FAQ by lanyuehua



Topic                      Category   Question                                           Answers ** for internal use only **
1. Terms & Definitions
1. Terms & Definitions     SEPA       What is SEPA?                                      SEPA (Single European Payment Area) is the area where citizens, companies and other economic parties are able to make and
                                                                                         receive payments in euro's, within Europe (currently defined as European Economic Area consisting of the 27 European Union ('EU')
                                                                                         member states plus Iceland, Norway and Liechtenstein, with Switzerland and Monaco), whether across or within national boundaries
                                                                                         under the same basic conditions, rights and obligations, regardless of their location.
                                                                                         The objective of SEPA is to replace domestic payment formats with one common format within Europe.
1. Terms & Definitions     SEPA       What schemes does SEPA cover?                      The following schemes are part of SEPA and enable the single European domestic payment service:
                                                                                         • payments (credit transfers) in SCT
                                                                                         • receivables (direct debits) in SDD [Core and B2B]
                                                                                         • cards in SCF
1. Terms & Definitions     SEPA       What are the objectives of SEPA?                   SEPA is an initiative to change and simplify the European payments landscape. Euro payments comply with a uniform set of
                                                                                         standards, rules and conditions. SEPA enables individuals and businesses to move money as easily, quickly, securely and efficiently
                                                                                         cross border as they can domestically today, under the same basic conditions, rights and obligations.
1. Terms & Definitions     Benefits   What is the impact of SEPA?                        The impact of SEPA on the payments market are generally:
                                                                                         • Increased transparency in the market and pricing structures.
                                                                                         • Reduced Multilateral Interchange Fees, interbank compensation (e.g. no BENE deduction).
                                                                                         • Increased competition between payment service providers (banks, and new entrants).
                                                                                         • Consolidation of payment processors (banks, market infrastructures).

1. Terms & Definitions     Benefits   What are the benefits of SEPA for customers?       The benefits of SEPA depend on the individual client's situation, but may include:
                                                                                         • Ability to reduce the number of bank accounts used across Europe.
                                                                                         • Possibility to centralise liquidity in the euro zone.
                                                                                         • Standardised interface for payments in the euro area facilitates the centralisation of payments processing into e.g. a payments
                                                                                         • Potential cost savings from improved efficiency and competition in the payments market.
                                                                                         • Improved control and visibility of capital and transactions.
                                                                                         • Increased transparency of pricing and fees.
                                                                                         • Cards can be used anywhere in the SEPA, as easy as in home country.
1. Terms & Definitions     SEPA       Is SEPA mandatory?                                 With passing of the EU Regulation, the move to SEPA standards will become mandatory for the EU27 and other SEPA countries.
                                                                                         This means that legacy payment formats must be migrated to SEPA formats.
                                                                                         For SEPA Credit Transfers and SEPA Direct Debits the end date for legacy payment formats is 1 February 2014. For non-euro
                                                                                         countries this should be done by the end of October 2016. These key dates are subject to EU approval in Feb 2012.
                                                                                         An additional transition period of 2 years may be agreed at country level for specific 'niche products' (comprising less than 10% of
                                                                                         national credit transfers or direct debits volumes). These 'niche products' have yet to be identified.
                                                                                         Also the SEPA Cards Framework is mandatory for cards in euro throughout the SEPA area.
1. Terms & Definitions     Coverage   In which SEPA countries does RBS have a local      RBS has a local presence in 18 out of the 27 SEPA countries. The 27 countries + 3 EEA member states which RBS does not have
                                      presence?                                          local presence are: Bulgaria, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Portugal, Slovenia.
                                                                                         Customers wishing to initiate SEPA payments in these markets may do so from a country where RBS does have local presence,
                                                                                         and because of the nature of SEPA, treatment in each of the countries will be equal as international payments come under the same
                                                                                         rights, obligations and regulations as domestic SEPA payments. See country table on worksheet Q10.
1. Terms & Definitions     Formats    Is it possible to initiate payments in ClieOp format ISO 20022 XML is the standard format to be used for SEPA transactions; ClieOp is a legacy format used in the Netherlands (so non-
                                      as well as in XML formats, both from the same        SEPA) which should be migrated ultimately before 1 Feb 2014. In dual period legacy payments formats with BBAN as well as SEPA
                                      account?                                             payments with BIC/IBAN can be delivered and processed; although each file continues to be fully separate, meaning that a legacy
                                                                                           batch payment cannot contain a SEPA payment instruction. Legacy as well as SEPA payments can be initiated from the same
1. Terms & Definitions     Formats    In what case can clients use SEPA formats and      A SEPA payment should be used when it concerns a non-urgent euro denominated payment where the debtor and creditor accounts
                                      when BTL formats?                                  are registered with banks / bank branches located in the same or different SEPA country. In all other cases client can decide to
                                                                                         send a BTL (Foreign payment) in case that the SEPA clearing Cut Off Time does not satisfy the client needs. Both formats can be
                                                                                         delivered in ISO 20022 XML format.
1. Terms & Definitions     Formats    Till what date are ClieOp and BTL files allowed?   As ClieOp is a legacy format, this is not allowed after end date. For migration to SEPA Credit Transfers and SEPA Direct Debits
                                                                                         that end date has been set as 1 February 2014 (subject to EU approval in Feb 2012).
                                                                                         BTL format remains allowed for True International Payments.
1. Terms & Definitions     Coverage   What currencies are covered by SEPA?               SEPA transactions are always originated in euro, where debtor and creditor accounts are registered with banks / bank branches in
                                                                                         one of the SEPA countries.

            3/24/2013, 3:27 AM                                                                                                                                                                                                  1

Topic                      Category         Question                                          Answers ** for internal use only **
1. Terms & Definitions     IBAN and BIC     What is an IBAN?                                  IBAN is an acronym for International Bank Account Number. It is a standard way of uniquely identifying an account for the purpose
                                                                                              of improving the efficiency and speed of cross border payments. The IBAN is required for both the beneficiary and creditor to
                                                                                              identify easily the unique beneficiary and creditor account. In NL the IBAN is composed of a country code (2 digits), 2 control digits,
                                                                                              bank code (4 digits) and account number. Examples of IBAN's are:
                                                                                              • NV: NL39 RABO 0300 0652 64
                                                                                              • PLC: GB99 RBOS 1234 5612 3456 78
1. Terms & Definitions     IBAN and BIC     Can a NL account with 8 or 9 digits be            The last 10 positions of the IBAN number is the account number. When the account number has 8 or 9 digits, the account number
                                            transformed in to an IBAN?                        will be preceded with zeroes. Account 300065264 at Rabo become NL39RABO0300065264.
1. Terms & Definitions     IBAN and BIC     How can the customer find their own BIC and       For RBS customers BIC & IBAN data are provided on the customer’s bank / account statement.
                                            IBAN?                                             Customers can contact their bank for this information.
1. Terms & Definitions     IBAN and BIC     How can the customer find BIC and IBAN data for   Customers should find this information by directly contacting their clients or 3rd party vendor or local conversion sites.
                                            a beneficiary or debtor?
1. Terms & Definitions     SEPA             What is the relationship between the PSD and      The Payments Services Directive (PSD) provides the legal framework for electronic payments instruments. It's mandatory for
                                            SEPA?                                             banks who operate in the EU27 and EEA (Iceland, Norway and Liechtenstein). PSD is not only about euro payments, but also
                                                                                              concerns any local currency in the EU27 and EEA countries.
                                                                                              Single European Payment Area (SEPA) applies to banks operating in the EU27, EEA plus Switzerland and Monaco. SEPA is
                                                                                              limited to euro payments, where originator as well as beneficiary are both located in SEPA countries.

1. Terms & Definitions     Specifications   How often will the EPC rulebooks for SEPA CT      It is expected that EPC will publish a new version of the rulebooks once a year detailing how SEPA Direct Debit and SEPA Credit
                                            and SEPA DD be updated?                           Transfer will be processed the following year. RBS is obliged to implement the newest Rulebooks every year and to support the
                                                                                              current and the previous version.
1. Terms & Definitions     EPC              What is a PE-ACH?                                 EBA (Euro Banking Association) is the Pan European Automated Clearing House for SEPA Credit Transfers and Direct Debit for the
                                                                                              European Traffic, offering Clearing and Settlement Mechanisms.
2. SCT
2. SCT                     Key features     When is a payment a SEPA Credit Transfer?         The criteria for a SEPA Credit Transfer are:
                                                                                              • Debtor and creditor accounts are registered with banks / bank branches located in a SEPA country.
                                                                                              • Payment is sent in euro currency only.
                                                                                              • Non-urgent.
                                                                                              • IBAN and BIC of beneficiary party included in payment.
                                                                                              • Costs are shared between creditor and debtor.

