Setting up a Nostro Account

Overview
A Nostro Account is a duplicate of the account that your institution holds in the books of another
financial institution. There is no limitation on the number of Nostro Accounts that may be held.
The Nostro Reconciliation module may be used for automatic reconciliation of the account with the
electronic version of the bank statement. Please refer to the user guide on Nostro Reconciliation for
details on the reconciliation processes.

Access and Set-up

1. Administrator Menu>>System Tables>>Sector Code

Ensure that code 8001 - Banks has been defined in this table.

2. Administrator Menu>>System Tables>>Industry Code

Ensure that code 8000 - Banks has been defined in this table.
3. CATEGORY
Create CATEGORY 5001, called Nostro Account

4. ACCOUNT.CLASS
Use the parameters defined earlier to create the NOSTRO and BANK records in the
ACCOUNT.CLASS application.
 5. Customer Menu>>Non‐Individual Customer
Create a Non‐Individual Customer record for the financial institution. Ensure that the Sector
code is as defined in the ACCOUNT.CLASS application:

6. Account
Create an account by entering ACCOUNT, (comma) in the command line
Click on the New Deal icon and complete the fields as described below
When all the details have been entered, click on the Commit icon

ACCOUNT version

Note: the ‘Y’ flag at RECONCILE ACCT field will mean consolidated entries on the account statement.
Field Description

Account Number This is the number of the account. The format is defined by your
institution and set up at the time of implementation.

Customer Number Specify the customer for whom the account is being opened.
Select the number from the drop-down list.

Category The category code is the unique identification number for this
product (in the GL) and allocated on configuration of your
system, in this example it is 5001.

Account Name This is the name that describes the account. You may use up to
35 characters.

Currency This specifies the currency in which all financial entries for this
account will be recorded. Select the appropriate code from the
drop-down list. The default is the local currency of your
institution.

Account Officer This is the main Account Officer responsible for the account.
The field will be populated with the ID of the account officer as
defined on the Customer Information File.
Alternatively, select an Account Officer from the drop-down list.
The details are created and maintained in Administrator
Menu>>System Tables>>Account Officer

Limit Reference The system will default NOSTRO in this field once the record is
validated or committed,

Reconcile Acct Set the value to ‘Yes’.

7. AGENCY
The Agency File contains settlement details of major customers and all banks irrespective of
whether there is any business connection. Details include any arrangements, account
relationships and, where possible, the Agents correspondent bankers for specific currencies.
This information is entered centrally to supply Automatic Routing instructions for
remittances/cover to all banks and customers with whom your institution has numerous
dealings. This eliminates the need to re-enter the details at transaction level. It thus allows full
advantage to be taken of electronic delivery facilities by providing, automatically, the settlement
agents for remittances/cover involved in outward payments.
The absence of Agent's correspondent bankers’ information in this file will force the user to
enter these details each time at the transaction level.
Any Nostro account defined in this table is for information only and will not be used as a default
Nostro by the Transaction Processing Application which always uses the NOSTRO.ACCOUNT
file.
The basic details of these banks and major customers must first be defined in the Customer file
before the creation of the Agent details will be allowed. Having created a Customer record,
which is a Bank, it is advisable to create an Agency record with the same key, and all available
auto- routing details.
AGENCY version
Field Description

Nostro Acct No This is the number of the account opened in step 6 above. The
format is defined by your institution and set up at the time of
implementation.
Defines our actual Account Number in the Books of the Agent
Our Ext Acct No
Bank with whom a Nostro Account relationship exists. It is used
to identify the correspondent's statements related to the
account. Any details entered into this field will be accepted
without further validation and are for information only.
Validation Rules:
Up to 34 type A (alphanumeric) characters. Multi value field to
define actual Nostro account numbers. Associated with field
NOSTRO.ACCT.NO. (Optional input if Nostro Account details
input, otherwise not allowed.)
Holds IBAN of the OUR.EXT.ACCT.NO
Iban Our Ex Acc
If value is entered, it will be validated against
IN.IBAN.STRUCTURE file, else an equivalent IBAN will be
retrieved from an external account record with alternate
account
Draft Advice Defines those bank accounts which require drawing advices to
be issued and sent to them when drafts are drawn on them.

