AMIT JAIN BTech 3

rdYEAR

CSE, IIT ROORRKEE

EMAIL: amit.get.in@gmail.com

Project Guides

Shri G. Raghuraj General Manager, SFMS

C.K.Sampath Kumar Manager SFMS

IDRBT, Hyderabad

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INSTITUTE OF DEVELOPMENT AND RESEARCH IN BANKING TECHNOLOGY

(IDRBT)

Road No.1,Castle Hills, Masab Tank,

Hyderabad-500057

CERTIFICATE

This is to certify that Mr. Amit Jain, pursuing B.Tech course at IIT, Roorkee in the Department of

Computer Science and Engineering (CSE) was assigned a project as a summer intern at Institute

for Development and Research in Banking Technology, Hyderabad from May 14, 2013 to

July12, 2013.

He was assigned the project “MIS Reports in SFMS” under my guidance. During the course of

the project he has developed an application which generates reports in SFMS. Mr. Amit Kumar

has developed a very user friendly report generation software.

We wish him all the best for all his endeavours.

C. K. Sampath Kumar

(Project Guide)

Manager SFMS

IDRBT,Hyderbad

G. Raghuraj

(Project Guide)

General Manager SFMS

IDRBT, Hyderabad

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ACKNOWLEDGEMENT

I would like to express my sincere gratitude to the Institute for Development and Research in

Banking Technology (IDRBT) and particularly Shri G. Raghuraj, General Manager - SFMS and

Shri C.K.Sampath Kumar, Manager - SFMS, IDRBT who were my guides in this project. I would

not hesitate to add that this short stint in IDRBT has added a different facet to my experience in

life as this is a unique organization being a combination of academics, research, technology,

communication services, banking applications, etc. and at the same time performing roles as an

arm of a regulatory body and spread of technology.

I am grateful to Shri G. Raghuraj and Shri C.K.Sampath Kumar for their advice, innovative

suggestions and supervision. I thank them for giving me the opportunity to develop an application

for SFMS.

I am thankful to Department of CSE, IIT Roorkee for giving me this golden opportunity to work

in a high-end research institute like IDRBT. I am thankful for IDRBT for providing such an

amazing platform to work in SFMS. Finally, I thank one and all who made this project successful

either directly or indirectly.

Amit Jain

B.Tech CSE

IIT Roorkee

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CONTENTS

1. Introduction

2. SFMS

3. NEFT

3.1. Features of NEFT

3.2 Advantages of NEFT

3.3. Types of messages in NEFT System

4. Development of Applicaton

5. Snapshots

6. Future Enhancement

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INTRODUCTION

The need for a secure and common messaging system that would serve as the basic platform for

intra-bank and inter-bank applications, and would fulfill the requirements of domestic financial

messaging, gave birth to the Structured Financial Messaging System (SFMS). The SFMS was

launched on December 14, 2001, at the IDRBT.

The SFMS is built on the lines of SWIFT but has many more utilities to offer. The major

advantage of SFMS is that it can be used practically for all purposes of secure communication

within the bank and between banks. The intra-bank part of SFMS, which is most important, can

be used by the banks to take full advantage of the secure messaging facility it provides.

The inter-bank messaging part is useful for applications like Electronic Funds Transfer (EFT),

Real Time Gross Settlement System (RTGS), Delivery Versus Payments (DVP), etc. The SFMS

provides easy to use Application Program Interfaces (APIs), which can be used to integrate all

existing and future applications with the SFMS. The Banks can develop comprehensive and

efficient tools and applications and integrate them easily with SFMS for use on the Corporate

Intranet.

Banks can link all their important, high volume branches, irrespective of their category to the

SFMS through appropriate connectivity like MPLS or Leased Lines.

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SFMS

SFMS stands for Structured Financial Messaging System. We use this application to create, send

and receive financial or other interbank messages. All transactions related messages such debits

from bank, credits to bank, credit confirmation, etc., can be conveyed through SFMS messages .

There are different formats of messages for different types of applications including funds related

messages. These messages are in different unique formats identified by codes and structures

which are recognizable in the entire cycle of the messaging system.

