Payments Handover Document

Handover Document for NEFT and RTGS 10.2.25

21 April 2022

© 2016 EdgeVerve Systems Limited. Strictly private and confidential. No part of this document should be
reproduced or distributed without the prior permission of EdgeVerve Systems Limited.
Table of Contents
1 Objective ............................................................................................................................................... 3
2 NEFT and RTGS Introduction ................................................................................................................. 4
2.1 NEFT .............................................................................................................................................. 4
2.2 RTGS .............................................................................................................................................. 4
2.3 NEFT 24x7 Message Flow .............................................................................................................. 5
2.4 Message Type used in NEFT .......................................................................................................... 5
2.5 NGRTGS Flow ................................................................................................................................ 5
2.6 Message Type used in NGRTGS .................................................................................................... 6
3 Inward and Outward Process Flow in Finacle ....................................................................................... 7
3.1 Outward message (N06/R41/R42) creation in Finacle: ................................................................ 7
3.2 Inward message flow in Finacle: ................................................................................................... 8
4 Tables Used ......................................................................................................................................... 10
4.1 Tables .......................................................................................................................................... 10
5 Environment Setups ............................................................................................................................ 11
5.1 HRRCDM Setup ........................................................................................................................... 11
5.1.1 Payment System Type ......................................................................................................... 11
5.1.2 NEFT Message Code ............................................................................................................ 11
5.2 HPAYSYS Setup ............................................................................................................................ 11
5.2.1 General Details .................................................................................................................... 12
5.2.2 Additional Detail ................................................................................................................. 14
5.2.3 Message Details .................................................................................................................. 15
5.3 HPRCM Setup .............................................................................................................................. 15
6 Charge Setup ....................................................................................................................................... 16
6.1 HPTTM setup ............................................................................................................................... 16
6.2 HASTM setup............................................................................................................................... 16
7 Payment Processing in Finacle ............................................................................................................ 17
7.1 Process Outward Message Using Payment Order Menu ............................................................ 17
7.1.1 HPORDM Add/Modify/Inquire/Delete................................................................................ 17
7.1.2 HPORDM Verify ................................................................................................................... 18
7.1.3 HSMI inquiry........................................................................................................................ 20
7.2 Process Inward Payments ........................................................................................................... 21
7.2.1 HSMI Inquiry ....................................................................................................................... 21

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 7.2.2 PISP Handling ...................................................................................................................... 22
7.2.3 Verify PISP ........................................................................................................................... 23
7.2.4 Customer Account Credit Inquiry........................................................................................ 23
8 Transaction Flow ................................................................................................................................. 24
8.1 Outward message generation for NEFT and RTGS ..................................................................... 24
8.1.1 HPORDM ............................................................................................................................. 24
8.2 Inward message receipt for NEFT and RTGS ............................................................................... 24
8.2.1 Auto accept ......................................................................................................................... 24
8.2.2 User intervention ................................................................................................................ 24
8.2.3 Auto Return by Service ....................................................................................................... 24
8.2.4 Manual Accept .................................................................................................................... 24
8.2.5 Manual Reject ..................................................................................................................... 24
9 LEI for NEFT/RTGS Payments .............................................................................................................. 25
9.1 Steps to be followed for LEI ........................................................................................................ 25
10 Product Script changes ................................................................................................................... 26

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1 Objective
The objective of this document is to provide details on the NEFT and RTGS module.

This document cover the following topics:

• NEFT and RTGS flow
• The message type supported
• Inward and Outward flow in Finacle
• Tables Used
• Environment Setup
• Charge Setup
• NEFT/RTGS Payment Processing
• Transaction Flow
• NEFT RTGS Scripts

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2 NEFT and RTGS Introduction
2.1 NEFT
The national electronic fund transfer is a facility provided to bank customers to permit them to
transfer funds easily and securely on a one-to-one basis. This system assists individuals, firms,
and corporates to electronically transfer funds from any bank branch to any individual, firm or
corporate having an account with any other bank branch in the country. IFSC or Indian financial
system code is required to perform a transaction using NEFT. IFSC code recognizes a specific
branch of a bank. This service has no transaction amount limit i.e., funds between Rs. 0.1 to
infinity can be transferred using this mode of payment.
To transfer the money from one bank account to another (either same bank or different) using
NEFT (National Electronics Fund Transfer) we need three basic things for the first time to add
the person as beneficiary account:
Beneficiary Account Holder’s Name
Beneficiary Account Number
IFSC Code or full bank details
As per the guidelines from RBI, NEFT is enabled round the clock for settlement transaction.

