5. Account Creation

Loan Accounts in the Retail Lending module represent the receivable accounts that you create while disbursing a loan. These accounts derive their feature from the Loan Product. Loan Accounts are mapped to the Asset GL through the accounting Role LOAN_ACCOUNT. This role has to be mapped to the respective Asset GL of the Bank. You can override some product features at the account level.

The system allows you to do the following actions on the Loan accounts:

This chapter contains the following sections:

5.1 Loan Account Creation

This section contains the following topics:

5.1.1 Maintaining Loan Account Details

The account screen accepts the Customer, Currency and Amount Financed and creates a Light Loan. This is a default Loan that takes all other details from the defaults the product provides. For creating simple accounts in the CL module, you can follow this simple process. These Loans are called Light Loans in the CL module.

Oracle FLEXCUBE allows you to create loan account for project financing manually and link it to the project limit line. You can link the customer of the loan to the executor of the project. Joint venture limit tracking is based on the project loan and picking up the limit tracking using joint venture maintenance. The system will also store the project ID and PPC against which it is used. The ratio of joint venture at the time of loan creation is stored at loan level and in turn it is used for tracking till loan closure.

Once the loan is paid, i.e., the sponsor has made the money available to the executor and hence this transaction is to be marked against the PPC and reduce PPC limit to that extent.

You can create a loan account using the ‘Account Details’ screen. You can invoke this screen by typing ‘CLDACCNT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

Click the ‘New’ button on the Application toolbar.

You can specify the following generic details in the Account Details screen:

Product

Click the option list to select a Product Code from the list of values. Double click on a Product Code to select a particular code. The product codes are maintained in the Product Definition screen.

Product Description

The system displays description of the specified product code.

Product Category

The system displays the product category in this field.

Application Number

The system displays the Application Number in this field

Note

This is applicable only if the origination of the loan is in Oracle FLEXCUBE or is interfaced.

Branch

The system displays the Branch Code of the branch into which the user has logged in, for which the UDE values are maintained.

Account

Based on the parameters that setup at the branch level, the account number would be either auto generated or would have to be captured in this field.

Alternate Account Number

Specify the alternate account number in this field. It can be an account number in the existing system from which the account has migrated to Oracle FLEXCUBE.

IBAN Required

Specify if IBAN is required for a loan account from the drop-down list.The options are:

IBAN

If IBAN Required is selected as ‘Yes’ the system displays the IBAN account number based on the IBAN format maintained in ‘Branch Parameters’ (STDBRANC) screen.

Version Number

System displays the version number of the loan account.

User Reference

A 16-digit User Reference Number is autogenerated and displayed here if the ‘Auto Generate User Ref No’ option is checked in the Branch Parameters. The format of the user reference number is BranchCode + ProductCode + Sequence number. You are allowed to modify the auto-generated User Ref No.

If the ‘Auto Generate User Ref No’ in Branch Parameters is not checked then the User Ref No will be blank by default and you have to specify it manually. Validations are done by the system not to save the account if an unsuppressed payment message is present which has the User Ref No as blank.

User Defined Status

After you enter the account number, the system displays the status of the account in this field. This is based on the products status maintenance rules.

If you have opted for status processing at the ‘Group/CIF’ level as part of your branch preferences, the system defaults the value of CIF status as available in the ‘Customer Maintenance’ screen. This status is the worst status among all the loans, savings accounts and current accounts for the customer within the current branch.

Derived Status

The system defaults the status of the individual loan account here. This is derived from the status maintenance rules of the product, during end of day operations.

5.1.2 Main Tab

You can capture the main details of the loan account in this tab.

Customer ID

To select a customer ID, click the option list. A screen called ‘Find Customer Details’ is displayed. You can enter search criteria in this screen. For example, you can enter the customer name or number and click on the ‘Search’ button. The system then fetches you all the details corresponding to the Customer name or account. Once you find all the details, double-click on the record to return to the account details screen.

Customer Name

On selecting the customer ID, the system displays the customer name.

Currency

To select a currency, click the adjoining option list. A list of currencies is displayed. Double click to select a currency.

Click ‘Product Default’ button after entering product code, customer ID, currency and amount financed. The system defaults other details maintained for the selected product. The system also defaults the schedule definitions from the product and computes the detailed schedules. After clicking the ‘Product Default’ button, you cannot change the product code. Also, the system prompts you to click the ‘Product Default’ button once again if you change ‘Customer ID’, ‘Currency’ or ‘Amount Financed’ fields.

Settlement Sequence Number

The system displays the settlement sequence number during product default. The default value displayed will be zero. You can select a different value from the adjoining list of values and re default the product details.

Note

If the Payment By detail of settlement instruction fetched is maintained as Instrument/Local Clearing, then the system will display an override message while defaulting the set­tlement accounts. Payment Mode will be Account in settlement details irrespective of the ‘Payment By’ details maintained.

Amount Financed

Specify the total loan amount of the loan in this field.

Note

If Calculate Gross Principle is checked, then the amount financed is the gross principal.

On saving the account, the system validates the value of the amount financed against the following:

If the transaction currency and the limit currency are different, then the system converts the amount financed to limit currency and checks if the same is in excess of the product transaction limit and user input limit. If this holds true, the system indicates the same with below override/error messages:

Book Date

In this field, the current date when the loan details were entered is defaulted and cannot be modified.

Value Date

Select the Value date of the loan in this field using the date button.

First Pay By Date

Specify the customer’s preferred first pay by date. The system will calculate the schedule due date as follows:

Schedule Due Date = (First Pay by Date) - (The credit days maintained at product level)

In case the calculated first schedule due date is less than or equal to the value date of the contract, then the user has to modify the first pay by date. For instance, if you prefer to have your payment date on 14th of every month, then the first pay by date should be 14th day of the month. Presuming credit days is maintained as ‘10’ at the product level, the first schedule due date will be 4th of that month, i.e., 14th Apr 09 – 10 (first pay by date - credit days)

First Pay By Date

Credit days

Schedule due date

14 Apr 09

10

4 Apr 09

Total Principal Outstanding

Total Principal Outstanding inclusive of the compounded interest or penalty is defaulted here.

No of Installments

Specify the number of installments for the loan account.

Unit

Select the unit of frequency at which the EMI of the customer will change, from the adjoining drop-down list. This list displays the following values:

The system derives the first change date by adding the Frequency unit to the value date.

Frequency

Specify the frequency in which the EMI of the customer will change.

Installment Start Date

Specify the installment start date for the loan account. Alternatively, you can select the date from the adjoining calendar button.

EMI Amount

Specify the EMI amount here.

Due Date On

This option may be used to schedule an installment on a particular date of the month.

Maturity Type

Select the Fixed or Call option to specify the type of loan maturity.

Note

The system by default selects the option Fixed. For the Call option, the maturity date will not be computed upfront.

If you choose the ‘Call’ option, IRR processing will not be applicable to the account.

Maturity Date

Select the maturity date in this field using the date button.

If you are not sure of the maturity date, enter the tenor of the loan in either days or months or years as say 3M for 3 Months etc. The system automatically calculates the date on tabbing-out of the tenor.

Tenor

Specify the tenor of the loan.

Net Principal

The Net Principal is the actual principal amount financed. It is system calculated and excludes any other funded components.

Loan to Value

Specify the loan to value here.

Index Exchange Rate

Specify the exchange rate for index currency here

Subsidy Customer ID

Specify the unique identifier of the agency or the third party included in the subsidy loan contract.

Calculate Gross Principle

Check this box if you want the system to calculate the gross principal for the loan. If you have checked this box and have entered the amount financed then system takes the amount financed as the gross principal.

Securitization status

The system displays the securitization status. The status can be anyone of the following:

Enrich

After product defaulting, you can change the contract details which impact the schedule computation. You should enrich these changed details. Click the ‘Enrich’ button. The system displays appropriate overrides and re-computes schedules and other details depending on the changed values.

For the rate code, if an active term deposit reference number is selected from the option list, then on clicking ‘Enrich’, system defaults linkage details as below:

Collateral Takenover

This check box is checked if the collateral linked is been taken over.Click 'Takeover Details' button to view details of the take over.

You can view the following details in this screen:

APRC Details

The system displays calculated value of the Annual Percentage Rate on save. The calculation is based on cash flow and is derived ones the value is saved.

The following details are considered for calculating APR:

The calculation of APR is done by using the expression

 

where,

‘n’ is the number of periods of payment in a year

‘i’ and ‘r’ are nominal and effective rate, respectively.

Note

Effective rate is arrived at considering all others costs (charges) on the loan in addition to interest.

The detailed expression is as below:

 

X

is the APRC

m

is the number of last drawdown

k

is the number of a drawdown, thus 1 <= k <= m

CK

is the amount of drawdown k

tK

is the interval, expressed in years and fractions of a year, between the date of the first drawdown and the date of each subsequent drawdown, thus t1 = 0

m’

is the number of the last repayment or payment of charges

L

is the number of a repayment or payment of charges

D1

is the amount of a repayment or payment of charges

s1

is the interval, expressed in years and fractions of a year, between the date of the first drawdown and the date of each repayment or payment of charges

The calculated APR in simulation or origination is passed to loan account creation and it is supported in Retail loan Origination workflow. Calculation is supported in Retail Loan Origination workflow.The system calculated the APR on save at the time user creates loan directly.The APR calculation is updated once on the loan account and the same cannot be revised any changes or payments to the loan account.

EMI Details

Frequency Unit

Select the unit of frequency at which the EMI of the customer will change, from the adjoining drop-down list. This list displays the following values:

The system derives the first change date by adding the Frequency unit to the value date.

EMI Frequency

Specify the frequency in which the EMI of the customer will change.

Minimum EMI

Specify the minimum EMI amount for the customer. If the result of the derived EMI is below the 'Minimum EMI' specified here, the system sets the EMI for the customer to the Minimum EMI amount.

Maximum EMI

Specify the maximum EMI amount for the customer. If the result of the derived EMI is above the 'Maximum EMI' specified here, the system sets the EMI for the customer to the Maximum EMI amount.

Note

The Minimum EMI and Maximum EMI are optional inputs.

Base End Date

Specify the date beyond which the EMI Change (EMIC) will not be processed. Alternatively, you can also select the date from the calendar button.

Securitization status

The system displays the securitization status. The status can be anyone of the following:

Effective Date

You can specify the following detail here:

Effective Date

The effective date is used to pick the UDE value. The system displays this date from the General UDE maintenance screen.

For a product + currency combination, if the UDE values are not maintained for the effective date, then the system defaults “0” which the user can then edit.

User Defined Element Values

The UDE values for each Account are maintained here. After clicking the ‘Product Default’ button, the UDE values default from the UDE values maintenance for the Product, Currency, effective dates combination. The system disables this section. These can be overridden by providing account level UDE values. For this, you need to click the ‘Edit UDE Details’ button. After changing the details, the system re-computes the schedules. On saving the contract, the system prompts the changed details.

However the UDE are only those defined at the product level. No New UDEs can be introduced at the account level.

The system checks whether the UDE values fall within the minimum and maximum limits specified for the UDEs linked to the product. If a UDE value falls outside the permissible limits, the system will throw an error message,

If there are no product level UDE values maintained, the system will default the UDE value to Zero. However, at the time of saving, if UDE values are zero or any invalid value, then an override will be raised with an appropriate error message. If required this can be configured as an error message. In case of an ERROR, you will have to give a valid value. While if it is an OVERRIDE, you can overlook the message and continue and if it is for an ONLINE AUTHORIZATION the parameter should be authorized appropriately.

You can specify the following details for the UDE values:

User Defined Element ID

To select a UDE Id, click the option list. A list of UDE Ids is displayed. Double click to select a UDE Id.

User Defined Element Values

Specify the Actual Value for the UDE based on the effective Date in this field. The value specified here should fall within the minimum and maximum limits maintained for the UDE linked to the underlying product.

Note

Mandatory if a UDE is maintained.

Rate Code

Select the code for the Floating Rates if any and provide the spread in UDE value field. from the adjoining option list. The system also lists the active and open term deposit account as part of rate code option list.

Note

If the fixed rate term deposit reference number is selected from the option list, then the in­terest rate of term deposit is resolved for loan account.

If the floating rate term deposit reference number is selected from the option list, based on the code usage option selected at loan level, the respective date's rate of term deposit will be resolved for loans.

The term deposit reference number can be selected as a rate code only for the INTER­EST_RATE UDE.

The system displays an error message on save, if the term deposit reference number is selected for any other UDE.

Loan account interest rate will be picked up from the linked term deposit account ‘Main In­terest Rate’ UDE defined at the IC Product.

Auto Deposits, Denominated Deposits and Recurring Deposits (RD) will not be displayed in Rate Code for linking with the loan account.

The system validates the rate code:

For a back dated loan, the interest rate as of value date will be fetched from the linked term deposit account and applied to the loan account.

