US Dollar correspondent Wells Fargo Bank N.A. has rated IDBI Bank as the Best Bank in STP (Straight-through processing) payments in the South Asia region. IDBI Bank originated more than 1 lakh payment messages in FY 11. The Bank handled payment messages worth more than USD 15bn in FY 2010-11. The Bank has recently launched multi-currency payment product.
In banking, STP enables the SWIFT based payment transactions to be conducted electronically without the need for re-keying or manual intervention, subject to legal and regulatory restrictions. In the absence of STP, the entire lifecycle, from initiation to settlement, in a remittance transaction, a complex labyrinth of manual processes, could take several days. With STP it can be compressed to as short as a few minutes or even seconds. STP is a key requirement given the explosive growth of wire transfer business. Now the concepts of STP are applied to reduce systemic and operational risk and to improve certainty of settlement and minimize operational costs.
STP of payment messages requires a high degree of consistency and accuracy in structuring of financial messages. This is a skilled task. Mr. Jones Castro, Executive Vice President – Regional Head South & South East Asia presented the trophy to Chairman and Managing Director – Shri R. M. Malla.
