An investor could avail the use of cheque books for a fund. You can maintain details of cheque books requested by an investor, as well as the status of individual checks in a cheque book that has been issued.
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This section contains the following topics:
To maintain details of requested cheque books and update the status of checks in each issued cheque book, use the ‘Cheque Book Request Detail’ screen. You can invoke this screen by typing ‘UTDCHKRQ’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
Only those investors, for whom the cheque writing facility has been allowed in their account profiles, can avail the use of cheque books for a fund. Also, rules for the cheque writing facility must also be maintained for the fund for which the cheque books has been requested by the investor.
Typically, cheque books requested by investors for a fund are printed by external agencies known as cheque vendors that enter into an agreement with the AMC, to print the cheques on the investor’s behalf. You must maintain a record for each cheque vendor with whom the AMC has entered into such an agreement, as an entity in the Entity Maintenance, in FCIS. You must also associate each cheque vendor with the funds for which the vendor can print cheques. You do this in the Fund Entity screen.
To enter a cheque book request in the Cheque Book Request screen, you must specify the following details:
Specifying the unit holder
You must specify the unit holder who has requested the use of a cheque book. Only those unit holders, for whom cheque writing is allowed, as part of their account profiles, may avail the use of a cheque book.
Specifying the fund
You must specify the fund for which the unit holder has requested the use of a cheque book. Rules for cheque writing should already have been maintained for such a fund.
Specifying the cheque vendor
You must also specify the cheque vendor who will print the cheque books on behalf of the investor. Only those cheque vendors associated with the selected fund for which the cheque book is being requested, can be specified.
Specifying cheque book details
You must also specify the details of the cheque book being printed, such as the number of the cheque book, the currency in which it is being issued and any remarks.
Specifying the status of a cheque book request
When a new cheque book request is being filled in, in this screen, you must mark the status of the cheque book as ‘Cheque book Applied’. The interface that you have defined for exporting details for cheque book requests to the designated vendors, when executed, will only pick up those requests whose status is ‘Cheque book Applied’. After the interface is successfully executed, the status of the requests processed is automatically marked as ‘Sent to Vendor’.
After a cheque book request has been sent to the designated cheque vendor, if there is any discrepancy reported by the vendor while downloading the cheque book request, you must manually change the status to ‘Discrepancy Noticed’, by either editing or amending the request.
When the details of cheque books printed and issued against each request are received from the vendors and uploaded into the system, the status of all issued cheque books is marked as ‘Cheque Status Maintained’. In this status, the details of all cheques that are part of the issued cheque book are maintained in the system.
When all cheques in the cheque book have been used up, the status of the book is marked as ‘Cheque Book Exhausted’. You will need to either edit or amend the record to mark this status. In this status, all cheques contained in the book are marked ‘Invalid’.
If, for any reason, the cheque book stands cancelled, and you have received notification to that effect, you must edit or amend the cheque book request and mark the status as ‘Cancelled’. In this status, all cheques contained in the book are marked ‘Invalid’.
You can also monitor the status of individual cheques in the cheque book, through the Cheque Status Summary screen.
You can specify the following fields in this screen:
Unit Holder ID
Alphanumeric; 12 Characters Maximum; Mandatory
In this field, you can indicate the unit holder for whom the cheque book request is being entered. You can use the ‘Find UH’ button to view a list of unit holders for whom the cheque writing facility has been allowed in their account profiles, and select the required unit holder from this list.
You cannot enter a cheque book request for a unit holder for whom the cheque writing facility is not allowed, in the account profile.
Fund ID
Alphanumeric; 6 Characters; Mandatory
In this field, you can indicate the fund for which the unit holder made the cheque book request. You cannot enter a cheque book request for a unit holder in a fund for which rules for cheque writing facility have not been defined.
When you specify the ID of the fund, the ISIN Code of the fund is displayed in the ISIN Code field.
ISIN Code
Alphanumeric; 25 Characters; Optional
Select the ISIN Code of the selected fund. If you specify the ISIN Code of a fund, the ID of the fund is displayed in the Fund field.