Code Usage

Select the Code usage which can be periodic or automatic in this field

Rate Basis

The system displays the rate basis from maintenance or product level. You can select and modify the value from the drop down list. The list displays the following values:

Note

Resolved Value

This denotes the final value of a UDE. Resolved value = Rate code value taken from Floating Rate Maintenance + the spread [UDE Value]

Resolving Final Value for a UDE

Resolved rate of UDE is dependent on Rate basis selected.

Linear rate with rate basis as Per Month/Per Annum/Not Applicable

If ‘UDE Type’ is ‘Rate’/’Rate Code’ and the ‘Rate Basis’ is ‘Per Annum’/’Not Applicable’, the rate resolution is done as per normal procedure.

If ‘UDE Type’ is maintained as’ Rate’/’Rate Code’ at CL product level and ‘Rate Basis’ is ‘Per Month’, the system will calculate the per annum rate as per the formula specified below and display it when you enrich or save the account

Rate per Month *12

Linear Rate with rate basis as Quote Basis

If ‘UDE Type’ is ‘Rate’/’Rate Code’ and ‘Rate Basis’ is ‘Quote Basis’, the final rate will be based on the Quote basis at float rate maintenance level.

Float rate per annum will be derived depending on the quote basis a given in the table below:

Quote Basis

Resolved Rate

Exponential 252

{(((1+Float rate)^(1/252)) –1 )}*YEAR

Exponential 365

{(((1+Float rate)^(1/365)) –1 )}*YEAR

Linear 360

Float rate/360*YEAR

Note

Days in year is the Interest Basis Denominator used for the main interest component.

Exponential Rate with rate basis as per month/per annum/Not applicable

If ‘UDE Type’ is maintained as ‘Exponential Rate’, the calculations for rate resolution will be based on Exponential method.

For exponential loans, system will derive the effective annual rate (R) from the Per Annum rate (r) .Derived rate will be used internally by system in interest calculations.

The derived rate will be arrived at using the formula

R = (POWER ((1+r), (1/YEAR)) -1)*YEAR

 

Where, r = Per Annum rate (resolved rate for the UDE) ,

R = Derived rate

YEAR = Denominator basis of Main Interest component

If ‘UDE Type’ is maintained as ’Exponential Rate’ and the ‘Rate Basis’ is ‘Per Month’, the system will calculate the per annum rate as per the formula specified below:

((1+Rate per Month)^12)-1

Exponential Rate with rate basis as quote basis

Depending on the Quote basis Floating rate Per Annum will be calculated as detailed in the table below:

Quote Basis

Float Rate per Annum

Exponential 252

{1+((1+Float rate)^(1/252) –1 )}^YEAR-1

Exponential 365

{1+((1+Float rate)^(1/365) –1 )}^YEAR-1

Linear 360

{1+(Float rate/360) }^YEAR-1

Note

If any spread is maintained in the ‘Relationship Pricing’ module, then it is applied after the final rate has been resolved based on the parameters listed above

Account EMI Change

In addition to specifying the change in EMI in terms of frequency, you can also input the change in terms of amount and percentage. Specify the following details related to the change in EMI amount of the customer:

Amount Change in EMI

Specify the fixed amount by which the current EMI amount of the customer is either increased or decreased. This can either be a positive or negative value.

Percentage Change in EMI

Specify the EMI percentage by which the current EMI amount of the customer is either increased or decreased. This can either be a positive or negative value.

Effective Date

Specify the date from which the new EMI amount is effective for the customer. Alternatively, you can also select the date from the calendar button. The Effective Date for Account EMI Change should always be greater than the value date of the contract.

During value dated amendments, it is possible to change the EMI amount of the customer from the new ‘Effective Date’. However, the ‘Effective Date’ should be greater than the VAMI effective date.

Note

It is mandatory to specify either ‘Change EMI Percent’ or ‘Change EMI Amount’ along with the ‘Effective Date’.

5.1.3 Preferences Tab

The defaults are maintained by the bank. Depending upon the combination of various preferences, the bank can have various account preferences. The defaults primarily are based on product definition and can be overridden.

You can specify the following details here:

Other Details

Cheque Book Facility

Check this box to indicate that the cheque book facility should be allowed to loan account.

Passbook Facility

Check this box to indicate that the pass book facility should be allowed to loan account.

ATM/Debit Card

Check this box to indicate that the ATM/Debit card should be provided to the account holder.

Liquidate Back Values Schedules

Check this box to liquidate back valued schedules of a loan.

If this flag is turned on, during initiation, when a loan is input back dated and if there are any installment dues, then all those schedules with a due date less than the system date will be liquidated on initiation .

Allow Bulk Payment

Check this box to indicate whether the accounts under a commitment should be considered for bulk processing. Various disbursements are allowed for a corporate customer and these are treated as loans with separate products and EMI schedules. Assigning individual payments as Bulk payments provides the facility of viewing multiple loans under a single commitment.

Amend Past Paid Schedules

This preference determines if you can modify any feature such as interest rate, installment amount which affects already paid schedules. If you select this option then the paid schedules are recalculated and liquidations on them are recognized as pending as appropriate. Note that this option is applicable only to term loans.

Project Account

Check this box to track the working capital of the project.

Partial Block Release

The partial block release is defaulted from the product maintenance screen. However, this can be overridden at account level.

This field decides whether amount block placed on TD can be released partially (by the principal amount repaid as part of repayment) or not. If this field is not checked, then the block will be released on loan account liquidation only.

On save the system validates the linkage amount with available balance of term deposit. If the term deposit is less than the linkage amount then the system displays an error message as ‘Term deposit available amount is not sufficient for linking.’

On save the system marks a lien on the term deposit by the linkage amount, and with 'Amount Block Type' as 'Loan' and 'Reference No' as loan account number.

On save the system defaults ‘Block Reference No’ in Linkage Details as the amount block reference number of the term deposit account.

Min Amount Due Calc Method

Specify the minimum amount due calculation formula name maintained at the product level.On clicking the ‘Default Method’ button in the ‘Product Definition’ screen, the system will display the Min Amount Due Calc Method with the formula name.

For open line loans:

Rate Change Action

Select the rate change action from the adjoining drop-down list. The available values are:

The system defaults Change Installments as rate change action value. However, you can modify it. The value ‘Change Tenor’ is applicable only for amortized accounts.

Rate Change Action is applicable for ARVN and REVN operations.

Stop Disbursement

Check this box to indicate that the disbursement should be stopped.

Recalculate Annuity On Disbursement

Check this box to indicate that the annuity on disbursement should be recalculated.

Packing Credit

Check this box to indicate the possibility of linking CL Accounts to BC under this product.

For more details on the Packing Credit Sub System and Pre-Shipment Finance refer section ‘Specifying Purchase Details’ in chapter ‘Processing Bills’ of the ‘Bills and Collections’ manual.

Use Guarantor for Repayment

Check this box if you need to consider guarantor account for repayment of loans.

Loan Statement Required

The system defaults this value based on the product preferences. However, you can modify the default value. Check this box to indicate that the loan statement should be generated.

If this field is checked and the loan statement maintenance is not done at product level, the system will display an error at the time of saving the contract.

You need to have linked the ‘CLST_DETAILED’ message to the ‘DSBR’ event (for the product) in order to generate loan advice on each disbursal in the loan account.

For Loan Against Salary

The system defaults this value here based on the preferences maintained in the CL product. However, you can modify it at the account level

Notary Pre Confirmed

Check this box to indicate that you have already got confirmation from the notary, before creation of the loan.

If the value date of the account is on or before the application date, then ‘NCON’ will trigger INIT and DSBR event for auto disbursement product, else user will need to trigger manual disbursement post the notary confirmation. .

If the value date of the loan is beyond the application date, the system will trigger the NCON event online, once the value date is reached the INIT and DSBR events gets fired, if the loan is under an auto disbursement product.

You can also save a loan account with this option unchecked. Once you receive the confirmation, you can trigger the ‘NCON’ event manually using the ‘Manual Notary Confirmation’ screen.

Refer the section ‘Manual Confirmation by Notary’ in this chapter to see the steps required for getting confirmation from Notary.

Maximum Renegotiations

Specify the maximum number of renegotiation allowed for the account.

Note

If maximum renegotiation is not maintained, system will perform renegotiation without any restrictions. If the maximum renegotiation value is given as ‘zero’, system will raise over­ride in the first renegotiation itself.

Renegotiation No

The system displays the renegotiation count. This is the number of renegotiations that are already performed on the account.

Pre-shipment Reference

LC Reference

Specify or select the LC reference number from the adjoining option list. All valid export LC of the customer as maintained in the system is displayed in the option list.

Purchase Order Reference Number

Specify the Purchase Order Reference number in this field.

Note

During packing credit loan creation, modification, Rollover, Reassignment or Renegotiation either LC reference number or Purchase order reference number or both will be captured. If both are not captured, configurable override will be displayed.

For scenarios other than packing credit loan creation, modification, rollover, reassign- ment, or renegotiation, the LC reference number and Purchase Order reference number need not be captured. However, if these fields have been captured then a configurable override is displayed and you have a choice to accept the override and proceed further..

Bill Details

Trade Reference

Specify the reference number of the bill. The adjoining option list displays all valid reference numbers maintained in the system. You can choose the appropriate one.

Bill Due Amount

Specify the due amount of the bill.

Amount Available

Specify the available amount.

Liquidation Details

You can maintain the following liquidation preferences:

Liquidation Mode

The system defaults the mode of liquidation from the product level. However you can modify the same to indicate the mode of liquidation that you are maintaining. You can select one of the following options:

When a loan is securitized, the system performs following actions during Payments and Charges liquidation:

Reset Retry Count For Reversed Auto Liquidation

If auto liquidation has been reversed in an account, it will be retried depending upon the status of this field. If this option is selected, then the auto liquidation is retried.

Partial Liquidation

If you select this option, system will perform partial auto liquidation

Retries Auto Liquidation Days

When auto liquidation option is chosen and funds are not available, the number of times the system can retry auto liquidation is determined by this field

If blank, the number of retries is infinite.

Retries Advice Days

Number of retries for an advice is defaulted here from the product maintenance level; however, you can modify if needed. The value should be less than the value maintained for ‘Retries Auto Liquidation Days’.

Close Collateral

Check this box if you need to close the collateral on full payment, during auto liquidation.

Note

During auto liquidation, the system will check is this check box is checked and closes the collateral automatically

Track Receivable

If Track receivable option is checked for an account, it tracks the amount to be liquidated as a receivable if funds are not available. So upon any subsequent credit, the receivables are blocked and allocated to the pending liquidation.

Auto Liquidation

Select this option to indicate that the Track receivable option is for Auto Liquidations. You can modify this during VAMI/rollover/renegotiation.

Note

This is defaulted from the product level

On schedule liquidation if there are insufficient funds in the settlement account to satisfy the liquidation and if both the product and the account are marked for receivable tracking then system initiates tracking of receivable.

If the account is marked for Partial liquidation, then liquidation happens to the extent of available funds, and the remaining amount is tracked.

If the account is not marked for partial liquidation, and the amount available in the settlement account is less than the due amount, then system won’t do any liquidation and starts tracking the full due amount.

Oracle FLEXCUBE facilitates considering and generating guarantor account details maintained under ‘Component’ tab of ‘Account Details’ screen, if the main borrower defaults the payment of the due amount. Based on the value defined for missed installments, system considers guarantor account for repayment. If fund verification and track receivable are enabled, then the system facilitates track receivable facility for both main borrower and guarantor accounts.

Note

If a customer or a customer account is maintained as guarantor customer or guarantor ac­count, then the system restricts closing them. However, details related to customer ac­count being a guarantor account are not maintained at customer account level.

When due amount is not recovered from a primary settlement account and ‘Use Guarantor for Repayment’ box is checked, then the system processes ALIQ for the guarantor accounts with a status sequence number greater than the number maintained at the product level.

Note

ALIQ for the guarantor accounts is an independent subprocess of ALIQ for the primary set­tlement account.

System performs following activities under different conditions:

When sufficient balance amount is available either in primary settlement account or in guarantor accounts, then the amount blocks imposed on all valid accounts will be processed.

Whenever there is a credit to an account, the tracking process checks if the account has any receivable against it and if it does then the relevant amount is blocked as a receivable and the corresponding amount is marked to be used for settlement during subsequent ALIQ for the account. This process happens till the amount needed for liquidation is fully available.

The decision of allocating this credit will be based on the preference order of products that has been specified at an account class level. On the following EOD/BOD, batch liquidation tries to liquidate the schedule. The amount receivable is made available for the liquidation, and liquidation happens to the extent of receivable amount.

