Session 1 - ISO20022 standard Message Implementation Knowledge Question Answer Phase1, 10 Question

ISO20022 standard Message Implementation Knowledge Question Answer Phase1–10 Question

Q1. What is ISO 20022 standard? 

ISO 20022 — Universal financial industry message scheme (which used to be also called “UNIFI”) is the international standard that defines the ISO platform for the development of financial message standards. Its business modelling approach allows users and developers to represent financial business processes and underlying transactions in a formal but syntax-independent notation. These business transaction models are the “real” business standards. They can be converted into physical messages in the desired syntax. At the time ISO 20022 was developed, XML (eXtensible Mark-up Language) was already the preferred syntax for ecommunication. Therefore, the first edition of ISO 20022 proposes a standardized XML-based syntax for messages. The standard was developed within the Technical Committee TC68 — Financial Services of ISO — the International Organization for Standardization.  The Standard is issued by ISO Technical Committee 68 (TC68), which is responsible for Financial Services in ISO.  The Standard is managed by Working Group 4 (WG4), a sub-group of TC68 whose charter is “the management of ISO 20022”.  The Standard defines a Repository Management Group who manages the content of the Repository.  SWIFT is the Registration Authority for ISO 20022.

Q2. Why was ISO 20022 developed?

The need for ISO 20022 standard arose in the early 2000’s with the widespread growth of Internet Protocol (IP) networking, the emergence of XML as the ‘de facto’ open technical standard for electronic communications and the appearance of a multitude of uncoordinated XML-based standardization initiatives, each having used their own “XML dialect”. On top of offering a common way of using XML, the new standard shields investments from future syntax changes by proposing a common business modelling methodology (using UML — Universal Modelling Language) to capture, analyze and syntax-independently describe the business processes of potential users and their information needs.

Q3 . What are the parts of ISO 20022 message?

The ISO 20022 Business Message consists of two parts: (1) ISO 20022 Business Application Header (2) ISO 20022 Messages

Q4. What are the ISO messages defined in this document?

i) head.001.001.01 Business- Application Header ii) pacs.008.001.03 FIToFICustomerCreditTransferV03 : for Customer Credit transfer. iii) pacs.009.001.03 — FinancialInstitutionCreditTransferV03 : for Interbank transfer, for defining the MNSB request & defining the Own account transfer in NG-RTGS. iv) camt.054.001.03 BankToCustomerDebitCreditNotificationV03: for Customer Credit Debit Notification. v) pacs.002.001.04, FIToFIPaymentStatusReportV04 : for MNSB Response & Own Account Transfer Response in NG-RTGS. vi) pacs.004.001.03 PaymentReturnV03: to undo a payment previously settled. vii) camt.053 BankToCustomerStatement end-of-day NG-RTGS statements to the Participants viii) camt.998.001.02 to transmit various free format information to the Participants ix) MX admi.004.001.01 SystemEventNotificationV01: to notify the occurrence of an event in a central system.

Q5. What is the Business Application Header?

The Business Application Header is a header that has been defined by the ISO 20022 community that form part of an ISO 20022 business message. Specifically, the BAH is an ISO20022 message definition (head.001.001.01) which can be combined with any other ISO20022 message definition to form a business message. It gathers together, in one place, data about the message, such as which organisation has sent the business message, which organisation should be receiving it, the identity of the message itself, a reference for the message and so on.

Q6. Whether all messages will have BAH? All messages listed above will have the BAH attached to it.

Q7. What is the purpose of the BAH?

The purpose of the BAH is to provide a consistent and predictable way for this data to be conveyed with the message, regardless of implementation factors such as the choice of network. This does not prevent such data being conveyed either within the ISO 20022 message definition itself, or as part of a network header.

8. What’s in the BAH?

The BAH consist of 9 building blocks From: This mandatory field contain the details about the organisation that sent the message. In NG-RTGS the inward messages will always be originated from RBI because of the ‘V’ topology, hence this field will always have the IFSC of RTGS for all inward messages to the bank.. To: This mandatory field contains the details about the organisation that should receive the message. In NG-RTGS the outward messages will always directed to RBI because of the ‘V’ topology, hence this field will always have the IFSC of RTGS for all outward messages from the bank. Business Message Identifier: a unique identifier for this particular message instance, as defined by the sending application or system; Message Definition Identifier: the identity of the message definition BusinessService: To identify the Business service. Creation Date: the creation date (and time) for the data in the BAH; Copy Duplicate and Possible Duplicate: fields to aid the identification of duplicate data; Signature: Contains the digital signature of the Business Entity authorised to sign this Business Message. Related: Specifies the Business Application Header of the Business Message to which this Business Message relates. Can be used when replying to a query; can also be used when canceling or amending….

9. What is the member identification used in BAH?

Member identification is a mandatory field. The existing 11 character IFSC (Indian Financial System Code) is used as Member Identification. It is formed as below Character position Information Remarks First four characters Bank code Four Characters of bank Code Fifth character Zero Reserved for future use Last six characters Branch code Banks to use their existing codes with no white spaces(zeroes prefixed)

10. What is the BusinessMessageIdentifier in BAH?

ISO20022 standard Message Implementation Reserve Bank of India 4 | P a g e FAQ on NG-RTGS . It is a mandatory field which uniquely identifies the message. It is defined as 22 character unique number as given below: XXXX — Sender IFSC [4] first four characters of the IFSC YYYYMMDD — creation date [8] X — channel identification [1] Nnnnnnnnn Sequence Number [9] The Channel Identifier (X) may be used to identify channels such as Internet banking, Cash Management, Treasury, ATM, etc. The values suggested are:

Channel ID Values

NG-RTGS 9

Internet Banking 1

Cash Management 2

Treasury 3

ATM 4