Page 126 - DMGT303_BANKING_AND_INSURANCE

Unit 6: New Age Clearing and New Age Payment

Provision for multiple interfaces. Notes
Ability to provide value added services to business community.

Access to card hot list to filer out fraudulent deals.
The payment gateway will provide a mechanism to manage both volumes based as well as
value based transactions at both micro and macro levels. Various banks in India, handling a
multitude of payment instruments will share it.

Structured Financial Messaging Solution (SFMS)

Structured Financial Messaging Solution is a modularized web enabled software for financial
message communication. This is a flexible architecture that facilitates centralized or distributed
deployment, secured messaging and routing based on store and forward principles.
The Institute for Development and Research in Banking Technology (IDRBT), Hyderabad, an
autonomous centre for development and research in Banking established by the Reserve Bank
of India in 1996, aims at providing Indian Financial Network (INFINET) as a reliable
communication backbone for National Payments System catering to inter-bank applications
like RTGS, government transactions.

Advantages

SFMs facilitates faster intra/inter-bank communications.
SFMs for all practical purposes enables reliable communication.
It is a secured messaging system where file transfer is possible from one end to the other
end.

Messages

Messages sent through the mode of SFMS by the bankers may relate to any or all the following
areas:
Customer Payments and Cheques

Financial Institution Transfers
Treasury Markets, Foreign Exchange, Money Market, Derivatives
Collections and cash letters
Securities Market
Precious Metals and Syndications

Documentary credits and Derivatives
Travellers Cheques
Cash Management and customer status

Common Group Messages

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