When an amount is credit to any of the linked guarantor account, then the system verifies for any repayment due at the primary settlement account level. If an amount is due for repayment, then the system blocks the overdue amount in the guarantor account currency. If the component currency and the guarantor currency are different, then the amount block would be computed based on the exchange rate derived from ‘Sell’ indicator. These amount blocks would be removed only at CL batch stage and the data of the guarantor block details would be stored.

Note

If an amount is credited to a guarantor account with higher liquidation order than the guar­antor account blocked earlier, then the due amount would be blocked for the guarantor ac­count with higher liquidation order.

Manual Liquidation

Select this option to indicate that the Track receivable option is for Manual Liquidations.

During manual liquidation, if a due amount is settled, then the system removes the settled amount block for the guarantor accounts followed by the primary settlement account. After manual liquidation, the system recalculates the eligible amount block which has to be processed.

Note

When a loan is securitized, the system performs following actions during Payments and Charges liquidation:

Intermediary Initiated

Check this box to indicate that the loan has been initiated by an intermediary.

Provisioning Preference

You can define the provisioning preference of loan accounts by selecting the required option in Provisioning Mode.

Provisioning Mode

Select the Provisioning Mode preference of loan accounts from the drop-down list. The list displays the following options:

The provisioning mode option will get defaulted from Product level. However, you can switch between Auto to Manual mode or vice versa, but cannot change the mode as “Not Applicable” if defined as either Auto or Manual mode.

It is mandatory to select the provisioning mode as either ‘Auto’ or ‘Manual’ if CL product is created with a provision component. If CL product does not have provision component, then provisioning mode should be selected as 'Not Applicable'.

Holiday Periods

After product default, the system disables the ‘Holiday Periods’ section. You can click on the ‘Edit Holiday Periods’ button to edit the holiday periods. After changing the details, the system re-computes the schedules. On saving the contract, the system prompts the changed details.

You can specify the following detail here:

Period

Select the period for which repayment holiday is to be given to the customer. The holiday periods maintained in the system are displayed in the adjoining option list. If the selected repayment holiday period exceeds ‘Interest Only Period’ field in the ‘Product’ screen, the system will display an appropriate error message.

For details on repayment holidays for amortized loans, please refer to the section ‘Repayment Holiday for Amortized Loans’ in this chapter.

UDE Rate Plan

Start Date

The start date from which the rate plan change can be done is displayed here. However, you can modify this value at loan account level.

End Date

The end date till which the rate plan change can be done is displayed here. However, you can modify this value at loan account level.

Note

Based on the product maintenance, the ‘Rate Plan Change’ details are defaulted to the loan account and this can be modified.

Intermediary Details

You can capture the Intermediary Details at the loan account level to keep track of the accounts created through Intermediaries. You can link multiple intermediaries to a single loan through CL account details screen. In case of multiple intermediaries, you need to maintain the applicable intermediary percentage against each intermediary for the loan.

Intermediary Code

If you have checked the box 'Intermediary Initiated', you need to specify the code of the intermediary who has initiated the loan. The adjoining option list displays all valid and active intermediary codes maintained in the system. You can select the appropriate one. Using this option you can link multiple intermediaries along with the respective percentage for the individual intermediary against the loan amount.

Note

Both the fields are disabled after the first authorization of the loan. They field cannot be modified during value-dated amendment and rollover operation.

Intermediary Name

System defaults the intermediary name once the intermediary code is specified.

Intermediary Ratio

Specify the ratio of individual intermediary contribution against the loan amount.

For example, Loan description is as below:

Loan Description

Home Loan

Loan Amount

5000

Intermediary 1 Contribution

2500

Intermediary 2 Contribution

2500

While creating the above loan contract in FCUBS, link intermediary 1 and intermediary 2 with the loan and maintaining 50% ratio for each intermediary.

Note

Sum of intermediary’s ratio need not be equal to 100.

Note that adjustment of commission and charge computed for the intermediary (in the past cycle) should be done manually in case of a reversal of any transaction done by the intermediary post the computation.

Loan Statements

You can specify the following details for the generation of the loan statements:

Start Date

Specify the start date for the loan generation statement, using the adjoining calendar.

Frequency

Select the frequency of the generation of loan statement, from the adjoining drop-down list. The list displays the following values:

Frequency Unit

Specify the unit of frequency for the statement generation.

Note

If the above preferences are not maintained, the system will generate the loan statements as per the loan advices maintained in ‘Notices and Statements’ screen at the product level. If the Loan Statement details are not maintained at the product level, the system will not allow you to maintain the loan statement preferences for the contract. The system checks the product level preferences during EOD or BOD batches. You can also amend the loan statement preferences using ‘Value Date Amendment’ screen.

Loan Settlement Notice

The system displays the following loan settlement details based on the values specified at ‘Value Dated Amendments’ level:

Status Change Mode

Select the status change mode. The options available are:

The system defaults Auto as the status change mode.

While processing End of Day, the system picks only those accounts with Auto as status change mode. The processing of the accounts which are picked up is based on the status options set at the product level.

5.1.4 Holiday Preference Tab

Click on the ‘Holiday Preference’ tab to invoke the following screen: ..

You can specify the holiday preferences for Disbursement/Payment Schedule, Maturity/Value dates, and Revision schedules using this screen.

The values here are defaulted from the product screen. You can change the parameters before first authorization. After modifying the holiday parameter, you have to click the ‘Re-default’ button so that the schedule dates are rebuilt by the system.If maturity date is changed due to maturity date related holiday parameters then the system will do a product re-default.

If ‘Ad-hoc treatment required’ option is checked at the product level then ‘Cascade Schedules’ and ‘Ignore Holidays’ cannot be checked at the account level.

If value date of the loan account falls on a holiday based on the Holiday check parameters maintained, then system will display a configurable override while defaulting schedules. User has to manually amend the value date and default the schedules again, if required

For more details on fields in this screen, refer the section titled ‘Holiday Preference Tab’ in Chapter ‘Defining Product Categories and Products’ in this user manual.

5.1.5 Components Tab

Clicking against the ‘Components’ tab in the ‘Account Details’ screen invokes the following screen:

You can specify the following details for the components:

Component Name

Specify the name of the component.

Calculation Type

To specify the manner in which the component should be calculated and liquidated. You can choose one of the following options:

Formula with schedule (Component Type - Interest)

Component Currency

The system displays the currency associated with the component in this field. The value is defined at Product level.

Special Interest Amt

Specify the amount for the special interest in this field.

Waive

Select this option to waive the component for the account

Note

The system does not select it by default.

Main Component

Check this box to indicate that the specified component should be main component.

Verify Fund

You can indicate whether the system should verify the availability of sufficient funds in the customer account before doing auto liquidation of the component

Capitalized

Select this option if the scheduled amounts are to be capitalized

Liquidation Mode

The system defaults the mode of liquidation from the product level. However you can modify the same to indicate the mode of liquidation of the component from the drop-down list. The following options are available for selection:

Note

This is applicable only if ‘Liquidation mode’ is selected as ‘Component’ at the account pref­erence level.

Penal Basis Component

The system displays the Penal basis for calculating penalty component in this field.

Service Branch

Click the option list to select the branch that services the customer account

Double click on a value to select it.

Service Account

Click the option list to select the account in the service branch.

Double click on a value to select it. All modes except CASA needs service account. Adjustments etc. will be settled through this account.

Settlement Currency

Select the settlement currency for the option list. Click the adjoining option list to choose a settlement currency from the list of currencies. Double click on a value to select it.

In case of a subsidy loan, the system displays the settlement currency based on the subsidy customer ID specified in the ‘Main’ tab. However you can change it. The settlement currency is maintained as a default for both Credits and Debits.

Internal Rate of Return Applicable

Check this option to indicate that the component is to be considered for IRR calculation for the account. This field is applicable to interest, charge and fee components. For adhoc charge, charge, penalty and prepayment penalty components, the value will be defaulted from the product level and you will not be able to modify it.

This field will not be available for input if ‘Accrual Required’ and ‘IRR Applicable’ are left unchecked at the product level.

Note

Special Component

Check this box if the component is a special Interest type. This implies that the computed value of the component can be overridden with the entered value.

Funded During Initiation

Check this box if the component can be funded during the INIT event.

Funded during Rollover

Check this box if the component can be funded during the rollover process.

Exponential Interest Method

The system displays the value as maintained in product. If the check box is selected, it pro­vides restrictions for exponential loans.I

Schedule Summary Definition

This section is disabled both on product defaulting and enriching. You can modify any component details by clicking ‘Edit Schedules’ button.

The following details are captured here:

Schedule Type

Select the type of schedule from the drop-down list. Schedule can be a payment, a disbursement or a rate revision schedule.

Note

Post Securitization, the system consolidates all the changes of the pool and sends consol­idated information to SPV. You need to pass additional income/expense on account rate revision on SPV. If the loan tenor has been increased, the system generates the advice message and sends it to SPV.

Schedule Flag

Select the option for the Schedule flag from the option list.

The options are Normal or Moratorium.

Select the option Moratorium if there are no scheduled repayments for the component for the Moratorium period. However the component is accrued for a certain Moratorium period.

Formula

Enter the formula used to compute the component for that schedule.

First Due Date

Enter the first due date for the schedule for the component. The first due date can be defined based on the value date for the loan or a calendar date.

No of Schedules

Enter the number of times the schedule is repeated for a chosen frequency for the schedule. If the Frequency is Monthly and Number is 1, it implies once a month.

Frequency

This implies the number of times the schedule will repeat for a Unit. If it is 2 and the Unit is Monthly, it implies twice a month.

Units

Enter the installment unit for the component for the schedule. The units of frequency definition can be Daily, Weekly, Bullet, Monthly, Quarterly, Half Yearly or Yearly.

Select the unit of the schedule from the option list.

Due Date On

This option may be used to schedule an installment on a particular date of the month.

End Date

End date for the component for the schedule will be computed from the start date, frequency, unit and number for the schedule.

Amount

The amount of payment done (whether disbursement or repayment) is displayed in this field.

EMI Amount

Specify the EMI amount that should be paid during the schedule.

Compound Days

Specify the number of compound days.

Compound Months

Specify the number of compound months.

Compound Years

Specify the number of compound years.

Days in Month

Select the number of days that would constitute a month for calculation from the drop-down list. The list displays the following values:

Days in Years

Select the number of days that would constitute a year for calculation from the drop-down list. The list displays the following values:

Capitalize

Select this option if the schedule amounts are to be capitalized.

Waive

Select this option to specify if you need to allow a waiver of the component payments for the schedule

Note

The system by default does not select this option

A schedule can be either applicable or capitalized or waived

After making necessary changes click ‘Explode Schedule Details’ button to re-compute the schedules. You can view the following details:

Schedule Number

The system generates and displays a sequential schedule number for installments.

Due Date

The system displays the due date of the payments and disbursements in this field.

Pay By Date

The system will display the pay by date.

Pay by date = (Schedule due date) + (Credit days maintained at product level)

On clicking the ‘Default Method’ button in the ‘Product Definition’ screen, the MAIN_INT schedules are exploded and the system will display the pay by dates based on the value of the First Pay By Date. If you have not entered the first pay by date details then the system will calculate the first pay by date as follows:

(First Schedule Due Date of MAIN_INT component) + (Credit days (product parameter for OLL))

Pay by date for bullet schedule (PRINCIPAL and MAIN_INT) will be the maturity date of the open line loan account.

Amount Settled

The system displays the settlement amount for the schedule in this field.

Amount Due

The system displays the amount due for the schedule in this field

EMI Amount

The EMI that should be repaid in this schedule is displayed in this field.

5.1.5.1 Guarantor Details Button

Click ‘Guarantor Details’ button under the ‘Components’ tab in the ‘Account Details’ screen, to invoke ‘Guarantor Details’ screen.

Note

If you check the ‘Use Guarantor for Repayment’ box and not specify the guarantor details, then the system will display an error message.

You can specify guarantor account details here.

Account

Account number for which repayment is due is defaulted here, from the ‘Account Details’ screen.

Component Name

Name of the component for which repayment is computed is defaulted here, from the ‘Component’ tab in the ‘Account Details’ screen.

Guarantor Customer

You can specify customer details of the guarantor here.

Sequence Number

Serial number of the guarantor account is defaulted here. If multiple guarantor accounts are provided, then the system follows sequence number for the liquidation order.

Account No.

Select a valid customer id for the guarantor from the adjoining option list.

Customer Name

The customer name of the selected customer id is defaulted here.

Guarantor Customer Account

You can specify account details of the guarantor here.

Sequence Number

Serial number of the guarantor account is defaulted here. If multiple guarantor accounts are provided, then the system follows sequence number for the liquidation order.

Account No

Select a valid account number for the guarantor from the adjoining option list. This adjoining option list displays all valid accounts for a selected customer id maintained at the guarantor customer level.

Note

Account Branch

The current branch code of the selected guarantor account is defaulted here.

Currency

The currency of the guarantor account is defaulted here.

