Payment is rejected due to invalid bank account

Hi,
After upgrading to r12.1 from 11.5.10, we are getting following error while processing a single payment request:

Error: You have selected a bank account which is not set up for the combination of currency and organization, or is not valid on the date of the payment. Please select another bank account.

Payment is created with 'rejected' status. This bank account was being used with no problem in 11i. Does anyone know how to fix the problem?

Thanks;