Settlements BC
The Settlements BC is integral to settling Participant transfers using either Deferred Net Settlement or Immediate Gross Settlement methods. It is responsible for creating settlement windows, identifying and deploying the required settlement method (DNS/IGS), settling, closing, and updating batches, and recording all deposits and withdrawals to the appropriate ledger accounts in the Accounts and Balances BC.
Terms
The following terms are used in this BC, also known as a domain.
DNS
Deferred Net Settlement
IGS/RTGS
Immediate Gross Settlement/Real-Time Gross Settlement
Operator
Person or System issuing instructions/requests
Participant
FSP/PISP or FSP Customer
Account
Ledger Journal Account (Cr/Dr)
Functional Overview
Use Cases
Deferred Net Settlement (DNS)
Description
Method of deferring payments to enable settlement on multiple batches according a predetermined schedule. This is useful for environments involving multiple Participants to a transaction requiring a balance of payment due settlement approach.
Flow Diagram
UC Workflow Diagram: Deferred Net Settlement - 19/10/2021
Immediate Gross Settlement (IGS)
Description
Method to enable immediate settlement of batches. This is useful for SME environments where quick payment turnarounds are often desirable in order to maximize their liquidity. IGS is also known as Real-Time Gross Settlement (RTGS)
Flow Diagram
UC Workflow Diagram: Immediate Gross Settlement
Abort Settlement
Description
Method that enables the Settlement BC to abort a settlement as required, reversing Participant settlement accounts, updating the settlement status for settlement windows, and updating the settlement state.
Flow Diagram
Create/Update the Settlement Model (DNS/IGS)
Description
Method that enables the Settlement BC to create or update the settlement method for a settlement batch based on the Participant Account Type. Useful in instances where mixed Settlement Methods are required.
Flow Diagram
Bootstrap (Startup) Settlement Model via Configuration
Description
Method that configures the Settlement Method (DNS/IGS) based upon the system startup configuration. Useful in instances where all Settlement Models are the same, such as all DNS, or all IGS.
Flow Diagram
UC Workflow Diagram: Bootstrap (Startup) Settlement Model via Configuration
Create Settlement related accounts for newly created Particpants
Description
The system creates settlement accounts for new Participants to enable fund transfers to managed by the Switch. This enables the Switch to exercise end-to-end management of all transfers irrespective of settlement method.
Flow Diagram
Last updated
Was this helpful?