2.2 RTGS
Real Time Gross Settlement System or RTGS is a large value funds transfer system, whereby
banks can settle inter-bank transfers for their own account and also that of their customers.
The system executes final settlement of inter-bank funds transfers on a real time basis,
transaction-by-transaction basis throughout the day without netting the debits and credits.
Technically, RTGS is a real time settlement of inter-bank payment system in a fully secure
environment using digital signatures and PKI-based encryption for safe message transmission
The primary justification for a RTGS system is its ability to limit risks and bring in an element of
efficiency to entire the business transaction. RTGS systems can contribute substantially to
limiting payment system risks. With their continuous intraday final transfer capability, RTGS
systems are able to minimize or even eliminate the basic inter-bank risks in the settlement
process.
More specifically, RTGS can substantially reduce the duration of credit and liquidity exposures.
Secondly, being a paperless form of a system where funds get transferred almost
instantaneously (theoretically), this bring in an efficiency to the underlying business transaction.
Banks could use balances maintained under the cash reserve ratio (CRR) instead of the intra-
day liquidity (IDL) to be supplied by the central bank for meeting any eventuality arising out of
the real time gross settlement (RTGS). The RBI has fixed the IDL limit for banks to three times
their net owned fund (NOF).

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2.3 NEFT 24x7 Message Flow

Bank A Bank B
NEFT N02 Inward
Customer N06
Request Account Credits
from NEFT N03 Stored
Debited
Customer Server
N10 N04
Credit Inward
confirmed / N03/ N10 Credits Beneficiary
reversal N07(inward Processed Credited
N07
N02)

2.4 Message Type used in NEFT

Message
Type Message Description
N02 Inward Credit Payment Request
N03 Inward Credit Payment Reject by NEFT server (N02-Recall, N06-Reject)
N04 End of Batch / End of Day message.
N06 Outgoing NEFT transfer Request
N07 Inward Credit Payment Rejected by bank
N10 Inward Credit Payment Confirmation
972 Start of Day (SOD) message.

2.5 NGRTGS Flow

Bank B
Bank A
Inward
NEFT Customer Credits
PACS PACS
Request Account Stored
008 RTGS 008
from Debited
Server
Customer

Credit CAMT Inward Beneficiary

confirmed / 059 CAMT Credits Credited
reversal PACS PACS 059 Processed
009/004 009/004

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2.6 Message Type used in NGRTGS

Message Type Message Description

PACS.008.001.03 Customer Payment Request
PACS.009.001.03 Inter Bank Payment Request
CAMT.054.001.03 Debit / credit notification
CAMT.059.001.04 Credit Confirmation
PACS.004.001.03 Customer/ Inter Bank Payment Return
PACS.002.001.04 Payment Status Report message sent by NG-RTGS
ADMI.004.001.01 Payment Response

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3 Inward and Outward Process Flow in Finacle
3.1 Outward message (N06/R41/R42) creation in Finacle:

Invoke menu HPORDM

Choose Function Add • Debit Account Number
• Beneficiary A/c No. and Name
• Amount
• Beneficiary IFSC code
Enter the required fields

Submit the HPORDM menu. The status of the

PO would be ‘Awaiting Authorization’

Another user verifies HPORDM using function

HPORDM

If details No Modify the

are correct required fields

Yes

Re-enters the same details as per customer

request and submit. The status of the PO changes
to ‘Processed’.

UTR and N06/R41/R42 message gets generated

and can be checked in HSMI menu.

