PSD2 Validations

This is applicable for both Cross Border and RTGS.

System does the PSD2 compliance checks if PSD is applicable for the Host and the source. The below are the different scenarios handled in PSD2 check.
- Intra EU/EEA (BOTH LEGS IN) – Both Sending and Receiving Payment Service Providers (PSPs) are in EU or EEA countries.
- ONE LEG OUT (Outbound) – The Sending PSP is in EU/EEA country but the Receiving PSP is outside of EU/EEA regions
- ONE LEG OUT (Inbound) – The Sending PSP is outside EU/EEA but the Receiving PSP (this bank) is within EU/EEA regions
For each of the above listed scenarios there can be 4 different cases based on the payment currency and FX requirement:
- Intra EU/EEA in EU/EEA currencies – no FX
- Intra EU/EEA in EU/EEA currencies – with FX
- Intra EU/EEA in non-EU/EEA currencies – no FX
- Intra EU/EEA in non-EU/EEA currencies – with FX

Table given below summarizes the applicable PSD2 Compliance support in the system:

Payment Scenarios	Charges	Charges	Outbound payments - Execution time and Value dating *	Inbound payments - Value dating and Availability of funds
--	Charge options allowed	Charge Deduction	--	--
INTRA EU/EEA Both Legs IN	INTRA EU/EEA Both Legs IN	INTRA EU/EEA Both Legs IN	INTRA EU/EEA Both Legs IN	INTRA EU/EEA Both Legs IN
In EU/EEA currencies – no FX	Outbound payments -SHA For pass through payments charge option will be retained as is For pass inbound payments charge option will be changed to SHA Applicable for SWIFT/RTGS	No deductions for BEN/SHA the calculated charges will be waived For BEN/SHA Note: Not Applicable for Outbound Origination The option OUR will work the same way as the normal payment	Maximum execution D+1	Credit to Beneficiary to be given with same value date on the day the payment is settled (by Clearing) or Cover matching happens (inbound SWIFT) and Received date is not considered.• Even if current day is a holiday for Payment currency, inbound payment with current Value date to be processed today, provided Today is not a Branch holiday. If current day is Branch holiday then inbound payment to be processed on next Branch working day but Credit given with payment value date. If inbound payment was stuck overnight in Sanctions queue or rolled forward from any other queue, on the day it is re-processed, Credit to be back valued.
In EU/EEA currencies – with FX	Outbound payments -SHA For pass through payments charge option will be retained as is For pass inbound payments charge option will be changed to SHA Applicable for SWIFT/RTGS	No deductions for BEN/SHA the calculated charges will be waived For BEN/SHA Note: Not Applicable for Outbound Origination The option OUR will work the same way as the normal payment	Maximum execution D+1	Credit to Beneficiary to be given with same value date on the day the payment is settled (by Clearing) or Cover matching happens (inbound SWIFT) and Received date is not considered.• Even if current day is a holiday for Payment currency, inbound payment with current Value date to be processed today, provided Today is not a Branch holiday. If current day is Branch holiday then inbound payment to be processed on next Branch working day but Credit given with payment value date. If inbound payment was stuck overnight in Sanctions queue or rolled forward from any other queue, on the day it is re-processed, Credit to be back valued.
In Non-EU/EEA currencies –no FX	Outbound payments -SHA For pass through payments charge option will be retained as is For pass inbound payments charge option will be changed to SHA Applicable for SWIFT/RTGS	Similar to normal transactiondeductions allowed Note: Not Applicable for Outbound Origination	Not Applicable	Credit to Beneficiary to be given with same value date on the day the payment is settled (by Clearing) or Cover matching happens (inbound SWIFT) and Received date is not considered.• Even if current day is a holiday for Payment currency, inbound payment with current Value date to be processed today, provided Today is not a Branch holiday. If current day is Branch holiday then inbound payment to be processed on next Branch working day but Credit given with payment value date. If inbound payment was stuck overnight in Sanctions queue or rolled forward from any other queue, on the day it is re-processed, Credit to be back valued.
