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What is Reconciliation?
It is a process of checking the availability of the transactions that are routed through
different entities to complete the transactions
The differences in the cut-over timings between host/switch and interchanges may not
allow for complete reconciliation on a business day's transactions.
In simple terms, Its a matching process b/w the entities for the transaction availability.
When ever any transaction happens, it will be routed thru different
entities(ATM,Switch,Interchange,Host..etc) and in case if your are using some other
bank ATM then other bank gives their money to you and will claim it from your Bank,
from your account.
Bank will match the transaction logs for all the entitles and arrive at a conclusion that
whether they need to pay other bank or not.
If the transactions are less then bank will do it manually, but for the past 10 years the
volume of transactions are increased abnormally, hence its a tedious job for banks to
match transaction manually.
All input sources extraction & reconciliation processes can be scheduled at night time,
there by saving the processing time, reports ready for the user in the morning to act on
the unmatched cases
Saves analysis time by identifying the reason for mismatch & listing the transactions
causing difference
Each transaction will be routed through different Entities to ensure successful transactions
Its a tedious job to verify the failed/unsuccessful/partial transactions from the millions of
transactions without using an application & searching through Millions of transactions
manually to identify the fate of transactions may not be practically feasible
It may cost more number of resources
It may be take more time
There is an abnormal increase of Transactions with the new trends in the internet
Banking/Mobile banking and Ecommerce transactions.
Models of Reconciliations
2 way reconciliation
3 way reconciliation
1 to many Reconciliation(Payroll)
Many to 1 Reconciliation(Donations)
Types of Reconciliations
On Us Reconciliation
Issuer Reconciliation
Acquirer Reconciliation
On Us Reconciliations
SBI
ATM
SBI
Customer
SBI
Switch
SBI CBS
Host
SBI
Switch
Interchang
e
ICICI
Switch
ICICI CBS
Host
SBI
Switch
Interchang
e
ICICI
Switch
ICICI CBS
Host
2 Way Reconciliation
Interchange
Settlement File
Matched
Unmatched
Reports
Recon
Engine
CBS File
Settlement Entries
Adjustment Entries
Upload files
Bank Host
3 Way Reconciliation
Switch
Log File
CBS
Host Recon
Process
Matched
Unmatched
Interchange
Settlement File
Interchange
Recon Process
Unmatched
data
Reports
Settlement Entries
Adjustment Entries
Upload files
CBS
Data Pre-Processing
Recon Rules
Recon Process
Generate GL entries
Modules of Reconciliation
1.
2.
3.
4.
Dispute Management
5.
Chargeback Management
6.
7.
Nostro Reconciliation
8.
9.
2 way Recon :
3 Source
Way Recon
:
1
Source 3 (CBS)
Actions
(Switch)
Source 2
(Interchange..Visa..etc)
Suppress
Debit customer
Suppress
Credit Customer
Credit Customer
Debit Customer
Generation of GL entries
In the previous screen we have actions like Credit/Debit customer, these entries can
be generated from the Recon system by using Generate GL Entries, which will effect
Customer/Bank Account
What we will do after generating the GL files?
What is CBS Host?
What is the relation b/w CBS Host and GL Files?
Reports
Withdrawal/Purchase Report
Summary Report
Matched Reports
Un Matched Reports