Podcast
Questions and Answers
Which of the following must be validated for customer credit transfer messages in FedNow?
Which of the following must be validated for customer credit transfer messages in FedNow?
- Future dated message allowance
- Authorization of message receivers
- Optional negative list check (correct)
- Consistency of user profiles
What is required for both the sending and receiving Financial Institutions (FIs) in customer credit transfer messages?
What is required for both the sending and receiving Financial Institutions (FIs) in customer credit transfer messages?
- Both must be active and registered to send and receive payments (correct)
- Both must be part of the liquidity management system
- Both must have a joint account
- Both must confirm a mutual transaction limit
In the validation process for liquidity management transfer messages, which timeframe is crucial for the message?
In the validation process for liquidity management transfer messages, which timeframe is crucial for the message?
- It must be sent within a future dating window
- It must be issued within the valid liquidity management window (correct)
- It can only be resent after the receiver's profile update
- It should be created after the settlement timeout period
Which validation check is NOT applicable for return request messages in FedNow?
Which validation check is NOT applicable for return request messages in FedNow?
What must a message confirm to ensure authenticity in all FedNow transactions?
What must a message confirm to ensure authenticity in all FedNow transactions?
For liquidity management transfers, which of the following is a requirement placed on the sender's profile?
For liquidity management transfers, which of the following is a requirement placed on the sender's profile?
Which validation step is essential to ensure that the message size adheres to specifications?
Which validation step is essential to ensure that the message size adheres to specifications?
In the context of FedNow, what must NOT happen before a message is considered valid?
In the context of FedNow, what must NOT happen before a message is considered valid?
Flashcards
Authorized Sender Validation
Authorized Sender Validation
This validation checks if the sender is authorized to send messages within the FedNow network.
ISO 20022 Schema Validation
ISO 20022 Schema Validation
Guarantees that the message content adheres to pre-defined rules specified by the ISO 20022 standard, ensuring data consistency and interoperability across different financial institutions.
Message Not Future Dated Validation
Message Not Future Dated Validation
This validation prevents the sending of messages that are dated in the future. Ensures transactions happen in the present or past.
Receiver FI Reserved Response Time Validation
Receiver FI Reserved Response Time Validation
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LMT Window Validation
LMT Window Validation
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Unique Message ID Validation
Unique Message ID Validation
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Settlement Relationship Validation
Settlement Relationship Validation
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FedNow Participants Validation
FedNow Participants Validation
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Study Notes
FedNow Validation Items
- Customer Credit Transfer Messages: Valid message signature, valid message size, XML syntax, authorized sender, unique message ID, FedNow Service ISO 20022 schema rules followed. Sending and receiving financial institutions (FIs) must be active, signed on, and have profiles to send/receive payments. Sender must have a profile for both sending and receiving payments.
- Payment timeout: Payment timeout clock cannot be exceeded.
- Future-dated messages: Messages cannot be future-dated.
- Response time: Messages must be within the receiver FI's reserved response time.
- Transaction limits: Messages must be within the FedNow Service network transaction limit, or the sender FI's limit (if configured lower).
- Settlement relationships: Sender and receiver FIs must have valid settlement relationships.
- Optional negative list check: A negative list check may be performed if enabled.
Return Request Messages
- Valid message signature, size, and XML syntax: All messages must adhere to the specified standards.
- Authorized sender and unique message ID: The sender must be authorized, and each message must have a unique ID.
- FedNow Service ISO 20022 schema rules: Messages need to conform to these schema regulations.
Liquidity Management Transfer Messages
- Valid message signature, size, and XML syntax: Messages must adhere to standard formats.
- Authorized sender and unique message ID: The sender must be authorized, and each message must have a unique ID.
- FedNow Service ISO 20022 schema rules followed: Messages need to conform to schema rules.
- Active sending and receiving FIs: Sending and receiving FIs must be active participants in the FedNow network
- Future-dated messages: Messages cannot be future-dated.
- Transaction limits: Messages must adhere to FedNow Service transaction limit or Sender FI limit (if configured strictly lower).
- Receiver FI profile: Receiver FI must have the designated profile for accepting liquidity management transfers.
- Sender FI profile: Sender FI must have profile for sending liquidity transfers.
- LMT window: Liquidity transfers must be made during specified LMT window (as appropriate).
Request for Payment Messages
- Valid message signature, size, and XML syntax: Messages must conform to standard formats.
- Authorized sender and unique message ID: The sender must be authorized, and each message must have a unique ID.
- FedNow Service ISO 20022 schema rules: Messages need to adhere to FedNow Service rules in ISO 20022 format.
Request for Payment Cancellation Messages
- Valid message signature, size, and XML syntax: Messages must adhere to standard formats.
- Authorized sender and unique message ID: The sender must be authorized, and each message must have a unique ID.
- FedNow Service ISO 20022 schema rules: Messages need to conform to FedNow Service rules in ISO 20022 format.
Information Request Messages
- Valid message signature, size, and XML syntax: Messages must comply with standard formatting requirements.
- Authorized sender, unique message ID: The sender must be authorized, and each message should have a unique ID.
- FedNow Service ISO 20022 schema rules: Adherence to FedNow Service standards in the ISO 20022 schema.
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