Published on: 2025-12-25
Updated on: 2025-12-26
International bank transfers run on identifiers. The two most requested by customers are MT103 and UTR, as they help prove that a payment was instructed and assist banks in locating a transaction within their systems.
Obtaining the correct reference number and understanding what it can and cannot confirm often determines whether a “missing transfer” is resolved in minutes or takes days to resolve.
In India, outward remittances add a separate compliance layer. Banks frequently request Form A2 because it captures the remitter’s declaration, purpose, and regulatory details under foreign exchange rules, including checks linked to the Liberalised Remittance Scheme (LRS) for individuals. [1]
MT103 is a standard SWIFT message type used for a single customer credit transfer, a bank-to-bank instruction to move money for a customer (payer) to a beneficiary (receiver). It is widely treated as a payment confirmation document because it shows the payment’s core details: sender reference, currency/amount, beneficiary information, routing banks, and charges options.
A common misconception is that an MT103 alone proves the beneficiary has been paid. In reality, MT103 proves the payment instruction was created and sent through the SWIFT channel; final credit depends on the full processing chain (including intermediaries, compliance checks, and settlement funding). SWIFT’s tracking framework strengthens visibility, but “issued” is not the same as “credited.”
When a bank shares an MT103 (or an MT103-like confirmation), the fields below are the ones most useful for tracing:
Field :20: Sender’s reference (the bank’s reference for the message)
Field :32A: Value date + currency + interbank settled amount (what is settled between banks)
Field :50a: Ordering customer (payer)
Field :59a: Beneficiary customer (receiver)
Field :57a: Account with institution (beneficiary bank)
Field:71A /:71F /:71G: Charges option and charges details (critical when a beneficiary receives less than expected)
If a transfer is delayed, the most effective internal searches by banks usually start with Field:20 plus amount/currency and value date, then move to tracking references such as UETR, where available.
UTR stands for Unique Transaction Reference. In India’s domestic high-value payments rail, the Reserve Bank of India describes the RTGS UTR as a 22-character code used to uniquely identify an RTGS transaction. [2]
So, what is a UTR number in practical terms? It is the reference that your bank (and the receiving bank) can use to locate the transaction quickly in that payment system, verify status, and raise a trace if needed.
Many payment problems come from a simple mix-up:
UTR (India) is commonly tied to domestic rails (especially RTGS, and often used informally as a “transaction reference” for other local transfers).
UETR (SWIFT) is a 36-character end-to-end tracking reference for cross-border SWIFT payments, designed to follow a payment across banks in the chain.
If you are tracking an international SWIFT wire and someone asks for “UTR,” they may actually mean UETR (or the bank’s sender reference). Asking the bank which identifier they need UTR, UETR, or Field :20 reference avoids days of back-and-forth.
| Term | Used For | Typical Format | Where You Find It | Best For |
|---|---|---|---|---|
| MT103 | SWIFT customer credit transfer message | Document/message type | Sender bank can provide | Proof of instruction + payment details |
| Field :20 Reference | Sender’s SWIFT message reference | Up to 16 characters | Inside MT103 | Bank-to-bank tracing anchor |
| UETR | SWIFT end-to-end tracking | 36 characters | MT103 header / related tracking | Tracking across intermediaries |
| UTR (RTGS) | India RTGS transaction ID | 22 characters | Bank receipt / statement | Domestic trace and status |
| Bank Internal Reference | Any rail | Varies | Bank confirmation | First-line customer support lookup |
A SWIFT transfer is best understood as two layers:
Messaging: SWIFT carries structured instructions between banks.
Settlement: Money is settled through bank accounts held with each other (often correspondent banking accounts).
Many international transfers route through correspondent banks because two banks may not hold accounts with each other in the required currency. SWIFT’s own material on correspondent banking highlights this model and the operational reality of cross-border payment chains.
Banks can send cross-border customer payments using different routing approaches:
Serial method: The MT103 moves bank-to-bank along the chain.
Cover method: The payment details go via MT103, while the actual interbank funding can move via a separate bank-to-bank “cover” transfer (commonly MT202 COV).
SWIFT market practice guidance explains that MT202 COV carries underlying customer transfer information linked to the MT103 and is used for transparency and screening in the chain.
This is one reason an MT103 may exist even when funds have not yet reached the beneficiary: the chain still needs successful settlement and processing on the cover side (where used), plus compliance clearance.
SWIFT introduced the UETR as a single tracking reference intended to stay consistent through the payment chain. SWIFT describes it as a 36-character reference designed to provide end-to-end transparency across parties handling the payment.
On top of that, SWIFT GPI (Global Payments Innovation) adds tracking and status updates. SWIFT’s GPI materials describe “payment confirmations” where participating institutions confirm statuses such as credited, on hold, or transferred outside SWIFT.
These terms often appear in tracking conversations:
Beneficiary bank (Account With Institution): The bank where the receiver holds the account (often shown via BIC/SWIFT code).
Intermediary/Correspondent bank: A bank that helps route or settle the payment, especially when the sender and beneficiary banks don’t have a direct account relationship in that currency.
Nostro/Vostro accounts: Accounts banks hold with each other for settlement. Customers don’t “see” these accounts, but they explain why extra banks appear in the chain.
Charges options are a frequent cause of disputes when the beneficiary receives less than expected:
OUR: Sender pays transfer fees (in principle).
SHA: Fees are shared.
BEN: Beneficiary pays fees (deducted from incoming amount).
MT103 usage rules and field logic link charges fields to what gets settled and what may be credited after deductions.