In Non-EU/EEA currencies – with FX	Outbound payments -SHA For pass through payments charge option will be retained as is For pass inbound payments charge option will be changed to SHA Applicable for SWIFT/RTGS	Similar to normal transactiondeductions allowed Note: Not Applicable for Outbound Origination	Not Applicable	Not Applicable
One Leg Out (Outbound payments) Receiving Bank Outside EU/EEA	One Leg Out (Outbound payments) Receiving Bank Outside EU/EEA	One Leg Out (Outbound payments) Receiving Bank Outside EU/EEA	One Leg Out (Outbound payments) Receiving Bank Outside EU/EEA	One Leg Out (Outbound payments) Receiving Bank Outside EU/EEA
In EU/EEA currencies – no FX	Charge option can be OUR, SHA or BEN. Charge option in the payment request will be retained. Applicable only to SWIFT payments	Deductions allowed	Maximum execution D+1	Not Applicable
In EU/EEA currencies – with FX	Charge option can be OUR, SHA or BEN. Charge option in the payment request will be retained. Applicable only to SWIFT payments	Deductions allowed	Maximum execution D+1	Not Applicable
In Non-EU/EEA currencies –no FX	Charge option can be OUR, SHA or BEN. Charge option in the payment request will be retained. Applicable only to SWIFT payments	Deductions allowed	Not Applicable	Not Applicable
In Non-EU/EEA currencies – with FX	Charge option can be OUR, SHA or BEN. Charge option in the payment request will be retained. Applicable only to SWIFT payments	Deductions allowed	Not Applicable	Not Applicable
One Leg Out (inbound payments) Sending bank outside EU/EEA	One Leg Out (inbound payments) Sending bank outside EU/EEA	One Leg Out (inbound payments) Sending bank outside EU/EEA	One Leg Out (inbound payments) Sending bank outside EU/EEA	One Leg Out (inbound payments) Sending bank outside EU/EEA
In EU/EEA currencies – no FX	Charge option can be OUR, SHA or BEN. Charge option in the payment request will be retained. Applicable only to SWIFT payments	Deductions allowed	Not Applicable	Same as Intra EU/ EEA- BOTH LEGS IN
In EU/EEA currencies – with FX	Charge option can be OUR, SHA or BEN. Charge option in the payment request will be retained. Applicable only to SWIFT payments	Deductions allowed	Not Applicable	Same as Intra EU/ EEA- BOTH LEGS IN
In Non-EU/EEA currencies –no FX	Charge option can be OUR, SHA or BEN. Charge option in the payment request will be retained. Applicable only to SWIFT payments	Deductions allowed	Not Applicable	Same as Intra EU/ EEA- BOTH LEGS IN
In Non-EU/EEA currencies – with FX	Charge option can be OUR, SHA or BEN. Charge option in the payment request will be retained. Applicable only to SWIFT payments	Deductions allowed	Not Applicable	Not Applicable

Note:

The Maximum Execution time in days i.e. the Max. time by which the Receiver of an Outbound payment (who may also be the AWI/Beneficiary bank) gets settlement of the payment amount (i.e. funds credited to Receiver’s Nostro account) would be D+1 days, where

Payer’s (Debtor’s) account is debited with value date D (after the payment instruction is received from payer).
D is a working day for processing Branch and also the Activation date for the transaction.
D+1 day (Value date) is a working day for the processing Branch and for Payment Currency and Debit Account Currency (if different) or the Clearing Network (in case of (RTGS).

Debit Value date derived is the MT 103 32A date, Cover Value date, whichever is the latest.
Credit Value date is replaced with the new date, if provided by the External FX system.

PSD2 Changes for Corporate BICs are part of the Payment Chain

Parent topic: PSD2 Compliance