Enhanced Batch Processing in RITS – January 2020 4. Settlement-Only Batch
A Settlement-only Batch represents a group of interbank ESA credits and debits that a Batch Administrator submits to RITS for simultaneous settlement. Funds availability is checked as part of the settlement testing of the batch. If funds are available for all participating paying Members, the batch will settle on the RITS System Queue.
The Batch Administrator may submit a Settlement-only Batch via a SWIFT message (for details see RITS/SWIFT Interface User Guide) or enter it directly into RITS via the RITS User Interface (for details see Batch Administrator User Guide).
4.1. Activation time for Settlement-only Batches
The Activation Time allows the Batch Administrator to send a Settlement-only Batch to RITS before it is required to be tested for settlement. When the Activation Time is reached, the Settlement-only Batch is sent to the RITS System Queue for settlement testing.
The Batch Administrator can enter an Activation Time directly in RITS when manually submitting the Settlement-only Batch, or in the SWIFT message when the Settlement-only Batch is submitted to RITS. The Batch Administrator cannot view a message-based Settlement-only Batch to amend the Activation Time; the Activation Time can only be amended for manually-entered Settlement-only Batches. It is not possible to change the Activation Time once the Settlement-only Batch has been placed on the RITS System Queue.
The Batch Administrator may choose to submit the Settlement-only Batch without setting an Activation Time. In this case, the system inserts the current time and the Settlement-only Batch is sent immediately to the RITS System Queue for settlement testing.
If the Activation Time entered in a Settlement-only Batch has already passed before it is received by RITS, the system ignores the time and the Settlement-only Batch is immediately sent to the RITS System Queue for settlement testing.
4.2. Management and recall of Settlement-only Batches: Batch Administrator
Settlement-only Batches that are awaiting the Activation Time to be reached or on the RITS System Queue may be recalled.
The Batch Administrator is able to recall Settlement-only Batches singly or all Settlement-only Batches in the Batch Stream via:
- the RITS User Interface, or
- by sending a SWIFT message (Batch Recall Request).
RITS does not allow Batch Administrators to manage individual payments in the Settlement-only Batch.
4.3. Management of payments: Participating Members
Members are able to manage their payments in the Settlement-only Batch by instructing the Batch Administrator to enter any of three statuses (ESA, Credit, and Cash Account statuses) in the SWIFT batch entry messages. Members can also set override/default statuses for the branch through which their payments are channelled.
When a Settlement-only Batch is sent to the RITS System Queue, regardless of whether it was message-entered or entered via the RITS UI, the payments in the Settlement-only Batch are assigned the override statuses that were set in RITS by the paying Member. If no status is contained in the message and no override is set in RITS, the system default of ‘Active’ is applied.
Members can also change the statuses of a queued batch transaction directly in the RITS User Interface, or via an AIF command.
Members cannot recall their Settlement-only Batch payments from the RITS System Queue, but can prevent settlement by applying a ‘Deferred’ status to their payments.
4.4. Settlement-only Batch Message Flows
See the table in Section 4.5 for information on the fields that are contained in each message flow shown below.
4.4.1. Settlement Request
| Ref. | Description |
|---|---|
| 1 | The Batch Administrator sends a Batch Settlement Request (MT198 SMT131)
to RITS via SWIFT. This message contains all of the details necessary to enter the batch into RITS. In most circumstances only one message will be required. However, if the batch contains a large number of entries, two or more Settlement Requests can be sent. RITS does not process the batch until all messages have been received. |
| 2 | RITS performs technical and business validations on the Batch Settlement
Request. If the Batch Administrator has entered an Activation Time for the batch, the batch is passed to the RITS System Queue for settlement testing when the Activation Time is reached. If no Activation Time is set, or the Activation Time has already passed, the batch will be passed to the RITS System Queue immediately. The RITS System Queue settles the batch. Postings are made to accounts in RITS. |
| 3 | RITS sends a Settlement Response (MT198 SMT132) to the Batch Administrator. |
4.4.2. Recall Request
| Ref. | Description |
|---|---|
| 1 | The Batch Administrator sends a Batch Settlement Request (MT198 SMT131)
to RITS via SWIFT. This message contains all of the details necessary to enter the batch into RITS. |
| 2 | RITS performs technical and business validations on the Batch Settlement Request, and places it on the RITS System Queue after the Activation Time is reached, or immediately if Activation Time is not used or has passed. |
| 3 | Before the Batch is settled on the RITS System Queue (i.e., while awaiting
the Activation Time or while being settlement tested), the Batch Administrator
sends a Batch Recall Request (MT198 SMT133). This message is sent by the Batch Administrator to recall a single batch or recall all batches currently at RITS in a nominated Batch Stream. |
| 4 | RITS performs technical and business validations on the Batch Recall Request.
On passing the validations, RITS removes the Settlement-only Batch from the RITS System Queue. |
| 5 | RITS sends a Batch Recall Response (MT198 SMT134) to the Batch Administrator. |
4.4.3. Rejection of a Settlement-only Batch
| Ref. | Description |
|---|---|
| 1 | The Batch Administrator sends a Batch Settlement Request (MT198 SMT131) to RITS via SWIFT. |
| 2 | RITS performs technical and business validations on the Batch Settlement
Request. The Batch Settlement Request fails the business validations and is rejected. |
| 3 | RITS sends a Settlement Response (MT198 SMT132) to the Batch Administrator that indicates the reason for rejection (in the form of a reject code and description). |
4.4.4. End of Day Processing
| Ref. | Description |
|---|---|
| 1 | The Batch Administrator sends a Batch Settlement Request (MT198 SMT131) to RITS via SWIFT. |
| 2 | RITS performs technical and business validations on the Batch Settlement
Request. The End of Day for the Batch Stream is reached. The Settlement-only Batch is still on the RITS System Queue undergoing settlement testing (e.g., one of the payers has insufficient ES funds). RITS removes the Batch from the RITS System Queue as Unsettled at End of Day. |
| 3 | RITS sends a Settlement Response (MT198 SMT132) to the Batch Administrator that indicates ‘message unsettled at end of day’ as the reason for rejection and the associated reject code (86). |
4.5. Settlement-Only Batch Message Content
The following table outlines the business content of messages that are exchanged between RITS and the Batch Administrator of the Batch Stream concerning Settlement-only Batches. Refer to the RITS/SWIFT Interface User Guide for specific information concerning the RBA's requirements for these messages (e.g., field size, mandatory/optional, allowable values).
| Message | Originator | Purpose | Business content |
|---|---|---|---|
| Batch Settlement Request (MT198 SMT131) |
Batch Administrator | Sent to RITS to submit a Settlement-only Batch for settlement. |
|
| Batch Settlement Response (MT198 SMT132) |
RITS | Advises the Batch Administrator whether the Batch Settlement Request was settled or rejected. |
|
| Batch Settlement Recall Request (MT198 SMT133) |
Batch Administrator | Sent to RITS to recall a Settlement-only Batch. |
|
| Batch Settlement Recall Response (MT198 SMT134) |
RITS | Advises the Batch Administrator whether the recall request was successful. |
|