To ease the current process of manual verification, reconciliation and fraud reduction, IDBI Bank has implemented a new feature of “document embedding” on the structured financial messaging system (SFMS).
SFMS allows intra and inter-bank message transfer. Accordingly, IDBI became the first bank in India to have implemented the new feature of document embedding facility with ‘Letter of Credit’ (LC) or ‘Bank Guarantee’ (BG) messages over the SFMS platform of IFTAS which is a wholly-owned subsidiary of the Reserve Bank of India.
The process would be conducted via a middleware application “i@Connect-SFMS (CSFMS) developed by IDBI Intech.
This new feature of document embedding provides banks with the functionality of transmitting a PDF document of up to 1 MB along with the LC or BG messages.
“Transmission of digitally signed documents ensures reliability of the transaction,” the bank said in a statement.
“The new feature will ease the current process of manual verification, reconciliation, reduce frauds, and enable documentary evidence for all the parties involved in the transaction.
“Reliability of BG gets enhanced when a copy of the stamp duty information gets embedded and transmitted along with the message itself, through the straight-through processing enabled SFMS,” it added.