What is the banking payment process?

Answer 1

Outward Request - OB get all the files received from BOs and transmits the file (electronically) to the SACH for clearing

Inward Request - SACH sorts and transmits the relevant accounts to the RB for the debit of the customer's account

Outward Return - RB will returns the rejected instruction to the OB through the SACH (the next day)

Inward Return - SACH will return the rejected instruction to the OB

The clearing and settlement process for IBG is as follows:

1. The first party sends the payment instructions to the originating bank.

2. The originating bank checks the credit limit of the first party (if it is a direct

credit instruction) and sends the payment instructions to the ACH for

clearing.

3. After determining the net settlement amount for each participating bank,

the ACH sends the net clearing figures to MAS Electronic Payment

System (MEPS) for broadcast and settlement.

4. The ACH forwards the payment instructions to receiving banks for the

credit/debit of the second party's account.

5. If the payment instruction is rejected, receiving banks will return the

rejected instruction to the originating bank through the ACH the next day.

The ACH will adjust the settlement amount for both banks before

forwarding the rejected instruction to the originating bank.

6. If the collection (payment) is successful, a credit (debit) statement is

generated for the first party and a debit (credit) statement for the second party.