2. SCT                     Key features     What are the key features of SEPA Credit          • Euro-payments where both debtor and creditor accounts are registered with banks / bank branches in a SEPA country.
                                            Transfers?                                        • The original amount is forwarded without any deductions, and charges are billed separately.
                                                                                              • The originator and the beneficiary share the costs.
                                                                                              • The guaranteed settlement time of crediting the beneficiary’s account is 1 business day.
                                                                                              • Harmonised standards, also for returned payments.
2. SCT                     Coverage         Can a SEPA Credit Transfer be sent to and from    SEPA Credit Transfers can only take place between accounts held with banks in SEPA countries. If a payment is sent to a customer
                                            any bank in the SEPA area?                        with a SEPA non-compliant beneficiary bank account, it cannot be processed via SEPA instruments and will be processed via other
                                                                                              market infrastructures (e.g. TARGET 2).
2. SCT                     SHA              Will the customer account be credited with the    The customer account will be credited with the exact invoice amount. As SEPA transactions are PSD-compliant the SHA charging
                                            exact invoice amount, without any commission      mechanism will be applied and will be shown separately.
3. SDD
3. SDD                     Scheme           What is the SEPA Direct Debit Scheme?             The SEPA Direct Debit scheme is based on concrete rules for collecting payments in euro's throughout the SEPA area. The SEPA
                                                                                              Direct Debit is a so-called 4 corner model in which the creditor, the creditor's bank, the debtor and the debtor's bank are involved:
                                                                                              the Creditor requests payment from the Debtor, with their prior approval via a mandate.
                                                                                              There are 2 different schemes: Core and Business-to-Business (see Question below).
3. SDD                     Key features     What is SEPA Direct Debit?                        • A SEPA Direct Debit (SDD) is a collection where both the creditor and the debtor accounts are registered with banks or bank
                                                                                              branches in a SEPA country.
                                                                                              • The debit collections are denominated in euro only.
                                                                                              • There are 2 SDD schemes for one-off or recurrent payments and collections:
                                                                                                o Core Scheme - whereby the creditor is a commercial / corporate client and debtors are commercial / corporate or retail clients
                                                                                                o Business-to-Business Scheme - whereby both creditor and debtor are commercial/ corporate clients

            3/24/2013, 3:27 AM                                                                                                                                                                                                          2

Topic                   Category       Question                                            Answers ** for internal use only **
3. SDD                  Key features   What are the key features of SEPA Direct Debits? Key features are:
                                                                                          • Collections in euro where both the debtor and creditor accounts are registered with banks / bank branches [GB] in one of the
                                                                                          SEPA country.
                                                                                          • Domestic and Cross Border collections are equally possible.
                                                                                          • A direct debit can only be collected when an agreed mandate between debtor and creditor is applicable.
3. SDD                  Benefits                                                          • Harmonized collection and exception timelines and rules (R-transactions).
                                       What are the specific benefits of SDD for Creditor For creditors, SDD benefits may include:
                                       and Debtor?                                        • A simple, fast and cost effective way to collect funds.
                                                                                          • The possibility to define the exact date of collection and certainty of payment completion.
                                                                                          • The ability to collect funds from debtors using a single payment instrument across 32 countries.
                                                                                          For debtors, SDD benefits may include:
                                                                                          • A simple means of paying bills throughout SEPA without the risk of late payments and the consequence thereof.
                                                                                          • A single, trusted service by all creditors in SEPA.
                                                                                          • Better control on when you pay helping to improve certainty in cash forecasting.
                                                                                          • Fast and simple refund process for authorised and unauthorised transactions.
3. SDD                  Mandate        What is a mandate?                                  A mandate is an agreement between debtor (payer) and creditor (originator) allowing the creditor to initiate collections, and debit the
                                                                                           account of the debtor.
3. SDD                  Mandate        What are the mandatory elements of a mandate        The content of the signed mandate is not standardised, but mandatory to contain:
                                       form?                                               • Unique mandate reference
                                                                                           • Name of the debtor
                                                                                           • Address of the debtor
                                                                                           • Postal code/city of the debtor
                                                                                           • Debtor’s country or residence
                                                                                           • Debtor’s account number IBAN
                                                                                           • The BIC code of the debtor bank
                                                                                           • Creditor company name
                                                                                           • Creditor’s identifier
                                                                                           • Creditor’s address street and number
                                                                                           • Creditor’s postal code and city
                                                                                           • Country of the creditor
                                                                                           • Type of payment
                                                                                           • Signature place and time
                                                                                           • Signature (s)

3. SDD                  Mandate        What is the Mandate Related Information (MRI)?      The mandate related information is part of the collection the creditor sends to their creditor bank.

3. SDD                  Mandate        What is the content of the Mandate Related          The MRI contains the mandate reference, the BIC and IBAN of the debtor, the name and address of the debtor, the date of
                                       Information?                                        signature, the type of mandate (recurrent or one-off). See the SEPA Core Direct Debit Scheme Customer-to-Bank Implementation
                                                                                           Guidelines Version 6.0: http://www.europeanpaymentscouncil.eu/knowledge_bank_download.cfm?file=EPC130-

3. SDD                  Mandate        Will a mandate be cancelled when no collection is The mandate will be invalid after 36 months of inactivity since the last collection.
                                       done for 36 months?

3. SDD                  Mandate        How will SEPA mandates be maintained in the         The existing legacy mandates (which will be migrated to SEPA mandates) are stored by the creditor.
                                       new schemes?                                        New SEPA (paper based) mandates will be created by the creditor and be signed by the debtor. After that the SEPA mandates will
                                                                                           be de-materialized by the Creditor and sent as an electronic debit instruction to the debtor bank. When changes in the mandates are
                                                                                           made and agreed by both the creditor and debtor, the creditor will, as required by the schemes, also de-materialize these changes
                                                                                           and send instruction to the bank together with the next direct debit cycle.
                                                                                           An exception is the processing of the SEPA Direct Debit Business-to-Business mandate - which should be registered by the debtor
                                                                                           bank in their own systems for the first direct debit.

         3/24/2013, 3:27 AM                                                                                                                                                                                                          3

Topic                   Category    Question                                              Answers ** for internal use only **
3. SDD                  Migration   Are there any format changes to the mandates          See for an example of an agreed SEPA Direct Debit mandate the European Payment Council website.
                                    for SEPA Direct Debit?                                http://www.europeanpaymentscouncil.eu/documents/EPC111-11%20SDD%20Core%20Mandate%20Illustration.pdf
                                                                                          For the Business-to-Business Scheme new mandates will always have to be issued (in the language of the debtor country) and
                                                                                          signed prior to using the scheme.
                                                                                          For the Core Scheme a current paper-based mandate is available, which can be continued, dependant on the country. E-mandates
                                                                                          (electronic form) guidelines have been designed by the European Payments Council, but this functionality is not yet adopted by the
                                                                                          industry. RBS is following the developments on e-mandates and will look to offer this when this is more embedded in the industry.

3. SDD                  Migration   Will the current DD mandates remain valid?            In the Core scheme current mandates can migrate to SDD Core, dependant on country and if approved before 1 Feb 2014. For the
                                                                                          Business-to-Business scheme, new SEPA mandates are required and must be signed. If needs to be changed, the creditor has to
                                                                                          inform their clients that they have switched to SEPA Direct Debits.

3. SDD                  Migration   What is a Creditor Identifier and how to deal with? A creditor needs to have a Creditor Identifier to be allowed collecting SEPA Direct Debit from debtors. Banks provide the creditor
                                                                                        that SEPA Creditor ID during the SEPA DD implementation, when the deal is approved and a SEPA contract is signed. The
                                                                                        identifier of the Creditor is unique in the Scheme: each identifier allows the identification of one Creditor without ambiguity in SEPA.
                                                                                        A Creditor may use more than one Identifier.
                                                                                        A Creditor can use the “Creditor Business Code” extension to identify different business activities.
                                                                                        This identifier identifies a legal entity, or an association that is not a legal entity, or a person assuming the role of the creditor. This
                                                                                        identification must be stable in time, to enable the debtor and the debtor bank to Return to the creditor for Refund and complaints
                                                                                        and to check the existence of a mandate at the presentation of Collections by the creditor.
3. SDD                  Migration   Will legacy mandate reference information be    Legacy mandate reference information cannot automatically be migrated to SEPA mandates i.e. for sending the first legacy
                                    automatically migrated to SEPA? (Including      mandate as a SEPA, it will need to be set to first (or a One-off or Recurrent). All current CORE mandates will have to be altered as
                                    information on One off and Recurrent mandates?) when a mandate moves to the SEPA CORE scheme a first collection needs to be exchanged with RBS enriched with mandatory
                                                                                    SEPA data i.e. IBAN and BIC.
3. SDD                  Contract    When client has a recently approved and signed        When the contract concerns legacy DD this contract is not SEPA compliant: legacy DD and SEPA DD do have separate contracts
                                    direct debit contract, is this contract SEPA          who must confirm to various regulations.
3. SDD                  Contract    Is the identification number and description of the   In Belgium, the identification number and description of the underlying contract, which is part of the optional fields in the mandate, is
                                    contract mandatory in Belgium?                        mandatory. This will always need to be included in the mandate.

