Hi Chandi,
1) Yes, SAP will accept this long code - see example below:
2) SAP provides standard XSLT FIEB_CAMT053_V2_TO_FEB (this basically reads the data from the XML tags so it can be mapped into SAP structures). You may need to create your own Z version (using XSLT_TOOL) if the format from your specific bank(s) does not quite match the standard XSLT. I would suggest getting some camt files from the banks and testing these first and also review and file specifications from the bank(s).
3) I also suggest going to SAP marketplace and looking for notes related to camt.053 because there have been many of these over the last couple of years.
Best,
Jack