IDBI Bank was awarded 2011 USD STP Excellence Award by Deutsche Bank at a function organized in Mumbai. IDBI Bank received the award for the exceptional quality of payment messages sent from its 39 Trade Finance Centers in India to Deutsche Bank, New York.
STP (Straight-through processing) of payment messages requires a high degree of consistency and accuracy in structuring of financial messages. STP enables the SWIFT based payment transactions to be conducted electronically without the need for manual intervention, subject to legal and regulatory restrictions.
In the absence of STP, the entire lifecycle, from initiation to settlement, in a remittance transaction, a complex labyrinth of manual processes, could take several days.
With STP it can be compressed to as short as a few minutes or even seconds. STP is a key requirement given the explosive growth of foreign inward and outward remittances.
Now the concepts of STP are applied to reduce systemic and operational risk and to improve certainty of settlement and minimize operational costs.