3. SDD                  Contract    Are there value limits for SDD and SCT                There are no EPC value limits for processing SDD or SCT. However there may be value limits agreed with a customer in line with
                                    transactions?                                         our RBS Credit Policy for SDD, to be agreed with client in the on-boarding process.
3. SDD                  Scheme      What is the SEPA DD Core Scheme?                      The SEPA Direct Debit Core Scheme is available to parties who are businesses or private individual consumers. The banks are not
                                                                                          involved with the relationship between debtor and creditor. The exception handling (R-messages) is standardised for all participants.
                                                                                          The current paper-based mandate can be continued for SEPA, dependant on the country

3. SDD                  Scheme      What is the SEPA DD Business-to-Business              In the Business to Business (B2B) scheme both creditor and debtor are businesses (not consumers). Each collection must be
                                    Scheme?                                               checked by debtor’s bank against the existing mandate. There is no right of refund available in this scheme; therefore a new
                                                                                          mandate between debtor and creditor needs to be issued for SEPA.

3. SDD                  Mandate     Does RBS offer mandate management for                 RBS has an agreement with our preferred partner (ATOS Worldline SEPA Corporate Suite) to offer mandate management for Core
                                    customers?                                            Scheme as well as B2B Scheme to customers on a referral basis. This functionality is currently under development.

3. SDD                  Mandate     Is E-mandate available within SEPA?                   E-mandate is defined within both Core and Business-to-Business Schemes. However, this functionality is currently not available at
                                                                                          interbank level. RBS closely follows the developments regarding E-Mandates and will offer E-mandates to its clients in due course,
                                                                                          when there is further availability within the industry.
3. SDD                  Mandate     How can a customer request an amendment to            The mandate amendment can be carried out directly between the creditor and the debtor. Reasons can be:
                                    an SEPA Direct Debit Core mandate?                    • The creditor defines a new Unique Mandate Reference
                                                                                          • A new creditor Scheme Identifier
                                                                                          • A change of name of the creditor
                                                                                          • A change to the debtor’s account with the same bank

                                                                                          After the acceptance of the changes by the creditor, the creditor must:
                                                                                          • Dematerialize the amended mandate
                                                                                          • Archive the document
                                                                                          • Send the information to the creditor bank as part of the next collection

         3/24/2013, 3:27 AM                                                                                                                                                                                                            4

Topic                   Category           Question                                             Answers ** for internal use only **
3. SDD                  Core and B2B       What are the differences between SEPA Direct         Core:
                                           Debit Core and SEPA Direct Debit Business-to-        • Available to debtors, who are businesses or private individual consumers
                                           Business Schemes?                                    • Creditor is responsible for following up with debtors for unsuccessful transactions
                                                                                                • Refund right are up to 8 weeks

                                                                                                • Available only to debtors who are businesses
                                                                                                • Mandate needs to be checked by debtor's bank for each transaction
                                                                                                • Right of Refund not available in B2B Scheme
                                                                                                • New mandates required because of changing refund rights
                                                                                                • Shorter timelines
3. SDD                  Timelines          What are the interbank timelines for SEPA Direct     SEPA Direct Debit Core                                 SEPA Direct Debit B2B
                                           Debit processing?
                                                                                                CD = Calendar Day                                          CD = Calendar Day
                                                                                                BD = Business Day                                          BD = Business Day
                                                                                                D = Due date = debtor’s debit date = interbank             D = Due date = debtor’s debit date = interbank settlement date
                                                                                                settlement date                                            M = Month
                                                                                                W = week
                                                                                                M = month                                                  Please note that mentioned cut off times refer to interbank dates
                                                                                                                                                           and that commercial cut off times might differ
                                                                                                Please note that mentioned cut off times refer to
                                                                                                interbank dates and that commercial cut off times          D-14 CD: Customer pre-notification of amount &
                                                                                                might differ                                               due date (unless other timeframe is
                                                                                                D-14 CD: Customer pre-notification of amount &             D-1 BD: Submission of first, one-off and
                                                                                                due date (unless other timeframe is                        subsequent SDD
                                                                                                agreed)                                                    D+2 BD: Latest date for bank returns
                                                                                                D-5 BD:* Submission of first & one-off SDD                 No refund right for debtor
                                                                                                D-2 BD:* Submission of subsequent SDD                      No unauthorized transactions (debtor
                                                                                                D+5 BD: Latest date for bank returns                       bank checks mandate)
                                                                                                D+8 W: Maximum refund period for debtor for                D+36 M: Mandate expires 36 months after last
                                                                                                authorized transactions                                    SDD submission
                                                                                                D+13 M: Maximum refund period for debtor for
                                                                                                unauthorized transactions
                                                                                                D+36 M: Mandate expires 36 months after last
                                                                                                SDD submission

3. SDD                  Process flow       Does RBS offer the possibility to postpone the       RBS complies with this process according to the EPC Rulebook Paragraph 4.3.2 (first line). We amend the original settlement date
                                           due date to the following day in case of late        in all cases where this date does not allow Straight Through Processing according to the scheme cycle rules, hence not only in case
                                           presentment?                                         of late presentment, but also when the requested settlement date is not a valid Target date.
3. SDD                  Pre-notification   What is an Advance Notification Letter?              Only applicable in UK & Republic of Ireland: When a first or one off claim is received (between 14 to 5 days before due date), an
                                                                                                automated Advance Notification Letter (ANL) will be generated and dispatched to the customer, providing details of the forthcoming
                                                                                                claim, such as euro amount, creditor details etc. This provides an “early warning” to the customer thereby allowing them to query the
                                                                                                transaction (if appropriate) before their account is debited. This has been developed outside the scheme criteria to enhance our
                                                                                                internal fraud detection and prevention facilities.
3. SDD                  Pre-notification   Does the client need to pre-notify the debtor for    The pre-notification is obliged to be provided by the creditor to the debtor and details the amount and time schedule prior to the date
                                           every DD in the SEPA DD - B2B scheme, or             on which the debits are to be collected. The pre-notification could also include the schedule of payments for a number of repetitive
                                           does this only apply to the first instance of a      direct debits for an agreed period of time (unless another time-line is agreed between the debtor and the creditor). It's not further
                                           recurrent collection?                                specified in the EPC Rulebook and to be interpreted by the creditor.

3. SDD                  Processing         Is it possible to send a mixed file with first DD and Batches cannot contain a mix of First and Recurring/Final direct debits. Each batch must have the same settlement date, whatever
                                           recurrent DD (with several settlement days)?          it is. A client needs one batch for a first and one for recurrent as clearing settlement dates are different.

3. SDD                  Process flow       What happens if the beneficiary bank informs     If a client starts collecting and at any time the debtor account is closed, the next collection will simply be rejected.
                                           RBS that the beneficiary account has been closed
                                           after a SEPA Direct Debit has been processed?

         3/24/2013, 3:27 AM                                                                                                                                                                                                               5

Topic                     Category       Question                                            Answers ** for internal use only **
3. SDD                    Process flow   What to do when debtor change their account?        When a debtor changes the account, and the new one is known to the client, RBS expects a next collection with an "amendment"
                                                                                             indicator and the pertaining XML fields filled in with the old and the new account. Failing to do that will lead to a rejection by RBS.
                                                                                             The client will have to arrange a new consent from the debtor to collect on the new account. There is no pre-defined format for this:
                                                                                             it is out of the scope of the scheme and ultimately the responsibility of the client (creditor).

