Does UFT 12.02 supports ISO8583 & NDC protocol testing? If yes, can you advice the basic steps to configure the same in UFT.
Testing ISO8583 & NDC protocols using HP UFT tool
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The short answer is No.
They list Financial Services as one of the supported environments, but my experience that it is not financial transaction testing.
The longer version is while you can technically configure UFT to send these messages (if straight text) by capturing examples and sending them back through. Though when I was given a chance to use it as a trial and did this, it did not do it very effectively and had very high overhead compared other tools for financial transactional testing on the market than UFT. Especially for dynamic creation of data, packed vs. unpacked, BER TLV, encryption keys, or manipulation of data elements, and things that regularly change it is not very effective.
I would consider the following options, each of these vendor's have specific solutions for each interface and have many pre-built ISO-8583 modules you can license or you can create them on your own.
Paragon also has a product called ATMeMulator and ConfigBuilder for NCR & Diebold I have seen no equivalent product (or at least anything in the ballpark of features/functionality) out there for building and testing loads, screens, states, transactions, faults, etc.