintain Benchmarks For Performance Reporting

Maintain Composites For Performance Reporting

Maintain Group Of Portfolios

5.1.1.8 Segmentation
Define Portfolio Segmentation

5.1.1.9 Hierarchical valuation

Set Up Asset Structures

5.1.1.10 Sweep
Execute Sweep (Asset Management)

5.2.1.1 Trading Initiation & Execution

Common Order Placement
Receive & Initiate Common Order Placement

Miscellaneous Orders
Manage In-house Orders

Manage Third Party Custody Orders

Manage Third Party Custody Trades

Initiate Structured Note Trade

Securities Orders
Initiate Security Order (1Step)
Initiate Security Order (2 Step)

Initiate Switch Order

Execute Security Order (Manual)

Complete & Authorise Trade (Manual)

Execute and Complete Parent Child Orders

Integrity Check Parent Child Transactions

Perform Pre Matching (Manual)

Amend/ Cancel Order

Initiate Parent Child Orders

Receive Instructions For Securities Transaction

STP Equities
Initiate Direct Trade (Securities)

Initiate Security Order (STP)

Execute Security Order (STP)

Complete & Authorise Trade (STP)

Perform Pre Matching (STP)

Process SWIFT MX Messages

Amend/ Cancel Order (STP)

5.2.1.2 Settlement
Correct Trade Errors

Execute Settlement (Securities)

Complete Parent Child Aggregation

Trade Settlement Nostro Stock Exchange
Aggregation

5.2.1.3 Reconciliation
Perform Stock Reconciliation

Reconcile Nostro Accounts *

5.2.1.4 Miscellaneous
Update Vault

Remove/ Checkout From Vault

Add/ Check-in To Vault

Recover Capital Gains Tax (Manual)

Perform Bond Lending

Manage Investment Loan (Wealth Lending)

Manage Margin Call for Wealth Lending

Manage Lombard Lending

Manage Structured Note Pay Out

Process Upfront Payment Transactions

5.2.1.5 Stock Borrowing & Lending

Manage Stock Borrow Lending

Manage Internal Borrowing

Manage Market Lending

Manage Market Borrowing

Manage Internal Lending

5.2.2.1 Trading Initiation

Initiate Derivatives Order

Initiate OTC Order

Initiate CDS Trade

Initiate Direct Trade (Derivatives)

Initiate Basket Option

Initiate Packaged Option

Manage Packaged Option

Initiate Swaption Trade

5.2.2.2 Confirmation
Execute/ Confirm Derivatives Order

5.2.2.3 Settlement
Execute Settlement (Derivatives)

Perform Closeout (Derivatives)

Trigger Exotic Options

Exercise Option/ Assignment

Manage Maturity/ Expiry (Derivatives)

Perform Corporate Actions (Derivatives)

Exercise Swaptions/ Assignment

Expire Swaptions

Settle Credit Default

Expire Credit Default Swaps

5.2.3.1 Trading Initiation

Execute Client Forex Deal

5.2.3.2 Confirmation
Confirm Deal (Forex)

5.2.3.3 Settlement
Execute Settlement (Forex) *

5.2.4.1 Dual / Triple Currency Investment

Initiate Dual/ Triple currency Investments (SY)

Manage Processing of DCI/ TCI (SY)

5.2.4.2 Accumulators and Decumulators

Initiate Accumulators and Decumulators (SY)

Manage processing of Accumulators/

Decumulators (SY)

5.2.4.3 Interest Multiplier Facility

Initiate Interest Multiplier Facility (SY)
Manage Processing of IMF (SY)

5.2.4.4 FX Forwards and TARKO

Initiate FX Forwards/ TARKO (SY)
Manage Processing of FX Forwards/ TARKO (SY)

5.2.4.5 Digital Investments and Digital Paid Out

Initiate Digital Investments and Digital Paid Out

(SY)
Manage Processing of Digital Investments and
Digital Paid Out (SY)

5.3.1 Asset Transfer

Perform Internal Asset Transfers (Stock)
Perform External Asset Transfer

Perform Free Asset Transfer In/ Out

Perform Delivery Against Payment Customer Asset

Transfer
Perform Third Party Asset Transfer In

Perform Bulk Transfer In/Out

5.3.2 Corporate Actions

Enter Diary Events

Manage Corporate Event Notification - Mandatory

Manage Corporate Event Notification - Voluntary

Manage Diary Event (Structured Product)

5.3.3 Securities Administration

Create Security Master *
Maintain Security Prices *

Maintain Trailer Fees

Processing Of Management & Safekeeping Fees

Reconcile Trailer Fees

Set Up Fee Structure

Set Up Broker *

Set Up Depository *

Set Up Agent Address

Set Up Withholding Tax

5.3.4 Derivatives Administration

Create Derivatives Exchange Master *

Create Derivatives Master *

Maintain Derivative Prices

Update Daily Revaluation/ Margin Calls

5.3.5 Structured Product Administration

Define Structured Product

Define Structured Product Parameter

5.3.6 Mutual Funds Administration

Create Agent & Set Up Fee

Create Security & Fund Master

Perform Mutual Fund Portfolio & Scheme Blocks

5.4.1 Order Initiation

Initiate Direct Trade (Mutual funds)
Initiate Mutual Fund Order

5.4.2 Execution
Verify & Execute Mutual Fund Order

5.4.3 Settlement
Perform Settlement Of Mutual Fund Order
5.4.4 Corporate Actions
Manage Corporate Actions/ Dividend Payments
(Mutual funds)

5.4.5 Initiation (FMC)

Initiate Mutual Fund Order (FMC)

Deploy Funds For Mutual Fund (FMC)

5.4.6 Execution
Generate Advices & Perform Pre Matching (FMC)

Execute Settlement (FMC)

5.5.1 Order Initiation

Amend/ Approve Pooled Orders

Initiate Fiduciary Order

5.5.2 Order Processing

Perform Pre-Closure of Fiduciary Orders

Renew Fiduciary Orders

5.5.3 Placement of Orders

Place Fiduciary
5.6.1 Front office - PMS
Create Allocation Order (TAP)

Create Classification (TAP)

Create Investment Proposal (TAP)

Create Manual Order (TAP)

Create Portfolio List (TAP)

Create Portfolio Model (TAP)

Create Strategy From Existing Portfolio (TAP)

Define Asset Allocation (TAP)

Maintain Security Recommendation (TAP)

Maintain Holding Constraints (TAP)

Manage Existing Investment Proposal (TAP)

Manage Strategy Links For Portfolios (TAP)

Perform Investment Profiling (TAP)

Perform Rebalancing (TAP)

Set Up Modeling Constraints (TAP)

Set Up Trading Constraints (TAP)

5.6.2 Securities
Cancel Security Order (STP) (TAP)

Complete & Authorise Trade (STP) (TAP)

Create Fund Switch Order (TAP)

Execute Security Order (STP) (TAP)

Execute Settlement (Securities) (TAP)

Initiate Direct Trade (Securities) (TAP)

Initiate Security Order (STP) (TAP)

Perform Pre Matching (STP) (TAP)

Receive Instructions For Securities Transaction

(TAP)
5.6.3 Derivatives
Execute/ Confirm Derivatives Order (TAP)

Exercise Option/ Assignment (TAP)

Initiate Derivatives Order (TAP)

Manage Maturity/ Expiry (Derivatives) (TAP)

Perform Corporate Actions (Derivatives) (TAP)

5.6.4 FX
Execute Client Forex Deal (TAP)

5.6.5 Loans & Deposits

Create Loan (AA) (TAP)

Open Deposit (AA) (TAP)

5.6.6 Payments
Validate & Execute Account To Account Transfer
(TAP)
Validate & Execute Outgoing Payment (TAP)
Private Wealth Management In Scope
176 176
R18 Model Bank

Scoping
Process Description In Scope

22

Asset allocation is a term used to refer to how an investor distributes his or her investments
among various classes of investment vehicles. This Process describes defining asset allocation
based on various parameters like investment strategy, regulatory restrictions etc. Yes

Process to set up regulatory and institutional constraints. A Global constraint could be restriction
for trades in certain countries, stocks. Yes
Process to setup various holding and transaction restrictions from inputs obtained from regulatory
or compliance authorities, analysts etc. Yes
The recommended list of securities is provided by investment analyst. Recommendations can be
maintained in T24 and will be considered e.g. for Rebalancing. Yes

This process describes maintenance of a Securities Model, e.g. pure equity, balanced,etc. This is
linked to the Investment Strategy file so that it can be used to rebalance the securities positions of Yes
existing portfolios.

A Cash Model or Strategy is created. This is linked to the Investment Strategy file which is then
used to rebalance the currency positions of existing portfolios. Yes
A dynamic model is created for a virtual customer. This model can then be used as the 'model'
portfolio for modelling and rebalancing client portfolios. Yes
An investment strategy or Model is created from an existing client Portfolio (or Dynamic Portfolio).
The process describes selection of a Portfolio, based on which Strategy is defined. The system will
generate the Strategy (Model) which is then linked to the Investment Strategy file and used to Yes
rebalance existing portfolios.

This process describes the assignment of a portfolio model to an investment strategy. Yes

The portfolios are selected for what-if analysis and simulations are performed on the portfolios.
This will help determine the scenarios in which a rebalancing may be required. Yes
Selected Portfolios are compared with a pre-defined Securities Strategy. On running the
Comparison, system will generate a list of Portfolios that are in deviation. A rebalancing is then run Yes
to bring the Securities Position in sync with the Strategy.

Selected Portfolios are compared with a pre-defined Currency Strategy. On running the
Comparison, system will generate a list of Portfolios that are in deviation. A rebalancing is then run
(the system generates Forex spot trades to balance) to bring the currency positions in sync with Yes
the Strategy.

It is possible to set a Strategy at Group Level and rebalance the group as a whole.
An Order of Priority in which the Portfolios in the group are to be rebalanced can be set.
Tax Portfolios can have their own Strategy and system would rebalance any Tax Portfolios using
their individual strategies, and then ensure that the Group is rebalanced overall to align with the
Group Strategy.
Proposed orders can be accepted or rejected with a Reason.
It is also possible to Raise a certain amount of Cash from a Group of Portfolios, while maintaining Yes
the Strategy.
If a Portfolio is part of a Rebalancing group, it cannot be rebalanced individually.

This process allows manual rebalancing of Securities Positions of Portfolios. Portfolios which
satisfy the selection criteria are rebalanced in one go. For securities that can be bought or sold or
switched, the system creates a list of proposed orders and upon accepting the same, security Yes
orders are created to rebalance the portfolios.

Service based Bulk Orders can be generated for Purchase, Sale and Multiple Switching of
securities, through services running at the background. Specific selection criteria has to be
specified should be based on the PERCENTAGE and NOMINAL fields, which will be executed on
the selected Portfolios and generate the Orders. In the orders generated through SERVICE, the
customer details will exist as individual transactions and it will be possible to amend the customer
nominals in this application. Here, Auto Select field is set to SERVICE, system will generate/re-
generate portfolios with suggested nominals to complete the order. The orders thus generated, Yes
has to be executed similar to that of normal Sec Open Orders.

Portfolio Positions will change when there are back valued transactions. This could be a back
valued trade or transaction for the portfolio or a back dated Security price change or back dated
exchange rate change. System can be parameterised to automatically update Cash or Security
positions when back valued transactions occur and recalculate the performance. Yes

Portfolio performances can be compared to a defined Benchmark. To do this, a Benchmark is

defined and then linked to a Portfolio. Yes
Composite Portfolio Performances can be displayed and reported in T24. A composite name has to
be defined and Portfolios with similar investment strategies can be plugged to the composite. It is
possible to define Composites to comply with GIPS standards. Yes
Portfolios that are in some way related to each other, can be grouped in order to study
Performance for the group as a whole. These T24 functions do not require an authorisation. Yes

Portfolio Valuation can be viewed as a break-up of different segments. Segments need to be

defined and while viewing the valuation, a segment ID can be given to display the details Yes
accordingly.