3. SDD                    Process flow   Can a debtor ask for a block to be applied on one   Yes, a client can request to block an account or a mandate. If the client wants to block a single SEPA Direct Debit collection on
                                         or all SEPA Direct Debits collected on their        time, the refusal option should be used.
4. RBS Proposition                       Pricing, clients needs, benefits etc
4. RBS Proposition        Formats        Does RBS transform Basic Bank Account               No, RBS will not be able to process SEPA payments with BBAN data. Customers will need to submit their SEPA payments with
                                         Number in legacy payments to IBAN to make           valid BIC and IBAN data. This can be obtained from their customers directly, or RBS can facilitate an introduction to Atos Origin or
                                         these SEPA payments?                                Experian who can assist customers with their BBAN data conversion.
4. RBS Proposition        Support        Which value-added services does RBS provide         RBS provides a range of value-added services for customers to help realize the SEPA benefits:
                                         for SEPA?                                           • RBS can enrich certain legacy format euro nominated payments/files and send it out in an ISO 20022XML format as a SEPA
                                                                                             payment/files to EBA.
                                                                                             • RBS works together with Experian who provide BIC and IBAN enrichment services to customers to add missing beneficiary’s BIC
                                                                                             and format validation thereof.
                                                                                             • Acquire sender specific data (sender IBAN / Originator ID / Creditor ID) in selected jurisdictions.
                                                                                             • Execution in legacy format payments if beneficiary bank is not “SEPA Reachable”
                                                                                             • RBS works together with ATOS Worldline to provide Mandate Management to customers on a referral basis.

4. RBS Proposition        Support        What implementation support is available to         The implementation process depends on types of products and countries the customer wishes to deal with. Dedicated
                                         customers?                                          Implementation Managers are available for SEPA Direct Debit (SDD) both in NV and PLC, and for SEPA Credit Transfer (SCT) in
                                                                                             For reference, the UK “SEPA on-boarding instructions 2011” document, and NL “SDD Onboarding Process” document are available
                                                                                             showing the SDD implementation process.
                                                                                             For SCT and SDD “Technical Implementation Guidelines” are available at Implementation Management for the customer, based on
                                                                                             products and channels they will use.
                                                                                             If you wish to ask for assistance in Implementation Management for PLC, please engage with Natalie Rosman, Product
                                                                                             Management; for NV contact the EMEA Deal Desk.
4. RBS Proposition        COT            What are the cut-off times for a customer to send The cut-off time in the Core scheme is for the customer 16:00 CET on D-6 (for an one-off or a first of a recurrent collection) or D-3
                                         in their SEPA Direct Debit collections?           (for a recurrant or last collection).
                                                                                           In the Business-to-Business scheme the cut-off time for the customer is 16:00 CET on D-2 for first, one-off, recurrent or last
4. RBS Proposition        COT            What are the cut-off times for customers to send Cut off times differ per channel and country. In EMEA our SEPA Credit Transfer cut-off times for singles and batches via Access
                                         their SEPA Credit Transfers?                      Direct or Access Online are 12:00 CET and in the UK it is GMT 16.30 (D-1) via Bankline (where D = settlement date).

4. RBS Proposition        COT            What will be the maximum execution cycle for        The maximum execution cycle is D (settlement date) + 1, dependant on beneficiary bank.
                                         SEPA Credit Transfers?

4. RBS Proposition        Account        What is the most appropriate account structure      Although this depends strongly on the client's current account structure and payment options, RBS advises a hybrid EUR Payables
                          structure      for customers when migrating to SEPA?               and Receivables account structure. This means one central SEPA account and in-country collection via local accounts. This will
                                                                                             reduce clients account maintenance fee, clients compliance and corporate governance and will simplify the reconciliation. In some
                                                                                             cases local accounts will need to be maintained to process special payments such as tax and salary payments.

           3/24/2013, 3:27 AM                                                                                                                                                                                                          6

Topic                     Category         Question                                                Answers ** for internal use only **
4. RBS Proposition        Formats          What formats does RBS support in SEPA                   SEPA formats can differ per country; local formats may apply. The standard for SEPA is the ISO 20022 XML format, which is
                                           Payments?                                               currently supported in NV and PLC. ISO 20022 XML is only mandatory in the interbank space for SEPA Payments, but will also
                                                                                                   become mandatory for communications between corporates and banks in Feb 2016.

                                                                                                   RBS supports Access Online/ Access Direct:
                                                                                                   • ISO 20022 XML (pain.001.001.02 & 03; pain.008.001.01);
                                                                                                   • EDIFACT (PAYMUL 96A, 99A; DIRDEB 99A);
                                                                                                   • BSI/VDB;
                                                                                                   • BTL91;
                                                                                                   • SAP IDOC;
                                                                                                   • Flatfile.

                                                                                                   RBS supports for Bankline:
                                                                                                   • ISO 20022 XML for SEPA Direct Debit
                                                                                                   • CSV.txt for SEPA Credit Transfers

4. RBS Proposition        Specifications   What are the SEPA Credit Transfer specifications RBS has developed the Technical Implementation Guideline - based on the current EPC Rulebook -, which is designed to inform
                                           RBS supports?                                    customers about specifications and formats. This document can be shared to a customer as part of the implementation programme.
                                                                                            This contains the required specifications for SEPA Credit Transfers.
4. RBS Proposition        Pricing          What is the RBS SEPA Pricing Strategy?                  RBS meets the SEPA concept and introduces a harmonised SEPA pricing for the whole European region based on pricing model
                                                                                                   with three scenarios:
                                                                                                   - Harmonised pricing: average price for each of the products and for each of the different country bands
                                                                                                   - Tiered pricing: pricing based on current volume
                                                                                                    - Lowest domestic price: proposed pricing is the lowest domestic pricing across the country bands and products

4. RBS Proposition        Channels         Through which channels does RBS currently offer SEPA Credit Transfers are available through:
                                           SEPA transactions?                              • Access Online;
                                                                                           • Access Direct;
                                                                                           • Access Direct Client;
                                                                                           • SWIFT (FileAct).
                                                                                           • Bankline
                                                                                           • Bankline Direct
                                                                                           • RBS Digital Banking/ Natwest Online Banking/ EDC
                                                                                           • Multicash
                                                                                           • Isabel

                                                                                                   SEPA Direct Debit origination is available through:
                                                                                                   • Access Online;
                                                                                                   • Access Direct;
                                                                                                   • Access Direct Client;
                                                                                                   • SWIFT (FileAct).
                                                                                                   • Bankline
                                                                                                   • Multicash
                                                                                                   • Isabel

4. RBS Proposition        On-boarding      How can a customer / creditor set up a SEPA             Contact Origination for information refering to the SEPA on-boarding procedure.
                                           Direct Debit?

4. RBS Proposition        On-boarding      Who is the first point of contact to help a client if   The first point of contact is Client Service in the specific country. If needed they should contact central teams.
                                           questions arise about a SEPA payment?

4. RBS Proposition        On-boarding      Does RBS have restrictions for outgoing SEPA            For both products restrictions are applicable: for SCT above 200.000 transactions a day. SDD restrictions are not set per country.
                                           Credit Transfers and SEPA Direct Debits per             These exist in the mid-office and in the back-office (depends on many variables, OPS to assess per client on-boarding). Ask EMEA
                                           country? Is special approval required to increase       Deal Desk for updated figures.
                                           the number of transactions?

           3/24/2013, 3:27 AM                                                                                                                                                                                                           7

Topic                         Category        Question                                           Answers ** for internal use only **
4. RBS Proposition            Reporting       Can a customer see his SEPA Direct Debits in       Yes, all transactions will be visible in TRIP. This is very much an EMEA answer. For the UK please add: Viewing current SEPA
                                              the same place as the customer’s Domestic          Direct Debits is slightly different than viewing domestic direct debits. Customers can view their current SEPA direct debits via
                                              Direct Debits?                                     Bankline and bank employees can look up current SEPA Direct Debits in BackOffice.
4. RBS Proposition            EPC            What SEPA Additional Optional Services (AOS)        RBS doesn't offer SEPA Additional Optional Services as defined in EPC Rulebooks, however we work together with Atos Origin who
                                             (e.g. reference in payment format) does RBS         do provide an extensive set of value added services.
4. RBS Proposition            Salary payment What payments types in SEPA Credit Transfers        At this moment salary and pension payments are not defined in SEPA format. Client can use a category purpose in their SEPA
                                             does RBS support (f.e. salary, pension, a.s.o.)?    Credit Transfer to define these payment types. RBS does support these payment types, "shields" the payment information through
                                                                                                 the EMEA channels only, but does not forward the concerning purpose codes at this moment as part of the SEPA Credit Transfers
                                                                                                 to EBA. This means that beneficiary party does not recognize at this moment these payments with the others. When this information
                                                                                                 is put in the remittance information field this will help the beneficiary party to recognize these kind of payments. Support of these
                                                                                                 optional fields in message formats needs still to be proven on pan-European basis. Beneficiary banks are unable to recognize and
                                                                                                 process the ‘SALA’ Tag.
4. RBS Proposition            R-messages      Which credit amount will customers see on their    Customers will see a bulk credit which reflects all the transactions that were succesfully sent to EBA. As RBS does a number of
                                              account when they submit a SDD collection file?    validations before transactions are sent to EBA it could be that the credit is less than the customer expects, if a transaction failed
                                                                                                 the validation. After settlement customers can receive debits to their accounts which reflect incoming R-messages related to the
                                                                                                 collection file (e.g. refunds, unpaids).

