TIPS in Depth: Instant Payments and Liquidity Transfers

What You Can Do After This Chapter

Learning objective. Learner explains TIPS instant payments and liquidity transfers, describes SCT Inst, Non-Euro and SIP flows, and distinguishes TIPS DCA, AS Technical Account and Transit Accounts. Learner uses real amounts, banks and message names to show how instant payments and liquidity transfers work.

Practical assessment. Learner receives a case where a bank in Madrid must send a EUR 15,000 SCT Inst payment through TIPS, handle a failed reservation, and move EUR 20,000,000 of liquidity from its TIPS DCA to its RTGS DCA, then drafts the message flow, the status sequence, and the camt.050 and camt.025 liquidity steps. Learner also explains the three liquidity transfer rules and the difference between inbound and outbound transfers.

Expected deliverables.

• TIPS SCT Inst message flow for EUR 15,000
• Status sequence table: Received, Validated, Reserved, Failed, Expired, Rejected, Settled
• Liquidity transfer draft using camt.050 and camt.025
• Note on TIPS DCA versus AS Technical Account and Transit Accounts

Completion criterion. Learner drafts a correct TIPS instant payment flow with all statuses, and a correct liquidity transfer using camt.050, camt.025 and camt.054 with inbound and outbound rules.