1. User Guide
  2. Multi Bank Cash Concentration
  3. Sweep Mechanism

4.3 Sweep Mechanism

This topic describes the information about the sweep mechanism.

The following steps list out the sweep mechanism:
  • Mirror accounts for all the third-party accounts are created in the Third-Party Maintenance.
  • Multi Bank Cash Concentration structures are created.
  • The Third-Party Bank accounts are created as child account in the MBCC structures.
  • MBCC cut offs are maintained for each BIC.

Sweep In

The steps followed for sweep in are as follows:
  • Account balances from the third-party accounts uploaded in to the system through MT940 or MT941 or MT942 or CAMT.052 or CAMT.053 as per the pre-defined frequency parameters and time intervals for each mirror account.
  • Mirror account balances will be updated by processing the incoming MT940, MT941, MT942, CAMT.052 and CAMT.053.
  • Balances will be updated based on either MT940 (Customer Statement) or MT941(Balance report) or MT942 (Interim transaction report) or CAMT.052 (Interim Transaction report or Balance report) or CAMT.053 (Customer Statement).
    • MT 940: Balance can be updated based on the closing available balance tag of the message and duplicates can be checked based on statement number/sequence number tag.
    • MT 941: Balance can be updated based on the closing available balance tag of the message and duplicates can be checked based on statement number tag.
    • MT 942: Interim Transaction report from the last statement or Balance report or Last Interim report is received the current available balance in the external account will be determined. The same is achieved by taking the balance from the previous MT940 or MT942. The credits are added and debits are subtracted.
    • CAMT.052 and CAMT.053: Balance is updated based on the following tags available in the incoming message:
      • Closing Balance
      • Interim Balances
      • Opening Balances
      • Transaction entries
      • Total Debit entries
      • Total Credit entries
      • Total Net entry
  • If the response \ incoming MT940, MT941, MT942, CAMT.052 and CAMT.053 updates a balance greater than the target balance in the mirror account, then a MT103 will be generated at the set time maintained for a sweep-out to regularize the debit balance on the third-party account.
  • The processing of MT103 which is received in response to MT101 will update the designated CASA Account.
  • MT101 generation caters to the following sweep types on third party accounts:
    • Zero balance sweep
    • Target balancing (Fixed)
    • Threshold balancing
    • Collar balancing
    • Percentage sweep

Table 4-1 MT/CAMT Report Purpose

MT/CAMT Message Purpose
MT940 Customer Statement Message Provides the balance and transaction details of an account to a Financial Institution on behalf of the account owner.
MT941 Balance Report Provides the balance information of an account to a Financial Institution on behalf of the account owner.
MT942 Interim Transaction Report Provides the balance and transaction details of an account for a specified period to a Financial Institution on behalf of an account owner.
It is used to transmit detailed and/or summary information about entries debited or credited to the account since:
  • The last statement or balance report, or
  • The last interim transaction report (sent in the period since the last statement or balance report).
CAMT.052 Interim Transaction report or Balance report Provides balance and transaction details of an account for a specified period to a Financial Institution on behalf of an account owner.
  • It is used to transmit the balance report.
  • It is used transmit detailed and/or summary information about entries debited or credited to the account since:
    • The last statement or balance report
    • The last interim transaction report (sent in the period since the last statement or balance report).
The CAMT.052 replaces the MT941 and MT942 messages
CAMT.053 Customer Statement Message Provides balance and transaction details of an account to a Financial Institution on behalf of the account owner.
  • It is used to transmit the balance report.
  • It is used transmit detailed and/or summary information about entries debited or credited to the account since:
    • The last statement or balance report
    • The last interim transaction report (sent in the period since the last statement or balance report).

The CAMT.053 replaces the MT940/ MT950 messages.

Sweep Out

The steps followed for sweep out are as follows:
  • If the response \ incoming MT940, MT941, MT942, CAMT.052 and CAMT.053 updates a Debit balance in the mirror account, then a MT103 will be generated at the set time maintained for a sweep-out to regularize the debit balance on the third-party account.
  • The system follows the sweep parameters set at the account level when arriving at the amount to be transferred via a MT103.
  • The following sweep parameters can be set as an independent or a combination:
    • Zero balance sweep
    • Target balancing (Fixed)
    • Threshold balancing
    • Collar balancing
    • Percentage sweep

Parent topic: Multi Bank Cash Concentration