Note

Guarantor currency type can be different from component currency type.

5.1.5.2 Payment Mode Details Button

You can specify the details of payment mode in the ‘Settlement Mode’ screen. To invoke the screen, click ‘Payment Mode Details’ button under ‘Components’ tab in the ‘Account Details’ screen.

Here you can specify the following details:

Branch

Specify the branch in which the customer account resides.

Account

Specify the unique number of the account in the specified branch.

Settlement Sequence Number

The system displays the settlement sequence number during product default. You can change the value from the adjoining list of values.

If the sequence number is altered, click on Re-default Settlement button for settlement account to get re-defaulted. If re-defaulting is done for principal component, then the message details will also be modified based on the new sequence number chosen.

5.1.5.3 Credit Settlement Mode Tab

You can specify the credit settlement details under the ‘Credit Settlement Mode’ in the ‘Settlement Mode’ screen.

Credit Payment Mode

Select the credit payment mode from the adjoining drop-down list. The list displays the following values:

Credit Product Account

Specify the account number of the credit product.

To view the joint holder’s details of an account and the mode of operation maintained at the account level, place the cursor on the Credit Product Account field and press Ctrl+J. The system displays the ‘Joint Holder’ screen.

For more information on the ‘Joint Holder’ screen refer to the section ‘Joint Holder Maintenance’ in the Core User Manual.

Credit Account Branch

Specify the name of the branch in which the credit account should be maintained.

Instrument Number Credit

Specify the instrument number that should be used for credit payment.

Upload Source Credit

Specify the upload source that should be used for credit payment.

End Point

Specify the end point maintained in the clearing system. The adjoining option list displays all valid end points maintained in the system. You can choose the appropriate one.

External Account Number

Specify the external account number.

External Account Name

Specify the name of the beneficiary who is holding the external account.

Clearing Bank Code

Specify the code of the external bank that should be used for clearing maintenance. The adjoining option list maintains all valid banks maintained in the system. You can choose the appropriate one.

Clearing Branch Code

Specify the branch code of the specified external bank that should be used for clearing. The adjoining option list displays all valid codes maintained in the system. You can choose the appropriate one.

Product Category

Specify the category of the product. The adjoining option list displays all valid products maintained in the system. You can choose the appropriate one.

Routing Number

Specify the routing number of the specified branch for clearing.

Clearing Product Code

Specify the product code that should be used for clearing. The adjoining option list displays all valid code maintained in the system. You can choose the appropriate one.

Sector Code

Specify the code of the sector that should be used for clearing. The adjoining option list displays all valid codes maintained in the system. You can choose the appropriate one.

Giro Number

Specify the GIRO number of the corporate customer.

Payer Account

Specify the account from which the amount should be paid.

Payer Bank Code

Specify the code of the payer’s bank that should be used for the payment of amount.

Payer Branch

Specify the branch of the specified payer’s bank that should be used for the payment of amount.

Payer Bank Address 1-4

Specify the address of the bank that should be used for the payment of the amount.

Bank GIRO

Indicate the type of bank GIRO that should be used for corporate customers. You can select one of the following:

Auto GIRO

Indicate the type of the Auto GIRO for automatic direct debit. You can select one of the following values:

Exchange Rate

For a customer availing any Relationship Pricing scheme, the customer specific exchange rate derived by adding the original exchange rate and the customer spread maintained for the relationship pricing scheme gets displayed here.

You can change the defaulted rate provided the change is within the variance level maintained for the underlying product.

If Relationship Pricing is not applicable, Exchange Rate will be the same as the Original Exchange Rate.

For more details on customer specific exchange rates, refer the section titled ‘Specifying Pricing Benefit Details’ in Relationship Pricing user manual.

Negotiated Cost Rate

Specify the negotiated cost rate that should be used for foreign currency transactions between the treasury and the branch. You need to specify the rate only when the currencies involved in the transaction are different. Otherwise, it will be a normal transaction.

The system will display an override message if the negotiated rate is not within the exchange rate variance maintained at the product.

Negotiated Reference No

Specify the reference number that should be used for negotiation of cost rate, in foreign currency transaction. If you have specified the negotiated cost rate, then you need to specify the negotiated reference number also.

Note

Oracle FLEXCUBE books the online revaluation entries based on the difference in ex­change rate between the negotiated cost rate and transaction rate.

Original Exchange Rate

The base or actual exchange rate between the account currency and settlement currency gets displayed here.

Payment Details

If the Credit Payment Mode is External Account, then you can specify the payment details in the following fields:

While creating outgoing payment during auto disbursement process, the payment details are passed to the PC transaction.

5.1.5.4 Debit Settlement Mode Tab

You can specify the debit settlement details under the ‘Debit Settlement Mode’ in the ‘Settlement Mode’ screen.

Here you can specify the following details:

Debit Payment Mode

Select the Debit payment mode from the adjoining drop-down list. The list displays the following values:

Note

If the Debit Settlement mode is selected as PDC, then the other debit settlement details are not maintained.

If the debit Settlement is PDC then the liquidation mode of the component should be manual.

The Debit Settlement can be chosen as PDC only when contract is amortized.

Debit Product Account

Specify the account number of the debit product.

To view the joint holder’s details of an account and the mode of operation maintained at the account level, place the cursor on the Debit Product Account field and press Ctrl+J. The system displays the ‘Joint Holder’ screen.

For more information on the ‘Joint Holder’ screen refer to the section ‘Joint Holder Maintenance’ in the Core User Manual.

Debit Account Branch

Specify the name of the branch in which the debit account should be maintained.

Instrument Number Debit

Specify the instrument number that should be used for debit payment.

Upload Source Debit

Specify the upload source that should be used for debit payment.

End Point

Specify the end point maintained in the clearing system. The adjoining option list displays all valid end points maintained in the system. You can choose the appropriate one.

External Account Number

Specify the external account number.

External Account Name

Specify the name of the beneficiary who is holding the external account.

Clearing Bank Code

Specify the code of the external bank that should be used for clearing maintenance. The adjoining option list maintains all valid banks maintained in the system. You can choose the appropriate one.

Clearing Branch Code

Specify the branch code of the specified external bank that should be used for clearing. The adjoining option list displays all valid codes maintained in the system. You can choose the appropriate one.

Product Category

Specify the category of the product. The adjoining option list displays all valid products maintained in the system. You can choose the appropriate one.

Routing Number

Specify the routing number of the specified branch for clearing.

Clearing Product Code

Specify the product code that should be used for clearing. The adjoining option list displays all valid code maintained in the system. You can choose the appropriate one.

Sector Code

Specify the code of the sector that should be used for clearing. The adjoining option list displays all valid codes maintained in the system. You can choose the appropriate one.

Payer Account

Specify the account from which the amount should be paid.

Payer Bank Code

Specify the code of the payer’s bank that should be used for the payment of amount.

Payer Branch

Specify the branch of the specified payer’s bank that should be used for the payment of amount.

Payer Bank Address 1-4

Specify the address of the bank that should be used for the payment of the amount.

GIRO Number

Specify the GIRO number of the corporate customer.

Bank GIRO

Indicate the type of bank GIRO that should be used for corporate customers. You can select one of the following:

Auto GIRO

Indicate the type of the Auto GIRO for automatic direct debit. You can select one of the following values:

Exchange Rate

For a customer availing any Relationship Pricing scheme, the customer specific exchange rate derived by adding the original exchange rate and the customer spread maintained for the relationship pricing scheme gets displayed here.

You can change the defaulted rate provided the change is within the variance level maintained for the underlying product.

If Relationship Pricing is not applicable, Exchange Rate will be the same as the Original Exchange Rate.

For more details on customer specific exchange rates, refer the section titled ‘Specifying Pricing Benefit Details’ in Relationship Pricing user manual.

Negotiated Cost Rate

Specify the negotiated cost rate that should be used for foreign currency transactions between the treasury and the branch. You need to specify the rate only when the currencies involved in the transaction are different. Otherwise, it will be a normal transaction.

The system will display an override message if the negotiated rate is not within the exchange rate variance maintained at the product.

Negotiated Reference No

Specify the reference number that should be used for negotiation of cost rate, in foreign currency transaction. If you have specified the negotiated cost rate, then you need to specify the negotiated reference number also.

Note

Oracle FLEXCUBE books the online revaluation entries based on the difference in ex­change rate between the negotiated cost rate and transaction rate.

Original Exchange Rate

The base or actual exchange rate between the account currency and settlement currency gets displayed here.

5.1.5.5 Schedule-wise Split Settlement for Auto Disbursement

Oracle FLEXCUBE allows you to maintain split details for schedule-wise auto disbursement in a loan account, only if you have set the disbursement mode to ‘Auto’ in the account preferences tab of the Product Maintenance screen (CLDPRMNT).

In the Account Details (CLDACCNT) screen, click ‘Product Default’ button after entering product code, customer ID, currency and the amount. The system defaults the product level component and schedule details of the selected product in the component tab of the account details screen After you click ‘Product Default and ‘Enrich’ buttons, the system disables the schedule definition section in the component tab. However you can modify the disbursal amount and the number of schedules for the disbursal by clicking ‘Edit Schedules’ button.

You can view the disbursement schedule and maintain the schedule-wise CL split details for auto disbursement in the Disbursal screen. To do this, first select the principal component in the component tab and then click on ‘Disbursals’ button. The screen is as shown below:

The system displays the list of Schedules for the disbursements and their corresponding Disbursement amounts.

Schedule Date

The system displays the due date of the schedule.

Total Disbursement Amt

The system displays the total disbursement amount for the specified CL account.

Amount to Disburse

The system displays the amount to be disbursed.

Already Disbursed Amt

The system displays the amount which has been disbursed.

Note

Oracle FLEXCUBE allows auto disbursal only for the principal component.

Split Details

You can maintain the following split details:

Split Percentage

Specify the split percentage of the disbursement amount.

Split Amount

Specify the split amount for the schedule. Split amount is calculated based on the percentage and the disbursal amount.

If you specify only the amount and not the percentage, the system calculates the percentage of the amount to be disbursed and displays it in the percentage field during save.

Note

Settlement Sequence Number

The system displays the settlement sequence number. The default value displayed in zero. You can edit the sequence number by selecting from the adjoining list of values.

Click on the Fetch Settlement button to update the selected settlement sequence number.

Note

If the Payment By’ maintained for settlement sequence number is not ‘Messages’, the sys­tem displays configurable override message.

Settlement Account Branch

Specify the branch of the customer account. The adjoining option list displays the list of valid open branches maintained in the system. You can choose the appropriate one.

Settlement Account Number

Specify the settlement account number. The adjoining option list displays the valid accounts maintained for the given branch. You can choose the appropriate one.

Netting Account for Debits

Check this box to set the account as the netting account. It is to this account that interest/charge/ fee components with the same settlement account are netted.

Suppress Message

Check this box to stop message/advice generation for the selected split disbursals.

Note

 

The system displays the following split details:

Split sequence number

The sequence number for each split is auto generated by the system on save.

Payment Mode

The system displays ‘ACC’ as the payment mode for disbursal.

Settlement Account Currency

The system defaults the currency of the specified settlement account based on the details maintained in the system.

Customer

Once you choose the account number, the customer id gets defaulted.

It is mandatory to re-enter the split settlement details during VAMI, if there is a change in the disbursement schedule. For the disbursed schedules, the split settlement amendment would be ignored during VAMI.

During BOD, the system checks the CL split settlement details before taking the Credit Settlement details of the principal component. The credit settlement details of the principal component /Service account would be considered only in the absence of split settlement details for that particular schedule.

5.1.5.6 Message Details Button

Click on the Message details button to view the swift message details for each split disbursal. The swift party details will be populated based on the settlement sequence provided for each split disbursal. You can view and edit the party details.

For details on Message Details, please refer to the section ‘SWIFT Message Details Button’ in this chapter.

5.1.5.7 Disbursals Button

Select the Principal Component. Click ‘Disbursals’ to see the Disbursal schedule. This gives the list of Schedules for the disbursements and their corresponding Disbursement amounts.

You can check the details of the due date of the schedule and the Amount to be disbursed from the Sch Due date field and the Amount To Disburse field respectively.

Note

If any disbursal results in a status change for the account, the system will update the cur­rent status for the account in the ‘Derived Status’ field. During end-of-day batch process­ing, it will update the ‘User Defined Status’ for the account with the worst status that is available for all accounts and loans for this CIF and post the required accounting entries for the change.

During Amendments/Disbursements, post securitization the system raises an alert message saying ‘The loan account has been securitized’.

Note

In such cases, you need perform the amendments/disbursement after getting the approval from SPV.

5.1.5.8 Revisions Button

Select a component which has rate revision defined. To view the details of the Rate revision schedule, click the ’Revisions’ button. This lists the details of the revisions done on the Components.