Defines the Account Number of an account belonging to an

Their Acct No Agent (correspondent) maintaining a Vostro Account in our
Books.
The Currency of the Vostro Account will be checked to ensure
that it is OUR local currency. Where it is in a Currency other
than local, an override will be required.
The Customer number on the Account record must correspond
to the ID field of the Agent being defined.
Validation Rules:
2-16 numeric character Account number or 3-10 type MNE
(uppercase alpha or numeric or '.') character mnemonic. Multi
value field. (Optional input if Agent is defined as a bank and the
Account as a Vostro as per ACCOUNT.CLASS file. Otherwise
not allowed.)
Defines the American Banks Association (ABA) unique
Aba Number identification for banks in the U.S.
Within Funds Transfer, the SWIFT standard for Country codes
has been adopted. Therefore, the program tests for Residence
= US, if SWIFT is not being used this can be amended to test
for the actual code used.
Validation Rules:
4 numeric characters. Optional input if Agent is defined as a
Bank (as per ACCOUNT.CLASS file). Otherwise not allowed.
The Residence on the Customer record must be United States
of America.
Defines the Universal ID applicable to banks and some multi-
Univ Id national Customers.
This identification is acknowledged throughout the world and
thus the field values are obtainable from a published user guide.
Validation Rules:
6 numeric characters. (Optional input if ABA number is blank,
otherwise not allowed.)
Defines the SWIFT confirmation address to be used on
Swift Conf Addr inward/outward telex payments involving this Agent (bank).
It is used in the generation of S.W.I.F.T. Common Reference in
S.W.I.F.T. messages. If this field is not completed then invalid
S.W.I.F.T. messages may be generated for this addressee.
Validation Rules:
8 or 11 characters in the following format: a) Bank code: 4 type
SSS (uppercase alpha) characters. b) Country: 2 type SSS
(uppercase alpha) character country code. c) Location/ Bank
code: 2 or 5 characters in the range A-Z and 0-9. (Optional
input, otherwise not allowed.)
The country will be checked to the COUNTRY Code file.
If an input is made and the Agent is not defined as a bank then
an override is required.
Test Signature Defines if testing arrangements exist with the Agent and if they
hold our authorised signatures.
Where a NOSTRO.ACCOUNT relationship is maintained with
this Agent, input must be T or B;
T = Telegraphic testing arrangements exist
S = Signature arrangements exist
B = Both conditions T and S exist
 Blank = No control documents

Autorouting Defines whether or no automatic routing instructions are to be

used for this Agent.