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3.2 Inward message flow in Finacle:

An N02 is received in ‘L’ status

The ungrouping services picks all messages in ‘L’

status and ungroups them to ‘N status’

On receipt of the N04 for the batch the system

tallies the total no. of messages and total sum of
inward messages

If No. of
message and
Sum tally

Convert the message to ‘R’ status

Swiftsrv service picks the ‘R’ status message and

processes it

If Credit Generate Status of N02

Yes Credit beneficiary
A/c no.
A/c No. O/w N10 is set to ‘P’
valid

No

Status of N02 is set to ‘I’ and has to be handled by

the user through PISP menu

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 If decision Yes Credit beneficiary Generate Status of N02
is ‘Accept’ A/c No. O/w N10 is set to ‘P’

No

Generate N07 message

Status of N02 is set to ‘P’

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4 Tables Used
4.1 Tables
Following is the list of tables used.
Table Name Description

TBAADM.CPOD This will have EOD and SOD message receipt status for both
NEFT and RTGS.
TBAADM.SMH 1) This will have details of all messages transmitted and received
and the status of message.
TBAADM.PORD 2) This is Payment Order Detail Table and will contain details of
Payment Order created for both outward and inward
messages and the status of PO.
TBAADM.PORH 3) This is Payment Order Header Table and will contain details of
Payment Order created for both outward and inward
messages and the status of PO.
CUSTOM.C_NGRTGS 4) This will have both inward and outward RTGS messages in
NG-RTGS formats.
5)
CUSTOM.C_NGRTGS_HOIFSC This will contain the list of the HO IFSC used in RTGS
messages.
Custom.C_NGRTGS_ACK 6) This table stores the details of RTGS inward and outward
Acknowledgement (CAMT.059)

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5 Environment Setups
5.1 HRRCDM Setup
The following reference code setup needs to be done using the HRRCDM menu:

5.1.1 Payment System Type

With the help of this, you can define a reference code for the type of payment system which is
used for transmitting the messages.

The reference codes that can be created for the various payment systems are:
RTGS: Real Time Gross Settlement Payment System
NEFT: National Electronic Fund Transfer System
SFMS: Structured Financial Messages System
SWIFT: Swift Payment System

5.1.2 NEFT Message Code

With the help of this, you can create codes for the various types of messages to be transmitted
through the NEFT payment system.

For Example
N02 Message: Inward Credit Message
N03 message: Message for transmitting return transaction details to Bank Gateway
N06 Message: Outward Credit Message
N07 Outward Message: Message for details indicating return of rejected inward credits (N02)
N10 Inward and Outward acknowledgement Message to confirm credit of funds to beneficiary
account

5.2 HPAYSYS Setup

Payment systems are mechanisms used for transferring monetary value and related information
between banks.
The payment systems classified in Finacle are:
B - Bulk payment system (ECS)
R - Real Time Payment system (SWIFT, SFMS)
G - Gross Payment system (RTGS, NEFT)
H - ACH Payment system
The messages are accumulated and sent at periodical intervals under a Bulk payment system.
The messages under the Real Time payment system are transmitted immediately on verification

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of the business event. The settlements are done on Gross basis under a Gross payment
system. NEFT payment system is considered as a gross payment system in Finacle.

5.2.1 General Details

You can specify the following details:

• Base currency code

In most cases this is the Home Currency, but some countries such as UK have RTGS
systems in two currencies. Using this field and the settlement account placeholders, the
corresponding accounts will be derived for posting transactions in HRTGS. Base currency is
mandatory only if the HPAYSYS type is B-Bulk or G-Gross. In other cases, the user will not
be allowed to enter this value.
• Default Exchange Rate Code for Inward Credit
This rate code is used while applying inward credits to beneficiary accounts whose currency
differs from the HPAYSYS Base Currency. This is mandatory only if the HPAYSYS type is
B-Bulk or G-Gross.
• Default Exchange Rate Code for Outward Credit
This rate code is used while applying outward credits to beneficiary accounts whose
currency differs from the HPAYSYS Base Currency. This is mandatory only if the HPAYSYS
type is B-Bulk or G-Gross.
• Re-Route Credit Place Holder
This placeholder is used for crediting the remittance amount of the payment which is to be
rerouted.
• X – Border system
Indicates if the payment system under consideration is a cross border system or a domestic
payment system. The payment system under consideration is treated as cross border
payment system if the value of this field is set as Yes. It is treated as domestic payment
system if the value of the field is set as No. All real payment systems like SWIFT are setup