This lists the revision date against the component name. This also has an application option which displays if the revision was applied or not.

You can check the details of the name of the component that is revised and the date when it has been revised from the field Component name and Revision date respectively.

5.1.6 Charges Tab

This module is used for calculating and applying charges on an account. To calculate the charges that we would like to levy on an account, we have to specify the basis on which we would like to apply charges. For example, we may want to apply charges on the basis of the debit turnover in an account. When we define a Charge product, we have to specify the Charge basis.

When we apply the charge product on an account or an account class, charges for the account will be calculated on this basis..

The following details are captured:

Component Name

System displays the component name here.

Calculation Type

To specify the manner in which the component should be calculated and liquidated. You can choose one of the following options:

Formula with schedule (Component Type - Interest)

Component Currency

The system displays the currency associated with the component. The component currency is defaulted from the Product level.

Service Branch

The branch that services the account - Any Valid, Open Branch

Service Account

Denotes the account in the service branch. A valid open account in the service branch .The service account is needed for all modes apart from CASA. The adjustments etc will be settled through this account.

Settlement Currency

Click the option list to choose the details of the currency in which the payments are to be made in this field. A list of currencies is displayed. Double click on a value to select it.

Effective Date

Enter the details of the date from which the charge is applicable in this field

Funded during Initiation

Select this option if the component can be funded during loan initiation

Funded during Rollover

Select this option if the component can be funded during the rollover process

For each component, the following details are displayed:

Deferred Charge

If this option is checked, the charge defined for the charge component is deferred. This is defaulted from the Loan product maintenance and you cannot modify this.

Due Date

The date on which the charge was applied

Amount Due

Enter the details of the amount due for repayment in this field.

For each component, the following details are displayed:

Schedule Date: The scheduled date for repayment in this field

5.1.7 Linkage Details Tab

At the time of Loan account capture, the Linkages to securities backing the loan is captured. They include:

The account input screen captures the Linkages as shown below:

You can specify the following collateral and linkage details:

Collateral Linkage Details

You can maintain the following collateral details here:

Linkage Type

Select a type of linkage to which you need to link the specified account from the adjoining drop-down list. This list displays the following values:

Linked Ref No

Specify a valid linkage reference number for the selected linkage type from the adjoining option list. Linkage reference number is not applicable for ‘New Collateral’ linkage types.

Note

If you maintain ‘Linkage Type’ as ‘New Collateral’ and maintain linkage reference number, then the system displays an error message.

Description

Description of the linkage type is defaulted here; however, you need to specify description if the ‘Linkage Type’ is ‘New Collateral’.

Branch

Branch code of the branch in which the linkage is maintained is defaulted here; however, you need to specify branch code if the ‘Linkage Type’ is ‘New Collateral’, from the adjoining option list.

Currency

Currency code of the currency maintained for linkage is defaulted here; however, you need to specify the currency, if the ‘Linkage Type’ is ‘New Collateral’, from the adjoining option list.

Overall Amount

Specify overall amount of the collateral if you have selected ‘Linkage Type’ as ‘New Collateral’. The system displays values of different parameters based on the linkage type.

Collateral Category

Category of the collateral is displayed here, if the ‘Linkage Type’ is maintained as ‘Collateral’; however, you need to specify collateral category if the ‘Linkage Type’ is ‘New Collateral’, from the adjoining option list.

Hair Cut %

Percentage of hair cut for the collateral is displayed here, if the ‘Linkage Type’ is maintained as ‘Collateral’; however, you need to specify Hair Cut %, if the ‘Linkage Type’ is ‘New Collateral’, from the adjoining option list.

Limit Amount

The system displays the following as limit amount based on the selected linkage type, on saving the loan account:

Linked Amount

You can specify either the linked amount or linked percentage. If you specify the linked amount, the system updates and displays the linked percentage of the amount financed.

If you specify the linked percentage, the system will update and display the linked amount. You need to specify the linked percentage based on the amount financed.

Linked %

You can specify either the linked amount or linked percentage. If you specify the linked percentage, the system will update and display the linked amount. You need to specify the linked percentage of the amount financed.

If you specify the linked amount, the system updates and displays the linked percentage of the amount financed.

Utilization Order No

Specify a valid order in which you need to utilize the linkage linked to the account. The system utilizes the linkage in an ascending order.

Utilization Amount

Utilized amount of the account is displayed here.

Commitment Product

Commitment product of the selected collateral is displayed here, if the ‘Linkage Type’ is maintained as ‘Collateral’; however, you need to specify a valid commitment product, which is open and authorized if the ‘Linkage Type’ is ‘New Collateral’, from the adjoining option list.

Taken Over Collateral

The system displays the taken over collateral as ‘Yes’ if the collateral is taken over. The system defaults the status as ‘No’ if the collateral is not taken over.

Note

While saving an account:

Commitment \ Linkage Details

You can maintain the commitment linkage details here:

Linkage Sequence Number

Enter the sequence number for the linkage type commitment.The system defaults the linkage type ‘Deposit’.

Linkage Type

Select the linkage type from the adjoining drop-down list. The valid values are Commitment and Deposit. You can select only commitment from the list. The system defaults a record with linkage type as ‘Deposit’ when a term deposit is linked in UDE Rate code.

Linkage Branch

Select the branch code of commitment from the adjoining option list for the linkage type commitment. System defaults branch code for the linkage type ‘Deposit’.

Customer ID

Select the customer ID of the commitment from the adjoining option list for the linkage type commitment. The system defaults customer Id of the term deposit for the linkage type ‘Deposit’.

Linked Reference Number

Select the account number of the commitment from the adjoining option list for the linkage type commitment.The system defaults term deposit number for the linkage type ‘Deposit’.

Linked Currency

Select the currency of the commitment from the adjoining option list for the linkage type commitment. The system defaults currency of term deposit for the linkage type ‘Deposit’.

Linkage Amount

Enter the linkage amount for the linkage type commitment. The system defaults the amount for the linkage type ‘Deposit’. If the linkage type is ‘Commitment’, you can leave the field blank.

Link Percentage

Specify the linkage percentage.

Block Reference No

On save the system displays the block reference number for the linkage type ‘Deposit’.

On save:

5.1.8 Advices Tab

Advices that may be generated whenever the account level status changes or whenever a particular event is fired can be linked at the Product level. Priorities of the advice can be changed and also a particular advice for an event can be suppressed.

Generation of an advice across the life of the account can also be suppressed.

You can specify the following Advice details:

Message Type

The system displays all the advices for all the events for the account. The list will include all the advices that are defined at the product level

Suppress

This field allows you to suppress the generation of the advice for a particular event. The options are ‘Yes’ and ‘No’.

Priority

Click the option list to select the priority of generation. A list of values is displayed. Double click on a value to select it.

The options are High, Medium or Low

Suppress Advices across the Account

The generation of an advice across the life of the account can be suppressed.

Message Type

Click the option list to select the type of advice, the generation of which can be suppressed across the account. A list of values is displayed. Double click on a value to select it.

The list includes advices defined at the product level

You can suppress the Payment Message defaulted in case you do not need a credit through swift message.

The message is automatically suppressed if the Principal Credit Settlement account is changed to a GL or if the receiver in ‘Swift Msg Details’ screen is not valid to receive the message i.e, if the Customer Type of the Receiver party is not a Bank.

Also, if the settlement mode for PRINCIPAL component is anything other than CASA, the swift message is automatically suppressed.

If the Transfer Type is chosen as blank i.e, neither Customer Transfer nor Bank Transfer, then PAYMENT_MESSAGE will become CREDIT_ADVICE by Swift(MT910) if the Receiver is a bank and the credit settlement account is a current account.

5.1.9 Rollover Tab

You can maintain the following details here:

Allow Rollover

Select the required option to indicate if rollover should be allowed for the loan or not. The options are:

Rollover Mode

This option is used to determine if the Rollover is system driven or not .You can select either of the following options:

Note

By default, the system selects the ‘Auto’ option

The system by default does not select the option Contract

Roll By

Specify the basis for rollover. It could be any of the following:

Rollover Type

Select either of the following options:

User Defined Element Rollover

Select the required option to determine if at the time of rollover the UDE value would be defaulted from the product or from the account /Contract

Note

The system by default does not select the option Contract

Schedule Basis

This flag will determine if at the time of rollover the schedule would be defaulted from the product or from the account/Contract

Note

Roll Components

You can maintain the following detail here:

Component

This option is applicable when Rollover Type is Custom. The option list provided will display the components relevant to the account from which you can choose the components that are to be rolled over.

5.1.10 Credit Score Tab

Click ‘Credit Score’ tab to specify the details for calculating the credit score.

You need to specify the following details here:

Rule Name

The rule associated with the loan product gets defaulted here. You can modify this, if required.

Automated Score

The credit score calculated by the system based on the rules maintained at the product level gets displayed here

Agency Code

Select the code of the external agency, to be approached for calculating the score

External Credit Score

The score as calculated by the external agency is displayed here

Click ‘Score’ to auto-generate the credit score for the customer. Click ‘External Score’ to auto-generate the credit score for the Bureau.

5.1.11 Fields Tab

The User Defined Fields are defined at the Product level. These fields are available in the UDF button at the time of account creation.

The following details are displayed/captured here:

Field Name

The UDF descriptions defaulted from the Product screen are displayed. The system displays all the UDF descriptions defined at the Product level

Field Value

Specify the UDF value in this field. This is applicable only if the user input or list of values is defined at the time of creation of the UDF

5.1.12 Check List Tab

The Check lists are maintained in the ‘Check List Maintenance’ screen and are linked to different events of the contract. The checklist maintained for the BOOK event is available in the Checklist button at the time of account creation.

The following details are captured here:

Description

The description of the check list maintained for the BOOK event is displayed here

Checked

Check this box to indicate that the check list item has been verified

Remarks

Specify any additional remarks about the check list or the account in this free format text field

5.1.13 Promotions Button

Invoke the ‘Promotions’ screen by clicking the ‘Promotions’ button in the ‘Account Details’ screen.

 

The following details are captured here:

Promotion Type

The system displays the Promotion type to which the original loan is linked. It could be any of the following:

Promotion ID

The system displays the promotion ID in this field

Beneficiary

The system displays the beneficiary CIF in this field

Priority

The system displays the priority assigned to the promotion.

5.1.14 Other Applicants Button

You can maintain the primary and other applicants details in the ‘Other Applicants’ screen. Click the ‘Other Applicants’ button to invoke the screen.

You can maintain the following details of the Primary applicants:

Primary Applicant

This detail is defaulted from the main screen. Enter the Customer ID of the primary applicant in this field

Primary Applicant Name

After you enter the Customer ID, the system displays the Name of the primary applicant in this field

Other Applicants

The details of the liability parties to the account are maintained in this field. Other Applicants of a loan include Co-signers and Guarantors.

You can specify the following details of the Co-applicants:

Customer ID

To select the customer ID of the co-applicant, click the option list. A list of customer IDs is displayed. Double click to select the customer ID of the co-applicant.

Customer Name

After you enter the name of the Customer, the system displays the name of the customer in this field.

Responsibility

Select the details of the co-applicants and their responsibility as a Co-signer or as a guarantor from the option list. You can enter the details like the guarantor, co-signer, main addressee, advice notice receiver, and borrower etc., who is relevant to a joint account relationship. During initiation of the account, the primary customer is defaulted to ‘Borrower’ with 100% Liability and value date as the effective date. You are allowed to maintain multiple applicants (customer id) for a loan with the same responsibility (Borrower).

Note

While there is no processing impact, the difference will become important when the origi­nal debtor is absconding and the loan is unpaid etc.

Liability

Specify the contribution of the co-applicants to the Loan. You can specify the Liability of the co-applicant if any, in case of a Loan default. You can also specify the percentage of interest split among different co-applicants. It is not made mandatory to maintain ‘Liability %’ for the responsibility ‘Borrower’.  There could be borrowers with 0% liability.

Note

The sum of ‘Liability %’ for all the customers of a loan to be equal to 100%

Liability Amount

The system calculates and displays the upper limit of the liability in terms of the amount in this field. You may override the computed value.

5.1.15 Payment Mode Details Button

The debit and credit settlement mode details for the account can be maintained in the ‘Settlement Details’ screen. You can invoke this screen by clicking the ‘Payment Mode’ button in the ‘Main’ tab.

The options for debit mode are CASA, Credit Card, Debit Card, Clearing, External Account, Electronic Pay Order, Internal Check, Instrument, GIRO and Cash/Teller.

The options for credit mode are CASA, Clearing, External Account, Instrument, and Cash/Teller.

You can maintain the following details here:

The card must be a valid card whose number can be checked with a modulo logic or maintenance file

Product or Account: If the payment mode is Account, this field specifies the CASA / GL account to be debited. If the payment is through Instrument / Cash, it denotes the teller product to be used.