Portfolio valuation can be viewed in different ways by setting up suitable Hierarchy structures and
using them while launching the valuation enquiries. Yes

This process depicts the various ways in which the funds available in the form of securities, shares,
positions, accounts, etc are swept and credited to the customer.
Yes

44

This process enables the RM to view the products under PWM & input the order at the front
office by capturing the details in a progressive manner. The assumption is that the customer is
authenticated and balance checked before inputting the common order placement. The process
then leads to capturing further details. The orders can be placed for initiating security order (STP), Yes
security order (1step), derivatives order, fiduciary order, forex trade, money market trade, mutual
fund order etc.

This process indicates the activities involved in case the Customer places a request with T24 bank
for execution of trades for securities held outside the system i.e. securities maintained with the
custodian other than the T24 Bank. Such trade request are processed through in-house orders.
Appropriate SWIFT messages and confirmations are sent to Customer, custodian and brokers. Yes

Transactions executed by the Customer in portfolio outside T24 Bank can be captured using third
party orders process. Yes
After the third party custody orders are captured, the trades are captured in T24 using third party
custody trades process. Yes
System supports handling various structured notes. Additional fields are available added in
Security Master to capture the details/terms of these products (underlying security/basket of
securities, strike price, barriers, fixing date, etc.). These instruments will be traded using the
securities module. All the events during the life cycle of these products (KIKOs, fixing, pay-out Yes
details) will be received from the Issuer (from upstream systems through interface).

Order Details can be captured in T24 and order can be directly placed in the market. Since the
order is directly placed without going through the Trade Execution Desk, all details will need to be
captured and all system checks (e.g. validations) will be performed. If necessary, Manager Yes
approval will be provided.
Once the order details are captured in T24, the trade is available for execution by the Trade
Execution Desk. Only minimal details need to be captured and validated at the time of such order
capture and all other input/ validations will be taken care of by the Trade Execution Desk. Yes

Switch Order details are captured in T24 based on the type of switch (buy-driven or sell-driven). If
it is a Buy-driven switch, subscription order is captured first and then the redemption order. If it is
a Sell-driven switch, redemption order is captured first and then the subscription order. Once the
order details are captured in T24, the trade is available for execution by the Trade Execution Desk.
Only minimal details need to be captured and validated at the time of such order capture and all
other input/ validations will be taken care of by the Trade Execution Desk. Yes

The Trade execution desk will place the order in the market (manually or electronically), after the
order is captured by an Investment Representative and placed on a dealer blotter. Once executed,
the execution details are updated either manually or electronically via an incoming SWIFT Yes
message.

On execution of a Securities Order, a Trade is created in the system. The Trade needs to be
completed and authorised. Subsequently, if required, allocation instructions can be maintained
manually. Completion and Authorisation of parent trade will automatically authorise child trades. Yes

This processes explains execution of Parent Orders which in turn executes underlying child orders.
This process also explains
- Amendment to Parent transactions and ensure that the amendment is automatically updated in
all Child transactions
- Bulk authorisation of Child transactions when Parent transaction is authorised Yes
- Deletion/ replacement of Parent Child transactions

Integrity check will be performed if there are mismatches between Parent Order/Trade and Child
Orders/Trades if Matching Parameter is defined. By default, system would check if the Nominals
and Accrued Interest match. If check needs to happen for other fields Parameter needs to be set
by specifying fields from SEC.TRADE and /or SEC.OPEN.ORDER. If there is a mismatch between
these fields, then the Log would get updated. System would allow authorisation of Child Trades Yes
only if there are no exceptions.

After trade authorisation is completed, pre matching is performed by the system and the items
parked in repair queue are either amended or taken up with counterparty for correction. Yes

The process describes the activities of Order Amendment/ Cancellation prior to execution.
Yes
Bulk Orders with Multiple Customers can be separated into Customer Side and Market side such
that any amendment or cancellation of one side does not impact the other.
Security Orders can be created as Parent Child Orders where Parent Order will hold the
Broker(Market) side and the Child Orders will hold each Customer’s side. The Parent Child Orders
are linked by a common Reference. The Parent child separation continues into Execution and
Trade creation.
The separation of an Order into Broker side and Customer sides can also be done at the time of
execution. In this case, system would create separate trades – a Parent trade for the Broker side Yes
and child trades for each of the Customers.
This functionality will make it possible for users to amend/cancel one or more Client legs of an
Order/ Trade without impacting the Market side and vice-versa.

The request for trading is received from the customer. Customer and Portfolio Information will be
checked in T24 before Initiating the Trade. Yes

Direct trades could be own book investments/ investments done for institutional clients/
investments done for the managed portfolio. This process describes the capture of a confirmed Yes
direct trade in the system.

Order Details are captured in T24. If necessary, Manager approval will be provided. System checks
(e.g. validations) will be performed and an MT502 SWIFT message will be automatically sent Yes

After an order has been initiated, a SWIFT Message is sent to the counterparty. After the
execution, a SWIFT message will be received. The trades are updated in T24 based on the SWIFT Yes
messages (e.g. fully or partially executed).

Based on the broker confirmation the trade will be authorised automatically in T24 via an
incoming SWIFT message and system generates Customer confirmation, broker advice and
custodian messages.
Based on Broker conditions set, aggregated messages will be received which will get matched with
Aggregation and Reconciliation records generated by the system. Once Reconciliation is matched,
underlying trades will be automatically authorised. This will trigger aggregated settlement Yes
instructions which will match and settle individual settlement records.

After trade authorisation is completed, pre matching is performed by the system and the items
parked in repair queue are either amended or taken up with counter party for correction. Yes

SWIFT has introduced a new message type expressed in XML syntax, which is more flexible and
easier to implement than the previous generation of message types (MT). These message types
are
developed in accordance with ISO 20022 standard and are referred to as MX messages. T24 Yes
supports MT502, MT509 and MT515 MX messages.

The process describes the activities of Order Amendment/ Cancellation before the execution
message (inward message) is received. Yes
The process describes the activities to be taken to correct a wrong Trade. This could either be a
cancellation/ reversal of the Trade or just amending certain fields before settlement. Yes

This process deals with the settlement of deals. On the settlement date, the deal could be settled
either on a contractual basis or actual. Contractual deals are effectively “no fail” trades and when
a contract is completed, it is assumed that settlement has taken place. In case of actual deals,
positions are updated on completing the transaction as "unsettled" and accounting is raised to
suspense, till the settlement of security/cash is done. All accounting and position entries will be
automatically updated by T24.
For all aggregated settlement instructions received,the incoming settlement status messages and
the settlement confirmation messages will also be aggregated.If there is a match against a
reconciled record, the status as in the incoming message will be updated for all the underlying
individual trades. Yes
On receipt of settlement confirmations, in case of a match, the underlying individual trades will
be identified and settled.Settlement will be full or partial based on the match.

Aggregation can be set for Parent/Child trades. In the case of Parent Child Trades, for Parent
Trades Broker side will be aggregated.Aggregated MT515 message will be received,matched and
reconciled and aggregated Settlement message(MT54X) will be sent to the Depository. During the
process system would authorise the underlying trades before sending aggregated settlement
message. The MT54X message will be suppressed in the Parent Trade.All Parent Trades with
same Depository will be aggregated and single MT54X will be sent to the Parent Depository from
SP.RECONCILIATION record. All Child Trades with same CU.DEPOSITORY will be aggregated and
separate MT54X will be sent to the Cu.Depository(Sub-account).

It is also possible to aggregate the Nostro posting and send a consolidated MT518. If this is
required for a Broker, then the field NOSTRO.AGGREGATION in CUSTOMER.SECURITY has to be
set. In the parameter SC.STD.SEC.TRADE, a synthetic portfolio should be set in the field
AGGR.SYN.PORT and a Suspense account category should be set in AGGR.SUSP.CAT.In this case,
once a Trade is created for a Broker with Nostro Aggregation set, system would default the
Synthetic account on the Broker side instead of the Nostro. Simultaneously, system would create
another Aggregated Trade on IHLD. The Aggregated trade will have the Synthetic Portfolio and
Synthetic Account on the Customer Side and the Street Side Broker and Nostro account on the
Broker side. Every time a new Trade is created for the Broker, system would update the total
Nominals and Average Price in the Aggregated Trade. Yes
At the Cut-off time, a service would authorise the Aggregated trade and trigger a consolidated
MT518 from that trade. Consolidated Nostro entry would also be posted. If the Underlying Broker
trades are not authorised at this stage, system would automatically authorise them. If aggregation
is based on Broker and Stock Exchange, then the cut-off time will be taken from the Stock
Exchange. If aggregation is set only at Broker level, cut off time will be the time set in field
MT515.CUT.OFF.TIME in CUSTOMER.SECURITY.

If Settlement aggregation is set, then the MT54X settlement message will be sent on authorisation
of the Aggregated Trade. The Settlement message will be sent from the SP.RECONCILIATION
record as explained in Note1 above.

The aggregated Trade can also be manually authorised by the User.

Trades can be aggregated for Brokers who have been set for Aggregation. System supports
Aggregation of Trades to receive an aggregated MT515 message and to send aggregated
Settlement message(MT54X) to the Depository. The aggregated MT515 will be reconciled with the
underlying aggregated trades and if it is matched, system would authorise the Trades and send
out an aggregated settlement message.

It also possible to aggregate the Nostro posting and send a consolidated MT518. If this is required
for a Broker, then the field NOSTRO.AGGREGATION in CUSTOMER.SECURITY has to be set.

If aggregation is required by Stock Exchange, then the field STK.EXC.AGGREGATE in

CUSTOMER.SECURITY record of the Broker should be set. If STK.EXC.AGGREGATE is set, then
trades will get aggregated only if both Broker and Stock exchange conditions are met.

Field AGGREGATION should be set for those Stock exchanges for which aggregation is required.
The Cut Off time for aggregation is to be set in the STOCK.EXCHANGE record in this case.

At the Cut-off time, a service would authorise the Aggregated trade and trigger a consolidated
MT518 from that trade. Consolidated Nostro entry would also be posted. If the Underlying Yes
Broker trades are not authorised at this stage, system would automatically authorise them. (If
aggregation is based on Broker and Stock Exchange, then the cut-off time will be taken from the
Stock Exchange. If aggregation is set only at Broker level, cut off time will be the time set in field
MT515.CUT.OFF.TIME in CUSTOMER.SECURITY.)

Periodically, holding with various custodians will need to be reconciled with statements sent by
such custodians. This Process outlines the activities to be performed for such Stock reconciliation.
It also includes processes for matching unmatched items. Yes

Periodically, Nostro accounts as in Bank's books will need to be reconciled with the account
statement sent by the Nostro Bank. The statements may be received via SWIFT or physically and
T24 automatically matches items and any unmatched items will need to be investigated. Yes

Physical Certificates (where prevalent) are handled using Vault functionality. System can be
parameterised to automatically create a Vault item every time a security is traded or transferred.
Alternatively, physical certificates can be added manually to the vault. This functionality can also
be used to maintain precious metals etc. of the Customer in Bank's safe custody. Items in the vault Yes
are automatically included in the portfolio valuation.

This process is used to remove the documents of title, certificates or any other miscellaneous
valuable items deposited by the Bank's Customer. Yes
This process is used to enter the documents of title, certificates or any other miscellaneous
valuable items deposited by the Bank's Customer. Any entry made through this option will not be
included in the Portfolio Valuation of the Customer. Collateral items, which may be stored in the
Vault, can be controlled and monitored through this application. Yes

Capital Gains (CG) Tax computation is enabled by setting suitable parameters in CG parameter.
Based on the parameter setup, capital gain transaction base (CG.TXN.BASE) is built and
maintained. CG related information is updated and stored in this file. This process enables the
bank to correct /update positions within the base as per tax authorities' notifications from time to Yes
time.

Bond Lending is offered by larger depositories to cover short positions, with the bank receiving a
fee when the loan is returned.
Bond lending is set at customer (portfolio) level, if securities have been lent from a specific
portfolio and at depository (depot) level, to record that the depository holding the security has Yes
initiated a borrowing (lending from the point of view of the Bank) from the Bank’s security
account. Shares can also be lent by parameterising it.