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 as X-border system. Gross settlement systems can be both X-border and domestic payment
systems.
• Max. Value Days
This is a mandatory field. You can specify maximum number of value days that can be
specified using the HRTGS menu option for any outward RTGS transaction.
• BlackList Scan Required
This is a mandatory field. If blacklist_scan_reqd_flg (PAYSYS level) is set as YES, then on
final submission of msg creation - a script hook (RTGSBlackListScan.scr) is called where all
the details are dumped. It returns the status of the flag. (P- Pending, C - Clean and B-
Blocked). The blacklist_scanned_flg in OTC is populated with the value got back from the
script hook. If blacklist_scan_reqd_flg (PAYSYS level) is set as NO, then the
blacklist_scanned_flg in OTC is populated as C – Clean HRTGS - verification must not be
done if the blacklist_scanned_flg is not clean.
For Inward messages, if blacklist_status flag is populated as Blocked-in script, then the
message is inserted in to the table but no transaction (not even suspense entry) happens on
the record. Those records are displayed on enquiry and required to be manually handled.
The RTGSUF and rtgssrvc insert those records in OTC table.
• Message on Value Date
Indicates if the message has to be sent on the value date.
• Debit A/c. on Value Date
The account that is to be debited on the value date.
• Default Sender Bank
You can specify the bank code if the messages are to be sent from central location.
• Default Sender Branch
You can specify the branch code if the messages are to be sent from central location.
• Default Receiver Bank
You can specify the bank code if the messages are to be received at central location.
• Default Receiver Branch
You can specify the branch code if the messages are to be received at central location.

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5.2.2 Additional Detail

The Additional Details screen captures the details of the placeholders of the various accounts
used for settling the outward and inward RTGS transactions.
The additional details that can be specified are:
Route Rejects through Suspense A/c

5.2.2.1 Outward
The outward credit settlement account is the RTGS settlement account for outward RTGS
messages. The fields that can be specified are:
Settlement Place Holder (Dr)
Settlement Place Holder (Cr)
Create Contra Entries
Contra Place Holder (Dr.)
Contra Place Holder (Cr.)
Returns Suspense Place Holder (Dr.)
Returns Suspense Place Holder (Cr.)
Other Suspense Place Holder (Dr.)
Other Suspense Place Holder (Cr.)
Fee Event ID (Dr.)
Fee Event ID (Cr.)
Reject Fee Event ID (Dr.)
Reject Fee Event ID (Cr.)

5.2.2.2 Inward
The inward credit settlement account is the RTGS settlement account for inward RTGS
messages. The fields that can be specified are:
Settlement Place Holder (Dr.)
Settlement Place Holder (Cr.)
Returns Suspense Place Holder (Dr.)
Returns Suspense Place Holder (Cr)

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Other Suspense Place Holder (Dr.)
Other Suspense Place Holder (Cr)

5.2.3 Message Details

• Message Type
• STP Enabled
• CCY / Max. STP Amt.
It indicates the code of the currency and the maximum amount for which STP is enabled. A
message is STP only if the amount is less than or equal to the value specified in this field. If
the amount exceeds the value specified in this field, the message is not a STP message.
The home currency is displayed by default alongside the amount.
• CCY/ Min. Transfer Amt.
It indicates the code of the currency and the minimum amount for which Transfer is enabled.
• CCY / Max. Transfer Amt.
It indicates the code of the currency and the maximum amount for which Transfer is
enabled.
• Priority (1-99)

5.3 HPRCM Setup

Set return reason codes in HPRCM menu.

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6 Charge Setup
6.1 HPTTM setup
Two separate Event ID NEF and RTG have been created under the Event type RTGSO to calculate and
levy the charges for outward NEFT and RTGS.

6.2 HASTM setup

The charges being levied follow a slab hence the HASTM is required to maintain the charge slab for both
the charges.

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7 Payment Processing in Finacle
7.1 Process Outward Message Using Payment Order Menu
The originating bank can send outward payment messages like Customer Payments and Inter
Bank Payments transfer messages. The messages can be transmitted through appropriate
payment systems such as RTGS system, NEFT system.
One can create payment messages using HPOOTC or HPORDM menu option depending on
the type of message and the payment system selected for transmission of the message.
You can use HPOOTC menu option to create and transfer customer payment messages such
as N06 in NEFT system in Cash.

7.1.1 HPORDM Add/Modify/Inquire/Delete

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7.1.2 HPORDM Verify

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7.1.3 HSMI inquiry

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7.2 Process Inward Payments
7.2.1 HSMI Inquiry

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7.2.2 PISP Handling

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7.2.3 Verify PISP

7.2.4 Customer Account Credit Inquiry

Invoke the menu HACLINQ and input the credited account to check if the amount is credited or
not.