If the Credit Payment Mode is External Account, then you can specify the payment details in the following fields:

While creating outgoing payment during auto disbursement process, the payment details are passed to the PC transaction.

To view the joint holder’s details of an account and the mode of operation maintained at the account level, place the cursor on the Credit Product Account field or Debit Product Account field and press Ctrl+J. The system displays the ‘Joint Holder’ screen.

For more information on the ‘Joint Holder’ screen refer to the section ‘Joint Holder Maintenance’ in the core User Manual.

5.1.16 Assets Button

You can capture the details corresponding to the collateral being provided for the current loan in the ‘Assets’ screen. To invoke this screen, click ‘Assets’ button in ‘Account Details’ tab of the ‘Account Details’ screen.

5.1.16.1 Account Asset Valuation Tab

You can capture valuation details of the asset in this tab.

Here, you can specify the following details related to your assets like vehicle, home, etc.

Assets

Select the type of asset from the drop-down list. The following values are provided for selection:

Value Date

Specify the valuation date for the selected asset, or select the date by clicking the ‘Calendar’ button.

Source

Specify the source associated with the asset selected

Supplement

Specify the supplement of the valuation source used for the valuation

Edition

Specify edition of the valuation source used for the valuation

Wholesale

Specify the wholesale rate associated with the asset selected

Retail

Specify the retail rate associated with the asset selected

Usage

Specify usage level at the time of the valuation

Usage Value +

Specify the initial usage value

Total Transaction Value

Specify the total transaction value of the asset.

5.1.16.2 Vehicle Tab

You can capture details regarding the asset of type ‘vehicle’ in this tab

You can specify the following common details associated with asset of type vehicle:

Asset Class

Select the class associated with the asset selected, from the option list. The following options are provided:

Type

Specify the type of the selected asset here

Sub Type

Specify the subtype associated with the asset, if any

Asset Status

Select the status of the asset selected, from the option list. The following options are provided:

Asset Year

Specify the year of association with the selected asset

Asset Make

Specify the make of the selected asset. For vehicle, you can specify the manufacturing company name and for home you can specify the name of the builder or developer.

Asset Model

Specify the model of the selected asset.

You need to specify the following details additional related to vehicle type of asset:

Asset Body

Specify the body number associated with the vehicle

Identify Number

Specify the unique identification number associated with the vehicle

Reg#

Specify the registration number of the vehicle

Address

Specify the address associated with the asset

5.1.16.3 Home Tab

You can capture details regarding the asset of type Home in this tab

You can specify the following additional details for home type of asset:

Occupancy

Specify the number of people occupying the house

Width

Specify the width associated with the selected asset

Length

Specify the length associated with the selected asset

Purchase Order Number

Specify the post office number of the location of the property

GEO

Specify the property GEO code (Geospatial Entity Object Code) for the asset

BNA

Specify the census tract/BNA code (Block Numbering Area) for the asset

MSA

Specify the metropolitan statistical area (MSA) code for the asset

Click ‘Ok’ to save the details.

5.1.16.4 Others Tab

You can capture other asset details here.

Specify the following details:

5.1.16.5 Mortgage Tab

You can capture details regarding the asset of type Mortgage in this tab.

Here you can specify the following mortgage type asset:

Property Name

Specify the name of the mortgage property.

Collateral Category

Specify the category to which the collateral belongs.

Country

Specify the name of the country to which the mortgage property belongs.

Co-Owner

If the property is jointly held, specify the name of the co-owner of the property.

Property Age (in Years)

Specify the age of the property in terms of number of years.

Valuation

Specify the actual value of the mortgage property.

Offset Margin

Specify the offset margin of the mortgage property.

Lendable Margin

Specify the margin that should be allowed for lending.

Valuation Currency

Specify the currency in which the property has been valued. The option list displays all valid currencies maintained in the system. Choose the appropriate one.

Property Address

Specify the address details of the property.

5.1.16.6 Financials Tab

You can capture the income or liability details of the customer in the ‘Financials’ screen. To invoke this screen, click ‘Financials’ in ‘Account Details’ tab of the Account Details screen.

You can specify the following details related to the customer’s income here:

The following details are captured here:

Finance Type

Select the type of the income from the option list provided

Finance Source

Specify the source of the income

Currency

Select the currency associated with the income, from the option list provided

Amount

Specify the amount associated with the income

Comment

Specify any remarks or comments for the income

5.1.16.7 Liability Tab

Here you can specify the following details related to the customer’s liability:

The following details are captured here:

Liability Type

Select the type of the liability from the option list provided

Account Type

Specify the account type associated with the liability

Currency

Select the currency associated with the liability, from the option list provided

Amount

Specify the amount associated with the liability

Frequency

Select the frequency at which payments are made towards the liability. The following options are possible:

Account Balance

Specify the current amount outstanding

Comment

Specify any remarks or comments to be associated with the liability

5.1.16.8 Other Income Tab

You can also capture the details related to other sources of income, if exists

The following details are captured here:

Seq No

Specify the sequence number here

Income Type

Specify the type of income here. You can also select the income type from the adjoining option list.

Currency

Specify the currency of the income here. You can also select the currency from the adjoining option list.

Amount

Specify the amount of income here

Frequency

Select the frequency of the income here from the drop-down list.

Click Ok to save the details.

5.1.17 Internal Rate of Return Details Button

You can view the internal rate of return details in the ‘Internal Rate of Return Details’ screen. You can invoke this screen by clicking the ‘Internal Rate of Return Details’ button in the ‘Account Details’ screen. The values are displayed in the descending order of the dates..

The following details are displayed here:

5.1.18 MIS Button

You can maintain MIS details in the ‘MIS’ screen. You can invoke this screen by clicking the ‘MIS’ button in the ‘Account Details’ screen.

For more details on this screen refer section ‘Defining MIS details for an account or contract’ in the chapter ‘Defining MIS Details for a Customer, Account Class, Account, Product, and Contract’ in the ‘Management Information System’ User Manual.

5.1.19 Events Button

An ‘event’ may be defined as any action starting from application entry to collections. This module captures the details of events applicable to the account. The screen displays both processed and unprocessed events.

The following details are displayed here:

5.1.19.1 Processed Tab

The processed events are all the events which have already taken place. This displays the details like the sequence number of the event. The date on which the event was processed, the value date, the event code, the cutoff status, and a brief description of the event. The screen also displays the details of the events according to the events selected.

The following details are displayed here:

Events

Advices

Entries

5.1.19.2 Viewing Event Checklist

Event checklist is a list of items that pops up when an online function is triggered.

5.1.19.3 Archiving Processed Events

You can archive processed records from the events diary using the ‘Retail Lending - Bank Parameters’ screen.

In this screen, you can specify the following parameters to archive processed events:

Reference Date

This is the first date on which the archival will be initiated. If this date is NULL, no archival will be done.

Frequency

This is the frequency for archival. The options in the drop down list are:

Unit

This is a numeric value. Let us suppose you select the frequency as Daily and Unit as 5. In this case archival will be done every 5th day.

A batch process will execute the archival by end of day. However, if you do not specify the parameters, archival will not be executed.

A batch process will execute the archival by end of day. However, if you do not specify the above parameters, archival will not be executed.

5.1.19.4 Unprocessed Tab

The Unprocessed event screen has all the details of the overdue and the Due events for the account.

The following details are displayed:

Overdue Events

An event which has crossed the due date becomes an overdue event. The number of days after the due date is used by the bank to calculate penalty for the event.

The following Overdue event details are displayed:

Overdue Events

Components

Component name: Name of the component affected by the event.

Due Events

The date on which the event is supposed to take place is the due date of the event. In case of repayments, the customer is informed by the bank regarding the due date.

The following details are displayed:

Due Events

Components

Component name: Name of the component affected by the event.

5.1.20 General Ledger Query Button

You can view the general ledger details in the ‘GL Balance’ screen. You can invoke this screen by clicking the ‘General Ledger Query’ button in the ‘Account Details’ screen.

The information displayed includes:

Account Details

Components

GL Details

5.1.21 Installment Button

Click ‘Installment’ button to access the Installment query screen. The installment query screen displays the details of the installments for the account. The information displayed includes the account details, installment details and the installment summary.

You can invoke the ‘Installment Query’ screen by typing ‘CLDINSQR’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button..

The following installment details are displayed:

Account Details

The following account details are displayed:

Installment Summary

The following installment summary details are displayed:

Installment Detail

The following installment details are displayed:

5.1.22 Statistics Button

You can view the current status of an account in the ‘Account Details’ screen. You can invoke this screen by clicking the ‘Statistics’ button in the ‘Account Details’ screen.

Once you select an Account Number, the system displays the following details pertaining to the current status of the account:

The Account creation and any other change to an account is updated the audit trail of the record. In the audit trail, the Account status details are also displayed. An Account can be active or uninitiated. Once it is active, it can be reversed, deleted or liquidated based on the operations on it. This is displayed on the screen.

You can view the data collected for the last 12 months including the current month Highest Outstanding balance.

5.1.23 Securitization Details Button

You can view the securitization details in the ‘Security History Details’ screen. You can invoke this screen by clicking ‘Securitization Details’ button in the ‘Account Details’ screen.

Here the system displays the securitization details such as Securitization Event, Status, Date and Security Reference Number on which the loan contract has been a part.

5.1.24 Documents Button

You can capture the customer related documents in central content management repository through the ‘Document Upload’ screen. Click ‘Documents’ button to invoke this screen.

Here, you need to specify the following details:

Document Category

Specify the category of the document to be uploaded.

Document Type

Specify the type of document that is to be uploaded.

Document Reference

The system generates and displays a unique identifier for the document.

Remarks

Specify the additional information, if any.

Upload

Click ‘Upload’ button to open the ‘Document Upload’ sub-screen. The ‘Document Upload’ sub-screen is displayed below:

In the ‘Document Upload’ sub-screen, specify the corresponding document path and click the ‘Submit’ button. Once the document is uploaded through the upload button, the system displays the document reference number.

View

Click ‘View’ to view the document uploaded.

5.1.25 SWIFT Message Details Button

You can capture the SWIFT related details in this screen. You can invoke this screen by clicking the ‘SWIFT Message Details’ button in the ‘Account Details’ screen.

The following swift message related details can be viewed in the above screen:

Swift messages are not generated in the following situations:

5.1.26 Liquidation Order Button

Click on the Liquidation Order button to invoke the Liquidation order screen. In this screen you can maintain the liquidation order for the account as the status maintained at the product level.

Account Status

Status

Select the status code from the adjoining option list.

Description

The system displays the description of the status code.

Liquidation Order

Component

Select the component maintained for the product from the adjoining option list.

Liquidation Order

Specify the liquidation order of the component.

You can specify values in this screen only if you modify liquidation order for a particular status specified at product level.

Note

While saving the transaction, if you have modified the Rate Code or the UDE value, the system displays configurable override messages. These overrides are displayed during subsequent modifications of the interest rate. You can also configure overrides for Dual Authorization to be displayed at Contract and Maintenance level in the ‘Override Maintenance’ screen.

For more information about configuring overrides, refer to the section ‘Override Maintenance’ in the chapter ‘Configuring Overrides’ in the Core Services User Manual.

5.1.27 Viewing Loan Account Details

You can view the loan account details using ‘Account Summary’ screen. You can invoke this screen by typing ‘CLSACCNT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button:

You can click ‘Search’ button to view all the pending functions. However, you can to filter your search based on any of the following criteria:

Click ‘Search’, the system displays the following details based on the specified search criteria:

5.1.28 Repayment Holiday for Amortized Loans

A loan has two formulae for the slots of simple and the amortized. Simple and amortized formulae can occupy any position in schedules definition.

During principal repayment holiday period, interest is calculated on the simple interest formula specified. The customer needs to repay only the interest component. Principal is amortized for the remaining period or tenor of the loan. Principal schedule will not be present during repayment holiday period.

The system treats instances of overdue and default as per the liquidation order maintained.

Simple interest formula cannot be used for the last payment row. The bullet schedule for interest cannot be based on the simple interest formula.

Now, in case of principal moratorium for a simple loan, there may be no principal schedules present for a given period of Interest. The system calculates simple interest during principal moratorium based on the principal outstanding amount at that time.

For example,

Consider the following details:

Particulars

Value

Loan Amount

24000

Tenor of Loan

24 months

Rate of Interest

20%

Loan Start Date

01-Sep-2008

Loan End Date

01-Sep-2010

Principal Moratorium Period

From 01-Sep-2009 to 01-Apr-2010

Sl 

Instalment

Loan

Instalment

Repayment

No.