Entity ID
Alphanumeric; 12 Characters; Mandatory
Indicate the cheque vendor to whom the cheque book request will be sent for printing. You can select the list of cheque vendors associated with the selected fund, select the required vendor from the option list.
Entity Name
Display
The name of the vendor that you select is displayed in the Entity Name field.
Cheque Book Number
Alphanumeric; 16 Characters; Mandatory
Specify the number of the cheque book that has been requested. This is the identification for the cheque book in the system. The number you specify here must not be used to identify any other cheque book in the system, for the same unit holder and fund combination.
Cheque Currency
Alphanumeric; 3 Characters; Optional
In this field, you can indicate the currency in which the cheque amounts will be expressed, on a cheque issued from the requested cheque book. All currencies allowed for the selected fund (in the Fund Transaction Currency Rule) are displayed in the option list.
Status
Alphanumeric; 50 Characters; Optional
This field is used to assign a status to a cheque book. The individual cheque in the book may have different statuses, which are different from the status of the cheque book. You can choose the status of the cheque book that is being requested from the drop-down list. The list contains statuses defined to be applicable to cheque books, in the System Parameters.
The following statuses are possible for a cheque book:
Remarks
Alphanumeric; 200 Characters; Optional
You can specify any relevant narrative regarding the requested cheque book in this field.
To send details of cheque book requests entered into the system through the Cheque Book Request screen to the designated cheque vendors, you must define an interface, through the Interface Definition facility.
The interface, when executed on a given business day, sends all authorized cheque book requests with status ‘Cheque book Applied’, received during the day, as an export file, to the designated cheque vendors.
You must manually execute the interfaces on each business day. If you fail to do so, the pre-end of day cheques performed by the system prompts you to do so. To execute the interfaces, use the Online Execution of Interfaces menu option.
To upload details of cheque books printed by vendors against requests received, you must define an interface, through the Interface Definition facility. The cheque books are uploaded as authorized records.
The interface, when executed on a given business day, uploads all authorized cheque books printed by vendors against requests received during the day, from an import file sent by the vendors.
You must manually execute the interfaces on each business day. If you fail to do so, the pre-end of day cheques performed by the system prompts you to do so. To execute the interfaces, use the Online Execution of Interfaces menu option.
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If a cheque book request has been entered incorrectly, you can make changes to the details of the request, through the ‘Cheque Book Request Summary’ screen.
You can invoke this screen by typing ‘UTSCHKRQ’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
You can make changes both before the request is authorized, and also after.
You can change the following details:
In the summary screen, you can select a cheque book request for which you want to make changes, by specifying any or all of the following details:
The following operations are possible in through the Cheque Book Request Summary screen:
You can retrieve a previously entered record in the Summary Screen, as follows:
In the Browser, select Cheque Book Request menu and click on Summary, specify any or all of the following details in the corresponding fields:
Click 'Search' to view the records. All the records with the specified details are retrieved and displayed in the lower portion of the screen.
You can also retrieve the individual record detail from the detail screen by querying in the following manner:
You can perform Edit, Delete, Amend, Authorize, Reverse, Confirm operations by selecting the operation from the Action list. You can also search a record by using a combination of % and alphanumeric value.
You can search the record for Fund ID by using the combination of % and alphanumeric value as follows:-
You can modify the details of a cheque book request record that you have already entered into the system, provided it has not been subsequently authorized. You can perform this operation as follows:
To view a record that you have previously input, you must retrieve the same in the Cheque Book Request Summary screen as follows:
You can delete only unauthorized records in the system. To delete a record that you have previously entered:
An unauthorized Cheque Book Request record must be authorized in the system for it to be processed. To authorize a record:
When a checker authorizes a transaction, details of validation, if any, that were overridden by the maker of the transaction during the Save operation are displayed. If any of these overrides results in an error, the checker must reject the transaction.
After a Cheque Book Request record is authorized, it can be modified using the Unlock operation from the Action List. To make changes to a record after authorization:
An amended Cheque Book Request record must be authorized for the amendment to be made effective in the system. The authorization of amended records can be done only from Fund Manager Module and Agency Branch module.
