Retail Deposits

This topic provides information about enhancements in the Retail Deposits.

Generic Feature Enhancements

The Interest Liquidation Frequency for a Term Deposit (TD) or Certificate of Deposit (CD) is a configurable setting that specifies how often the accrued interest is paid out to the customer. This setting is established at the account level based on the customer's preferences when the account is opened. It can also be modified during the account's duration according to the bank's policies.

Inclusion of TD/CD Lifecycle Events in End-of-Day Processing: Various lifecycle events related to Term Deposits (TD) and Certificates of Deposit (CD) that occur during the End-of-Day batch processing have been added to the published list of business events. These events are automatically logged and updated, making them available for downstream applications to consume and use for further processing, such as alerts or notifications.

The Interest Accounting Entries Maintenance UI and Processes have been enhanced to support the configuration of accounting entries for two specific business events:
  • Top-Up (DTOP)
  • Redemption (REDM)

Note:

The configuration includes defining the appropriate Accounting Role, Amount Tag, and Dr/Cr Indicator. For detailed configuration steps and guidelines, refer to the Retail Deposits User Guide.

Generic Feature Enhancements in Deposit Servicing

Access Restriction for Branch Servicing Operations:

Access restriction functionality prevent users from viewing or operating on customer accounts if the customer belongs to a specific access group (e.g., HNI, celebrity) and the user does not have the necessary access rights.

Interest Rate Code for Deposit Account:

In Deposit account opening screen, users can now view the details of the Deposit Rate Code and Interest Rate Code and deposit account opening simulation is performed using these codes. User is allowed to modify these details in Account Modification screen.

Minor age Validation for Joint Holder Maintenance:

Validation has been introduced in the Joint holder maintenance screen of Deposit to check that minor customers cannot be added as joint holder to an account.

Deposit Interest rate fetch based on Account Opening Branch:

During the Deposit account opening simulation and creation process, the system fetches the interest rate for the specific branch where the account is being opened.

Interest Liquidation Cycle at Deposit Account level:

Enhancement has been made to the deposit account process where the bank users can modify the default interest liquidation frequency based on the customer’s choice.

Pending Branch servicing transaction check during till closure:

Branch servicing pending requests that need to be completed on the same day is validated when closing the teller batch. This helps avoid EOD aborts due to pending branch servicing transactions and eliminates the need for further operations to clear them.

Refer Branch Date for branch servicing transactions:

This enhancement considers the teller branch date for all branch servicing operations if teller integration is enabled. Else, the system continues to refer to the common core date for all branch servicing operations.

Account Opening product screen Changes:

The existing product view screen in the Deposit account opening process has been enhanced to display additional product details such as statement cycle and allowed funding options.

Default Payin and Payout details for Top Up and Redemption screens:

Existing functionality of defaulting the pay-in and pay-out modes during Deposit account opening has been extended to Deposit redemption and top-up events as well.

Deposit 360 UI Changes:

Deposit Account 360 is enhanced to support the below,
  • Displays ISD code for Mobile number
  • Regionalization for displaying customer's address
  • UI Improvements
  • Closed Account handling

Ad hoc Statements for Deposits:

Adhoc statement functionality has been introduced for Deposits where statements can be generated for an account for a given date range.

Memo Maintenance and Display Memo Details:

  • This is enhancement to support memo creation and related operation for Deposit Account.
  • Display memo details while performing branch servicing operation for Current and Savings Account, and Deposit Accounts.

Enhancement in Deposit Opening screens:

  • Enhanced the Existing Account Details tile to display the account number.
  • Removed the Start Date and End Date fields for joint holder details.
  • Enhanced the Interest Details section to display tax and net interest details for each interest liquidation cycle.
  • Renamed the field Amount to Rollover Amount in the Payout Details screen for special rollover maturity instructions.

Enhancement in Joint Holder Maintenance screen:

Removed the Start Date and End Date fields for joint holder details.

Enhancement in Top Up screen:

Enhanced the Interest Details section to display tax and net interest details for each interest liquidation cycle.

Enhancement in View and Modify Amount Block screen:

Updated the screen to display only active amount block details.

Enhancement in Certificate screen:

Enhanced the Email Deposit Certificate functionality to show the success or failure of email operations.

US Geography Feature Enhancements

The customer’s BWHT applicability status is recorded in the Party Application and accordingly business event is published. New processes are added to read the Tax status event and decipher the BWHT applicability. If applicable, Processes are enhanced to apply BWHT as per the configured rates to ensure regulatory compliance.

The IRA Certificate of Deposit (CD) – Phase 1 covers the enhancements for managing Traditional IRA and Roth IRA Plans under IRA. This phase focuses on defining IRA Global parameters, Plan level parameters, business products. Also, opening of an IRA account, association of an IRA account to a plan type enabling seamless processing of contributions and distributions and calculation and application of federal and state penalty on early distribution.

IRA Maintenances
  • Configurable plan types - Traditional (TRA)/ Roth (ROT) IRA.
  • IRA Global Parameters (applicable across all IRA Plan Types):
    • Previous Fiscal Year Contribution Period
    • Age Cut-Off for Penalty Tax
    • Federal Penalty Tax
    • State Penalty Tax
  • The transaction codes used for posting IRA transactions, include contribution codes, distribution codes, and exception codes.
  • Plan-Level Maintenance: Configuration settings applicable at the IRA plan level include:
    • Contribution Limits – Defines the maximum allowable contributions.
    • Age Cut-off for Contribution – Specifies an age limit for standard contributions.
    • Limits Beyond Age Cut-off (Catch-up Contributions) – Allows higher contributions for individuals exceeding the specified age threshold.
Enhancements to IRA CD Processing :
  • New APIs for:
    • IRA CD opening
    • Transaction Processing (Contributions, Distributions, Penalty Calculation.)
    • IRA Plan inquiries
  • Processing enhancements to ensure:
    • Tax Compliance – Accurate calculation and application of federal and state penalty taxes for early distributions.
    • Contribution Tracking – Ability to track contributions for both the current and previous tax years.
    • Excess Contribution Alerts – Automated event generation when contributions exceed the allowable limit within a fiscal year.
  • The Interest Accounting Entries Maintenance user interface and processes have been improved to allow for the setup of accounting entries for two particular business events.
    • Federal Penalty
    • State Penalty

Note:

The setup involves specifying the correct Accounting Role, Amount Tag, and Dr/Cr Indicator. For comprehensive steps and instructions, refer to the Retail Deposits User Guide.
The current Tax Withholding feature has been improved to access event details shared by a customer application and perform tax calculations throughout the duration of the Certificate of Deposits.

Note:

Refer to the user manual for Event format prescribed by Oracle Banking Accounts (OBA).