Schedule Date

Outstanding Amount

Amount

Princi­pal

Inter­est

1

10/1/2008

22666.67

1733.33

1333.33

400

2

11/1/2008

21333.34

1723.7

1333.33

390.37

3

12/1/2008

20000.01

1688.89

1333.33

355.56

4

1/1/2009

18666.68

1677.77

1333.33

344.44

5

2/1/2009

17333.35

1654.81

1333.33

321.48

6

3/1/2009

16000.02

1602.96

1333.33

269.63

7

4/1/2009

14666.69

1608.89

1333.33

275.56

8

5/1/2009

13333.36

1577.77

1333.33

244.44

9

6/1/2009

12000.03

1562.96

1333.33

229.63

10

7/1/2009

10666.7

1533.33

1333.33

200

11

8/1/2009

9333.37

1517.03

1333.33

183.7

12

9/1/2009

8000.04

1494.07

1333.33

160.74

13

10/1/2009

8000.04

133.33

0

133.33

14

11/1/2009

8000.04

137.78

0

137.78

15

12/1/2009

8000.04

133.33

0

133.33

16

1/1/2010

8000.04

137.78

0

137.78

17

2/1/2010

8000.04

137.78

0

137.78

18

3/1/2010

8000.04

124.45

0

124.45

19

4/1/2010

6666.7

1471.12

1333.34

137.78

20

5/1/2010

5333.36

1444.45

1333.34

111.11

21

6/1/2010

4000.02

1425.19

1333.34

91.85

22

7/1/2010

2666.68

1400.01

1333.34

66.67

23

8/1/2010

1333.34

1379.27

1333.34

45.93

24

9/1/2010

0

1356.3

1333.34

22.96

For further details on holiday period maintenance, please refer to the section ‘Maintaining Holiday Periods’ in chapter ‘Maintenances and Operations’ of this user manual.

5.1.29 Adjustment of Increased Amount Due

If you have opted for ‘Adjust increased amount due’ at product level, then the system performs certain validations at different stages of the loan life cycle and processes the loan as given below:

For details on setting “Adjust increased amount due” preference at product level refer section “Account Preferences Tab” in “Defining Product Categories and Products” chapter of this User Manual.

Recalculation Process

If the recalculated amount due or EMI of the schedule(s) that has been advised is increased due to the auto rate revision event then system checks the adjustment parameter specified.

If billing notice is already generated and the parameter, ‘Adjust increased amount due’ is set to yes at the product level then system process the loan as given below based on whether it is bearing loan or amortized loan.

Unbilled Amount Transfer Process

The UNBLprocess which is part of the CL batch process is sequenced before the auto liquidation process and configured to execute at BOD. During this batch, system would do the following:

If Unbilled Amount is present for the schedule then:

If Unbilled Amount is not present for the schedule:

Disbursement Process

Accrual Process

The accrual of the unbilled amount is done in the respective accrual period of the advised schedule(s) against the interest component only.

Rate Revision Process

The recalculation, triggered as a result of value date amendment, is done as explained in the recalculation process section.

Value Date Amendment Process

The recalculation during batch process, triggered as a result of auto rate revision would nullify the adjustments, if previously updated.

An override message is displayed to confirm that the action has been initiated post billing notice.

Payment Process

For more details on Loan Disbursement, Value Dated Amendment, and Loan Payment processes refer Chapters “Making Manual Disbursements”, and “Operations” in this User Manual.

5.2 Commitment Account Creation

This section contains the following topics:

5.2.1 Maintaining Commitment Account Details

A ‘commitment’ is an agreement by a bank to make available a specified amount of fund to the borrower for a certain period of time. It is a ‘line of credit’ that is made available by the bank to a borrower. The entire commitment amount may be disbursed in full at the time of authorization or disbursed partially on predefined scheduled dates.

You can link a commitment to more than one loan, provided funds are available, and the loan(s) given against the commitment amount may or may not be in the same currency. When a loan is disbursed against a commitment, there is no movement of funds involved but only a setting aside of funds. Hence there is no disbursement or credit to the borrower’s account.

You can create a commitment contract using the ‘Commitment Account Details’ screen. You can invoke this screen by typing ‘CLDCMTMT’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

Click new icon in the toolbar of the screen.

For explanation on fields specific to ‘Commitment Account Details’ screen refer section given below. For remaining field explanations on other tabs refer section ‘Loan Account Creation’ in this chapter.

5.2.2 Preferences Tab

Allow Bulk Payment

Check this box to indicate whether the accounts under a commitment should be considered for bulk processing. Various disbursements are allowed for a corporate customer and these are treated as loans with separate products and EMI schedules. Assigning individual payments as Bulk payments provides the facility of viewing multiple loans under a single commitment.

5.2.3 Commitment Tab

To view the utilization details of the commitment contract click ‘Commitment’ tab.

You can capture the following details on this screen:

Disallow further Disbursement

If you check this option, the system will not allow further disbursements on this commitment account. If you do not check it, the system allows further disbursements on this commitment account. By default, the system displays the status of this box as checked. However, you can modify this.

Mortgage Group

A mortgage in Oracle FLEXCUBE may have different repayment styles, rate conditions and maturity conditions. By checking this option, you can use this commitment for such mortgages with multiple repayment formula.

Last Available Date

Enter the last available date. This is the final date as of which all disbursements under this commitment should be completed. Beyond this date, the system will not allow disbursements on this commitment.

Loan Maturity Date

Enter the loan maturity date. All disbursements under this commitment should be matured as of this date. For this commitment, the system will not allow disbursements with a maturity date beyond the loan maturity date.

The following utilization details of all commitments linked against a loan account are displayed in the above screen:

5.2.4 Applying Different Repayment Styles for a Commitment

You can have different repayment styles, rate conditions and maturity conditions for the same mortgage account maintained in Oracle FLEXCUBE. For this, repayment of principal amount needs to be divided into multiple disbursement slabs. You can use the following fields on the ‘Commitments’ tab to enable this feature:

Please lookup the above section ‘Commitments Tab’ for details on inputs for these fields.

For example,

Consider a mortgage of 500,000 against a specific property. Based on the terms agreed upon by the bank and the customer, you can split the mortgage principal into multiple disbursements as shown below:

Disbursement

Conditions

Disbursement of first 200,000

Interest only, variable rate, 20 years with balloon principal repayment

Disbursement of second 200,000

Annuity (EMI type), 10 year fixed rate

Disbursement of final 100,000

Interest only, fixed rate, 5 year, balloon repayment via insurance policy

In this case, interest repayment may be started at any point of time. However, repayment of the principal amount can begin only after the disbursement of entire 500,000.

You can initiate closure of such mortgages only after closing all disbursements with various conditions, i.e. after liquidation of all loan contracts. Further to closure of such mortgages, you need to complete two housekeeping activities viz. notification to notary and release of collateral.

5.2.5 Charging Fee on Commitments

A fee is charged by the bank at the time of entering into a commitment agreement. This fee is repayable at predefined schedules. Also there can be another fee component charged on the amount of commitment that is utilized and un-utilized. The following SDEs are used to define fees on utilized/un-utilized commitment amount:

For more details on maintaining SDEs refer section ‘Maintaining System Data Elements’ in the Chapter ‘Maintenances and Operations’ of this User Manual.

5.2.6 Processing Events for a Commitment

The following events are triggered by the system during the different stages of a commitment contract:

5.2.7 Viewing Commitment Account Details

You can view the commitment account details using ‘Commitment Summary’ screen. To invoke this screen, type ‘CLSCMTMT’ in the field at the top right corner of the Application tool bar and click the adjoining arrow button.

You can click ‘Search’ button to view all the pending functions. However, you can to filter your search based on any of the following criteria:

Account Number

Select the account number from the option list.

Customer Id

Select the customer id from the option list.

Value Date

Specify the value date.

Amount

Select the amount financed.

User Defined Status

Select the user defined status from the option list.

Account Status

Select the status of the account from the drop-down list.

Branch Code

Select the branch code from the option list.

Product Code

Select the product code from the option list.

Maturity Date

Specify the value date.

Currency

Select the currency of the transaction from the option list.

Alternate Account Number

Select the alternate account number from the option list.

Authorization Status

Select the authorization status of the contract from the drop-down list.

When you click ‘Search’ button the records matching the specified search criteria are displayed. For each record fetched by the system based on your query criteria, the following details are displayed:

Click ‘Advanced Search’ to display the screen below:

 

You can query a contract based on any of the following details:

5.3 Loan Account Statement Generation

Oracle FLEXCUBE allows you to generate the loan statements along with the time period on an ad-hoc basis. You can generate the loan statement using ‘Loan Statement’ screen. You can invoke this screen by typing ‘CLDLSTMT’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

Account Number

The system will display all the authorized, active and liquidated CL accounts in the current branch. However, you can amend this field.

Message Type

Select the specific message type for loan statement from the drop-down list. Following are the options available in the drop-down list:

Send to Customer

Check this box to send a message to a customer.

Specifying Date Range

From Date

Specify the ‘From Date’.

If you have not specified the ‘From’ date, then the system will default the ‘From’ date as CL account book date.

Note

‘From Date’ cannot be greater than the current system date.

To Date

Specify the ‘To Date’.

If you have not specified the ‘To’ date, then the system will default the current date.

To process the request, click ‘OK’ button. Then click ‘Report’ button’ to generate the report. System generates the report based on the options selected.

You can generate the message by checking ‘Send to Customer’ checkbox, before generating the report. This message is stored in the outgoing browser. If the message generation fails, then the system will display an error message.

The following information is available in the Loan Account Statement.

Opening Balance:

The Opening Balance for the loan account is the opening balance of the loan based on the given ‘From Date’. The opening balance will be the Principal Outstanding for the loan plus Overdue Interest (if any) plus Penalty (if any) as on the ‘From Date’.

Closing Balance:

The Closing Balance for the loan statement is computed by adding the debit entries and subtracting the credit entries to the opening balance for the given period.

Note

The period between From Date and To Date/Current Date, whichever is earlier, is consid­ered for calculation.

Running Balance:

The running balance is computed based on the previous entry’s balance and the current entry’s credit or debit. The running balnce is generated for every Credit and Debit entry in the loan account,

Interest Application:

Debit entry is displayed based on the interest schedule due dates.

If there are multiple interest components, separate debit entries for each of the components as on their corresponding due dates are displayed.

Note

For ‘Discounted’ loans, the interest is displayed as received in advance as part of dis­bursement event for both debit and credit entries.

If the account is in any status other than Normal and if accrual has been stopped or if contingent accrual is set, still interest application would be shown in the statement as on the schedule due dates.

Penalty Interest:

System displays the debit entry for the penalty amount as on the payment date along with the respective credit entry on the same payment date if,

If the Penalty is unpaid, a debit entry (as on the ‘To Date’/Current System date whichever is earlier) for penalty is shown in the loan statement.

If the penalty component is of non accrual type, only credit entry is shown in the loan statement.

Charge:

Debit and credit entry for the charges associated with the events for the given period are displayed.

5.4 Calculating Exponential Interest for Loans

Calculation of interest in exponential method is achieved by replacing interest rate by a derived rate and by enabling daily compounding as explained below. Exponential method is applicable for the Simple, Amortized and Discounted schedules types of loans.

The system will derive the effective annual rate (R) from the Per Annum rate (r) .Derived rate, which will be calculated based on the formula specified below, will be used internally by system in interest calculations:

R = (POWER ((1+r), (1/YEAR)) -1)*YEAR

where:

The derived rate is used internally for calculations for exponential type UDEs. For each component that needs to be calculated using the exponential method, the formula should contain the SDE ‘COMPOUND_VALUE’ and the compound days should be maintained as ‘1’.

Calculation for Simple and Amortized Accounts

In case of Simple and Amortized loans, the interest UDE has to be maintained with UDE type as Exponential rate and the Main interest component to be checked for ‘Exponential Interest’ Method. The following formulae need to be maintained and the compounding frequency needs to be set as ‘1’

Formula Type

Interest Booking Formula

User Defined

SIMPLE(PRINCIPAL_EXPECTED,(INTER­EST_RATE),DAYS,YEAR,COMPOUND_VALUE, INT_NOT­DUE_PAID)

User Defined

AMORT_RED(PRINCIPAL_EXPECTED,(INTER­EST_RATE),DAYS,YEAR,COMPOUND_VALUE, INT_NOT­DUE_PAID)

The system will use Derived rate for calculation for Exponential type UDE.

Calculation for Discounted Accounts

In case of exponential accounts, the total interest will be derived based on the true discounted formula and the accruals will be done on the discounted principal with daily compounding. You need to maintain Interest rate UDE with type as Exponential Rate and maintain the following discounted schedule formula with Compound Days as ‘1’:

Formula Type

Interest Booking Formula

Discounted schedules

DISC_SCH(PRINCIPAL_EXPECTED,(INTEREST_RATE),DAYS,YEAR,COMPOUND_VALUE)

The derived rate will be assigned for interest rate UDE in calculations. When the Discounted schedule formula is maintained with COMPOUND_VALUE, the interest will be calculated based on PV formula specified below:

PV = P/(1+r)^(DAYS/YEAR)

where:

The PV is recalculated when you do a rate amendment with value date as loan value date or there is a prepayment with value date as loan value date. If the value date is not the loan value date in both cases, the system will not recalculate the PV. The system will also not recalculate PV if you extend the maturity date for the loan.