5. Migration
5. Migration                  Legacy end      What are the key dates related to SEPA?            Moving forward, the key dates established within the "Regulation establishing technical requirements for credit transfers and direct
                              date                                                               debits in euro and amending Regulation EC 924/2009" are:
                                                                                                 1 February 2014 Migration end-date for SEPA credit transfers and SEPA direct debits in euro countries
                                                                                                 1 February 2016 Expiry of transitional arrangements for so called 'niche products'
                                                                                                 31 October 2016 Migration end-date for SEPA credit transfers and SEPA direct debits in non-euro member states
5. Migration                  Legacy end      What is the end date for legacy payment formats? • There will be a single end-date for migration to SEPA Credit Transfers and SEPA Direct Debits, that has now been set as 1
                              date                                                             February 2014 in Euro countries;
                                                                                               • An additional transition period of 2 years may be agreed at country level for specific 'niche products' (comprising less than 10% of
                                                                                               national credit transfers or direct debits volumes). These 'niche products' have yet to be identified.
                                                                                               • For non-euro countries the end date will be October 2016.
                                                                                               After these dates only SEPA formats are allowed to be processed.
5. Migration                  Legacy end      What does a 'dual period' mean?                    Dual period means the period, in which legacy payment formats with Basic Bank Account Number (BBAN) as well as SEPA
                              date                                                               payments with BIC/IBAN can be processed. This period started in 2008, when SCT was introduced, and will finish at the end date of
                                                                                                 legacy payments. After that date legacy formats are not allowed.

5. Migration                  Legacy end      How will clients in 'dual period' be able to       Until the end-date, Basic Bank Account Number (BBAN) will be reported back in the MT940 of the receiving party when a customer
                              date            differentiate between both types (legacy and       sends a legacy payment. If a customer initiates a SEPA payment, the concerning IBAN will be reported back in the same MT940 of
                                              SEPA) and how can clients distinguish between      the receiving party.
                                              the outputs (Returns/ Settlements) from each

5. Migration                  Legacy end      When there is a legacy Return after end date,      Till end date legacy domestic payments will be processed as legacy, and SEPA payments will be processed as SEPA. To be
                              date            how will this be processed?                        determined at the country specific end date.

5. Migration                  Legacy end      Can customers still send legacy payments with      After the end date it will not be possible to process domestic legacy payments using the Basic Bank Account Number (BBAN). The
                              date            Basic Bank Account Number (BBAN) after the         legacy formats should be migrated to SEPA formats. RBS will support clients as much as possible in their migration from legacy to
                                              end date?                                          SEPA.
5. Migration                  Legacy end      Will RBS be ready for SEPA in time for the         RBS is fully compliant with the current SEPA schemes as published by the European Payment Council, and continues to adapt its
                              date            deadline?                                          systems and processes in line with new rules in rulebooks

5. Migration                  Support         How can customers migrate to SEPA?                 The extent to which a customer needs to make changes depends on their own circumstances, including what payments they                    http://cbf
                                                                                                 currently make in SEPA countries, the number of bank accounts they have in SEPA countries and whether this number can be                 mnet.fm.r
                                                                                                 reduced. Further information can be found on Customer SEPA DD Checklist, see                                                             bsgrp.net/
                                                                                                 http://cbfmnet.fm.rbsgrp.net/S2400/F40/download/RBS_SEPA__For_Corporates_v7.pdf                                                          S2400/F4

               3/24/2013, 3:27 AM                                                                                                                                                                                                                      8

Topic                         Category         Question                                             Answers ** for internal use only **
5. Migration                  Benefits         What are the challenges of SEPA for customers? The challenges of SEPA depend on the individual client's circumstances, but may include:
                                                                                              • Collection and usage of IBAN and BIC.
                                                                                              • Investment in new processes and systems.
                                                                                              • Rules and regulations (e.g. refund period and credit mandate flow) for SEPA Direct Debit (SDD) & SEPA Credit Transfer (SCT)
                                                                                              may differ from domestic schemes.
5. Migration                  Support          How can RBS help customers in migration to           RBS is able to offer:
                                               SEPA?                                                • SEPA and country expertise: As one of the largest euro clearers, RBS has in-depth expertise on country payment specifics
                                                                                                    throughout Europe. RBS can share this expertise with customers and support them in their SEPA country analysis.
                                                                                                    • Dedicated implementation management for setting up SEPA Direct Debits together with customers.
                                                                                                    • Continued support of existing delivery formats: RBS has developed conversion capabilities to convert existing global delivery
                                                                                                    formats into the new SEPA ISO 20022XML formats to minimize the impact on RBS customers.
                                                                                                    • Co-existence between national schemes and SEPA schemes: There will be a period of time where legacy national payment
                                                                                                    services will continue to be used along with the new SEPA services. RBS can help customers by advising when these countries will
                                                                                                    migrate to SEPA schemes.
                                                                                                    • SEPA subject matter experts: RBS is actively involved across Europe in shaping the development of SEPA as well as defining
                                                                                                    the details of the schemes and their implementation by participating in various working groups on the European Payments Council.
                                                                                                    RBS can share our broad expertise and up-to-date information on these topics with customers.
                                                                                                    • A range of value-added services to help clients realise an end to end solution.
5. Migration                  Plan Migration   If a client currently receives Direct Debit          No change is due because of SEPA and no new account is needed. However, SEPA fosters a consolidation of account structure
                                               settlements across 2 bank accounts, will this        enabling a corporate to collect domestically and cross border into the same account.
                                               change when moving from domestic to SEPA
5. Migration                  Support          What would RBS advise customer who will need         RBS advises customers to contact Origination and IT supplier and get a clear understanding of the impact of SEPA for their
                                               to undergo migration, to ensure that their journey   organization. RBS can give customers input to their business case and individual migraion plan. RBS has in-depth expertise on
                                               is as smooth and as efficient as possible?           country payment specifics throughout Europe and can support a client in his SEPA country analysis.

5. Migration                  Support          Does RBS have an off the shelf migration plan for RBS is making country migration plans and will take into account the client specifics in these (see the Corporate Checklist on the
                                               SEPA Direct Debits?                               RBS Insight page).

5. Migration                  IBAN and BIC     How can customers convert their Basic Bank           Customers are responsible for migration of their BBAN data to IBAN data. RBS works together with Experian and Atos Origin who
                                               Account Numbers (BBAN's) to BIC/IBAN’s?              can assist customers with their data migrations. Also in the Netherlands, The Dutch Banking Community has developed
                                                                                                    "IBANBICservice" for this purpose. The site http://www.ibanbicservice.nl/ is available for free, but contains only NL IBAN’s. Be also
                                                                                                    www.swift.com/biconline and vendor referals available.
5. Migration                  Plan Migration   What is the cost of migration to SEPA for a          The costs for migrating to SEPA services depend strongly on the customer’s situation and needs. When customers need to make
                                               customer?                                            changes to their IT systems and operational processes in most cases this will lead to increased costs.

