The Corporate Deposits module of Oracle FLEXCUBE supports the processing of all types of deposits such as Demand deposits, Certificate of deposits, Term deposits and Cluster deposits. The necessary activities in the life-cycle of a deposit like the application of appropriate interest rates for deposits with floating interest, periodic accrual of ICCF components and the generation of messages and advices for all the applicable events are also taken care of once a deposit is initiated.
In addition, the module also handles the application and collection of interests, charges and fees during the life - cycle of a deposit.
This chapter contains the following sections:
The Corporate Deposits module of Oracle FLEXCUBE has certain unique features, which help in the effective functioning of this module:
In Oracle FLEXCUBE you can customize repayment schedules for a deposit product. The same schedule will by default, apply to all deposits involving the product. However, when you process a specific deposit, you can change the repayment schedule, which it acquires, from the product it involves.
The type of repayment schedule you want to have for the product could either be Capitalized or Normal.
In the case of Amortization or Equated Installments the main interest will be calculated for the term of the deposit, clubbed with the principal and the sum paid out according to the frequency you specify.
When you indicate Capitalization for schedules, and define schedules for the various components of the deposit, the interest is capitalized i.e., the unpaid interest is added to the unpaid principal and this becomes the principal for the next schedule. You also have the flexibility of defining your own schedule type for a particular product. The defined schedule type applies to all the deposits involving the product and cannot be changed during deposit processing.
In Oracle FLEXCUBE you are allowed to rollover or renew deposits on maturity provided that it is allowed for the product with which the particular contract is associated.
For deposit products marked for rollover the outstanding principal of the old deposit is rolled over with or without the interest outstanding on it depending on the specifications made. You will have to make this specification at the time of processing the contract. In addition you have to indicate whether the roll-over is to be automatic or manual, specify the maturity type (fixed, call or notice), and the maturity date in case of a fixed maturity deposit or the notice days for a deposit with notice type of maturity.
Each of the above concepts is explained in detail in the chapter on Rolling- over a Deposit.
Oracle FLEXCUBE allows for fore closure of deposits only if it the specification has been made at the product level. Since a prepayment made for the principal constitutes a violation of the contract, a penalty in the form of an increased interest for deposits can be charged.
Prepayment for penalty can be charged only if the contract has:
Refer Processing Repayments chapter to know more about how Oracle FLEXCUBE handles prepayments.
Specifying whether the mode of liquidation is to be automatic or manual is done at the time of creating a product. The specifications that you make will apply to all the deposits involving the product. The system provides you the option of changing this specification at the time of processing the contract where you can change the mode of liquidation from automatic to manual or vice versa.
The information that has been captured while processing a deposit and the static maintenance done for the module are available in the form of reports. These reports can be printed, spooled on to a disk file, or displayed on the screen. The following are the reports available: