10. BVT Handling

During the balance build process, whenever system receives a transaction for which value date is less than the system date of the branch (booking date), system will mark that transaction/s as BVT.

During the EOD processing, OBLM will identify accounts and their related structures for which back value dated transaction has to be processed.The BVT processing will always be done at the structure headers EOD.

The system rebooks the sweeps (in case of physical pooling) and adjusts the interest amount that had been accrued and settled in the accounts when you input a transaction with a back value date. In case of a change in the Account Structure in the interim between the Back Value Transaction (BVT) date and current date, the system uses the account structure existing on the execution days.

10.1 BVT Handling

Any back valued transaction will result in rebooking of sweeps from that particular BVT date. If the Account Structure had undergone a change in the period between the BVT date and current date, system will take the appropriate previous structure information into account while replaying the sweeps

System will carry out the following steps during BVT processing

Condition	Action
Reversal of Sweeps	System Reverses all the sweep instructions executed on relevant structures from back value date to current date
BVT balance adjustments	System adjusts the balances of an account based on BVT transac­tions
Re-play sweep instructions	System replays all the sweep instructions from Back value date to current date for all related structures, taking into account the BVT adjusted balances.
BVT update to Core Bank­ing System	Send post-BVT , post-sweep balance corrections for all effected accounts , considering BVT adjustments to Core Banking System

System will process BVT only for Value Date based sweeps.

Whenever a BVT transaction hits an account, the corresponding Account that was active on that effective date is taken into consideration for pre-liquidity management and post-liquidity management balances.

10.1.1 Replay of Sweeps

Replay of sweeps will be an internal process to OBLM and are carried out in the following manner:

• All the sweep transactions, if any, of affected structures are to be reversed on the BVT date
• Considering the BVT sweep adjustments, the System will replay all the sweeps in order to ensure that value dated balances for Parent Account as well as other Child Accounts in the structure are correctly updated
• Considering the updated System account balances, the system will reverse the sweep transactions, including the reverse sweeps, and then replay the sweep cycle till the current processing date
• Replayed sweeps (re-booked entries) will have the booking date as the processing date (date on which BVT is processed which would be the current system date for the account) and the value date will be in back period
• While processing multiple BVT entries for an account the system will start processing the BVTs from the earliest value date.
• The Post Sweep Balances are updated accordingly for the Account + Effective Date + Account Combination

The accounting entries hand off to the core banking system will be done according to the payment instruction maintenance parameters maintained at the branch level.

10.1.2 Pool Structures

For pooling structured affected by BVT transactions, system will get all the contribution made to the LM contributions table from the BVT date and adjust the contribution table for all the structures which had BVT accounts.

10.1.3 Multi Currency

While replaying sweep instructions, system considers exchange rates for the particular date in the back period, where cross currency sweeps are involved

10.1.4 BVT with Structural Changes

While replaying sweep instructions, system considers appropriate historic structures