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Onward Forwarding

On RippleNet, it is commonplace for the final Beneficiary of the payment to not be a customer of the Financial Institution acting as Reciever for the payment. In such cases, the payment will need to be forwarded through local or domestic clearing channels such as a Real Time Gross Settlement System (RTGS), an Automated Clearing House (ACH), or an Instant Payment Scheme. Such local clearing channels will have different operating rules and validations that need to be taken into consideration by the participating RippleNet members.

For example:

  • Payment amount limits (Min/Max)
  • Operating hours and cut off times
  • Elapsed time for local settlement
  • Compliance requirements

Such operating rules and requirements will vary depending on the governing body and country of the scheme. This usually has an impact on the RippleNet Payment Object (RPO) fields and the payment journey. For example, foreign remittances that get cleared over RTGS or IMPS in India are known to require additional information such as the purpose of payment and a unique identification for both the Sender and the Beneficiary.

Examples of RPO fields which would be required for local clearing are:

  • Remitter Identifications (Dbtr.Id) such as Passport and other key data like Date of Birth (Dbtr.Id.PrvtId.DtAndPlcOfBirth.BirthDt)
  • Preferred local clearing channel (PmtTpInf.ClrChanl), such as RTGS, Real Time Net Settlement System (RTNS), Mass Payment Net System (MPNS), or Book Transfer
  • Beneficiary Account Type (CdtrAcct.Tp.Cd) like Current Account (CACC) or Savings Account (SVGS)
  • Purpose (Purp.Cd and/or CtgyPurp.Cd), which contains the underlying reason for the payment

When the payment is being forwarded on the local rails, the Receiver institution should publish the final status of credit to the Beneficiary, to the Sender institution on RippleNet. In other words, the Receiver should mark the payment as COMPLETED only when it is known that the final Beneficiary has been credited. However, local clearing practices and channel rules may not always allow this information to be known.