Following are some of the different types of messages in SFMS :-

NEFT – NATIONAL ELCETRONIC FUND TRANSFER

RTGS – REAL TIME GROSS SETTLEMENT

BG – BANK GUARANTEEs

LC – LETTERS CREDIT

NEFT

NEFT stands for National Electronic Funds Transfer. This is a very popular system for transfer of

funds between different banks. The number of transactions is increasing day by day. In NEFT

application we perform different activities which lead to movement of funds from one bank to

another bank. In SFMS system, the financial transaction comes in format of a message which

holds the details required for the transactions. NEFT system picks messages which are received

by SFMS and settlement is done according to debit requests from banks. These messages are

converted into credit messages and sent to the beneficiary bank.

Separate processes are involved for different activities. These are:

1. Scheduler Process

2. Archive Process

3. Sent To RTGS

4. Send Credits

5. Send EOB/EOD

6. Send Rejections

7. Process Response

8. Send Credit AK

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Features of NEFT:

1. Batch Settlement.

2. Uses SFMS as messaging vehicle

3. Automated messaging from service centres

4. Secured and net settlement

Advantages of NEFT:

1. Secure and faster funds availability

2. No delay because of postal movement, loss in transit etc.

3. Manual work reduced and workload even out

4. Negligible reconciliation problems

5. Transaction processing & tracking easier

6. Covers more cities and branches safe, secure & fast

7. Economical

Types of messages in NEFT system:

The following are the important types of messages in NEFT:

IFN298N06:

Outward Debit Message (298N06 Message) and this message should be initiated from

branch of the banks and it should not be initiated from Service Centre of Banks.

IFN298N02:

Inward Credit Message from RBI to destination branches of other banks (298N02

Message).

IFN298N03:

Outward Debit Return or Rejection Transaction Message from RBI Service Centre to the

Banks (298N03 Message).

IFN298N04:

End-of-Day or End-of-Batch Message from RBI to destination branches of other Banks

(298N04 Message)

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IFN 298N05:

Settlement Confirmation or Rejection Message from RTGS to NEFT (298N05 Message).

IFN298N07:

Inward Credit Return or Rejected Transaction Message (298N07 Message) and this

message should be initiated from Branch of banks but it should not be from SC of Banks.

IFN 298N08:

Nil Transaction or Nil Rejection Transaction Message from RBI to destination branches of

other banks (298N08 Message).

IFN298N09:

Outward Debit Return or Rejection Transaction Message from Bank Service Centre not

from RBI Service Centre (298N09 Message).

IFN298N10:

Credit Confirmation Message from RBI to destination branches of other banks (298N10

Message).

IFN 298R12 :

Net clearing Request (298R12 Message).

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DEVELOPMENT OF APPLICATION

Presently the reports being generated by SFMS for banks is restricted to the data pertaining to a

few days prior to the date of query as the archival data is not available in the production.

In this scenario whenever a participating bank wants to refer an old data it has to construct

infrastructure of database and query.

This project is an attempt to provide a solution to banks to extract information on any particular

filter (parameter) for any given period.

The project is aimed to develop an application which generates all types of reports in SFMS, So

that any bank can easily get data of all types of transaction which will help them in reconciliation.

To develop this application::

Language used - JAVA for back-end coding

- JAVA-SCRIPT for front-end coding

Software used- Net beans IDE

Server used - Apache Tomcat

Database used - mysql

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Snapshots of code

Login Page

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Different types of Reports

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Different Categories of Reports in NEFT

1. Datewise Report in NEFT

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2. Reports on the basis of Message Types

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Reports on the basis of message status

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Reports on the basis of IFSC code

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Snapshots of Web Pages

Login Page

Reports Page

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NEFT Reports Page

Datewise Report

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Generated Report Format for Outward Transaction

Generated Report Format for Inward Transaction

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Future Enhancement

Currently, this application is applied for report generation for SFMS in NEFT using

Jasper Tool. In future, this can enhanced and applied for other message based applications such

as, RTGS, BGs and LCs. As Jasper is open source java tool it can be embedded with any java

application, by using same code to generate reports as required.