If the ‘Installments’ box is not checked and a partial prepayment is done, the system will allow this only if the value date is the same as the loan value date; any difference in interest is refunded to the customer through the BADJ event. If you extend the maturity date or change the rate after extending the maturity date, the system will collect the excess interest amount from the customer through the BADJ event.

Note

Calculation for Funding Interest

For accrual based on Funding Interest rate, a component with component type as Funding interest and simple formula with liquidation mode for funding component as ‘Auto’ needs to be defined. The new component needs to be added in Product Component class screen. The same will be defaulted to Lending Product definition – Component sub screen

Book formula for the funding interest component can be defined as specified below:

@SIMPLE(PRINCIPAL_EXPECTED,(MPINTEREST_RATE) ,DAYS,YEAR,COMPOUND_VALUE)

To facilitate the exponential calculation, the Compound days needs to be set as 1.

 

Calculation for Overdue Interest

The component for overdue interest needs to be set up with a simple formula with Compound Days as ‘1’. The UDE used should be of Exponential Type.

5.5 Maintaining Financial Operations Tax (IOF)

If IOF payment method is ‘Capitalisation’, you will need to set up the following formulae on linear and exponential loans of type Simple/Amortized reducing:

Formula Name

Condition

Formula

Intermediate Formula

IOF_CALC_­FRM_1

DAYS<=364

((PRINCIPAL_S­CHAMT*(IOF_DLY_RATE/100)*DAYS)+( PRINCI­PAL_S­CHAMT*(ADDL_RATE/100)))

Yes

IOF_CALC_­FRM_1

DAYS>364

((PRINCIPAL_S­CHAMT*(MAX_IOF_RATE/100))+( PRINCIPAL_S­CHAMT*(ADDL_RATE/100)))

Yes

IOF_CALC_­FRM_2

PRINCI­PAL_OUT­STAND > 0

(PRINCIPAL_OUTSTAND * IOF_CALC_FRM_1) / (PRINCIPAL_OUTSTAND -IOF_CALC_FRM_1)

No

The SDE ‘PRINCIPAL_OUTSTD’ will fetch the total principal amount along with the grace period interest calculated based on moratorium interest capitalization if the box ‘Consider Projected Moratorium Interest for Schedule’ is checked for the product. If the ‘IOF Payment Type’ is chosen as ‘Capitalization’ then the system will validate that the below flags are checked.

This will ensure that schedule and interest will be recalculated after capitalizing the IOF to the principal. If the schedules for a loan are user-defined, the capitalized IOF amount will be added to bullet (last) schedule. IOF will be collected into the IOF GL during disbursement.

If IOF capitalization is applicable to a loan product, only auto disbursement with single disbursement schedule will be allowed for the loan product/ account

IOF Advance Payment

You need to maintain the following formulae if IOF payment type is specified as ‘Advance Payment’. This will be applicable to simple/amortized reducing loans:

Formula Name

Condition

Formula

IOF_CALC_FRM_1

DAYS<=364

((PRINCIPAL_SCHAMT*(IOF_DLY_RATE/100 ) *DAYS)+ ( PRINCIPAL_SCHAMT * (ADDL_RATE/100)))

IOF_CALC_FRM_1

DAYS>364

((PRINCIPAL_SCHAMT*(MAX_IOF_RATE/100))+( PRINCIPAL_SCHAMT*(ADDL_RATE/100)))

The system will consider the number of days between the loan value date and principal schedule due date.

Multiple schedules for auto disbursement will not be allowed for loans with IOF Payment Method as ‘Advance Payment’. In case of multiple disbursements, from the total IOF amount calculated as per new schedules, IOF amount collected during previous disbursements will be deducted.

Irrespective of the disbursement date, the schedule days will always be calculated based on loan value date from the customer and credited into the IOF GL.

You can view the IOF amount computed by the system on the ‘Charges’ screen after saving. IOF will not be recalculated during any payment/prepayment of the loan.

IOF for Linear/Exponential Discounted Loans

For linear/exponential discounted loans, IOF is calculated based on present value i.e. principal schedule amount – Interest Amount (exponential discounted loans with bullet principal schedule only). You need to define the formulae for linear/exponential discounted loans as below:

Formula Name

Condition

Formula

IOF_CALC_FRM_1

DAYS<=364

(((PRINCIPAL_SCHAMT – MAIN_INT_CURVAL) *(IOF_DLY_RATE/100)*DAYS)+ ( (PRINCIPAL_SCHAMT-MAIN_INT_CURVAL) * (ADDL_RATE/100)))

IOF_CALC_FRM_1

DAYS>364

(((PRINCIPAL_SCHAMT-MAIN_INT_CURVAL)*(MAX_IOF_RATE/100))+(( PRINCIPAL_SCHAMT-MAIN_INT_CURVAL)*(ADDL_RATE/100)))

If days computed are less than or equal to 364, IOF daily and additional rates will be applied .For schedule days more than 364 days, the IOF maximum and additional rates will be considered. The total IOF amount calculated for the schedules will be arrived at and applied to the account.

For a discounted loan, on doing multiple Manual Disbursement or principal increase VAMI, IOF will be re-calculated considering principal amount effective from the value date of the loan and not from the disbursement /amendment date.

IOF for Penalty Components

For simple, amortised and discounted loan products, you can levy a penalty on late payment of IOF. You need to set up the following formulae for the penalty component:

Formula Name

Condition

Formula

LATEIOF_AMT_FRM

SCH_DAYS>= 365

0

LATEIOF_AMT_FRM

SCH_DAYS< 365

(PRINCIPAL_SCHODUE*(IOF_DLY_RATE/100)*DAYS)

This formula applied daily IOF rate on the principal due for the late IOF term. The conditions for Late IOF payment are as follows:

5.6 Loan/Commitment Account Authorization

This section contains the following topics:

5.6.1 Authorizing Loan/Commitment Account

After entering the loan/commitment account details click ‘Save’ icon to save the account details.

To authorize an account, click ‘Authorize’ icon on the Application toolbar. The ‘Account Authorization’ screen is displayed.

The loan account number and the branch details are defaulted here.

The following detail needs to be selected, as required:

Generate Message

Check this box if you want swift messages to be generated either for a customer transfer or a bank transfer along with a cover. The generated message can be viewed in the messages browser. Even if the box is left unchecked you can go to messages browser at a later point of time and generate the message.

If the message generation fails for some reason, the account is authorized and you have to go to the browser to manually generate the swift message.

All other advices related to BOOK/INIT/DSBR events are not generated at this point and you need to go to the message browser to do the same.

Note

You cannot authorise a contract from the contract screen in the following cases:

5.6.2 Multilevel Authorization of a Contract

High value transactions may require multilevel of authorization. The levels of authorizations are defined in the ‘Product Transaction Limits’ screen. You can use the ‘Multilevel Authorization Detailed’ screen for authoring a contract n-1 times. However, final authorization can take place only in the contract screen.

For more details, refer the ‘Multilevel Authorization of Contract/Loan Account’ section in the ‘Procedures’ User Manual.

5.7 Querying Account Details

Oracle FLEXCUBE allows you to query the following account related details:

5.8 Viewing OFAC Check Response

OFAC check enables the application to call an external web service to perform black list check for customer and customer accounts and give warnings appropriately while transacting with black listed customers. You can also capture your remarks before overriding the black list warning.

Click ‘OFAC Check’ button to view the OFAC check response in the ‘External System Detail’ screen On clicking ’OFAC Check’ button, system will build the request XML and call the web service. The ‘External System details’ screen displays the response is received from the external system and you will be also allowed to enter your remarks in this screen. The response received will also be sent to Oracle FLEXCUBE Database layer for any further interpretations of the same. This button can be made visible while carrying out the actual customization. Request building response interpretation in the database layer needs to be done as part of customization to enable this.

Here, you can view /capture the following details:

External System Response

The response from the external system regarding the black listed customer is displayed here.

User Remarks

Specify your remarks regarding the black listed customer here.

5.9 Inactive Loan Accounts

This section contains the following topics:

5.9.1 Capturing Inactive Loan Details

During Loan processing, it is required to capture loan details and not initiate till verification of documents, etc. This module creates a loan account in an inactive state. Inactive loans are input by a separate screen similar to the Accounts screen or by Uploads. After manual verification the account is entered as an inactive account. The account is activated once the requisite documents are received.

You can invoke this screen by typing ‘CLDINADT’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

The system captures the following details and generates an inactive account:

Modifications are allowed on inactive loans even after authorisation and there are no restrictions on inactive loans modifications. Loan details are handed off to other systems. Messages such as Loan advice or Promissory Notes can also be generated.

5.9.2 Operations on Inactive Loans

It is possible to modify an inactive loan and save it even after authorisation. When the account is activated it will be an unauthorized account and behaves like an account directly created /uploaded into the system. It is possible to delete the same too. The user can change all loan account properties.

Click ‘Active Account’ button to activate the loan. This changes the funded status of the loan. Once activated, the account cannot be deleted after authorisation and cannot be unlocked after one save.

Accounting entries and limit updates are not called when the loan is inactive. Accounts queries do not display inactive accounts and Inactive accounts views do not show active accounts.

If an account is created after its value date, it behaves as a Back valued loan entry. If it is created after its maturity date, it behaves like an overdue account.

Inactive loans are created with a sequence that is different from the account mask maintained. Upon activation, the account mask is used to create a new account. Hence the account number of an activated account differs from its inactive version.

5.9.3 Activating Loans and Limit Earmarking

Inactive loans are activated by clicking on Activate Account button or through an upload. Upon loan activation, Limits Utilizations are updated. Accounting entries are passed for disbursement and for any upfront changes as defined in the product.

The earmarked amount field shows the total earmarking and an earmarking reference number is captured. Upon the actual loan initiation, utilization is made on the line and real entries passed.

5.9.4 Deleting Inactive Loan

Inactive loans can be deleted even after the authorisation of Inactive loan account. In Bank Parameters, Site specific parameters are provided to control the automatic deletion of Inactive loans. An Inactive Loan processing supports this deletion.

While saving the transaction, if you have modified the Rate Code or the UDE value, the system displays configurable override messages. These overrides are displayed during subsequent modifications of the interest rate. You can also configure overrides for Dual Authorization to be displayed at Contract and Maintenance level in the ‘Override Maintenance’ screen.

For more information about configuring overrides, refer to the section ‘Override Maintenance’ in the chapter ‘Configuring Overrides’ in the Core Services User Manual.

5.10 Viewing Details of CL Accounts Linked to L/C

You can query CL accounts linked to the L/C in the ‘Commitment/Limits Summary’ screen. You can invoke this screen by typing ‘CLSENTTY’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

You can query a record using the following options:

The following details get displayed:

In this screen, click a child record to invoke ‘Account Details’ screen.

5.11 Viewing Accounts Linked to Loans/Commitments

Retail lending accounts linked to a loan or commitment can be queried for by using the Limit/Commitment summary screen.

To invoke this screen type in ‘CLSENTTY’ in the field at the top right corner of the Application tool bar and click the adjoining arrow button.

You can select a particular record to view based on the limit/commitment parameters fed in the screen and the base entity type.

To view a particular record from the list click on the desired record from the list displayed. Only the detailed records of the accounts for the current branch are available for view.

5.12 Manual Confirmation by Notary

Usually a notary confirms the collaterals (linked to the loan) before loan account creation. In case, the confirmation from notary is not received before loan account creation, you can initiate confirmation manually using the ‘Manual Notary Confirmation’ screen. You can invoke this screen by typing ‘CLDNOCON’ in the field at the top right corner of the Application tool bar and clicking the adjoining arrow button.

You need to specify the following details here:

Branch Code

Specify the unique identifier of the branch where the loan account (for which notary confirmation needs to be updated) is created. The adjoining option list displays all branches maintained in the system. You can select the appropriate one.

Account Number

Specify the loan account number / commitment account number for which notary confirmation needs to be updated. The adjoining option list displays all loan accounts/commitment accounts (for which the “Notary Confirmation Required” check box is checked at the product level,and “Notary Pre Confirmed”  check box is unchecked at the account level) maintained in the system. You can select the appropriate one.

Notary Confirmation Date

The system displays the current system date as the date of confirmation.

Notary Status

Select the notary status from the adjoining drop-down list. This list displays the following values:

If the notary status is ‘Confirmed’, then the system will trigger NCON event during authorization. If the notary status is ‘Reject’, the system will trigger NREJ event which in turn triggers the reversal of the contract during authorization.

Remarks

Enter the remarks for confirming or rejecting the collateral details.