This process describes the activities involved in lending to a Customer based on the holdings in
Portfolio. Customer can avail this loan to buy more securities. Yes
Due to fluctuations in the market prices of securities, against which a facility has been granted,
there is a possibility of the total loan or margin value of the portfolio going below the loan/facility
availed by the customer. Such a happening would trigger a “margin call” wherein a customer will
be forced to bring in additional cash or securities into the portfolio or sell off some of the holdings Yes
to make good the deficit.

Portfolios can be pledged as collateral for credit facility provided to customers by the bank.
Sec Margin Ratio can be calculated and used as a performance monitoring.
Portfolio Grouping will help margin value of child portfolio to be used by master portfolio for the
facility provided to the Master.
New Issuers can be set and linked to Government/ Mortgage Bonds and Mutual Funds. If
Parameter is set, issuer diversification will be calculated on estimation and margin value and Yes
applied over Portfolio Margin Value.

Structured Note pay-out can be in cash or in the form of the underlying. The pay-out will be
automatically processed only based on a pay-out routine specified in the Security Master or Sub
Asset Type. The details of the pay-out including the coupon rate, amount, the underlying along
with maturity price and ratio details for conversion can also be specified in SC.NOTE.PAYOUT.
Based on the fixing details entered, the system will automatically create a DIARY (with payment Yes
date as the date in the record ID ) and process Entitlements for all eligible holdings.
T24 supports purchase of instruments whose Price/NAV is not known at the time of subscription.
For such instruments (e.g. Private Equity, Hedge Funds, certain Real Estate Funds), the NAV will
not be computed daily and NAV computation cycles will be monthly or quarterly. To support initial
subscription for such instruments, a dummy wash financial instrument is created with a NAV/price
of 1 currency unit. Order is placed for this security, for the upfront subscription amount. When the
actual NAV is received, system re-computes the Units and updates the customer position for the Yes
Original instrument.

This process explains the amendment of existing SBL Transactions that are not liquidated. System
supports substitution of securities and also allows user to amend the maturity date of existing SBL Yes
transactions.

When customer sells stock short for speculation, he has to borrow the stock from the Market to
make delivery to the purchaser. So, the Bank initiates Market Borrow which in turn will be Yes
borrowed by the client from his Bank.

Request to Lend Nominals will be initiated by the Market. Based on the available Nominals and
Lending Agreement, bank will initiate Internal Borrowing Transaction from the Customer and will Yes
lend externally to the other banks.

Stock Borrowing is always initiated to cover a short position (settlement coverage, naked shorting,
market making, arbitrage) and to support a financing transaction motivated by the desire to lend
cash, and to transfer ownership temporarily to the advantage of both lender and borrower. Yes

Bank will initiate Internal Lending Transaction Based on the Lending Agreement with the
customer. Yes

19

An order for Buy/Sell of an Exchange Traded Derivatives Contract, is captured by Front Office. Any
constraints on Trading are automatically checked by T24 before transmission to the Market. Yes

An OTC Derivatives Contract Trade can be captured directly by the Trade Desk. These could be
regular or Exotic contracts. For FXOTC contracts, contract class with contract type FXOTC to be Yes
used.

A Credit Default Swap can directly be traded by Trading Desk. For CDS contracts, underlying is
always set to OTHER and contract class should have CONTRACT.TYPE set to CDS.These could be Yes
regular or exotic contracts.

T24 allows manual input of a direct derivatives (DX) trade. This will be used for OTC derivative
contracts where there is no order management. Also when different Order management systems Yes
are used, a direct DX trade may suffice in T24.
Basket Options are derivatives with more than one underlying security with associated strike
prices. The underlying could be any security (Equity /Bond/Mutual Fund/Index). They are either
cash settled or physically settled (one or more of the underlying can be physically delivered).
Currency (FX) Basket options are derivatives with more than one underlying currency pairs with
associated strike exchange rates.
The basket can be any one of the following types based on how the Payoff is determined on
Exercise.
· Equal-weighted
· Custom-weighted Yes
· Best-of-the-basket
· Worst-of-the-basket

Packaged Options/Option Structures are structures which has more than one option component.
A typical example would be a synthetic forward, which has two component options- a Buy Call and
a Sell Put with the same underlying, strike price and Maturity. Yes

This process describes the activities of Contract Maturing, Individual Fixing of option, Fixing
structure of option, Contract Unwind and Contract Reverse by a T24 user. Yes
A Swaption Trade can directly captured by Trading Desk. For Swaption contracts, underlying is
always set to OTHER and contract class should have CONTRACT.TYPE set to SWAPTION. These Yes
could be regular or exotic contracts.

Once confirmation is received that the order for an exchange traded contract is executed in the
market, the number of lots executed will need to be filled by the Trade Desk. Each time an order is
filled, a DX Trade record is created which then needs to be authorised. Yes

Once a Derivatives Trade is completed and verified, system automatically generates accounting
entries and Trade confirmation advices. Yes
Comparable Buy and Sell Trades can be closed out either manually by specifying selection criteria
or automatically by the System (if so parameterised). A close out record is created and upon
authorisation, system automatically closes out the positions and generates the accounting entries. Yes

An exotic option can either trigger a contract or expire it, but this has to be manually handled in
T24. E.g. – Knockout option – If the underlying price touches the knock out price( set during
contract initiation), then the user has to manually select the knock out option- which will expire
the contract. Similarly in case of triggering exotic, it will initiate the contract. It is possible to
define multiple exotics for a particular contract. Yes
The process is triggered when the customer requests for exercising the option or where
counterparty informs about an assignment. The option is exercised/ assigned and T24 creates a
closeout record. On committing the closeout record, system creates Trades on exercise. System
can also be parameterised to automatically exercise an Option if predefined conditions are met.
On exercising equity option with physical settlement,settlement can be done using an alternate
instrument if the same is defined in the contract master. Its contract size and price needs to be
entered during closeout process. Yes
System also supports cash payout for equity options when SETTLEMENT.METHOD is set to physical
or cash respectively.

On maturity of futures contract or expiry of options contract, system would automatically mark
the record as 'expire'. This process is for manually capturing the maturity of a futures contract or Yes
the expiry of an option contract.

This process outlines activities to capture Corporate Actions that affect Derivatives Contracts.
Once the event is input and authorised, T24 automatically updates any change to the Contract Yes
and also updates Customer positions accordingly.

The process is triggered when the customer requests for exercising Swaption. If Swaption is
exercised or assigned, T24 creates a closeout record. If the SWAP trade is already created, it needs
to be committed or a new SWAP trade has to be manually created. Closeout record needs to be Yes
manually authorised.

This process is for manually expiring Swaption contract and the Swap contract if exists, needs to
be deleted and the closeout generated to be manually authorised. Yes
The process is triggered when credit default occur. If credit default needs to be settled, CDS
should be exercised and T24 creates a closeout record. Closeout record has to be manually
authorised to settle the amount. If the Underlying Security(Bond) is held within the Bank a Yes
Security Transfer can be done manually.

This process is for manually expiring Credit Default Swap terms. System creates a closeout record
which has to be authorised. Yes

Receive the instructions for security transactions, check for client balance and limits for the
transaction. FX rate is obtained from the Liaison desk to execute the deal. Yes

This process deals with authorisation of forex deal and confirmation matching associated with the
deal. Yes

This process describes the settlement of Forex deals, posting of accounting entries and generation
of SWIFT messages. Yes

8
The DCI combines a traditional money market investment with an option on currency pairs or
precious metals. The investor agrees on a Strike Price together with the alternative
currency/precious metal. On maturity, the bank will repay the principal with interest or principal
with interest in the alternate currency (at the Strike Price), depending on how the currency pair
moves. In brief, a DCI/PMI is a combination of a long position in the invested currency/precious
metal and a short position in a call option on the invested currency/precious metal (versus the
alternate currency).
TCI combines a money market investment with the sale of a triple currency call option on the
principal currency against two different alternative currencies. The option premium received
enables the TCI to offer a higher interest rate than a regular money market instrument or a DCI on
the individual currency pair.
Depending on the exchange rate of each of the alternative currencies against the principal
currency on expiry, the initial investment is paid back to the investor with interest in the principal
currency or one of the alternative currencies. If payment is made in an alternative currency, the
amount to be paid out is converted at the corresponding strike rate. Yes
This process also covers the two variants of DCI / TCI namely the Dealer book Model and
Transaction Model. In Dealer Book Model, Bank is one of the party to the transaction whereas in
the Transaction Model, Bank plays the role of an Agent between the Customer and Counter party.

DCI: When the Fixing event runs, system will check if the underlying Option is to be Exercised or
Expired or if the Exotic is to be triggered. If set to Exercise and if both Principal and Interest are to
be converted to the Alternate currency, system will assign the option and create an FX.On the
Maturity Date, FX would mature and funds will be credited in Alternate Currency. If only Principal
is to be converted to alternate currency, then only the Principal amount will be used to create the
FX contract. The interest would be credited to the Client account in deposit currency. If set to
expire, MM deposit will mature on the Maturity Date and the client's account will be credited in
the Deposit Currency. TCI: The exercise/assignment of the option will be based on the currency of
pay-out. If the pay-out is to be in the deposit currency or third currency, the option will be
expired. If it has to be in the alternate currency, the option will be assigned. If exercised, users
need to specify whether the pay-out will be in the alternate currency or the third currency. If the
pay-out has to be in either the alternate or third currency, the entire maturity value of the MM
will be matured (depending on whether principal alone or Principal plus Interest has to be paid
out in alternate currencies). If the pay-out has to be in the alternate currency, the DX Option
would be assigned which in turn would create an FX deal. If the pay-out has to be in the third Yes
currency, the option will be expired and a new FX deal created to make the payment in the third
currency. On maturity date, client's account will be credited in the Alternate or Third Currency
accordingly. If set to expire, MM deposit will mature on the Maturity Date and the client's
account will be credited in the Deposit Currency.
Accumulators are structured products that allow investors to purchase shares at a pre-determined
strike price, which is at a discount to the current stock price.An investor accumulates, a fixed
quantity of an underlying share at the strike price, on each trading day of the investment period.
Accumulators are usually structured with a knock-out feature. This means that the accumulator
will be terminated when the price of the underlying share closes at or above a pre-determined
barrier price also known as knock-out price which is followed by a knock out event. Accrual of
shares on a daily basis will be settled on Pre determined settlement dates.
Decumulators on the other hand, are structured products that allow investors to sell a fixed
quantity of an underlying share at a pre-determined strike price, on each trading day of the
investment period. This forward price is set at a premium to the initial spot price of the underlying Yes
share. Decumulators also work similar to Accumulators with knock-out feature.

Following events will be triggered in the Accu/Decu Product life cycle. Accrual: Daily accrual of
units will be triggered in COB and the details of the units accrued and the price at accrual will be
updated. Fixing: Fixing will be done based on the fixing frequency.During Fixing,based on
calculation system will partially exercise the option and create a Sec Trade record. Knock Out:
Based on KNOCK.OUT field and Minimum Accrual period system will partially exercise the option
trade for the accrued nominal. Sec Trade will be created for the accrued nominal and remaining
lots will be expired.Accu/Decu record will be knocked out and matured. Unwinding: Contract can
be unwound at any time by setting the field UNWIND to FULL or PARTIAL. The field UNWIND will
be initially blank, at the time of unwinding this field needs to be set depending on the type of
unwinding. The field UNWIND.EFF.DATE holds the effective date of unwinding. This date can be a
back date, forward date or current date.Units would be accrued from the last fixing date to the
unwind effective date. In case of partial unwinding, the field NEW.DAILY.UNITS hold the new daily
units that needs to be accrued. The unwinding event will merely close the Option and the
Accu/Decu contract. Maturity: If the contract is not knocked out and runs till maturity, then on
the last fixing date it would expire the remaining lots and mark the Option trade as closed.
Accu/Decu Contract will also be matured. Enhanced Accumulators/Decumulators to be cash
Settled / Pay out in Participatory Note. For cash Settlement the SETTLEMENT.METHOD field should Yes
be selected as CASH . For Participatory note settlement the associated Option contract should
have the settlement method set to physical and settlement instrument should be set to the
participatory note instrument.