Defines the Currency for which the associated settlement

Autorte Ccy (Autorouting) instructions are to be used.
Each Autoroute is defined by the Currency of the remittance.
For each Currency separate routing instructions can be defined
for each Application.
Validation Rules:
3 type SSS (Uppercase alpha) characters or 1-3 numeric
character Currency code. Multi value field associated with field
range AUTORTE.APPL to AUTORTE.ACCT. (Mandatory input
if Autorouting indicator is Y.)
Any specific Currency code can only be defined once per Agent.
The specified Autoroute Bank must also have the same
currency quoted before data may be accepted for this Agent
record.
Defines the Application to which the associated Autoroute
Autorte Appl instructions apply.
When an ALL condition has been input in this field for a specific
Currency, an Application ID for the same Currency will only be
accepted if the Autoroute bank or the Autoroute Account are
different between the ALL and Application condition.
Validation Rules:
FD = Fiduciary FR = Future Rate Agreement
FT = Funds Transfer FX = Foreign Exchange
LC = Letters of Credit LD = Loans/Deposits
MM = Money Market SC = Securities
ALL = All of above Sub-value field of multi value field
AUTORTE.CCY associated with the sub-value fields
AUTORTE.BANK to AUTORTE.ACCT. (Mandatory input if
associated Autoroute Currency is input. Otherwise not
Any specific Application ID can only be defined once per
Currency.
ALL can be used to represent all Applications or all other
Applications.
Where both ALL and a specific Application is defined, the
System first attempts to use the specific Application. If not
acceptable (e.g. wrong Transaction Type) then use will be
made of the ALL default values.
Defines the bank to whom the Agent wishes cover to be paid
Autorte Bank for payments in a specified Currency and Application or a
specific
Customer or Vostro account or BIC code prefixed by SW- to be
used as the default.
If VOSTRO has been input there must be a valid Vostro
Account in THEIR.ACCT.NO, with the same Currency as the
Currency input.
Validation Rules:
1-10 numeric character Customer code or 3-10 or type MNE
(uppercase alpha or numeric or '.') character Customer
mnemonic or CUSTOMER or VOSTRO. Sub-value field of multi
value field AUTORTE.CCY and has associated fields
AUTORTE.APPL to AUTORTE.ACCT. (Mandatory input if
AUTORTE.CCY is input otherwise not allowed.) If the data
input is not CUSTOMER or VOSTRO it will be checked against
the ACCOUNT.CLASS file to ensure that it is a bank. If the
data input is not CUSTOMER or VOSTRO then it must either
be itself or exist on the AGENCY File. If the data input is not
CUSTOMER

20 InclusiveBankingSuite Product
 same as the Country of the Currency defined in the prior field,
an override will be requested but before this the following
additional checks will be performed on the Agency record of the
Autoroute Bank entered: - The Currency input must already
exist on the Autoroute Bank entered. - The Autoroute Bank for
that Currency is not the same as the Agent being defined. - The
Residence of the Autoroute Bank for that Currency must equal
the Country of the Currency defined in Autoroute Currency of
the Agent being defined. If the data input is not CUSTOMER or
VOSTRO then the Autoroute Bank cannot be the same as the
Agent except if defining the Autorouting conditions for the local
currency of the Agent.
The BIC code entered must be valid BIC code and should
already exist on the Agency file and should be prefixed by SW-.
The total length of this field is 14 characters. The BIC code may
also exist in DE.BIC.
N.B. In order to use the 'SW-' functionality in Funds Transfer,
the FT.TXN.TYPE.CONDITION field SWIFT.ADDRESS must
be set to YES for each of the types e.g. AC, OT, IC.
Defines the Region of the Country in which the Autoroute Bank
Autorte Regn resides.
If required the location of banks within a Country can be divided
into Regions to cater for specific local holidays in order that
varying notice periods may be applied.
Validation Rules:
1-2 numeric characters. Sub-value field of multi value field
AUTORTE.CCY associated with field range AUTORTE.APPL
to AUTORTE.ACCT. (Optional input)
It must be a valid code on the REGION table. (The Residence
of the Autoroute Bank is linked with the Region input in order to
validate against the REGION table.)
If CUSTOMER or VOSTRO has been input in the Autoroute
Bank field, the Region of the Country will be checked.
Defines the external Account number of the Agent with the
Autorte Acct Autoroute Bank.
If CUSTOMER is entered as the Autoroute Bank for the
associated AUTORTE.BANK field then an account number
must be entered in this field. The account must be in the same
currency as the associated AUTORTE.CCY, it must have the
same customer as the key to the AGENCY file and it must not
be defined as a NOSTRO or VOSTRO account.
If VOSTRO is entered as the Autoroute Bank, the System
defaults to the first THEIR.ACCT.NO with the Currency as
specified. If entered, must be one of the Vostro accounts
specified in THEIR.ACCT.NO fields.
Example:
Let us suppose that we are ABC bank and that we want to load
the AGENCY file with Deutsche Bank Frankfurt who wish to
receive for all Applications:
GBP with ABC bank 654321 USD with Morgan N.Y./Acct
123456 FRF with BNP Paris Acct 234567 DEM with
The following Agent record will be loaded up:
Deutsche Bank Frankfurt
Field Description Field Input
THEIR.ACCT.NO : 654321 AUTOROUTING : Yes
AUTORTE.CCY : GBP AUTORTE.APPL : ALL
AUTORTE.BANK : VOSTRO AUTORTE.REGN : 01
AUTORTE.ACCT : 654321 (defaulted)