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8 Transaction Flow

8.1 Outward message generation for NEFT and RTGS

8.1.1 HPORDM
Head as per PAYSYS/MLPS setup Placeholder mapped Dr./Cr.
Customer A/c NA Dr.
Settlement Placeholder Dr 221220000001/221210000001 Cr.

8.2 Inward message receipt for NEFT and RTGS

8.2.1 Auto accept
Head as per PAYSYS/MLPS setup Placeholder mapped Dr./Cr.
080 Settlement Placeholder 221220000001/221210000001 Dr.
Customer A/c NA Cr.

8.2.2 User intervention

Head as per PAYSYS/MLPS setup Placeholder mapped Dr./Cr.
080 Settlement Placeholder 221220000001/221210000001 Dr.
Sol Suspense Placeholder (As per IFSC) 420930000001/420940000001 Cr.

8.2.3 Auto Return by Service

Head as per PAYSYS/MLPS setup Placeholder mapped Dr./Cr.
Sol Suspense Placeholder 420930000001/420940000001 Dr.
999 Return Placeholder 420280000001/420290000001 Cr.
999 Return Placeholder 420280000001/420290000001 Dr.
080 Settlement Placeholder 221220000001/221210000001 Cr.

8.2.4 Manual Accept

Head as per PAYSYS/MLPS setup Placeholder mapped Dr./Cr.
Sol Suspense Placeholder 420930000001/420940000001 Dr.
Customer A/c NA Cr.

8.2.5 Manual Reject

Head as per PAYSYS/MLPS setup Placeholder mapped Dr./Cr.
Sol Suspense Placeholder 420930000001/420940000001 Dr.
Sol Return Placeholder 420280000001/420290000001 Cr.
Sol Return Placeholder 420280000001/420290000001 Dr.
080 Settlement Placeholder 221220000001/221210000001 Cr.

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9 LEI for NEFT/RTGS Payments
The Legal Entity Identifier (LEI) is a 20-digit number used to uniquely identify the parties to
financial transactions worldwide. It was conceived as a key measure to improve the quality and
accuracy of financial data systems for better risk management post the Global Financial Crisis.
LEI has been introduced by the Reserve Bank in a phased manner for participants in the over
the counter (OTC) derivative and non-derivative markets as also for large corporate borrowers.
It has now been decided to introduce the LEI system for all payment transactions of value ₹50
crore and above undertaken by entities (non-individuals) using Reserve Bank-run centralized
Payment Systems viz. Real Time Gross Settlement (RTGS) and National Electronic Funds
Transfer (NEFT).

9.1 Steps to be followed for LEI

• Ensure that LEI setup is available for applicable customers at CRM level. Expiry date for
same is mandatory to be available as core validations are based on same.
• In NEFT, the block for sender to receiver information which has free format optional field
consisting of 6 lines with 35 characters each with alphanumeric options.
The first two lines of this block shall be used for capturing sender and beneficiary
customer LEI information, in that order, where applicable and available. When LEI
information is captured; narration, remarks, etc., shall be part of last 4 lines of the field.
The sender and beneficiary information shall be captured in following format:
Sender to receiver block:
line 1 -> SL/20 digit sender LEI/
line 2 -> BL/20 digit beneficiary LEI/
• In RTGS customer payment and inter-bank messages, the optional field Remit info has 4
repeat tags with each having 140 characters.
The first two loops of this block shall be used for capturing sender and beneficiary
customer LEI information, in that order, where applicable and available. When LEI
information is captured; narration, remarks, etc.; shall be part of last two repeating loops
of the field. The sender and beneficiary information shall be captured in following format:
loop 1 -> /SL/20 digit sender LEI/
loop 2 -> /BL/20 digit beneficiary LEI/
• Valid format values for example:
SLEI12345678900987654321
/SL/12345678900987654321
• If the payment is initiated from channel, the users should be advised to enter the
appropriate LEI data for both the sender and the receiver for all the transactions which
falls under the category of Nonindividuals and the transaction amount more than INR
50Cr. They should be keying in the information only in Line 1 and Line 2 of sender to
receiver information.

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10 Product Script changes

Attached are the list of scripts changed to support ongoing requirements raised by the
bank.

NEFT RTGS scripts

changed.xlsx

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