This process covers the Interest Multiplier Facility (IMF), which is a Structured/Composite product
consisting of a pair of Term Loan in one currency and a Term Deposit in another currency. The
maturity dates of the Loan and the Deposit are always the same. Amounts are (more or less) the
same. In case of roll-over, the Loan and Deposit are rolled over as 1 composite product. Yes
Following events will be triggered in the IMF Product life cycle
Maturity:
On the maturity date, system would mature both the deposit and the loan. Principal + Interest
would be credited and debited from the client with the SY.IMF reference.
The net difference between the credit and debit would be the resulting gain or loss for the client.
Rollover:
If a rollover frequency is defined, then on the rollover date, both the loan and the deposit will be
rolled over.
Where the interest rate is fixed, rollover will happen at the fixed rate. Where the interest rate is
floating, then the rollover will be at the interest rate applicable on the date of the rollover, for the
rollover period. This will be fetched from the PERIODIC.INTEREST record mentioned in the SY.IMF
record.
The PERIODIC.INTEREST table holds the interest rates for a currency for various tenors. The ID of
the table will be the PI Key + Currency + Date.
The interest for the applicable rollover period will be taken from the latest record.
If no rollover frequency is given, then T24 would not rollover these records. It will have to be
handled via an interface Yes
Unwinding :
Suppose the contract is to be matured early or to be unwound in middle then the UNWINDING
event is to be processed. The event will be defined ADHOC in SY.EVENT.DEFINITION record . Only
when unwinding in the SY contract happens the event needs to run. Hence when there is value
inputted to NEW.MATURITY.DATE filed the unwinding event gets triggered.

This process covers the TARKO, which is an OTC contract which is similar to the Participating
Forward. The only difference is that the Knock Out barrier is not an exchange rate but rather the
intrinsic value of the accumulated profits. In other words, the contract will get Knocked out if the
intrinsic value of the accumulated profits reaches a pre-determined amount.
This process also covers the two variants of FX Forwards/TARKO namely the Dealer book Model
and Transaction Model. In Dealer Book Model, Bank is one of the party to the transaction whereas
in the Transaction Model, Bank plays the role of an Agent between the Customer and Yes
Counterparty.
Life cycle Events
a) Maturity: If the contract is not knocked out and runs till maturity, then on the last fixing date,
T24 would process the fixing. It would also close the underlying option and mark the
SY.FX.FORWARDS as matured.
b) Fixing: The field FIXING should be set to EXERCISE or EXPIRE. If this field is set then the Fixing
Event will get triggered.
If this field is set as EXERCISE say against the Buy Option, the Fixing Event will partially exercise the
underlying Buy option for the B.SCHEDULED.CALL.AMT. Depending on the set-up, this in turn will
create an underlying FX deal.
If this field is set as EXPIRE against the Sell Option, the Fixing Event will partially expire the
underlying sell option for the S.SCHEDULED.CALL.AMT
If the field FIXING is not filled on the fixing date, system will not automatically run the fixing event.
User will have to fill this field and manually run the fixing event online Yes
C) Knock Out:
T24 will not automatically determine if Knock out has happened either for participating forwards
or TARKOs. If contract is knocked out, the field B.KNOCKED.OUT or S.KNOCKED.OUT should be set
to YES in the contract. A COB (Close of business) job will check if either the Buy Option or Sell
Option is Knocked-out. It will then expire the Option that has knocked out.

This process covers the initiation of Digital Invest and Digital Paid Out.

Digital Investment is a Digital Option covered by an Underlying Deposit. There are barriers set and
a maximum and minimum interest rate that the customer can receive on the deposit. Depending
on whether the Barrier is breached or not, customer can get the Maximum interest or just the
minimum interest. Digital Investment gives an investor the possibility to profit from an exchange
rate expectation by achieving a higher return than a conventional time deposit.

A Digital Paid-out is similar to Digital investment except that there is no Underlying Deposit. Only
the Interest (either maximum or minimum) is paid out. It involves purchase of a digital option with Yes
interest pay out without underlying deposit. For Digital Paid-out, the payoff will be the interest
amount (either minimum or maximum) which depending on the digital option. Settlement will be
the interest amount only.
Digital Invest: On fixing date, if the spot rate is at or above the Strike Price, the investor will receive
the minimum interest rate. In this scenario, on Fixing Date, the MM Deposit will be updated with
the minimum Interest rate to be paid to the customer.MM interest will be recalculated and for
both Principal and interest in the Investment Currency and credited to Wash Account. From wash
account, the funds will be credited to the Client with the SY.DIGI reference on Maturity Date. If
two MM deposits exist, the deposit with the maximum rate will be updated with the minimum
interest rate and interest will be recalculated. Both MM deposits will be matured and credited to
wash account. Digital Paid Out: At the valuation time on the valuation date, if the spot exchange
rate is above the Strike Price in a Bullish Digital Paid-out or below the Strike Price in a Bearish
Digital Paid-out, the investor will receive the agreed maximum interest rate. Based on the
scenario, Exotic need to be triggered (TRIGGER.EXOTIC) in option trade and Pay Out amount and Yes
Currency need to be updated. On the maturity date, option trade will be exercised/expired (for no
interest to be paid) and proceeds will be credited to Customer Account.

29

Internally, within the Bank, positions can be transferred between two portfolios. Yes
Positions can be transferred between two custodians. System lists the positions that will be
transferred. (This can be amended subsequently) Yes
Whenever customer assets have to be transferred in/out, then asset transfer is initiated in T24.
Similarly, fund can be transferred in/ out separately via funds transfer. The existing Yes
custodians/banks are instructed through SWIFT to transfer assets/ funds.

The request for asset transfer is checked and verified. The custodian is instructed to transfer by
sending SWIFT messages. Yes
Customer's external security holding details are captured by the T24 Bank. This is a mirror image
of the security holdings of the client with non T24 custodians. This helps the Relationship
Manager to take an informed decision about investment strategy for the T24 clients. Yes

Bulk Transfer facilitates user to select multiple assets from portfolio holdings and initiate transfer
out/in for all/specific position/s under single security transfer instruction. During the process, user
can update Broker SSI details and select/ unselect the position to be transferred. System will
automatically complete Security Transfer In/Out Transactions. Yes

When Corporate Actions are initiated by an Issuer, the same is captured in T24. This can be done
automatically on receipt of an Inward SWIFT Message (MT564/ MT568) or can be manually Yes
captured.

Mandatory Corporate Actions are captured in T24. The system automatically calculates all
positions that are entitled to receive the benefit of the event. Once the entitlement is authorised,
system automatically generates accounting entries and/or updates positions as the case maybe. If
the event is an optional event, the client's preference has to be captured before authorisation. Yes
Corporate Actions are captured in T24. This process describes Voluntary and Mandatory with
Choice events. The system automatically calculates all positions that are entitled to receive the
benefit of the event. Once the entitlement is authorised, system automatically generates
accounting entries and/or updates positions as the case maybe. If the event is an optional event, Yes
then client's preference has to be captured before the authorisation.

Corporate action for Structured Products, on processing, will not result in a cash movement or
securities movement but changes the trade economic factors. Examples include change in Strike
price of a structure or an option.

There are 3 types of information that can undergo a change as a result of a corporate action on
the underlying equity.
• Price (Strike Price, Knock out price, Kick in price, etc.)
• Quantity (Total Units, Accrued Units, Lot Size etc.)
• Security (Underlying Security).

There are numerous variants of structured products, and the economic factors for each variant
might be different. For example, A Dual Strike Accumulator, will have 2 Strike prices in the term
sheet, both of them likely to be impacted by a corporate action on the underlying equity. Another
variant of an accumulator could have a kick in feature in the term sheet. The elements applicable
to each structure and the type of element, needs to be defined in respective Product Definition Yes
records.

The application SY.DIARY will be used to process the corporate action on the underlying security.
When a corporate action is processed through this application, it would generate entitlement
records for the affected contracts. After the user has reviewed the changes and authorizes the
same, the structured products contracts are updated with the new (changed) terms.

The process describes capturing of new securities into the master for future trading. Yes
The security prices are updated into the tables through external system's interface or manually
updated. Yes
Trailer fees details are captured for securities which are already recorded at issuer level.
Yes
Management and safekeeping fees can be parameterised in T24. The fees are calculated by the
system and these can be amended if required. Fees can be Posted automatically by the system on Yes
due date or manually posted.

This process is carried out when securities of a specific issuer are unreconciled. The bank
reconciles the fees manually after agreeing with the issuer on payment. The bank will also make
appropriate changes to the commission tables, for future accruals and payments, if required. Yes
Through this process, various charges (E.g. Transaction charges, Safe keeping charges and Advisory
charges) are defined in the system.
Based on Country Code check set in the Parameter (Safe Custody Values), either security domicile
or security country domicile or stock exchange domicile will be used while picking the details of Yes
related charge parameter record while calculating Safe Custody and Management Fees.

Broker is opened as a Customer in T24. As part of this process, data relating to securities, Account
creation (if required) and settlement instructions are captured. Yes
Depository or Custodian is opened as a Customer in T24. As part of this process, data relating to
the custodian's Securities, Nostro accounts and SWIFT address are updated. Yes
Through this process address for agent or place of settlement can be updated for non-customers
and if BIC address for agent or place does not exist.Captured address can be used in Broker SSI or Yes
Security Master as Place of Settlement.

This process explains the provision and framework to set Withholding taxes applicable on
Securities. Yes

This process covers the creation of a derivatives exchange master. The details of the exchange/
market like description, address and the margins are captured here. Yes
In this process, a derivatives master is created for all instruments(futures, stocks or options) that
will be traded in the exchange. Yes
The derivative prices are updated into the tables through external system's interface or manually
updated. Yes
Revaluation of Derivatives Margins is calculated by T24 and if margins are insufficient, necessary
accounting entries are passed to recover the shortfall from Customers.
Yes

The definition of a new Structured Product is done in this process. The product description, details
and lifecycle are defined through this process. Yes
Parameter definition is the starting point for the setting up of the structured product.
Parameters,viz.asset, sub-asset type and the other T24 applications that have to be linked are Yes
defined in this process.

This process highlights the creation of an agent in FMC books and linking of specific fees to the
Agents. Yes
A Security and Fund Master is created for all new funds that are launched by the FMC. Entry/ Exit
Loads, face value of units etc are set up. Yes
Through this process the user can execute blocking/ unblocking of a customer portfolio/ mutual
fund schemes/ lock amount from a customer's account. Yes

This process describes direct Mutual Fund trade processing. On entering mandatory details and
after authorisation all charges will be calculated and posted. Customer accounts and other control
accounts will be debited or credited and customer positions will be updated. Yes
The process is initiated by a customer for placing a MF order, the account balance is checked and
blocked before the booking is performed. Yes

The MF order placed is verified and deal status is changed to 'execute' for back office processing.
Yes

Once the trade is created, the deal is authorised and NAVs are allotted. Yes

The corporate actions information is received from AMC. Diary events are generated based on the
information, which is used to generate the entitlements and update the customer position. Yes

The process covers the purchase or redemption requests received from its Agents by the FMC
(fund management company). In this case, FMC is the bank and is buying and selling units through Yes
its agents.

The FMC deploys its funds in securities/ bonds etc. based on the strategy of portfolio allocation for
the schemes. Yes

The process describes authorising of security trades for FMC (fund management company)
portfolios. After trade authorisation, system will post accounting entries and advices to Broker & Yes
Custodian will be generated.

This process describes settlement of a trade (FMC). On trade authorization and once the advices
and pre-matching is complete, system automatically checks for the type of settlement to be
performed (actual vs contractual). On receipt of appropriate settlement confirmation from the
depository/ custodian, trade is “settled” with the updation of cash and security positions. Yes

Similar Fiduciary Orders are pooled into Groups to enable easy placement. The funds are placed
once all the orders in a group are approved and the pool closed. Yes
Customer's request to place a Fiduciary Order is captured in the system. The order can be placed
through common order by the RM. Yes

This process describes amendments to Fiduciary orders/ placements in case of a pre-closure

request. Fixed orders can be pre-closed by changing the maturity date. Likewise amendments can
be carried out on Notice orders by way of increase/ decrease of Principal or Full Closure. Yes

This process describes renewal of fiduciary orders. System allows for multiple renewal options -
Auto (The order is available in Authorise status), Semi - INAU status and Manual - IHLD status. Yes

This process describes placement of market placement of pooled funds from different orders and
the generation of SWIFT messages. The interest rates in such cases can either be defaulted from Yes
previously captured data/ manually input.

