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hi and welcome to this new video in the previous video we considered what happens during the processing of a sip Einstein credit transfer it is impressive to see the number of steps that are carried out in 10 seconds or less one question was raised at the end of the previous video how does clearing and settlement work for the SCT instant the purpose of this video in the next is to answer to this key question first when we talk about clearing and settlement it means we are in the interbank space so we want to see what happens inside the clearing and settlement box here until the money is move from the depth of Bank to the beneficiary Bank to go straight to the point the key word for understanding clearing and settlement for the SAT instant is refunding pre-funding is required for the depth of Bank that means their funds must be available for the transfer to happen that is why we say free funding more concretely the depth of being involved in an SCT in strands action must pre-fund or pu