Relationship Management Application (RMA) and Buyers Credit

Using Swift Codes Banks and Financial Institutions send and receive swift messages. But there must have been times where you might have come across your bankers coming back to you stating that they do not have swift key arrangement with buyers credit bank. Thus they will not be able to send Letter of Undertaking (LOU) / Letter of Comfort (LOC) authenticated swift message (MT799) to buyers credit bank. Below article gives a brief about why situation arise.

Relationship Management Application (RMA)

RMA  is a system, where a sender bank and receiver bank has to authorize each other to send swift messages and also what type of swift message they can send each other. Thus making the communication system more secure.

So, in cases where banks do not have an RMA with another bank, LOU issuing bank either has to set up an RMA with Buyers Credit Bank or has to route the swift message through a bank / branch with whom both banks have an RMA. Also note, there is an additional cost which correspondent bank will charges for Relaying or Forwarding the swift message. Normally this would cost between $50 – $100 and also result in consumption of additional time to complete transaction.

RMA Example

LOU Issuing Bank ———MT799 (LOU) ———Buyers Credit Bank

Non RMA Example

LOU Issuing Bank—–MT799 (LOU) —– XYZ Bank (Relay / Forward)——–Buyers Credit Bank


RMA Between Institutions from Importers Perspective

  1. As a customer there is nothing much one can do than requesting his bank to get RMA setup with another bank where they do not have one.
  2. Bank would be interested in getting RMA done with another bank based on expected volume and other business which it can do.
  3. Both Banks should agree to get RMA done.
  4. Depending upon the backend process of both banks, it might take from one day to few weeks in getting the RMA setup between banks.


  1. SWIFT Relationship Management Application (RMA) Due Diligence
  2. List of SWIFT messages which do not require an RMA authorisation

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