Explanatory note on use of ‘COR1’ and ‘SMNDA’ in SDD R-transactions

Guidance documents
Direct debit

From 20 November 2016 onwards, all Direct Debit (SDD) collections presented for the first time, on a recurrent basis or as a one-off collection can be presented up to D-1 Inter-Bank Business Day (D-1). As a result, the local instrument code ‘COR1’ which was created to cater for an optional shorter time cycle (D-1) for collections is no longer relevant. Only ‘CORE’ can be used as of 20 November 2016.

Furthermore, following the IBAN-Only rule of the End-Date Regulation, the debtor is no longer obliged to provide a BIC when signing the initial SDD mandate or when it communicates another IBAN to be debited. When the creditor however only receives a new IBAN from the debtor, it will not always be possible to derive if an account change took place within the same or in another debtor bank. To better accommodate this situation the initial definition of the acronym ‘SMNDA’ was changed from “Same Mandate with a New Debtor Agent” to “Same Mandate with a New Debtor Account”. The new definition will apply as from 20 November 2016.

This explanatory note was created to help SDD scheme participants to correctly process ‘COR1’ and ‘SMNDA’ in R-transactions created from 20 November 2016 onwards, related to original SDD collections processed before 20 November 2016.

Document download