21 InclusiveBankingSuite Product
 AUTORTE.CCY : USD AUTORTE.APPL : ALL
AUTORTE.BANK : Morgan NY AUTORTE.REGN : 01
AUTORTE.ACCT : 123456
AUTORTE.CCY : FRF AUTORTE.APPL : ALL
AUTORTE.BANK
: BNP Paris AUTORTE.REGN
AUTORTE.CCY : DEM : 01AUTORTE.APPL
AUTORTE.ACCT : 234567
: ALL
AUTORTE.BANK : Deutsche Fft (same as Agent)
AUTORTE.REGN : 01 AUTORTE.ACCT
Validation Rules:
Up to 34 type A (alphanumeric) characters or If CUSTOMER or
VOSTRO is the Autoroute Bank either: 2-16 numeric character
Account number or 3-10 type MNE (Uppercase alpha or
numeric or '.') character Account mnemonic. Sub-value field of
multi value field AUTORTE.CCY and associated with field
range AUTORTE.APPL to AUTORTE.REGN. (Optional input.
Not allowed if associated Autoroute Bank is this actual Agent
record.)
Specifies the currency for which a national clearing system
Clear Ccy code is required on a SWIFT message.
This field is multivalued and associated with field CLEAR.CODE.
It is used with the "AGENT" conversion when defining a
message on the DE.FORMAT.SWIFT file.
Validation Rules:
3 type SSS (uppercase alpha) characters or 1-3 numeric
character currency code.
Must not be duplicated.
Must be input if the corresponding CLEAR.CODE field is input.
Specifies the national clearing system code to be used on a
Clear Code SWIFT message.
This field is multi-valued and associated with field CLEAR.CCY.
It is used with the "AGENT" conversion when defining a
message on the DE.FORMAT.SWIFT file.
Validation Rules:
Up to 13 type A (alphanumeric) characters.
Input must be in the format of 2 alpha characters followed by up
to 11 numeric characters.
Must be input if the corresponding CLEAR.CCY field is input.
This field is used to indicate that an Agreement exists with the
Autoroute Agrd correspondent bank whose AGENCY record this is. Limited to
the FUNDS.TRANSFER application, the use of this field
controls whether a cover payment is sent to the correspondent
bank (or not) in situations where the receiving bank of the direct
payment has the same correspondent as we do.
The field has three possible values:
Blank
Where it is blank then cover payments will be sent where
required and the SWIFT message will contain values in both
the Sender Correspondent and Receivers Correspondent.
NO
Similar to above but only the senders correspondent is present.
YES
An agreement exists, and if both we and the receiver of the
direct payment message share the same correspondent the
cover payment is to be suppressed. Additionally, only the
receivers correspondent field will be populated (the senders
correspondent will be blank).
This field is used in conjunction with field
Cut Off Rule CUT.OFF.TIME
DEBIT.VALUE.DATE

22 InclusiveBankingSuite Product
 If the transaction is entered before the cut off time on the
currency file (for the debit currency) and
CUT.OFF.RULE
Validation Rules:
Valid values are 0 and 1
A value of 0 indicates that the 48 hour cut off time rule is not
being applied to this AGENCY record.
A value of 1 indicates that the rule is being applied.

23 InclusiveBankingSuite Product