Introduction to T24 Fund

Transfer
Funds Transfer is one of the account based
applications in T24 for moving funds internally
and externally
Internally, payments can be made i.e from A/c
to A/c or from customer account to internal
account( commission, charges). It could
involve transferring money from one customer
account to another customer account
The application is designed to handle all types
of currencies, local or foreign and inward or
outward payments.
. FT application integrates with T24 core
functionality such as Accounting, Limits and
Delivery, such that limits are checked online
for each transaction and the accounting
entries are passed on authorization of
transaction
FUNDS.TRANSFER (FT) is the part of T24 used
to effect payments, either internally from one
ACCOUNT to another, or externally to another
bank i.e correspondence bank
FT handles internal and external funds
movements:
Customer payments
Banks own payments
Incoming (inward)
Outgoing(outward)
FUND TRANSFER
FT is an account based application
Works on:
Customers,
Internal accounts and
Contract application
FT will be made from:
A/C to A/C Transfer
Draft Bankers cheque.
International Remittance
Media of Delivery
SWIFT
Customer Advices (PRINT)
 Integrate with:
Accounting
Limits
Delivery
Rounding

In the Funds Transfer application, when a debit or credit

currency is a Foreign currency and Treasury rate or

default buy/sell rate is used to convert it into local

currency a rounding rule can be applied, the default in

T24 is natural.
Role Based Home Page on Remittance
Like others it evolves: multiple screen & enables end
users & supervisors to carry out their duty/part.
FUNDS TRANSFER Static Tables
.CURRENCY-used to name the debit and credit
currencies and also to default exchange rate if
they are not local currency.
NOSTRO ACCOUNT Used to pre specified
Nostro account to FT transactions
(FUNDS.TRANSFER)- e.g. for GBP related
transaction Midland Bank account be defaulted
FT.COMMISSION.TYPE
Funds Transfer Mandatory details
ID FTYYDDDNNNNN
To avoid the necessity to input the complete
reference number, the user has the facility to
input only the seq. no the application will
append with the 7 numbers.
The Standard FT1010412345: where 10104 is
todays Julian date and 12345 is a transaction
count thus allowing up to 99,999 FT transactions in
one day.
 FT-mandatory details
Debit account
Debit currency & amount
Debit value date
Debit narrative
Ordering customer mandatory only when the original
ordering the transaction is not the same as the
customer of debit account.
Note: Similar details for the credit side of the transfer
Credit value date identifies the date when the credit is to be
given and is used for interest calculation in credit account.
Funds Transfer Optional details
Treasury Rate
Customer Spread = TR + CR
Customer Rate Manually input if TR & CS are
null
Rate Fixing

When an exchange rate for a currency is not fixed in the

CURRENCY application (FIXING.DATE is less than FTs
PROCESSING.DATE) and the FT transaction between foreign
currency contract and the other side (Dr/Cr) account currency
is local currency then system raises override RATE NOT FIXED
USE EXISTING RATES. The response to this override can be
as YES to use the available exchange rates or NO to wait
till the exchange rates for the day is available.
 WORKSHOP- 1 ,2 On PAGE-

9&12
Input Details for Draft Issue
Beneficiary
Debit Account
Draft Currency
Draft Amount
Draft Number
Charges=Debit plus charge(ordering customer)
and credit less commission(beneficiary).
Credit account number
For LCY internal A/C & For FCY Nostro account
 WORKSHOP- 3 PAGE-18
v
 When foreign currency demand issued banks
usually send out a confirmation to its Nostro
account bank by means of swift message
MT110 .

MT110 contain reference no, beneficiary

name, along with instruction if any.

Nostro account bank will act on this message

When the draft presented for payment.
Example. MR. dell has an account with t24
bank and wants to send an amount to frank
bishop, who is not an account holder in t24 bank
. In this instance ,T24 bank will issue a draft in
favor of frank bishop by debiting the account of
dell .simultaneously T24 bank will advise its
nostro account bank namely Barclays bank with
MT110 message . The draft sent by Michel dell
to frank bishop who present the draft to Barclay
bank London's the draft will honored and
payment will be effected to the beneficiary.
 WORKSHOP- 4 PAGE- 22
Out ward Remittance MT 103 single customer
credit transfer
Similar to Input details for draft issue with
MT 110
In the earlier instance, we saw that MR. Dell
purchased a draft in favor of Frank Bishop and
sent the instrument across to Bishop to enable
him to present the same with his bank for
getting the credit. Alternatively, Dell can
request T24 Bank to transfer the money
electronically to Bishop.
In this case, T24 Bank will send a different
type of message to Nostro Bank advising
them to credit the Beneficiary.
Note that in this case no drafts or cheques are
to be issued by T24, not does Bishop have to
present the draft to his Bank. Such transfers
involving single customer credit and it can be
done through MT103.
Inward Remittance
It can be handled through FT application
Manually or
Automatically if there is a suitable interface with
SWIFT
Can be handled through
Vostro account or
Nostro account
Possible to predefine the commission to be defaulted
while doing the Inward remittance transaction.
 WORKSHOP- 5 PAGE-28
FT Mitigation of Business Risk
For A/c to A/c transaction involve same
currency user inputs only one amount to
minimize data entry error
Enquiries
Foreign Currency Draft Issued
Outward Remittances
Transfer Between Nostros
Inward remittances
Enquiry of FT Reversed
Receiver correspondent bank charges (MT103) - OUTWARD
Charges regarding
remittance
Charges on outward remittance could be
collected from beneficiary , our
customer(ordering customer) or shared
amongst the banks.
The above option are called BEN,OUR,SHA in
short respectively.
If our mentioned on MT110 , both banks
charge collected from ordering customer. If it
BEN then all charges borne by beneficiary.
SHA means all transaction charges on the
senders side are borne by ordering customer
and transaction charges on the receiver's side
are to be borne by beneficiary customer
WORKSHOP- 6,7 PAGE-34,40