6. Technical                                   XML, ERP, SAP/Oracle etc
6. Technical                  Formats          What format should the client use for True           For True International Payments client can use ISO 20022 XML pain.001.001.02, pain.001.001.03 or the current BLT91 format.
                                               International Payments (TIP)?
6. Technical                  Formats          What is ISO 20022XML?                                ISO 20022 XML is the standard format to be used for SEPA transactions. Currently, different data formats are in place to process
                                                                                                    payments across different national clearing systems in the European Union. XML is mandatory for the exchange of SEPA payments
                                                                                                    between banks.
                                                                                                    The usage of ISO 20022 XML standard goes beyond SEPA payments – non-SEPA payments, reporting, electronic invoicing, FX
                                                                                                    and letter of credit confirmations. Companies should consider a strategic and holistic approach to standards, processes and
6. Technical                  Formats          Which formats can customers use for SEPA:            Supported formats depend on the channel. Via the Access suite RBS supports ISO20022 XML, Edifact Paymul 96a and PEXR2002
                                               XML, EDIFACT, or any other?                          for SCT and DIRDEB99A and ISO20022 XML for SDD. Note that DIRDEB99A is available only for initiation of collection, eg not for
                                                                                                    Mandate Amendment nor any of the other R-Messages. Via Bankline, SCT's are currently supported with the CSV format and
                                                                                                    SDD's with ISO20022 XML.
6. Technical                  Formats          What are the Rejection messages RBS provides? There are specific SEPA rejection codes RBS delivers.

               3/24/2013, 3:27 AM                                                                                                                                                                                                           9

Topic                         Category      Question                                           Answers ** for internal use only **
6. Technical                  Formats SCT   What SEPA Credit Transfer formats does RBS         RBS Access Direct supports SEPA Credit Transfers            RBS Access Online supports SEPA Credit Transfers for the following
                                            support?                                           for the following formats:                                  formats:
                                                                                               • Edifact PAYMUL D96A                                       • Edifact PAYMUL D96A
                                                                                               • Edifact PAYMUL D99A                                       • Edifact PAYMUL D99A
                                                                                               • SAP PEXR 2001 IDOC                                        • SAP PEXR 2001 IDOC
                                                                                               • SAP PEXR 2002 IDOC                                        • SAP PEXR 2002 IDOC
                                                                                               • ISO20022 XML pain.001.001.02 + 03                         • ISO20022 XML pain.001.001.02 + 03
                                                                                                                                                           • BSI/VDB v1.0
                                                                                                                                                           • BTL91 v1.0
6. Technical                  Formats SCT   What pain versions of SEPA Credit Transfers        This depends on the channels, for customers on Bankline the 0.1 version is used and for EMEA channels this is the latest version.
                                            does RBS use?
6. Technical                  Formats       Is RBS free to use MT101/103 and ClieOp03 or       It is recommended client delivers urgent and common payments in ISO 20022 XML format and not longer in MT101/MT103 SWIFT
                                            ISO 20022 XML Pain for clients outgoing            formats. ClieOp03 format concerns legacy domestic payments. According to EC Regulation this format is not allowed after end date
                                            payments?                                          and should be migrated to SEPA ISO 20022 XML format.

6. Technical                  Formats       Is RBS free to keep delivering MT940/42 for a      There are no interbank agreements that MT940/42 reporting will be replaced by ISO 20022 XML reporting.
                                            certain period?

6. Technical                  Formats       Is RBS required to use ISO 20022 XML CAMT in       There are (still) no agreements about the obligation to use ISO 20022 XML reporting replacing MT940/42 reporting. At this moment
                                            stead of MT940/42 and if yes, at what date?        ISO 20022 XML reporting is possible and contains the same information like MT940/42.

6. Technical                  Formats       Can clients use the RBS Access Online format       This is only available for the BTL91 format of SEPA Credit Transfer; for SEPA Direct Debit vbsi is not supported.
                                            for uploading payments (vbsi) also for SEPA in
                                            case BIC/IBAN are mentioned?
6. Technical                  Formats       Is it possible to upload invoices into Access      In Access Online only collections can be uploaded in advance with a due date in the future and warehoused. The back-office will
                                            Online more than 14 days in advance?               release the collections in time for the due date and according to the scheme cycles.

6. Technical                  Formats       Is there any future date limit for uploading       The maximum period allowed to warehouse collection files is 1 year.
                                            collections into Access Online, for example with
                                            the due date of 1 year later?
6. Technical                  R-messages    What information is displayed on the Customer's    The statement narrative includes the following information:
                              SDD           statement for a SEPA Direct Debit?                 • ProPay reference.
                                                                                               • Creditor name.
                                                                                               • Euro amount for non Euro accounts.
                                                                                               • FX rate for non Euro accounts.
                                                                                               • E2E identifier.
                                                                                               • Mandate reference number and for refunds as above with date of original collection.
                                                                                               Please note that the all this information that is visible on a customers statement is sometimes greater than can be viewed on the
                                                                                               back office account history screens, however all information per collection is available via the specific SEPA menu options in back
7. R-messages                               R-transactions
7. R-messages                 R-messages    What is a Refusal?                                 Refusals can be received by the bank up to 14 calendar days before they are due to be debited to our customer account. If our
                                                                                               customers asks us not to pay an individual debit between receipt of the claim up to one day before it is due to be paid, a refusal
                                                                                               instruction can be keyed into EuroDebit, this will result in it being returned to the creditor party.

7. R-messages                 R-messages    What is a Reversal?                                For whatever reason, a creditor may wish to reimburse our customer for a claim that has already been debited to their account. If
                                                                                               this occurs the creditor can send a credit to our customer account for the same amount that was debited; reversals will only be
                                                                                               received at the latest 2 days after the original debit. RBS policy is to refund non euro accounts at the same FX rate initially debited.

7. R-messages                 R-messages    What is a Refund?                                  A refund is where RBS customer account has been debited with a claim that they now do not wish to pay. There are two types, both
                                                                                               of which are keyed into EuroDebit:
                                                                                               • Authorised (1 day – 8 weeks after account debited). The customer does not have to give us a reason, the transaction will be
                                                                                               processed & their account credited normally the same day. The creditor bank must accept the returned debit.
                                                                                               • Unauthorised (After 8 weeks & by 13 months after account debited). The bank has to approach the creditor bank who liaises with
                                                                                               the creditor party. Whether RBS customer subsequently is credited or not, depends on the result of this liaison & decisions made.

               3/24/2013, 3:27 AM                                                                                                                                                                                                         10

Topic                         Category       Question                                             Answers ** for internal use only **
7. R-messages                 R-messages     What is a Recall?                                    A recall can be requested by originator bank on behalf of its customer to cancel a SEPA Credit Transfer already settled at EBA.
                                                                                                  This must be initiated within 10 banking business days after execution date of the SEPA Credit Transfer subject to the recall. Before
                                                                                                  initiating the originator bank has to check if the SCT is subject to duplicate sending, technical problems resulting in erroneous SCT
                                                                                                  or fraudulent originated Credit Transfer.
                                                                                                  The recall will show on the MT940 as a credit to the clients account.
7. R-messages                 R-messages     How does RBS proceed from an accounting              Returns will be posted as post-settlement rejections individually.
                                             perspective when a Return sent by the debtor
                                             bank after due date?
8. Reporting                                 XML, R-transactions etc
8. Reporting                  Reporting      How does the creditor get the information about a    This depends on the point of validation of the collection and the RBS Channel used. Pre-settlement rejections will be notified either
                                             Reject issued by the debtor bank before due          directly by the RBS Channel used or upon receipt of the Payment Status Report. Post-settlement rejections will be notified via client
                                             date?                                                account statement.

8. Reporting                  R-messages     How does RBS proceed from an accounting              SEPA DD collections are posted on your account with the “Gross” method, crediting the accepted batch value while debiting the
                                             perspective in case of a Reject issued by the        rejected collections up to and including due date. All subsequent rejections will be posted individually on settlement day.
                                             debtor bank before due date?

8. Reporting                  R-messages     How does RBS process a rejected SEPA Direct          RBS processes the rejections received from debtor bank within the framework and according to regulations of the SEPA Direct
                                             Debit?                                               Debit Schemes. ‘Unpaid’ messages are a subset of the ‘rejection’ messages and will be defined as such according to reasons
                                                                                                  allowed by the SEPA Direct Debit Core and Business-to-Business Rulebooks.
                                                                                                  The Rulebooks specify the reasons covering ’unpaid’ cases – and enabling customer to take the most appropriate commercial
8. Reporting                  R-messages     How will clients receive bansta's/rejections when    Clients will receive bansta's/rejections via SWIFT in the same way as in Access Direct.
                                             they do payments/collections via SWIFT
                                             Corporate Access?

8. Reporting                  R-messages     How does the creditor get the information about a Returns are received by the creditor bank as rejections from the debtor bank and are subsequently posted on the creditor account.
                                             Return sent by the debtor bank after due date?    ISO codes are used to determine the nature of the rejection.

8. Reporting                  R-messages     What will be the confirmation 'protocol' for receipt This will depend on the Channel used.
                                             and processing of the SEPA XML Direct debit file?