35
The allocate order function is applied to generate order details based on a selected method.
Several methods are provided - after selecting the portfolios and a method, the user sets the
parameters applicable for the method selected and for the instrument. Yes

The classification is a list of lists. It is applied into functions to classify the objects according to the
list to which they belong. Yes
This function provides the capability to create a new proposal for a client.
It supports having proposal portfolio centric, or to have a proposal multiple portfolio oriented. Yes

This process supports the manual creation of various type of orders, by the ability to create orders
one-by-one via the single order creation process, and to create a list of orders to proceed in one Yes
time via the order session.

This process outlines the function to manage lists, that are applicable to various objects like
portfolio, instrument, third party, etc. It provides the ability to set the portfolios belonging to the
list adding each portfolio to the composition of the list, or by defining criteria applicable to
identify the portfolios belonging to the composition. Yes

This strategy allows the management of the investment objective at instrument levels.
It can include an asset class grid to ease the settings of instrument objectives by deriving the Yes
investment objectives at asset class level.

This process defines the Model Portfolio strategy offering the capability to define a strategy based
on positions managed through a real portfolio.
The investment objective derives from the weights of the instruments and asset classes defined
by the positions held in the portfolio. Yes
The portfolio referenced is the model applied to the portfolios belonging to this strategy.

This process outlines the capability to define a strategy based upon an asset class structure with
investment objectives set for each level, including the ability to maintain a history of values. Yes

The recommendation list strategy is applicable to the definition of investment objectives at

instrument level. It includes the ability to consider buy, sell, increase, decrease, neutral Yes
recommendations, in addition to the investment objective to reach.

Holding constraints provides the ability to set constraints based on portfolio holdings using TAP’s
scripting capability. This process describes the activities involved in capturing the holding Yes
constraints.

The investment proposal function includes a monitoring tool to track a proposal along all stages of
its life cycle. It also includes functions to handle 4-Eyes Validation, creation of a new version of a
proposal, management of the client acceptance or reject, and the releasing of orders for trading. Yes

This offers the capability to link the applicable strategy to a portfolio within financial function, for
compliance check and performance analysis. Yes
Investment profiling is a process to define the best investment strategy applicable for a portfolio
according to the scoring derived from the questionnaire defined to gather the profile and Yes
expectations of the client.
The rebalancing function provides the ability to generate the orders required to resolve the
deviation of the portfolio with its investment strategy and constraints. Yes
This function provides the ability to set constraints at asset class and instrument levels for
portfolios.
Modelling constraints are online - integrated into the derivation mechanism to derive the
optimized investment weight, verifying the investment objectives set at strategy level and
constraints.
Asset allocation constraints refine the investment objectives of the strategy at asset class level
with the ability to set maximum, minimum, priority, criticalness or to fix the value within the
derivation mechanism. Yes
Security In Constraint refines the objectives for an instrument and instrument list.
Security Out Constraint provides the capability to exclude in totality or partially the position
relative to an instrument into compliance processing.

Trading constraints offer the capability to define restrictions concerning orders. It is a script based
constraint, and can be based on a template to ease the setting up for the end user. Yes

The process describes the activities of Order Cancellation before the execution message (inward
message) is received. TAP will display the cancellable orders. Yes
Based on the broker confirmation the trade will be authorised automatically in T24 via an
incoming SWIFT message and system generates Customer confirmation, broker advice and
custodian messages.
Based on Broker conditions set, aggregated messages will be received which will get matched with
Aggregation and Reconciliation records generated by the system. Once Reconciliation is matched,
underlying trades will be automatically authorised and TAP will be also be updated Yes
accordingly.This will trigger aggregated settlement instructions which will match and settle
individual settlement records.

Fund Switch provides ability to transfer investment from one fund to another.
As per the investor's need, the switch can be within the same fund family (Intra fund - having the
same investment objectives), or among different families (Inter fund - having different objectives).
Fund Switch supports compound order mechanism where exchange of investment can be
performed across multiple legs (one to one, one to many, many to one, many to many).
This process describes the activities involved in Capturing a Fund Switch Order, performing
compliance checks and moving the order for processing. Yes

After an order has been initiated, a SWIFT Message is sent to the counterparty. After the
execution, a SWIFT message will be received. The trades are updated in T24/ TAP based on the Yes
SWIFT messages (e.g. fully or partially executed).
This process deals with the settlement of deals. On the settlement date, the deal could be settled
either on a contractual basis or actual. Contractual deals are effectively “no fail” trades and when
a contract is completed, it is assumed that settlement has taken place. In case of actual deals,
positions are updated on completing the transaction as "unsettled" and accounting is raised to
suspense, till the settlement of security/cash is done. All accounting and position entries will be
automatically updated by T24.
For all aggregated settlement instructions received,the incoming settlement status messages and
the settlement confirmation messages will also be aggregated.If there is a match against a
reconciled record, the status as in the incoming message will be updated for all the underlying
individual trades. Yes
On receipt of settlement confirmations, in case of a match, the underlying individual trades will
be identified and settled.Settlement will be full or partial based on the match.

Direct trades could be investments done for institutional clients/ investments done for the
managed portfolio. This process describes the capture of a confirmed direct trade in the system. Yes
TAP Position will be updated accordingly.

Order Details are captured in TAP. Necessary compliance checks will be performed, before the
order is released for order processing. Yes
After trade authorisation is completed, pre matching is performed by the system and the items
parked in repair queue are either amended or taken up with counter party for correction. Yes

The request for trading is received from the customer. Customer and Portfolio Information will be
checked in TAP before Initiating the Trade. Yes

Once confirmation is received that the order for an exchange traded contract is executed in the
market, the number of lots executed will need to be filled by the Trade Desk. Each time an order is
filled, a DX Trade record is created which then needs to be authorised. The position/ transaction in Yes
TAP will be updated accordingly.

The process is triggered when the customer requests for exercising the option or where
counterparty informs about an assignment. The option is exercised/ assigned and T24 creates a
closeout record. On committing the closeout record, system creates Trades on exercise. System
can also be parameterised to automatically exercise an Option if predefined conditions are met.
On exercising equity option with physical settlement,settlement can be done using an alternate
instrument if the same is defined in the contract master.Its contract size and price needs to be
entered during closeout process. Yes
System also supports cash payout for equity options when SETTLEMENT.METHOD is set to physical
or cash respectively. The positions are also updated in TAP.

Order Details for Buy/ Sell of an Exchange Traded Derivative are captured in TAP. Necessary
compliance checks will be performed, before the order is released for order processing. Yes
On maturity of futures contract or expiry of options contract, system would automatically mark
the record as 'expire'. This process is for manually capturing the maturity of a futures contract or
the expiry of an option contract. The position will also be updated in TAP. Yes

This process outlines activities to capture Corporate Actions that affect Derivatives Contracts.
Once the event is input and authorised, T24 automatically updates any change to the Contract
and also updates Customer positions accordingly. The position in TAP will also be updated. Yes

FX Order details will be capture in TAP. The necessary validations and compliance checks are
performed, before the order is released for order processing. The FX rate will be assigned and the Yes
positions are updated accordingly (TAP/ T24).

This process describes creation and funding of a loan by the Relationship Manager via TAP. (Using
AA Module/ Functionality) Yes
This process describes creation and funding of a deposit by the Relationship Manager via TAP.
(Using AA Module/ Functionality) Yes

This process deals with the validation and execution of account to account transfer requests
initiated by the Relationship Manager via TAP. Yes
This process deals with the validation and execution of Outgoing Payment requests initiated by
the Relationship Manager via TAP. Yes
Process Area Scenario
Online Channels Processes

6.1 User Management - Online Channels

Processes
6.2 Online Channels Retail Processes
6.3 Online Channels Corporate Processes
6.4 Private Wealth Management Processes -
Internet Banking
Business Area
Total no. of processes
Release

Process

6.1.1 Initiation
Receive Request For Online Channels

6.1.2 User set up

Create Intermediary Internet Banking
User

Create Private Discretionary Internet

Banking User

Create Private Advisory Internet Banking

User

Create Online Channels Corporate User

Create Online Channels Retail User

Setup Mandates and Signatory Groups *

6.1.3 Administration
Manage User Amendments (PWM
Internet Banking)

Manage User Amendments (Online

Channels Corporate)

Manage User Amendments (Online

Channels Retail)

Manage Messages (Online Channels

Admin)

6.1.4 Self Registration and user profile

Initiate Self Registration (Online

Channels)
Perform Amendments To User Profile
(Online Channels Retail)

Login to Online Channels Retail

Create New Account (Online Channels

Retail)
View Accounts/ Transaction Details
(Online Channels Retail)
Initiate Cheque Book Request (Online
Channels Retail)
Initiate Stop Payment of Cheque (Online
Channels Retail)
Set Up Standing Order (Online Channels
Retail)
Manage Standing Order (Online Channels
Retail)
Manage Payees (Online Channels Retail)

Initiate Payment Order (Online Channels

Retail)

Initiate Quick Pay (Online Channels Retail)

Pay Beneficiary (Online Channels Retail)

Pay Utility Beneficiary (Online Channels

Retail)
Cancel Direct Debit (Online Channels
Retail)
Create Term Deposit (Online Channels
Retail)
Manage Term Deposits (Online Channels
Retail)

Manage Loans (Online Channels Retail)

Manage Messages (Online Channels

Retail)
Manage Alerts (Online Channels Retail)

Login to Online Channels Corporate

Manage Messages (Online Channels

Corporate)

Initiate Funds Transfer (Online Channels

Corporate)
Execute Funds Transfer (Online Channels)

Execute Direct Debit (Online Channels

Corporate)

Initiate Stop Payment Of Cheque (Online

Channels Corporate)
Set Up Sweep (Online Channels
Corporate)

Capture Documents & Conditions - LC

(Online Channels Corporate)
Initiate Import LC Issue (Online Channels
Corporate)

Manage Direct Debit Mandates (Online

Channels Corporate)
Perform (Bulk) Payment Validations
(Online Channels Corporate)

Perform Bulk Upload (Online Channels

Corporate)

Perform Bulk Payment Amendment

(Online Channels Corporate)

Manage Account Sweep (Online Channels

Corporate)

Manage Payees (Online Channels

Corporate)

Manage Standing Order (Online Channels

Corporate)
Pay Payee (Online Channels Corporate)

Manage Rejected Direct Debit

Transactions (Online Channels Corporate)

Manage Messages - RM (Online Channels

Corporate)

Initiate Guarantee Amendments (Online

Channels Corporate)
Initiate Guarantee Issuance Request
(Online Channels Corporate)
Manage Account Groups (Online
Channels Corporate)
Manage Claims Received (Online
Channels Corporate)
Manage Import LC Drawings (Online
Channels Corporate)
Manage Request and Response (Online
Channels Corporate)
Perform Import LC Amendments (Online
Channels Corporate)
Submit Documents under Export LC
(Online Channels Corporate)
Acceptance/ Rejection of Export LC
Amendments (Online Channels
Corporate)

View Export LC issued (Online Channels

Corporate)
View Guarantees Received (Online
Channels Corporate)
Initiate Cheque Book Request (Online
Channels Corporate)
Manage Outward Collections (Online
Channels Corporate)

Initiate Outward Collections (Online

Channels Corporate)
Manage Claims Under Guarantee (Online
Channels Corporate)

Lodge Claim Under Guarantee (Online

Channels Corporate)

Set up Standing Order (Online Channels

Corporate)
Manage Import Collections (Online
Channels Corporate)

Login to Private Wealth Internet Banking -

Advisory
Login to Private Wealth Internet Banking -
Discretionary
Login to Private Wealth Internet Banking -
Intermediary