Ask the sender bank for one or more of the following:
MT103 copy/confirmation (or an MT103 extract)
UETR (especially for SWIFT GPI tracking)
Sender’s reference (Field :20)
Amount, currency, value date, beneficiary bank SWIFT/BIC
If the bank only provides a “transaction reference,” ask whether it is a UETR, Field :20 reference, or a bank internal reference.
Small mismatches can trigger manual review or returns:
Beneficiary name vs account name expectations
IBAN (where applicable) or account number accuracy
Beneficiary bank routing details (BIC/SWIFT, branch identifiers)
If the transfer is not credited within the expected corridor time, ask the sender bank to:
check SWIFT GPI tracker status using UETR (if available)
request a trace through the bank’s operations team,
confirm whether the payment is on hold, credited, rejected, or returned.
A transfer can be marked “credited to beneficiary bank” but still not appear in the recipient’s account if:
The beneficiary bank needs extra information (compliance/KYC),
The account is restricted or closed,
The incoming transfer posting is pending internal checks.
In those cases, the beneficiary should contact their bank and provide the SWIFT references so the bank can locate the incoming item quickly.
International wires are screened for sanctions and required originator/beneficiary information. If details are incomplete, banks may place the payment on hold, request clarification, or return it.
Cover payment market practice is explicitly designed to preserve underlying customer information for screening through the chain.
More intermediaries typically means:
More cut-off times,
More potential fee deductions,
More points where the payment can be queued for manual checks.
If the transfer involves currency conversion at an intermediary or beneficiary bank, the final credited amount can differ from what the sender expected. Charges and exchange rates can be reflected across MT103 fields and settlement amounts.
Form A2 is an application-cum-declaration used for drawing foreign exchange and outward remittances. It captures who is remitting, the amount and currency, the purpose, beneficiary and bank details, and the remitter’s declarations.
RBI templates show it as a standardised form that authorised dealers use to document the transaction and compliance basis.
Banks ask for Form A2 because it helps them satisfy core obligations:
Under LRS, RBI states authorised dealers are guided by the remitter’s declared nature of transaction in Form A2 and then certify remittance conformity, while responsibility ultimately remains with the remitter.
RBI’s LRS FAQs describe an overall annual limit of $250,000 for resident individuals (subject to conditions) and note that PAN is mandatory for LRS transactions through authorised persons.
Outward remittances are reported using purpose codes in RBI’s foreign exchange transaction reporting framework. RBI publishes detailed purpose code lists for reporting forex transactions.
RBI guidance for remittances has historically required authorised dealers to retain Form A2 and related documents for verification/audit purposes (rules vary by transaction category and value).
RBI has also addressed operational flexibility by allowing remittances based on online or physical submission of Form A2 (subject to conditions) and removing earlier limits tied to “online Form A2” amounts as described in its circular.
Banks typically focus on a few high-friction points:
Purpose and purpose code alignment (what the remittance is for, and whether the supporting documents match)
Remitter identity details (including PAN for applicable cases)
Beneficiary bank details (SWIFT/BIC, address, account number/IBAN)
Source of funds (especially for larger remittances or new relationships)
Supporting Documents: Keep Them Consistent
Even when a remittance is permitted, inconsistent paperwork can trigger manual review. Examples:
Education remittance: admission letter/fee invoice matching beneficiary name.
Services payment: invoice and contract details consistent with purpose code.
Family maintenance: recipient relationship and rationale clear.
A simple consistency check names, amounts, and purpose wording matching across Form A2 and invoice removes a large share of avoidable delays.
MT103 is a SWIFT message format used for a single customer credit transfer. It shows key payment details such as sender reference, value date, amount, beneficiary information, and charges. It helps trace wires, but it does not automatically prove the beneficiary has received funds.
A UTR (Unique Transaction Reference) is a unique transaction identifier. In India’s RTGS system, RBI describes it as a 22-character code used to uniquely identify an RTGS transaction. Banks use it to locate, confirm, and trace payments within that system.
No. UETR is SWIFT’s 36-character end-to-end tracking reference for cross-border payments, designed for visibility across banks in the chain. UTR is commonly used for domestic transaction identification in India (especially RTGS). For SWIFT tracking, request the UETR.
Start with the sender bank and request the MT103, the sender’s reference (Field:20), and the UETR if available. Then ask the bank to check the SWIFT GPI tracker status or raise a trace. Use the same identifiers when speaking to the beneficiary bank.
Form A2 records the remitter’s declaration, purpose, amount, and beneficiary details for outward remittances. RBI notes authorised dealers rely on the remitter’s Form A2 declaration to guide permissibility checks and certification under LRS, while compliance responsibility remains with the remitter.
No. An MT103 confirms the payment instruction and details. The payment can still be on hold, rejected, returned, or pending compliance checks in the chain. For confirmation of credit, request a GPI status update via UETR or ask the beneficiary bank to verify posting.
MT103 and UTR matter because they turn vague payment conversations into traceable facts. MT103 explains what was instructed and how the payment was routed, while UTR (in its proper context) helps banks locate domestic transactions quickly. For cross-border SWIFT transfers, the most useful tracking identifier is often the UETR.
In India, Form A2 is not “extra paperwork for no reason.” It is a structured declaration that supports purpose classification, regulatory checks, and reporting. If you keep Form A2 details consistent with your invoice, beneficiary information, and declared purpose, you reduce delays and make tracking far easier when something goes wrong.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
[1] https://www.rbi.org.in/commonman/english/scripts/FAQs.aspx?Id=1834
[2] https://www.rbi.org.in/commonman/english/scripts/FAQs.aspx?Id=275
