From the sender's point of view, at least one of the remitter and the payee is a non-financial institution, and this message format can only be used to send unconditional payment instructions, but not to send payment notices under clean bill collection to the collecting bank.
The connection and difference between MT 103 and MT202: MT202 is the format of inter-bank position remittance message. For domestic bank remittance, only one MT 103 message is sent to its own bank, and the bank chooses the payee's bank to remit the fund position. It is possible that when the payee receives the MT 103 message, the fund position cannot be credited to the customer's account, but at present, it can basically be credited the next day (USD). There are also direct remittances named "cross-strait connection", that is, MT 103 and MT202 messages are sent at the same time. MT 103 indicates the payee's name and account number to the opening bank, and at the same time instructs the opening bank to remit the fund position to the payee's opening bank through MT202, which is faster than indirect remittance.
Used for letters of credit, collection, etc. The bank pays through MT202, and the receiving bank distinguishes the customer's money according to the business number in the message. Sometimes the paying bank MT202 misstates or loses relevant information during message transmission, so the receiving bank can't enter the customer account smoothly, so there are often unknown MT202 remittances that are "claimed" by the handling bank. If it can be judged by the amount and other information, the problem can be solved, but it can't be solved. The remitting bank needs to supplement the information or return it to the remitting bank for remittance. Only MT202 customers remit money, so the remitting bank needs to supplement the payee's name and account information. If it can't be done, it will be refunded.
The implementation of bank transfer settlement is conducive to the state's regulation of currency circulation. The implementation of bank transfer settlement and the replacement of cash circulation with bank credit receipts and payments have enabled cash to be used only for businesses below the settlement starting point and within the scope of cash expenditure, narrowed the scope and quantity of cash circulation, separated a large amount of cash from the circulation field, and created conditions for the state to organize and regulate cash circulation in a planned way and prevent and curb inflation.