Cancel Future Dated Payments (PWM

Internet Banking)
Delete Beneficiary (PWM Internet
Banking)

Manage Messages (PWM Internet

Banking)

Manage Standing Order (PWM Internet

Banking)
Pay Beneficiary (PWM Internet Banking)

Set Up Beneficiary (PWM Internet

Banking)

Set Up Standing Order (PWM Internet

Banking)
Manage Alerts (PWM Internet Banking)

Manage My Watchlist (PWM Internet

Banking)
Initiate Portfolio Analysis (PWM Internet
Banking)
Initiate Mutual Funds Order (PWM
Internet Banking)

Initiate Securities Order (PWM Internet

Banking)
Initiate Derivatives Order (PWM Internet
Banking)
Initiate Research Reports (PWM Internet
Banking)
Amend Or Cancel Order (PWM Internet
Banking)

Enquire on Accounts (PWM Internet

Banking)
Initiate New Payment or Transfer (PWM
Internet Banking)
Manage Portfolio Holdings (PWM Internet
Banking)
Manage Portfolio Valuations (PWM
Internet Banking)
Pay Utility Beneficiary (PWM Internet
Banking)
View Future Cash flow (PWM Internet
Banking)
View Market Info (PWM Internet Banking)

View Market Watch List (PWM Internet

Banking)
View Portfolio Fees (PWM Internet
Banking)
View Portfolio Performance (PWM
Internet Banking)
View Trades Today (PWM Internet
Banking)
Register Utility Beneficiary (PWM Internet
Banking)

Manage Messages - Front Office (PWM

Internet Banking)

View/ Download Portfolio Statements

(PWM Internet Banking)
Manage Personal Payees (PWM Internet
Banking)
Manage Utility Payees (PWM Internet
Banking)
View Payments (PWM Internet Banking)
Internet Banking Processes In Scope
103 103
R18 Model Bank

Scoping
Process Description In Scope

13

This process describes activities associated with receipt of an Online Channels

request from an existing Retail/ Corporate or an Intermediary customer. Validations
are carried out on the request and appropriate customer category identified, before Yes
creation of the user id in the system.

This process describes activities associated with the creation of an intermediary

internet banking user id. As part of this process, for each customer whose portfolio
falls under the jurisdiction of the intermediary, a proxy services arrangement is
created, in which the permissions to portfolio(s) are defined. This is followed by
creation of a new internet services arrangement ID where the user rights and
arrangement preferences are specified. Finally, the Customer numbers are linked to Yes
the arrangement ID to generate the Intermediary user ID.

Intermediary Internet banking user clients can be classified as Discretionary and

Advisory internet banking users. This process describes the set up of private Yes
discretionary users.

Intermediary private banking clients can be classified as advisory and discretionary

internet banking users. This process describes the set up of private advisory users. Yes
A favourites list can be created for advisory users.

This process describes activities associated with the creation of a corporate online
channels user id. As part of this process, a new Online services arrangement ID is
created first where details of Customer, Permissions (account and contract level ),
Product Access and Daily Protection Limit are defined. Finally an external user ID is
created by linking the Customer number to the arrangement ID. At this stage Yes
specific menu options are enabled depending on the role created.
This process describes activities associated with the creation of a retail online
channels user id. As part of this process, a new arrangement ID is created first,
where details of accounts and products the Retail user will have access to is
defined. This is followed by creation of channel permission. Finally, external user ID Yes
is created by linking the Customer number to the arrangement ID.

The process depicts the set up of signatory groups and mandates. The Customer is
attached to respective signatory group and subsequently mandates are attached Yes
and applied.

This process deals with amendments to Arrangement/External user. The user rights,
daily limits, UI Appearance, access to various products, password review frequency Yes
etc can be amended.

This process deals with amendments to Arrangement/External user. The user rights,
daily limits, UI Appearance, access to various products, password review frequency Yes
etc can be amended.

This process deals with amendments to Arrangement/ External user. The user
rights, daily limits, UI Appearance, access to various products, password review Yes
frequency etc can be amended.

This process deals with managing the messages of Customer Service Agent. This
includes messages received from Customer, replying to the message & composing a Yes
new message to Online Channels Customer.

This process deals with the initiation of request for the new Online Channels access
by an existing customer, through self registration. Yes
This process describes the activities associated with amending online channels
retail user profile. The user is allowed to update his nick name and contacts Yes
through online banking channels.

18
This process describes the activities for an Online Channels Personal Banking User
to log in as well as to select the transactions to be performed. Yes

This process describes the steps involved in initiating a new account creation
request by the user through online banking channels. Yes
This process describes the activities to view accounts, account details, recent
transactions and to print/ download the transaction details. Yes
This process deals with the initiation of new cheque book request through online
banking channels by any existing user. Yes
This process describes steps involved in initiating a request for stop payment of
cheque through Online Channels. Yes
This process describes the steps taken by a Customer in setting up various types of
standing orders through online banking channels. Yes
This process deals with amending or cancelling the existing standing orders through
online channels. Yes
This process allows users to manage payees (create, amend, delete).
User can search payees using search option and also define nickname for their Yes
payee.

This process describes Payment Order creation through Online channels by an

Online Channel Personal Banking user. Payment order refers to a directive to a bank
from a bank account holder instructing the bank to make a payment or series of Yes
payments to another bank account.

This process describes the feature of Immediate Payment in Payment Order. This
will allow user to choose payment method if the beneficiary has more than one
payment method and user can choose different currency from the default one. Yes

This process describes the steps involved in initiating a payment to a registered

beneficiary through Online Channels. Yes
This process defines the steps in which the payment can be made to the pre-
defined Utility Beneficiary. Yes
This process describes the activities associated with the cancellation of a Direct
Debit mandate through online channels (Inward/Outward). Yes
This process describes User initiation of a new term deposit request through online
channels. Yes
This process describes the user to view the complete Deposit details. User can set
or edit renewal and settlement options.This can be done at deposit creation or after Yes
deposit creation.

This process describes the activities to manage Loans such as viewing loan details,
schedule, transaction lists and Paying overdue of loans through online banking Yes
channels.

This process describes the various actions that can be taken upon receipt of secure
messages from the Bank by the User using Online Channels. Yes
This process describes the steps involved in subscribing/ unsubscribing an alert
through Online Channels. Yes

37
This process describes the activities for a Online Channels Corporate User/
Supervisor to log in as well as to select the transactions to be performed. Yes
This process provides option to the Corporate Online Channels users to compose
and send messages, reply to messages through the email feature of Online Yes
Channels.

This process describes initiation of funds transfer through Online Channels by a

Corporate Online Channels user. Yes
This process deals with the execution of funds transfer requests originated through
Online Channels. Yes
This process details the various types of debit payments to be effected through
upload from Online Channels viz., internal account debit or sending out a direct Yes
debit claim file to an external bank.

This process describes steps involved in initiating a request for stop payment of
cheque through Online Channels by an existing Corporate user. Yes
This process describes activities associated with setting up surplus sweep and
maintenance sweep for a corporate through Online Channels. This is a Zero Auth Yes
process.

This process describes the activities for setting up standard documents and
conditions, which can be used within the LC application. Yes
This process covers the initiation of an Import LC by the Customer through Online
Channels. The system automatically checks for availability of limits and upon
successful verification, routes the transaction to a bank user's queue for further Yes
processing.

This process describes the activities related to viewing and editing DD Mandates.
Yes
This process deals with validations that will be performed upon successfully
uploading a bulk payments file. On performing the validation of the bulk master, if
errors are encountered the user can create, modify or reject individual items. On
approval of master records the system automatically creates Funds Transfer or
Direct Debit records. Direct Debit records are created automatically by the system if Yes
debits are to be raised on external banks.

This process highlights activities associated with the upload of a bulk file (credits or
debits) by a Online Channels Corporate user. On successful upload the system Yes
creates master and individual records.

This process describes all the amendments that an Online Channels user can
perform. Modifications can be done until processing date of the payments is Yes
reached.

This process describes activities associated with setting up surplus sweep and
maintenance sweep for a corporate through Online Channels. This is a Zero Auth Yes
process.

This process describes activities associated with deleting a beneficiary through

Online Channels. This can be an internal customer of the bank or an external Yes
beneficiary.

This process deals with amending or cancelling the existing standing orders,
through Online Channels. Yes
This process describes the steps involved in initiating a payment to a registered
beneficiary through Online Channels. Yes
This process describes the activities associated with management of rejected direct
debit transactions. Items can be viewed and will then be cancelled. Yes

This process depicts how the messages can be sent from the Bank (Department
Account Officer) to the Online Channels user/ Customer and vice versa. Yes

The Process describes the activities of Amending a Guarantee (Issued) by a Online

Channels Corporate User. Yes
This process describes the activities of Initiating a Guarantee Issuance Request by a
Online Channels Corporate User. Yes
The TCIB user can add a single or multiple account groups and the user can also
amend or delete the existing Account Groups. Yes
This process describes the activities of viewing the received Claims successfully by
the Online Channels Corporate User. Yes
This process describes the activities of Waiving or Rejecting an Import LC drawings
by the Online Channels Corporate User. Yes
The process describes the Generic flow between the bank (T24) and the Online
Channels Corporate user. Yes
The process describes the activities of Amending an Issued import L/C by a Online
Channels Corporate User. Yes
This process describes the activities of submitting documents under Export LC by a
Online Channels Corporate User. Yes
This process describes the activities of accepting or rejecting the amendments of
an Export LC by a Online Channels Corporate User. Yes

This process describes the activities of viewing an Issued Export LC by a Online

Channels Corporate User. Yes
This process describes the activities of viewing the Guarantees Received by a
Online Channels Corporate User. Yes
This process deals with the initiation of new cheque book request through Online
Channels by any existing user. Yes
This process allows user to view the collection & document details, amendments
list and provide account details to debit and send any other response messages to Yes
bank user.

This process describes the activities of initiating an Outward (Export) Collection by

a user through Online Channels. Yes
This process describes the activities of an user responding bank by accepting or
rejecting the claims and also can view the listed claims through Online Channels. Yes

This process describes the activities of Invocation claim and settlement available
for Guarantees Received (CL type of guarantees in the system) by an Online
Channels user. Yes

This process describes the steps taken by a Corporate Customer in setting up

various types of standing orders through Online Channels. Yes
This process allows user to view the collection & document details and provide
account details to debit and send any other response messages to bank user. Yes

35
This process describes the activities for a Private Wealth Internet Banking User to
log in as well as to select the transactions to be performed. Yes
This process describes the activities for a Private Wealth Internet Banking User to
log in as well as to select the transactions to be performed. Yes
This process describes the activities for a Private Wealth Internet Banking
intermediary User to log in as well as to select the transactions to be performed. Yes

This process helps the Customer view a list of payments scheduled for a future date
and cancel them through internet banking. Yes
This process describes activities associated with deleting a beneficiary through
internet banking. This can be an internal customer of the bank or an external Yes
beneficiary.

This process provides option to the Private Internet banking users to compose,
reply and delete the messages in inbox/ sent folders in the email feature of Internet Yes
Banking.

This process deals with amending or cancelling the existing standing orders,
through internet banking. Yes
This process describes the steps involved in initiating a payment to a registered
beneficiary through internet banking. Yes
This process describes activities associated with setting up a beneficiary. This can
be an internal customer of the bank or an external beneficiary, which will result in Yes
beneficiary details being defaulted during payments.

This process describes the steps taken by a Customer in setting up various types of
standing orders through internet banking. Yes
Alerts and channel preference can be set for PWM customers through internet
banking. Yes
This process describes the activities to manage favourites as well as the placement
of securities orders (based on favourites). Yes
This process describes the different options for portfolio analysis, using pre-defined
categories. Yes
The process is initiated by a customer/ intermediary through internet banking for
placing a MF order, the account balance is checked and blocked before the booking Yes
is performed.

