1. India NEFT User Guide
  2. NEFT Inbound Payments
  3. NEFT Inbound Payments Processing
  4. NEFT Inbound Payment Validations
  5. N04 and N02 Messages Matching & Release Final Credit

N04 and N02 Messages Matching & Release Final Credit

Following are the processing steps:
  • After the successful EAC Check – Approved, System does not immediately post accounting entries for the incoming credit payments.
  • Incoming Payments transactions are marked with below transaction status as:
    • ‘Active’, (After ECA Check -Approved, but N04 for the batch time/date not received)
    • ‘Processed’, (After N04 for the corresponding batch time/date received)
    • ‘Returned’, (In case of return due to valid reasons)
  • N04 Match and RCLG Accounting:
    • System checks if N04 is received for the corresponding N02s based on the fields below.
    • On receipt of N04, system performs automatic matching of the N04 with N02s based on the fields (:3535) ‘Batch Time, (:3385) ‘Date’, Receiver IFSC code present in the N04 message against the fields (:3535) ‘Batch Time, Originating Date, Receiver IFSC code present in the N02 message.

    Note:

    While N02 messages are continuously received, N04 end of batch settlement message is sent by RBI Clearing Centre at the end of every 30-minute batch time.
  • If matched, system triggers the RCLG event as - Dr. Nostro Account and Cr. Clearing GL.

Transaction accounting

System releases the final credit (DRLQ/CRLQ accounting entries posting) to the beneficiary account. Such successful incoming payment transactions statuses are marked as ‘Processed’.
  • If Incoming payment could not be credited to the beneficiary account for any valid reasons such as Beneficiary Name Mismatch, Beneficiary Account Invalid, Inward Credit to NRE from Non-NRE account etc.), such transactions are ‘Returned’ from ‘Repair’ Queue.
  • There can be transactions pending in the exception queues (such as Process Exception/Business Override/Repair Queue/Authorization Limit Check/ Sanction Check/Pricing Queue/EAC) which can be settled any time before B+2 cut-off time. (Refer Returns Processing section for B+2).
    • Such transactions are placed into the success path of the incoming process flow post Repair/Approval from the respective exception queues.
    • System checks if the corresponding N04 message is received and matched before final credit to beneficiary. If matched, then it triggers DRLQ, CRLQ events as part of transaction accounting.

Parent topic: NEFT Inbound Payment Validations