India RTGS Inbound Payments: Returns Processing
The Beneficiary bank must return the transaction to the originating bank within one hour of the receipt of the payment or before the end of the RTGS Business day, whichever is earlier, if it is not possible to credit the funds to the beneficiary customer’s account for any valid reasons.
- Inward Credit to a NRE account from a Non-NRE account
- Invalid Beneficiary account
- Rejection/Cancellation from the Incoming Exception queues (such as Process Exception/Business Override/Repair Queue/Authorization Limit Check/ Sanction Check/Pricing Queue/EAC)
Returns (Cancel action) can be done from any Queue where you can input the Return reason Code and Return Reason.
The Cancel Details screen handles the return of RTGS inbound payments. System generates pacs.004.001.03 for the returns processed.
When an inbound transaction is canceled from the queue, the following accounting entries are posted and the inbound payment transaction gets reversed except for the charges.
| Dr / Cr | Account | Value Date | TXN_CCY |
|---|---|---|---|
| Dr | Nostro Account | Return Processing Date | Account Currency |
| Cr | Intermediary GL | Return Processing Date | Transfer Currency |
| Dr | Intermediary GL | Return Processing Date | Transfer Currency |
| Cr | Return GL | Return Processing Date | Transfer Currency |
| Dr / Cr | Account | Value Date | TXN_CCY |
|---|---|---|---|
| Dr | Return GL | Return Processing Date | Account Currency |
| Cr | Intermediary GL | Return Processing Date | Transfer Currency |
| Dr | Intermediary GL | Return Processing Date | Transfer Currency |
| Cr | Nostro Account | Return Processing Date | Transfer Currency |
Note:
In case of returns, incoming credit and debit happens to Return GL and reversal is also done to Return GL.
The system generates notification ‘RETURN_SUCCESS’ as part of the Inbound Return transaction processing.
Below mentioned is the accounting entry posting of the Inbound Return transaction processing:
| Event Code | Amount_ Tag | Account | Transaction Date | Value Date | Dr/Cr | TXN_CC Y | TXN_A MOUNT |
|---|---|---|---|---|---|---|---|
| DRLQ | TFR_AM OUNT | Nostro Account | Return Processing Date | Return Processing Date | Dr | Transfer Currency | Transfer Amount |
| DRLQ | TFR_AM OUNT | Intermediary GL | Return Processing Date | Return Processing Date | Cr | Transfer Currency | Transfer Amount |
| Event Code | Amount_ Tag | Account | Transaction Date | Value Date | Dr/Cr | TXN_CC Y | TXN_A MOUNT |
|---|---|---|---|---|---|---|---|
| CRLQ | TFR_AM OUNT | Customer | Return Processing Date | Return Processing Date | Cr | Account Currency | Debit Amount |
| CRLQ | TFR_AM OUNT | Intermediary GL | Return Processing Date | Return Processing Date | Dr | Transfer Currency | Transfer Amount |
Parent topic: RTGS Inbound Return Payments