The subsequent process of authorization is the same as that for normal transactions.
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A unit holder who uses the cheque writing facility could issue cheques to third parties for a transaction.
The bank at which the cheque is presented communicates with the AMC and sends the cheque details to the AMC. A redemption transaction is initiated for the unit holder who issued the cheque, in the fund for which the cheque was issued.
The used cheque details are typically sent to the AMC as a file, the contents of which may be uploaded into the system. You must define an interface that will upload the details from the file and also automatically trigger the generation of redemption transactions based on the cheque details.
Each cheque in an issued cheque book will pass through different statuses in the cycle of issue through clearing. To monitor the status of a cheque in the system, use the Cheque Status Summary screen.
The active status
When a cheque book is printed and issued against a request, and the details of the cheque book sent by a vendor are uploaded into the system, each cheque in the issued cheque book is marked with the ‘active’ status. This means that the cheque is now available to the unit holder to be issued to a third party for a transaction.
A stop payment instruction could be issued on an active cheque. An active cheque could also be rendered lost, if the unit holder misplaces it, or a third party to whom it is issued, misplaces it before presenting it at the bank.
You can manually change the status of active cheques in a cheque book as ‘Stop Payment Issued’, ‘Lost’, or ‘Inactive’, as deemed necessary, by amending the cheque status in the Cheque Status Summary Screen.
A change in status of the original cheque book request could also affect the status of an active cheque in the cheque book. For instance, if the original request is marked with ‘Cancelled’ status, then all cheques in the cheque book would automatically be marked ‘Invalid’.
The ‘Used’ status
Any cheque that has been issued by a unit holder, for which the details have been received by the AMC from the bank or clearing house, and uploaded into the system, is automatically marked as ‘Used’.
For such cheques, redemption transactions are generated when you execute the interface that you have defined, through the Online Execution of Interfaces option. If the transaction is generated successfully, the status of the ‘Used’ cheque is marked as ‘Redemption Cleared’.
If the redemption transaction fails to be generated successfully, the status of the ‘Used’ cheque is marked as ‘Redemption Failed’.
If the redemption transaction generated for the cheque is amended, the status of the used cheque is marked as ‘Redemption Amended’.
Selecting a cheque in the Cheque Status Summary screen
To recall, you can effect manual status changes on an active cheque, in the Cheque Status Summary screen. You can also view the status of active or used cheques. You can invoke this screen by typing ‘UTDCHKST’ in the field at the top right corner of the Application tool bar and click the adjoining arrow. The screen is displayed below:
You can manually change the status of an active cheque to ‘Stop Payment Issued’ or ‘Lost’, through this screen.
To select a cheque in this screen, you must specify the following details that the system will use to identify and retrieve the cheque record:
You could also specify the number of the cheque book that contained the cheque issued, as well as the ID of the cheque vendor who printed the cheque book.
If you do not select any criteria for the search, all the records are displayed.
The following details are displayed for each cheque:
Selecting the operation
To change the status of an active cheque in the Cheque Status Screen, select ‘Amend’ as the operation. The amended record will be saved as an unauthorized record, which you must authorize to make the change effective. To authorize a cheque status amendment, choose ‘Authorize’ as the operation.
To view the status of a cheque, select ‘View’ as the operation.
When you have specified all the details for selecting the cheque and the operation you want to perform, click on ‘OK’ Button. The cheques that match the details you have specified are displayed in the lower list portion of the screen.
In this screen, the details of the cheque you have selected are displayed in View Mode. If you have selected an operation to change the status of the cheque, the Cheque Status field is enabled, with the current status displayed, and you can select the required status by choosing from the options in the drop-down list.
If the operation you have selected is ‘View’, then none of the details in the Cheque Status screen can be changed, including the Cheque Status. The latest status of the cheque is displayed here.
You can specify the fields in the Cheque Status Summary Screen:
The following fields are available in this screen:
Type of Cheque
Mandatory
Specify the type of cheque for which you wish to view details or change the status.
