Our Understanding of Payment system: This may be the general payment system in the banking industry, it may different

at OCBC,or some of below mentioned system would be also available at OCBC. A payment system can be broadly divided into four components. The Delivery channels The methods used to Deliver the payments The clearing and settlement process The actual transfer of funds between the institutions (or bank to bank payments)

The Delivery channels are the main interface between bank and its customers as shown in the figure below.

-- For Example Cheques Clearing House Structure:

-- For Example Clearing and Settlement process

Payment transactions would be as follows:

Payment transactions Payment tasks Payment statistics Payment Search Search Template Payment Tasks Edit/Complete instructions Assign FX Rates Undo FX Rates Delete instructions Batch instructions Authorized instructions Edit/Undo Batches Unauthorized Batches Sent to Bank Incoming Inquiries Stop payment instructions outgoing stop instructions Telegraphic Transfer Local Bank transfer Book transfer Direct credit Payroll Corporate cheque International bank cheque Local Bank cheque

Make New payment

Bank to Bank transfer Advice of cheque stop payment of cheque import payments Payment statistics Incoming Inquiries Outgoing inquiries Ready send Ready for authorisation Drafts(complete/incomplete) Batch Reference No of Instructions Status Matrix Number Total Debt BCE Batched by Batched on Complete Batched Partially signed Fully signed Sent to Bank under processing stopped Received Rejected Returned cheque cleared Received after cut off Future date Holiday sent to alliance bank

Batch Updated

Status

Below Applications may be available in the existing Payment, Forex system or it may very at OCBC that is a pure guess.
The following applications may be available in the Payment product area 1 Incoming Multiple Financial Institution Transfers 2 3 4 5 6 Outgoing Multiple Financial Institution Transfers Financial Institution Transfers Branch Office Registration of Outgoing Customer Credit Transfers Outgoing Domestic Transfers Incoming Customer Credit Transfers

7 8 9 10 11 12 13 14 16 17 18 19 20 21 22 23 24 25

Incoming Cheque Settlements Third Party Bank Registration of Outgoing Customer Credit Transfers Outgoing Cheque Settlements Outgoing Customer Credit Transfers Incoming Multiple Customer Credit Transfers Outgoing Multiple Customer Credit Transfers Outgoing Payments Executor Incoming BACS Payments Executor Outgoing BACS Payments Executor Outgoing Requests for Financial Institution Transfers Incoming Requests for Financial Institution Transfers Outgoing Requests for Customer Credit Transfers Incoming Requests for Customer Credit Transfers Outgoing Securities Payments Executor Incoming Cross Border Customer Direct Debits Outgoing Cross Border Customer Direct Debits Incoming Cross Border Bank Direct Debits Outgoing Cross Border Bank Direct Debits

The following applications may be available in the Forex & Money Market area 1 Forex Deposits 2 Financial Futures 3 Forward Rate Agreements 4 Forex Spot 5 Confirmations Matching System 6 Exotic Options 7 Forex Options 8 Forex Swaps 9 Interest Rate Currency Swaps 10 Interest Rate Swaps 11 Forex Forwards

The following applications may available in the Exposure & Treasury Management area 1 Cash Flow Reporting 2 Limits, Lines & Liabilities 3 Portfolio Management 4 Position Keeping 5 Interest Rate Risk Exposure

Mode of Payment

Bill Payment GIRO Payment o Interbank Giro System:

Funds Transfer o Electronics Fund Transfer:

Telegraphic transfer Demand Draft PoolZ connect

General Element of Payment systems:

Our Understanding on Foreign Exchange and related Payment System. It may be not fully valid at OCBC system. 1.Buying and Selling (Buy Deal/Sell Deal) of the Currency/TC (traveler cheques) 2.Vault process (both Start of day and End of day process) 3.Importation of Rates 4.Swap the products within the currency 5.Accept/make payment in the system base currency

6.Accept/make payment in non-system base currency-Direct debit 7.Handling the Euro currency conversion.

Scope of the Engagement of Validating business requirement as follows. We are assuming that mainly Functional and System testing would be main focus area, because of the complexity of the system. They are classified as below. Functional Testing. Validations at all 4 levels Delivery Channels, Payment methods, clearing house and Bank-to-Bank Payment. Should be able to enter the meaningful transactions at the payment system. Should be able to validate that amount against exchange rates (SGD based, USD based, cross) are computed accurately. Should be able to validate accuracy of MT messages generated. Should be able to validate correct passing of GL entries for transaction.

System Testing. Should be able to validate accuracy of financial computation of all remittance amount, customer charges, bank charges, net amount for SHA, BEN & OUR standard pricing and preferred pricing. Should be able to validate that the correct information is being passed to the respective interfaces (FX, Core banking) Should be able to validate that the system picked up the correct correspondent agent for STP cases Should be able to validate that the system is responding correctly to exceptions encountered during processing account status, CIF status, funds exception, rates exception, timeout etc Should be able to validate that transaction processing conforms to authorization matrix that is set up for the product/user Should be able to validate security functionality against banks requirement

In the system testing area, after the system is stable can go for Automation mainly GUI Testing, Regression and Volume/Load testing.