This process describes the activities for Order placement. Order details can be
captured in T24 - Internet Banking and will be placed for execution. Yes
This process indicates the activities involved in initiating a derivatives (futures &
options) order through internet banking. Yes
This process helps in analysing current market trend by checking the economy
reports and market stability. Yes
Orders initiated through internet banking can be modified in this process.
Derivatives, Mutual funds and securities order can be modified or cancelled. Yes

Process describes the activities related to account enquiries (incl. statements)

Yes
This process describes initiation of funds transfer through internet banking by a
PWM internet banking user. Yes
This process describes the activities view the current portfolio holdings. It is also
possible to place orders based on the holdings (e.g. buy/ sell). Yes
This process describes the activities to view the current market valuation of the
portfolio holdings. Yes
This process defines the steps in which the payment can be made to the Pre-
defined Utility Beneficiary. Yes
This process describes the activities to view the Future Cash Flow. E.g. Dividends,
Payments, Settlements. Yes
Process to view various stock market information.
Yes
User can select Markets he would like to follow. Latest market information will be
displayed. Yes
Process to view fees levied on the customer portfolio.
Yes
This process describes the activities to show the portfolio performance. Portfolio
performance can be shown by Month, Currency & Sector. Yes
This process describes the activities to view the trades of the current day.
Yes
This process describes the activities for setting up 'bank defined" utility
beneficiaries in T24. This beneficiaries can then be selected for customer payments. Yes

This process depicts how the messages can be sent from the Bank (Department
Account Officer) to the Internet user/ Customer and vice versa. Yes

Process to view/ download Portfolio statements.

Yes
This process describes the Create, Edit and Delete the Personal Payees through
internet banking by a PWM internet banking user. Yes
This process describes to Create, Edit and Delete the Utility Payees through internet
banking by a PWM internet banking user. Yes
This process describes View Payments (Pending Payments, Future Payments, STO)
through internet banking by a PWM internet banking user. Yes
 Business Area
Total no. of processes
Release

Process Area Scenario Process

SMS Processes
7.1 SMS Set Up
Set Up Override

Set Up Password

7.2 User Set Up and Maintenance

Reset Password

Set Up User

Set Up User For Role Based Home Page

Security Management Processes In Scope
5 5
R18 Model Bank

Scoping
Process Description In Scope

2
This process deals with creating overrides for various transactions and definition
of user hierarchy for approving the overrides Yes
This process describes activities associated with the initial specification of
password characteristics by the bank viz.,minimum length, number of numeric, Yes
other characters etc.

3
This process describes activities associated with resetting the password. A new
password is created in the system and communicated to the user. As a security
measure, the user will be forced to change it on the first sign-on. Yes

This process describes creation of a user record. As part of this activity, access
rights/restrictions to specific applications and versions along with the user name Yes
are set up in the system.

This process describes creation of a user record and attachment of pre-configured

'role based home page' to the user. The user so assigned with role based home
page will be having access to the defined set of menus as available to the Yes
particular role.
Process Area Scenario
Financial Accounting
Parameter Maintenance
Processes

8.1 Financial Accounting Parameters Maintenance

8.2 Accounting Entries Parameter Maintenance

8.3 General Ledger Definition and Maintenance

8.4 Financial Reports - Definition and Maintenance

8.5 Year End And Post Closing Events Processing

8.6 Common processes
Business Area
Total no. of processes
Release
Process
Maintain Bank Related Parameters
Maintain Customer Related Parameters
Maintain Finance Related Parameters
Maintain Accounting Static Data
Input And Maintain Journal Entries
Retrieve And Control Accounting Entries
Define And Maintain Accounting Policy
Maintain Accounting Rules - Account
Based
Maintain Accounting Rules - AA
Maintain Accounting Rules - Contract
Based
Financial Accounting Parameter Maintenance Processes
31
R18 Model Bank
Process Description
This process depicts the activities involved in maintaining the Bank
related parameters which include maintaining the
Company parameters, language(s), countries, country group and
holiday list
This process is for setting up/maintaining the parameters related to
Customer status, target, industry, sector, relationship manager (DAO
codes) and Customer relationship codes.
Process for maintaining the parameters relating to currency market,
currency codes, department & DAO codes, basic interest rates, and
periodic interest rates such as LIBOR etc.
Process for maintaining the category codes,
transaction codes, special transaction codes and internal accounts
definition.
Process is for creation/amendment or reversal of journal entries
(examples: purchase of assets, depreciation entries etc) either through
data capture or through funds transfer.
Process for viewing the report pertaining to accounting entries created
online or at COB and taking corrective action if there are any
differences in batch posting.
In this process the general rules for maintaining the accounting
policies such as the value date/trade date, accrual, currency position
etc., are described.
Process for maintaining parameters for account based applications like
FT, Teller, DD etc
This process is for setting up the accounting rules for AA related
activities and events.
Process for maintaining parameters for contract based applications like
LD, PD, SL and also for Bills and MD.
Maintain Accounting Rules Contract
Based (Securities)
Maintain Accounting Rules Contract
Based (Treasury)
Review And Analyse Accounting Entries
Verify Accounting Journal
Define And Maintain General Ledger
Structure
Map Chart Of Accounts To GL Structure
Review and Reconcile GL Line Balances
With Contracts And Accounts
Review Central Reporting File
Open Internal Account *
Define And Maintain GL Report Column
And Range
Define And Maintain GL Report Lines And This process is for defining or maintaining the GL lines and line ranges.
Range
Define And Maintain GL Report Structure This process is for defining the header details and format of entries to
be included in the GL or PL report.
Set Up GL Reports For Batch Process
Generate GL Reports Online
Define Post Closing Periods
Process for maintaining parameters for securities based applications
like MF, Corporate actions, and Securities
Process for maintaining parameters for Treasury based applications like
MM, FX, FRA, SWAP, REPO etc.
The process depicts the activities of an accountant who reviews and
analyses the various types of accounting entries with a view to have a
general control over the correctness of the entries passed by the user
induced transactions.
Day end report of accounting transactions and summary journal is
verified through this process.
This process describes the GL structure to be adopted for Assets and
Liabilities as well as Profit and Loss attributes of the bank.
This process is for mapping the chart of accounts of a Bank to the T24
GL structure.
This process is to review the GL report lines and drill down to the
contract/ accounts balances and accounting entries, wherever
necessary.
The process is for the accountant to review the different type of
balances of the assets and liabilities and P&L and, if necessary, to
reconcile with the accounts and contract balances.
This process depicts the activities associated with setting up of internal
accounts of the Bank, which are in the nature of own-book accounts.
This process is for defining the GL report columns and range.
This process is for identifying the GL reports to be processed and
printed during the close of business batch job.
This process is for generating a GL report on adhoc basis during the
course of the day.
This process is for defining the End of Month post closing transaction
codes and closing period. This process also describes the year end
frequency dates to be parameterised.
Enter Adjustment Bookings
Update General Ledger And Close Post
Closing Period
Maintain Year End Parameters
Manage Loan Impairment
Perform Reclassification Of Loan
Amend Provision
This process is for inputting the adjustment entries affecting the
Balance sheet and P&L items after the closing period for EOM or EOY is
completed. The adjustment entries are made for the previous
accounting period.
This process is for updating the general ledger on account of
adjustment entries passed and closing the post closing period.
This process describes some activities to be completed before the year
end processing begins
This process depicts the tasks involved in the
impairment/amendment/ unimpairment of a loan.
A loan is impaired when, based on current information and events, it is
probable that the bank will be unable to collect all amounts due
according to the contractual terms of the loan agreement.
This process depicts the tasks involved in the reclassification of a loan
for AA,LD,MM and SL modules.
The changes to IAS 39 permit an entity to reclassify certain financial
assets out of the ‘fair value through profit or loss’ (FVTPL) and
‘available-for-sale’ (AFS) categories in limited circumstances.
The process depicts the manual amendment of provision, loan
classification and customer classification for SL, MM, LD and AA.
In Scope
31

Scoping
In Scope

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes
Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes
Yes

Yes

Yes

Yes

Yes

Yes
 Business Area
Total no. of processes
Release

Process Area Scenario Process

Core Parameter
Maintenance Processes

9.1 Define And Maintain Condition

Priorities
Set Up Condition Priorities For
Applications
9.2 Define And Maintain Tax
Related Parameters
Define And Maintain Parameters For Tax

9.3 Define Interest And Charges

Define Fees & Commissions Parameters

Set Up Parameters For Interest

9.4 Define Risk Profiling Parameters
For Customer
Set Up And Maintain Risk Profiling
Parameters
9.5 Image And Document
Management Processes
` Set Up Document Management
Parameters

Set Up Image Management Parameters

Core Parameter Maintenance In Scope
7 7
R18 Model Bank

Scoping
Process Description In Scope

1
This process is for setting up the condition priority records and application wise general
conditions for grouping Customers and Accounts. Yes

1
This process is for defining various types of taxes and associated rules for calculation of tax.
Yes

2
This process is for defining the fees and commission parameters and setting up the
amortisation rule.
For Retail AA products Fees and Commission are defined through Product Conditions. Yes

This process is for defining the basic interest and periodic interest parameters. Yes

1
Basic parameters for setting up and maintaining the risk profiling of Customer is defined
through this process. Yes

2
This process handles the requirement for setting up of document management parameters by
defining the class of document, status codes, grouping conditions and rules. Yes

The process is for setting up the image management parameters such as the image type
(example: photo, signature etc) and define the path where they should be stored in the Yes
system.
Process Area Scenario
Islamic Banking 11.1 Islamic Retail
Processes
11.1.1 Profit Upfront Sale
11.1.2 Profit Accrual Sale
11.1.3 Multi Structured
11.1.4 Common Processes
Business Area
Total no. of processes
Release

Process

10.1.1 Initiation
11.1.1.1 Murabaha
Create & Disburse Murabaha Finance
(Manual) (IF)
Create & Disburse Murabaha Finance
(Scheduled) (IF)
Create Murabaha Contract (IF)

Initiate Murabaha Sale (IF)

Perform Murabaha Contract Status Change (IF)

Receive Murabaha Finance Application (IF)

11.1.1.2 Financial ijara

Create & Disburse Ijara Finance (Manual) (IF)

Create & Disburse Ijara Finance (Scheduled)

(IF)
Create Ijara Contract (IF)

Initiate Ijara Sale (IF)

Perform Ijara Contract Status Change (IF)

Receive Ijara Finance Application (IF)

11.1.1.3 Commodity Murabaha

Create & Disburse Commodity Murabaha
Finance (Manual) (IF)
Create & Disburse Commodity Murabaha
Finance (Scheduled) (IF)
Create Commodity Murabaha Contract (IF)

Initiate Commodity Murabaha Sale (IF)

Perform Commodity Murabaha Contract

Status Change (IF)

Receive Commodity Murabaha Finance

Application (IF)

11.1.2.1 Diminishing Musharaka

Create & Disburse Diminishing Musharaka
Finance (Manual) (IF)
Create & Disburse Diminishing Musharaka
Finance (Scheduled) (IF)
Create Diminishing Musharaka Contract (IF)

Initiate Diminishing Musharaka Sale (IF)

Perform Diminishing Musharaka Contract
Status Change (IF)

Receive Diminishing Musharaka Finance

Application (IF)
11.1.2.2 Corporate Mudaraba
Create & Disburse Corporate Mudaraba
Finance (Manual) (IF)
Create & Disburse Corporate Mudaraba
Finance (Scheduled) (IF)
Perform Declaration of Actual Profit (IF)

Receive Corporate Mudaraba Application (IF)

11.1.2.3 Forward Ijara

Create & Disburse Forward Ijara Finance
(Manual) (IF)
Create & Disburse Forward Ijara Finance
(Scheduled) (IF)
Create Forward Ijara Contract (IF)

Forward Ijara down payment settlement (IF)

Initiate Forward Ijara Sale (IF)

Receive Forward Ijara Finance Application (IF)

11.1.2.4 Construction Finance

Amend Construction Finance Contract (IF)

Create Construction Finance Arrangement (IF)

Create Construction Finance Contract (IF)

Initiate Construction Finance Sale (IF)

Perform Disbursement for Construction

Finance (IF)
Receive Construction Finance Application (IF)

