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Settlement - Correspondents

Payment settlement where debtor and creditor agents are correspondents

Payment Details​

  • DEF electronics had raised an invoice for 10 million USD needs to be paid to DEF Electronics account 23683707994214 with AAAA Bank, London (AAAAGB2L).
  • ABC Corporation assigns reference ABC/4563/2023 to the payment.
  • Payment transaction charges are shared between ABC Corporation and DEF Electronics.
  • ABC Corporation, New York, holds an account 00125574998 with BBBB Bank, New York
  • AAAA Bank, London holds a USD account with BBBB Bank, New York and are correspondents.

Message Details​

  • On receipt of invoice, pain.001 will be sent by ABC Corporation, New York to its bank BBBB Bank, New York.
  • BBBB Bank, New York debits the DEF Electronics account 00125574998 and credits the AAAA Bank, London account in its books.
  • BBBB Bank, New York sends pacs.008 to AAAA Bank, London with settlement method as INGA.
  • INGA settlement method is used because BBBB Bank, New York is the account servicer and AAAA Bank, London is the account owner.
  • AAAA Bank, London debits its Nostro account and credits the DEF electronics account 23683707994214.
  • SMS or Email notification could be sent by AAAA Bank, London to DEF Electronics based on their internal agreement.

Message Flow