8. Reporting                  R-messages     Does RBS use the SEPA returned coding to             Yes, confirmed.
                                             mark reason for return (approx. 10 defined)?
8. Reporting                  Formats        Does RBS provide a result report stating all         All pre-settlement rejections are reported back to creditor according to the option offered by the used channel.
                                             unpaid invoice reasons / error code for unpaid       All post-settlement rejections are debited STP on his account. The rejection code is initiated by the debtor bank and carried forward
                                             invoices when debtor did not pay invoice due to      to creditor in the same form as communicated to RBS. Hence for this information RBS is dependent from the debtor bank.
                                             any rejection?

8. Reporting                  Process flow   When the final collection in a recurring series is   When the debtor bank has rejected the final collection, this final collection is not processed and the next collection will not refused
                              SDD            rejected or a refund will take place, is this marked for that reason.
                                             as the final collection and will the mandate

8. Reporting                  Formats        How will client recognise SEPA Direct Debit          A SEPA collection is properly identified by specific narrative and codes to help automatic reconciliation.
                                             transactions from Domestic files on their bank

8. Reporting                  Formats        What CAMT formats does RBS support at this           At this moment RBS is testing CAMT.052.001.02 and CAMT.053.001.02 formats in external pilot. These messages are generated
                                             moment?                                              based on MT940/MT942 information.
8. Reporting                  Formats        What is the impact of SEPA transactions on           A SEPA Credit Transfer can contain additional data fields not available in other payment instruments today. This additional
                                             MT940 reporting?                                     information will be included in client MT940 statements using specific code-words, enabling clients to identify additional information
                                                                                                  and facilitate automated reconciliation. A detailed overview of how SEPA Credit Transfers will appear in client MT940 statements is
                                                                                                  available from client support team or bank representative.
8. Reporting                  Formats        Will the senders IBAN be reported on the MT940? It is not possible to include the sender’s IBAN details in the MT940. As with existing payment types, certain local regulatory
                                                                                             requirements prevent banks from sharing senders’ details with beneficiaries. This will not change because of SEPA.

               3/24/2013, 3:27 AM                                                                                                                                                                                                           11

Topic                         Category       Question                                             Answers ** for internal use only **
8. Reporting                  Formats        Will the BIC be reported in the MT940 of the         The BIC will never be reported in the MT940 of the receiving party. RBS reports according to SWIFT rules, meaning that BIC is not
                                             receiving party?                                     delivered in MT940.
8. Reporting                  Formats        What will be reported back to customer after end     Till end date Basic Bank Account Number (BBAN) will be reported back in the MT940 of the receiving party when customer sends a
                                             date in MT940: BBAN or IBAN?                         legacy payment with BBAN in. In the case customer initiates a SEPA payment the concerning IBAN will be reported back in the
                                                                                                  same MT940 of the receiving party.
                                                                                                  RBS doesn’t convert BBAN to IBAN, but can deliver conversion tools to the customer to convert legacy formats to SEPA formats. In
                                                                                                  that case IBAN is reported back to customer and will be converted to BBAN by the conversion tool.
8. Reporting                  Formats        Which data elements will RBS provide in relation     For the Creditor reporting, RBS uses the Swift Guidelines for MT940/42. RBS also has adopted the EPC/ISO requirements for
                                             to returned Direct Debits and are these different    reason coding as specified in the Rulebooks (like card number, Amount, Unique reference, reason code)
                                             from the data sent today in domestic formats?

8. Reporting                  Account        Does SEPA offer any liquidity / centralisation       It is possible to centralise SEPA Direct Debits within one country and this would be a good opportunity for client to make their
                              structure      opportunities?                                       business more efficient. However, not all payment traffic is suitable to be centralised: for some payments types (i.e. tax and salary
                                                                                                  payments) it is still mandatory in certain countries to keep a domestic account in that country.

8. Reporting                  CBR            What countries do support Access Online for          Requirements for Central Bank Reporting change frequently and these changes are applied to Access Online. At this moment the
                                             Central Bank Reporting?                              requirements for individual Central Bank Reporting requirements are reflected in Access Online for the following countries:
                                                                                                  Austria, Czech Republic, Denmark, Estonia, France, Germany, Slovakia, Greece, Italy, Kazakhstan*, Latvia, Luxembourg, Norway,
                                                                                                  Poland, Portugal, Romania, Russia*, Thailand, Slovenia, Spain, Sweden, Uzbekistan, South Africa, China*, Indonesia, Malaysia,
                                                                                                  *payments from accounts in these countries via Access Online available only in extremely limited circumstances

8. Reporting                  CBR            When an Italian or German subsidiary of a            In Italy CBR is not required, but in Germany it is still. In case a foreign entity has an account in NL, and RBS reports to Central Bank
                                             corporate does have an account in NL for all their   in NL and not to Central Banks of the concerning countries and CBR is not required in NL, RBS don't report to Central Bank.
                                             payments and collections, how to deal with           Pay Attention: It can be required/relevant for client having local accounts for taxes, salary payments, a.s.o. in that countries. It's
                                             Central Bank Reporting for these entities?           recommended to validate with branches.

9. Processing
9. Processing                 Process flow   What is the process flow for SEPA Direct Debits      Pre-settlement
                              SDD            (in Core and Business-to-Business Scheme)?           Client delivers a SDD batch to RBS. RBS validates this batch internal and rejects the transactions, which aren’t according to agreed
                                                                                                  technical, scheme or risk requirements. The transactions which are rejected will be reported to client dependant of used channel -
                                                                                                  for example a negative bansta.

                                                                                                  On settlement
                                                                                                  The batches (-/- rejected transactions by RBS) will then be delivered to the SEPA Clearing House RBS has chosen. RBS credits her
                                                                                                  client based on these batches on Clearing & Settlement date. Rejection of transactions can still be done by SEPA Clearing House
                                                                                                  based on technical reasons. The transactions rejected by the clearing and the transactions that can not be collected by the debtor
                                                                                                  bank (eg because an account is closed), will on the same Clearing & Settlement date be debited to the account of the customer.
                                                                                                  The reason for rejection by the bank of the other party and/or the Clearing will be reported on the MT940, if provided by the other
                                                                                                  bank/Clearing. RBS has coded all credit and debit items by mutation codes to be able to reconcile in addition to the so called R-
                                                                                                  messages reasons according to the Rulebooks.

                                                                                              Dependant on the used Scheme the debtor bank can reject the direct debit after settlement. The reason for rejection by the bank will
                                                                                              be reported on the MT940, if provided by the other bank. When Debtor initiates revocations, clients can see these as a crediting of
                                                                                              his account. RBS has coded all credit and debit items by mutation codes to be able to reconcile in addition to the so called R-
9. Processing                 Process flow   How will RBS acknowledge the receipt of SEPA     RBS can provide client a pain.002 message, in version 2 or version 3. This is a file level acknowledgement, which will be followed by
                              SDD            Direct Debit collections? Will RBS use a Payment a batch or transition level message in case of a rejection.
                                             Status Report?
9. Processing                 Reachable      How does RBS process SEPA Direct Debit           In case of SEPA Direct Debits RBS uses tables with reachable banks: there is an incoming check in Access Online as well as in the
                                             payments when a creditor bank isn’t reachable?   back office system. The transaction will be rejected and removed from batch; client will be informed via Status Update in Access
                                                                                              Online. For the Core scheme all banks should be reachable; for B2B scheme it's optional.
9. Processing                 Process flow   What should be done with an active SEPA Direct If there are any active SEPA Direct Debits when the account is closed the debtor should be advised to contact the relevant parties.
                                             Debit when the customer wants to close their     Any future claims quoting this account will be automatically rejected upon receipt.

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Topic                     Category       Question                                          Answers ** for internal use only **
9. Processing             Process flow   What is the process flow for SEPA Credit          Client will submit the complete SEPA Credit Transfer (SCT) instruction to originator bank. The originator bank receives the SCT
                          SCT            Transfer?                                         payment instruction and checks if it has sufficient information to execute the payment instruction and checks the format and
                                                                                           plausibility of the BIC and IBAN. Rejections will be send to originator.
                                                                                           The rejections which happen on the validation in the system of RBS will be send as negative Bansta to the client. No bookings on
                                                                                           the MT940 of these rejections.

                                                                                           On or following business day, the originator bank will debit the account of the originator. This will be followed by the sending of the
                                                                                           credit transfer instruction to ensure receipt by the beneficiary bank via the selected clearing and settlement mechanism in
                                                                                           accordance with the rules of the scheme.
                                                                                           If for whatever reason (e.g.closing of bank account) the beneficiary cannot be credited the money will flow back to RBS who will
                                                                                           book it as a credit on the bank account of the originator. This will be seen as a credit on the MT940. Depending on the information
                                                                                           RBS receives from the beneficiary bank the reason will be provided in the MT940 as well.

