One-Leg Out Instant Credit Transfer

Key benefits of the OCT Inst scheme
 

Payers and Payees

• Payers and Payees in the Euro Leg have an account-to-account (A2A) based payment solution supporting both incoming and outgoing international instant euro credit transfers. 
  Clear maximum execution times (i.e. a few seconds only) are set for the Euro Leg of such transfers. The services based on the OCT Inst scheme for the Euro Leg are available 24 hours a day and on all calendar days of the year.
  Depending on the performance of the channel used in the non-Euro Leg jurisdiction where the transaction is coming from or going to, this may lead to a more rapid and predictable end-to-end execution of international payments.
• Attributes are foreseen to provide Payers and Payees with better transparency on costs for all parties - both those inside and outside of the Euro Leg - as well as on payment status traceability (e.g., via the option of using the Unique End-to-End Transaction Reference (UETR)). 
• The scheme relies on open and commonly accepted standards and data elements which help to improve the initiation and reconciliation of such transfers on a Straight-Through-Processing (STP) basis.
• The scheme also supports the possibility to send or to receive remittance data end-to-end on either a structured or unstructured basis. 
• The maximum amount of 100.000 EUR per OCT Inst transaction can support a wide variety of payment use cases.

Euro Leg-based Payee’s PSPs and Payer’s PSPs

• The scheme allows these Euro Leg PSPs to offer account-to-account based payment solutions supporting both incoming and outgoing international instant credit transfers. It gives them the possibility to offer their Payees and Payers a faster execution of such transactions, more up-front transparency on costs and on the parties involved in/concerned about, and a better payment status traceability (e.g., via the option of UETR and inquiry use cases).
• The scheme sets well defined processing timelines and steps for OCT Inst transactions in the Euro Leg. 
  It also enables more efficient and cost-effective processing, clearing and settlement for these credit transfers within the Euro leg, using the ISO 20022 XML messaging standard and existing intermediary PSPs and Clearing and Settlement Mechanisms (CSMs) operating in the Euro Leg. The scheme aims at maximum possible alignment with the SCT Inst scheme.
• The clearing and settlement for such credit transfers through Euro Leg-based intermediary PSPs and CSMs, and through the preferred non-Euro Leg channels (e.g., national payment infrastructures, schemes or systems) will potentially improve the liquidity management for those PSPs involved (e.g., via the offset between incoming and outgoing payment positions). It may also allow these PSPs to optimise the number of euro correspondent banking relationships.
• The scheme supports concepts, processes and attributes covered in the Cross Border Payments and Reporting Plus (CBPR+) and Cross-Border Instant Payments Plus (IP+) guidelines of SWIFT. This will facilitate the processing of such transfers based on better structured and richer data under the ISO 20022 XML messaging standard. 
• These PSPs can also rely on a predictable and automated r-transaction handling and inquiry processing.

Euro Leg Entry PSPs and Exit PSPs

• These PSPs can develop new business models by offering OCT Inst transaction services in the role of Euro Leg Entry PSP and/or Euro Leg Exit PSP for both Euro Leg-based PSPs and non-Euro Leg Financial Institutions.
• They can offer a standardised way of processing the Euro leg of international instant credit transfers and re-use the existing SCT Inst rails to process them.