Introduction to EFT Interface

The purpose of this user guide is to explain the current functionality available for Electronic Funds Transfer (EFT) through PAP and ACH. Through PAP/ACH, customers can send or receive the funds between institutions electronically. This development addresses the Central1 PAP interface and the RBC ACH interface. All the payments sent through EFT should be created in advanced, so that Central1/RBC has enough time to settle the payments with other institutions.

The intended audience for this document are the bank staff, IT administrators for parameters and business analysts. It is assumed that the reader of this document is familiar with the navigation around T24 and is familiar with the payment modules.

EFT/PAP Overview

The solution to address the requirements of EFT and PAP are as follows:

• The pre-authorised payments are electronic payment arrangements between a CAMB customer and an external account holder. The payer’s account may reside at another financial institution or with CAMB. The PAPs are processed automatically through the clearing processes for a particular amount at regular intervals.
• The PAP files will be generated on all weekdays including statutory holidays before going into (COB).
• Even if the process is run on Saturday and Sunday, the system will process the batch without any errors.
• Three files will be generated each weekday and will be manually uploaded to Central 1, a parameterised number of days in advance of the data the PAP is scheduled to occur (currently 3 as noted above). This lead time is given to Central 1 to ensure that PAPs are executed on time. The three files that are produced are listed below:
  • ZEFT1.DAT: Debit external account and credit Temenos Transact account.
  • ZEFT2.DAT: Debit Temenos Transact account and credit external account.
  • ZEFT3.DAT: Debit Temenos Transact account and credit external account for RRIF (Registered Retirement Income Fund).
• There are 3 summary files that are verified manually by the operators to see that the aggregate total of all 3 PAP files have totals of or exceeding 6 million dollars. If the total of all PAP transactions is over six million dollars, the payment operations is to be contacted to have two persons sign and approve the PAP file. Even if the amount in aggregate is more than 6 million dollars, the files are still uploaded in Central 1 and an approval is obtained from the investment operations department the next day.

ACH Overview

A high level parameter has been provided to define file names, directory, lead days, etc for the extract processing.

A high level parameter has been provided to define the transaction types/codes and the versions to be used for posting the accounting entries on due dates.

New versions have been provided to create standalone instructions for ACCOUNTS (registered and non-registered) and for adhoc loan payments.

Versions have been provided to capture the ACH settlement instructions that will be included in the loan product and for the manual capture of the loan payment instructions, a new application has been provided.

A COB job has been provided to extract the payments daily.

A COB job has been provided to post the accounting entries on the due date. All the accounting entries will be processed at the start of day process.

As per FIs multi company structure, the system generates a single PAP/ACH file grouping of all the defined lead companies.

Suspend/Resume – Preauthorised Payment

A pre-authorised payment (PAP) is a payment instruction (authorised by a customer) to debit a specified account (which can be held within the bank or another financial institution) in order to repay a loan or satisfy other financial requirements of FIs and/or its customer (such as safety deposit box or account-to-account transfer).

It is a common requirement that a pre-authorised payment is suspended without losing the payment instruction details. Once resumed, it shall be processed using the original instruction details, without the necessity of re-inputting them.

In case of suspending PAP for loan products, the loan repayment doesn’t take place, though the loan is still considering the payment (so the loan becomes delinquent at the time the payment is missed).

Payment Order Generation

The BENEFICIARY application is used to maintain the information which can relate to any type of external payment. The information stored here can be used as a default and mapped into other applications like PAYMENT.ORDER.

Two types of beneficiary records can be entered, customer defined or bank defined.

Using the many available field’s, different types of payment and messages can be created.

Payment Order and AA

The arrangement loan, deposit or account will now be able to generate a payment order request automatically. Depending on the configuration in the arrangements settlement screens either a request for funds (receipt) or a request to pay (payment) message will be generated and sent to the payment system. The payment system could be either Temenos Transact or processed outside of Temenos Transact.

All details captured in the beneficiary record, payment order product defined and some other details like currency, amount value date will be mapped to the payment order application.

For product line LOANS and DEPOSITS, extract (ZFT/PAP and ACH) are generated based on the generation of the PAYMENT ORDER.

Refer to the core user guide for more information on the generation of a payment order.

Default of Agent and Settlement Instructions into AA

When a new product is opened for a customer, the system defaults the agent and the settlement instructions from the DEP.H.EXT.TRF.PARAM application, if defined.

Whenever the primary customer of the AA Products are changed, the system updates/defaults the agent and settlement info based on the new customer.

Whenever there is an amendment in the default instruction definition in the DEP.H.EXT.TFR.PARAM application, the system has an ability to track and update the arrangement conditions (during EOD) based on the amendments made.

Accounting Entries based on Payment Connection Method and Payment Order Product

Ability to configure the payment connection method FT for specific products only, like only for Official Cheque FT is required, and for other payment order product external payment method is required.