                                                                                           Originator bank can also request to cancel a SEPA Credit Transfer on behalf of its customer after the payment is already settled at
                                                                                           EBA. Originator Bank should initiate the recall within 10 banking business days after execution date of the SEPA Credit Transfer
                                                                                           subject to the recall. Before initiating the Recall procedure, the Originator Bank has to check if the SCT(s) are subject to one of the
                                                                                           reasons listed in the SEPA Rulebook. If initiated before settlement, the recall will lead to a cancellation.
                                                                                           After this cancellation the bank account of the originator will be credited and the booking will show on the MT940

9. Processing             Reachable      How does RBS process SEPA Credit Transfer         In case of SEPA Credit Transfer RBS will reroute the transaction via TARGET2 or EURO1. All banks should be reachable.
                                         payments when a creditor bank isn’t reachable?

9. Processing             Processing     Is there a value limit in place for SEPA Direct   There are no EPC value limits for processing SEPA Direct Debits or SEPA Credit Transfers, others than agreed with customer
                                         Debit and SEPA Credit Transfer?                   because of RBS Credit Policy for SEPA Direct Debits.
                                                                                           At this moment a value limit is set for pricing purposes, but this will be lifted within some months.

9. Processing             CBR            How can Central Bank Reporting impact SEPA?       Accounts held in certain countries require a submission by RBS to the individual country' central bank.The requirements for this type
                                                                                           of report differ per country. Access Online automatically detects if Central Bank Reporting is required and requests customer to fill in
                                                                                           additional fields. RBS then submits the transaction report to the Central Bank on customer behalf.

9. Processing             CBR            When will Central Bank Reporting requirements     Central Bank Reporting (CBR) practices and limits vary across Europe, placing a burden on many corporates. In recognising that
                                         be abandoned by countries when making SEPA        SEPA creates a single payments market, the European authorities are actively seeking to simplify CBR requirements.
                                         Credit Transfers?

9. Processing             CBR            CBR - no longer mandatory for amounts < EUR       Central Bank Reporting is country specific; in NL Central Bank Reporting is not required. This has nothing to do with the < EUR
                                         50.000. Does this only apply to NL or all SEPA    50.000 amount.
9. Processing             OBO            What is the layout of ‘on behalf of’ option and   RBS can support the additional “on behalf of” information in the remittance information field. RBS recommends populating both the
                                         format and channel availability?                  specific ‘on behalf of’ field (ultimate debtor in ISO 20022 XML) and including the same name in the remittance information.
                                                                                           • For SEPA CT (ISO 20022 XML format):

                                                                                           • For SEPA DD (ISO 20022 XML format):

                                                                                           • For domestic wire payments / cross-border payments,

                                                                                           • For ACH payments: vary from country to country depending on the ACH clearing, use 1st line of the in the reference field. Due to
                                                                                           limited field size of the reference field, it may be necessary to use an abbreviation to indicate the local entity that the payment is
                                                                                           being made for.
                                                                                           • For cheque payments, the “on behalf of local entity X” information will be printed on the stationery together with the cheque.

10. Country Specifics

           3/24/2013, 3:27 AM                                                                                                                                                                                                         13

Topic                      Category      Question                                            Answers ** for internal use only **
10. Country Specifics      NL            Can RBS customers send their SEPA Direct            As RBS has chosen another SEPA Clearing and Settlement Mechanism, rerouting of SEPA Direct Debit batches via Equens is for
                                         Debits directly to Equens?                          RBS customers not applicable.

10. Country Specifics      NL            Does RBS deliver client VerwInfo like information   As VerwInfo is part of legacy payment processing (via Equens) and will replaced by MT940 and XML messages in case of SEPA
                                         (reasons for reversals or rejections, a.s.o.) in    payments, client should be able to deal with MT940 and XML messages in case of SEPA. Legacy processing is total separated
                                         case of SEPA trafic?                                from SEPA processing. RBS will make sure VerwInfo information will be delivered to client for reconciliation.
10. Country Specifics      NL            Will customers still receive VerwInfo when          Processing of legacy formats is totally separate from SEPA processing. As VerwInfo is part of the legacy payment processing via
                                         Equens is no part of RBS SEPA processing?           Equens and this will replaced by SEPA processing via EBA, customers will receive MT940 and ISO 20022XML messages in stead
                                                                                             of VerwInfo. Customers should be able to deal with these formats.
10. Country Specifics      NL            Are equivalent SEPA products available for          At this moment the specifications for these products are not described. The Dutch Banking Community, large business debtors and
                                         domestic products in the Netherlands like OLA,      the NL SEPA Program will decide on this on short term, latest Feb 2013. As soon as a decision is taken RBS will execute
                                         iDEAL, FinBOX?                                      accordingly.
10. Country Specifics      NL            Will the current legacy Acceptgiro format be        The Dutch Banking Community will take a decision to develop a SEPA variant for Acceptgiro, which cannot be available before end-
                                         made SEPA compliant?                                date, or to end this product, or to be replaced by alternatives. In that case the current legacy Acceptgiro will be marked as niche
                                                                                             product and so available until 2016. As soon as a decision is taken to develop a SEPA Acceptgiro RBS will execute this accordingly.

10. Country Specifics      NL            Will EBA provide NAW enrichment?                    EBA does not have a database with these data needed for providing NAW enrichment. NAW enrichment service for NL will be keep
                                                                                             in place at Equens for the time being; Equens is investigating if they will offer these services also in the SEPA era, or not.

10. Country Specifics      UK            As UK is a non-euro country in SEPA, how will       Although UK does not have the euro as domestic currency, it is an active player in SEPA area. Customers with accounts in the UK
                                         they be affected by SEPA payments?                  can still make SEPA Credit Transfers as well as originate SEPA Direct Debit claims. In some instances the euro amounts paid /
                                                                                             collected under the SEPA services will be converted into a customer’s GBP account.

10. Country Specifics      Coverage      Is it possible to use SEPA services in non-euro     Yes. Although SEPA will only support transactions denominated in euro, banks in any of the 32 SEPA countries can offer the service
                                         countries?                                          to their clients. The non-euro countries must be a SEPA country.
10. Country Specifics      Switzerland   What are the SEPA Credit Transfer requirements Switzerland is a SEPA participant. A pre-condition for SEPA payments to Switzerland is that the complete details of the paying party
                                         for Switzerland?                               must be included in the data record.
                                                                                        As a service to its customers, RBS automatically adds the paying party’s details to the order/record.
                                                                                        Note: Since Switzerland is not part of the EU, the EU price regulation does not apply. This also applies for all other countries
                                                                                        participating in SEPA but which do not belong to the EU / EFTA, such as Monaco.

10. Country Specifics      Poland        Are SEPA payments possible in Poland?              Poland is a SEPA but non-euro country. This means, that at this moment SEPA Credit Transfer payments can be initiated in Poland
                                                                                            with FX component.
10. Country Specifics      Finland       As client is SEPA compliant in Finland as this is  SEPA concerns non-urgent payments in euro currency only where the debtor and creditor accounts are registered with banks / bank
                                         mandatory, should client also be SEPA compliant branches located in a SEPA country (domestic and cross border). Possible country regulations regarding resident / non-residents
                                         for accounts held in other countries and does this will not be impacted by SEPA. Finland is SEPA compliant, meaning IBAN and BIC are mandatory for domestic account numbers on
                                         also applies for non-resident accounts?            invoices and credit transfers.
                                         1) Domestic payments resident & non-resident
                                         2) Resident accounts in other countries, e.g. EUR
                                         acct held in NL by Finnish company
                                         3) Cross border payments initiated from Finland
                                         within EURO Zone

            3/24/2013, 3:27 AM                                                                                                                                                                                                     14
Countries covered by SEPA                        Back

           SEPA euro             SEPA non-euro
           nominated             Countries
           Austria               Bulgaria
           Belgium               Czech Repulic
           Cyprus                Denmark
           Estonia               Gibraltar
           Finland               Hungary
           France                Iceland
           Germany               Latvia
           Greece                Liechtenstein
           Republic of Ireland   Lithuania
           Italy                 Norway
           Luxembourg            Poland
           Malta                 Romania
           Monaco                Sweden
           Netherlands           Switzerland
           Portugal              United Kingdom

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