2.15 Reg D Processing in Oracle Banking Retail Accounts

This topic describes the processing of Reg D in Oracle Banking Retail Accounts.

Regulation D imposes reserve requirements on transaction accounts. As a result of the reserve requirements of United States Banks with the Fed, United States Banks in turn have to ensure some portions of their deposits are not volatile and hence restrictions are imposed on the number of debit transactions a Customer can make from savings accounts and MMDA accounts.

Reg D configurations are at the business product definition level in Oracle Banking Retail Accounts and allow users to configure the Reg D Transaction threshold, Reg D Warning threshold, Reg D monthly violation threshold, and Reg D 12-month rolling period violation threshold for automatic product switch to checking account. For Example: If a customer has done Reg D violations for 3 months on a 12-month rolling period - then the customer account will be automatically downgraded (auto-product switch) to a checking account.

Note:

For more information about the configurations, refer to the section Business Product in this User Guide.

Reg D Auto Product Switch

For Reg D - If a customer has done Reg D violations for 3 months on a 12-month rolling period - then the customer account will be automatically downgraded (auto-product switch) to checking account.

A product switch configuration screen in Oracle Banking Retail Accounts allows the user to define the current business product and the new business product to which the account product needs to be switched to incase of more than the allowed number of monthly violations in a 12-month rolling period.

Note:

Automatic product switch is applicable only for United States Regulation D violation.

Note:

For more information about the configurations, refer to the section Product Switch in this User Guide.