The type can be any of the following:
Operation
Mandatory
Select the type of operation you wish to perform from the drop-down list:
You can:
Note
The field 'Cheque Status' and the button 'Mark Status Change' are enabled only if the type of operation is 'Mark Status Change'
Cheque Number From
Alphanumeric; 16 Characters; Optional
Enter the cheque number from which you wish to perform the operation specified.
Cheque Number To
Alphanumeric; 16 Characters; Optional
Enter the Cheque number till which you require the operation you have specified.
Payment Date
Date Format; Optional
Specify the payment date of the cheque(s).
Unit Holder ID
Alphanumeric; 12 Characters; Optional
Specify the unit holder ID if you want view details/ make changes only for a specific unit holder.
Use the 'UH Find' button to search for the specific unit holder.
Click 'OK' after having specified all the relevant details. The system displays all the relevant details in the 'Cheque Status Details' section.
Cheque Status
Optional
The current status of the selected cheque is displayed here. It could be any of the following:
Click on the 'Mark Status Change' button to apply the status change to the given cheque.
The system displays the following cheque details:
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You can maintain cheque writing status using ‘Cheque Writing Status Detail’ screen. You can invoke this screen by typing ‘UTDCHWST’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
You can specify the following details:
Unit Holder ID
Alphanumeric; 16 Characters; Mandatory
Specify the unit holder ID. You can also query for unit holder ID by clicking ‘Find UH’ button.
Fund ID
Alphanumeric; 6 Characters; Mandatory
Specify the Fund ID. Alternatively, you can select fund ID from the option list. The list displays all valid fund ID maintained in the system.
Cheque Currency
Alphanumeric; 3 Characters; Mandatory
Specify the cheque currency. Alternatively, you can select cheque currency code from the option list. The list displays all valid cheque currency code maintained in the system.
Cheque Book Number
Alphanumeric; 16 Characters; Mandatory
Specify the cheque book number.
Cheque Number
Alphanumeric; 12 Characters; Mandatory
Specify the cheque leaf number.
Remarks
Alphanumeric; 255 Characters; Optional
Specify remarks, if any.
Entity ID
Alphanumeric; 12 Characters; Mandatory
Specify the entity ID. Alternatively, you can select entity ID from the option list. The list displays all valid entity ID maintained in the system.
Transaction Number
Alphanumeric; 16 Characters; Mandatory
Specify the transaction number.
Old Transaction Number
Alphanumeric; 16 Characters; Mandatory
Specify the old transaction number.
Status Change Date
Date Format; Mandatory
Select the status change date from the adjoining calendar.
Status
Alphanumeric; 50 Characters; Optional
Specify the status of the cheque.
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You can retrieve a previously entered record in the Summary Screen, as follows:
Click ‘Search’ button to view the records. All the records with the specified details are retrieved and displayed in the lower portion of the screen.
Note
You can also retrieve the individual record detail from the detail screen by querying in the following manner:
You can perform Edit, Delete, Amend, Authorize, Reverse, Confirm operations by selecting the operation from the Action list. You can also search a record by using a combination of % and alphanumeric value.
For example:
You can search the record for Fund ID by using the combination of % and alphanumeric value as follows:-
You can modify the details of Cheque Writing Status record that you have already entered into the system, provided it has not subsequently authorized. You can perform this operation as follows:
Click Save to save your changes. The Cheque Writing Status Detail screen is closed and the changes made are reflected in the Cheque Writing Status Summary screen.
To view a record that you have previously input, you must retrieve the same in the Cheque Writing Status Summary screen as follows:
You can delete only unauthorized records in the system. To delete a record that you have previously entered:
When a checker authorizes a record, details of validation, if any, that were overridden by the maker of the record during the Save operation are displayed. If any of these overrides results in an error, the checker must reject the record.
After a Cheque Writing Status record is authorized, it can be modified using the Unlock operation from the Action List. To make changes to a record after authorization:
An amended Cheque Writing Status record must be authorized for the amendment to be made effective in the system. The authorization of amended records can be done only from Fund Manager Module and Agency Branch module.
The subsequent process of authorization is the same as that for normal transactions.