11.1.2.5 Qard Hassan

Create & Disburse Qard Hassan Finance
(Manual) (IF)
Create & Disburse Qard Hassan Finance
(Scheduled) (IF)
Receive Qard Hassan Finance Application (IF)

11.1.2.6 Baisalam
Create & Disburse Baisalam Finance (Manual)
(IF)
Create & Disburse Baisalam Finance
(Scheduled) (IF)
Create Baisalam Contract (IF)

Initiate Baisalam Sale (IF)

Receive Baisalam Finance Application (IF)

11.1.3.1 Wakala-Musawama
Create & Disburse Wakala Finance (Manual)
(IF)
Create & Disburse Wakala Finance (Scheduled)
(IF)
Create Musawama Contract (IF)

Create Musawama Finance & Settle Wakala

Finance (Manual) (IF)
Create Musawama Finance & Settle Wakala
Finance (Scheduled) (IF)
Initiate Musawama Sale (IF)

Initiate Wakala Finance (IF)

Perform Musawama Contract Status Change

(IF)

Receive Wakala Musawama Finance

Application (IF)

11.1.4.1 Credit Operations (IF)

Decide on Payment Types (IF)

Execute Broker Payment (IF)

Execute Broker Settlement (IF)

Execute Cost Payment (IF)

Execute Down Payment (IF)

Execute Retention Payment (IF)

Execute Reviewer Payment (IF)

Execute Vendor Payment (IF)

Manage Broker (IF)

Manage Commodity Delivery (IF)

Manage Reviewer (IF)

Manage Vendor (IF)
Perform Asset/ Commodity Review (IF)
Sell Commodity to Sell Broker (IF)

11.1.4.2 Limits & Collateral Set Up (IF)

Create & Link Collateral (IF)

Set Up Limit (IF)

11.1.4.3 Sales Amendments (IF)

Close Finance (IF)

Manage And Decide On Amendments (IF)

Manage Prepayment (IF)

Pay Off Finance (Pre-Closure) (IF)

Perform Repayment (IF)

Perform Reverse And Replay (IF)

Register Direct Debit Mandate (IF)

11.1.4.4 Past Due Management (IF)

Manage Past Due (IF)

Repay Past Due (IF)

Islamic Banking Processes In Scope
82 82
Model Bank

Scoping
Process Description In Scope

18

The process describes activities involved in maintaining manual disbursement in

Murabaha Finance. Yes
The process describes activities involved in maintaining Scheduled disbursement
in Murabaha Finance. Yes
The process begins with the receipt of a completed finance application from the
Customer. The application could be received for named/ quantified Asset. The
application is acknowledged at the front office and forwarded to the credit
department for capturing collateral details and setting up limit. Asset details are Yes
captured and approved for purchase of Asset/ Commodity.

The process describes the process flow for initiating Murabaha sale. Yes
This process is used to purchase the approved asset from the Vendor. The
contract workflow status is modified from "Approval " to "Purchase". Yes

The process deals with various activities associated with receipt of new
financing request from a Customer and the processing of the application under Yes
Murabaha.

The process describes activities involved in maintaining manual disbursement in

Ijara Finance. Yes
The process describes activities involved in maintaining Scheduled disbursement
in Ijara Finance. Yes
This process is applicable if the goods are ready and it has to be sold with the
agreed fixed profit amount.
The process begins with the receipt of a completed finance application from the
Customer. Application could be received for named/ quantified Asset. It is
acknowledged at the front office and forwarded to the credit department for
capturing collateral details and setting up limit. Asset details are captured and Yes
approved for purchase of Asset/Commodity.

The process describes the process flow for initiating Ijara sale. Yes
This process is used to purchase the approved asset from the Vendor. The
contract workflow status is modified from "Approval" to "Purchase". Yes

The process deals with various activities associated with receipt of new
financing request from a Customer and the processing of the application under Yes
Finance Ijara.

The process describes activities involved in maintaining manual disbursement in

Murabaha Finance. Yes
The process describes activities involved in maintaining scheduled disbursement
in Murabaha Finance. Yes
Commodity Murabaha is a Murabaha based short term placement operation
that involves the purchase and sale of commodities in the international
exchange.
The process begins with the receipt of completed finance application from the Yes
Customer. Bank will approve the purchase of commodity from Buy Broker after
capturing the Collateral and setting up limit.

The process describes the process flow for initiating Commodity Murabaha sale.
Yes
This process is used to purchase the approved commodity from the Buy Broker.
The contract workflow status is modified from "Approval" to "Purchase". Yes

The process deals with various activities associated with receipt of new
financing request from a Customer and the processing of the application under Yes
Commodity Murabaha.

30

The process describes activities involved in maintaining manual disbursement in

Musharaka Finance. Yes
The process describes activities involved in maintaining scheduled disbursement
in Diminishing Musharaka Finance. Yes
The Islamic bank enters with a client into a partnership in which they both
invest in the equity capital required to finance a project. This process begins
with the receipt of completed finance application from the Customer. It is
acknowledged at the front office and forwarded to the credit department for
capturing collateral details and setting up limit. Asset details are captured and Yes
approved for purchase of Asset/Commodity.

The process describes the process flow for initiating Musharaka sale. Yes
This process is used to purchase the approved asset from the Vendor. The
contract workflow status is modified from "Approval " to "Purchase". Yes

The process deals with various activities associated with receipt of new
financing request from a Customer and the processing of the application under Yes
Musharaka.
The process describes activities involved in maintaining manual disbursement in
Corporate Mudaraba Finance. Yes
The process describes activities involved in maintaining Scheduled disbursement
in Corporate Mudaraba Finance. Yes
The Process describes the declaration of Actual profit in Mudaraba finance.
Yes
The process deals with various activities associated with receipt of new
financing request from a Customer and the processing of the application under Yes
Mudaraba.

The process describes activities involved in maintaining manual disbursement in

Forward Ijara Finance. Yes
The process describes activities involved in maintaining scheduled disbursement
in Forward Ijara Finance. Yes
The process describes the initiation into Forward Ijara Contract process work
flow. Yes
This process describes settlement of Ijara finance contract with the down
payment amount collected from the customer. Yes
The process describes the process flow for initiating Forward Ijara sale. Yes
The process deals with various activities associated with receipt of new
financing request from a Customer and the processing of the application under Yes
Forward Ijara.

The process describes activities related to amendments in the finance product

Construction Finance. Yes
During the manufacturing period, the bank will agree on the disbursement of
finance amount to manufacture/ produce goods, at the same time the customer
may also contribute his portion through cash/ asset.
This process is used to Input the Arrangement for Disbursement with Manual/ Yes
Scheduled repayment dates.

This product will work based upon the concept of Project finance. In project
finance, the requested asset may not be readily available. The bank/ customer
will appoint the manufacturer to produce the goods, the customer and bank will
agree to go for finance after completion of manufacturing the asset. The
process begins with the receipt of a completed finance application from the
Customer. It is acknowledged at the front office and forwarded to the credit
department for capturing collateral details and setting up limit. Asset details are Yes
captured and approved for purchase of Asset.

The process describes the process flow for initiating Construction Finance sale.
Yes
The process deals with the disbursement of funds for Construction Finance.
Yes
The process deals with various activities associated with receipt of new
financing request from a Customer and the processing of the application under Yes
Construction Finance.

The process describes activities involved in maintaining manual disbursement in

Qard Hassan Loan. Yes
The process describes activities involved in maintaining Scheduled disbursement
in Qard Hassan Finance. Yes
The process deals with various activities associated with receipt of new Loan
request from a Customer and the processing of the application under Qard Yes
Hassan.

The process describes activities involved in maintaining manual disbursement in

Baisalam. Yes
The process describes activities involved in maintaining scheduled disbursement
in Baisalam. Yes
Baisalam refers to contract in which advance payment is made for goods to be
delivered later on. The seller undertakes to supply some specific goods to the
buyer at a future date in exchange of an advance price fully paid at the time of
contract.
The process begins with the receipt of a completed finance application form
from customer. Application could be received for named/quantified Asset. It is
acknowledged at the front office and forwarded to the credit department for
capturing collateral details and setting up limit. Asset details are captured and Yes
payment is made to the seller. Also the delivery of goods is tracked against the
commitment made by the seller.

The process describes the process flow for initiating Baisalam sale. Yes
The process deals with various activities associated with receipt of new
financing request from a Customer and the processing of the application under Yes
Baisalam.

The process describes activities involved in maintaining manual disbursement in

Wakala Finance. Yes
The process describes activities involved in maintaining Scheduled disbursement
in Wakala Finance. Yes
In Multistructured product, the outstanding finance amount of the Wakala
contract is settled by using the Musawama finance disbursement.
The process begins with the receipt of a completed finance application from the
Customer. Application could be received for named/ quantified Asset. It is
acknowledged at the front office and forwarded to the credit department for
capturing collateral details and setting up limit. Asset details are captured and
approved for purchase of Asset/ Commodity. Yes

The process describes activities involved in creating Musawama Finance

(Manual) Yes
The process describes activities involved in creating Musawama Finance
(Scheduled) Yes
The process describes the process flow for initiating Musawama Finance.
Yes
The process describes the process flow for disbursement of Finance under
Wakala Finance. Yes
This process is used to purchase the approved asset from the Vendor. The
contract workflow status is modified from "Approval " to "Purchase". Yes

The process deals with various activities associated with receipt of new
financing request from a Customer and the processing of the application under Yes
Wakala Musawama.

25

This process describes the various types of Payments involved in the Purchase
of Asset/ Commodity. Yes
The process describes the activities involved in Broker payment. Yes
This process is to enable settling of Broker accounts after buy/ sell transaction.
Yes
This process describes the Payment of Additional cost incurred during the
Asset/ Commodity Purchase. Yes
This process describes Down Payment made by the Customer. Yes
This process describes Payment of Retention Amount (if any) back to the
Vendor/ Supplier/ Customer. Yes
The process describes the activities involved in Reviewer payment. Yes
This process describes the Vendor Payment against each Purchase Contract.
Yes
This process is used to manage Broker (create /amend) details Yes
This process involves tracking the delivery of commodity and Unit wise selling of
commodity to different customers. Yes
This process is used to manage Reviewer (create/ amend) details. Yes
This process is used to manage Vendor (create/ amend) details. Yes
This process is used to review Asset/ Commodity involved in purchase. Yes
This process describes the sale of commodity received from the Customer to
Sell Broker. Yes

This is a process for defining particulars of collateral and linking the collateral to
a limit. Yes
This process deals with setting up a secured or unsecured limit for a Customer.
Yes

This process describes closure of a finance contract carried out at the end of the
term, when all instalments/ dues have been recovered. The delinking and
release of collateral documents is covered in this process. In case any direct
debit is set up for the liquidation of the finance, the system checks if it is an
internal DD (for debiting an internal account) or an external DD (for raising the Yes
DD entries on the paying bank).

The Process involves receiving request for a finance contract amendment,

reviewing the amendment request and executing the request. The amendments
could be changes to Profit rates, Profit rate types, limit maintenance, past dues
adjustments, past dues write-offs, changes to repayment schedules etc. Yes

Process for receiving and executing the prepayment request from Customer.
Yes
The process is used to perform an early closure (pay off) of a finance and also
covers the delinking and release of a collateral, where applicable. Yes

The process depicts activities related to repayment of an Islamic finance either

through cash/ executed automatically by the system. Yes
The process describes the reverse and replay mechanism used to amend or
reverse an activity from any date since the contract started.

AA allows throughout the term of a finance, to do any backdated activities Yes

starting from the loan start date. Any activities that have taken place will be
reversed and replayed.

The process indicates the activities involved when the Customer requests the
bank to collect the finance repayment amount from the Customer's account
with another bank and provides a mandate for the same to the Islamic Credit
Officer. Based on the mandate stored, the bank can generate outward claim file. Yes

The process describes the activities relating to the management of over dues of
an Islamic Finance. Various activities could be performed viz., Adjust past due,
write off past due, change repayment schedule, change penalty Profit ( If Yes
applicable ) etc.

The process deals with receiving and executing instructions from a customer for
repaying overdue amount in an Islamic Finance. Yes