2.15.1 With Outstanding Balance

This topic provides information on the Outstanding Balance.

• Migration of data will happen from Source Production Environment of the customer to the OBA Production Environment provisioned for the customer with a separate schema for Migration. Services and schema required for Migration will be provisioned on a need basis only for the purpose of Migration and can be decommissioned after GO LIVE.
• Big bang strategy is recommended for the migration to actual schema. This allows the migration of the complete set of bank’s active data (Financial and Non-Financial) in a single exercise.
• However, the data transfer/population to Migration Schema shall be done in multiple iterations prior to or on the migration day.
• Interest and Charges of migrated accounts should be up to migration date (accrued/liquidated till current date). Any problems in the account related to IC processing should be fixed prior to migration so that they can accrue or liquidate until the current date.
• In this approach, a backdated deposit is created with an effective date set as the latest of the original account opening date and the last rollover date. The deposit amount corresponds to the outstanding principal balance in the legacy system. The tenor and maturity date are aligned with the actual values in the legacy system.
• For interest rate recalculation (rate repickup), the interest rate applicable to the outstanding principal for the original tenor is used, and it is applied from the account opening date onwards. This method assumes a single, consistent balance from the account opening date, and may not be suitable in cases where top-ups have occurred in the legacy system.
• If the deposit had rollover to multiple business products in its life cycle in the legacy system, Migration will happen on latest business product only and history of earlier business product in previous rollover cycles will not be migrated.

During partial redemption's, interest on the redeemed amount is paid up to the redemption date. The remaining principal is considered to have been present from the account opening date, meaning that the redemption does not affect the overall backdated treatment of the deposit.

Table 2-16 Case1 – Only Liquidation Happened in Legacy System.

Date	TD Amount	IntRate	Days	Interest(Non Capitalised TD)	Interest Capitalized TD)
31-Jan-24	10000	7	31	59.45	59.45
29-Feb-24	10000	7	29	55.62	55.95
31-Mar-24	10000	7	31	59.45	59.78
30-Apr-24	10000	7	30	57.53	57.88
31-May-24	10000	7	31	59.45	59.80
30-Jun-24	10000	7	30	57.53	57.88
31-Jul-24	10000	7	31	59.45	59.80
31-Aug-24	10000	7	31	59.45	59.81
30-Sep-24	10000	7	30	57.53	57.88
31-Oct-24	10000	7	31	59.45	59.80
30-Nov-24	10000	7	30	57.53	57.88
31-Dec-24	10000	7	31	59.45	59.80
31-Jan-25	10000	7	31	59.45	59.81
28-Feb-25	10000	7	28	53.70	54.02
31-Mar-25	10000	7	31	59.45	59.77
30-Apr-25	10000	7	30	57.53	57.88
31-May-25	10000	7	31	59.45	59.80
Total Interest Liquidated				991.47	996.99

When the deposit is migrated to OBRDEP on 28-June-2025:

• A backdated deposit of 10,000 USD is created with an account opening date of 01-Jan-2024, which is the later of the original account opening date and the last rollover date. This applies to both capitalized and non-capitalized term deposits (TDs).
• The interest rate applicable as of 01-Jan-2024—7% in this case—is applied to the deposit.
• Upon executing End-of-Day (EOD) processing post-migration, the system performs any pending interest calculation, accrual, and liquidation up to the current date.

Case2 – Partial Redemption of 3,000 USD Executed on 15-June-2024:

When a partial redemption is made on 15-June, interest on the redeemed amount of 3,000 USD is paid for the period from the account opening date up to the redemption date. As a result, the remaining 7,000 USD is treated as having been part of the deposit from Day 1.

Accordingly, the interest calculation continues the remaining 7,000 USD from the account opening date without any adjustment for the redemption, since the interest on the redeemed portion has already been settled up to the redemption date.

Table 2-17 Case2 – Partial Redemption of 3,000 USD Executed on 15-June-2024:

Date	TD Amount	IntRate	Days	Interest(Non Capitalised TD)	Interest Capitalized TD)
31-Jan-24	7000	7	31	41.62	41.62
29-Feb-24	7000	7	29	38.93	39.16
31-Mar-24	7000	7	31	41.62	41.85
30-Apr-24	7000	7	30	40.27	40.51
31-May-24	7000	7	31	41.62	41.86
30-Jun-24	7000	7	30	40.27	40.51
31-Jul-24	7000	7	31	41.62	41.86
31-Aug-24	7000	7	31	41.62	41.87
30-Sep-24	7000	7	30	40.27	40.51
31-Oct-24	7000	7	31	41.62	41.86
30-Nov-24	7000	7	30	40.27	40.51
31-Dec-24	7000	7	31	41.62	41.86
31-Jan-25	7000	7	31	41.62	41.87
28-Feb-25	7000	7	28	37.59	37.81
31-Mar-25	7000	7	31	41.62	41.84
30-Apr-25	7000	7	30	40.27	40.51
31-May-25	7000	7	31	41.62	41.86
Total Interest Liquidated				694.07	697.87

When the deposit is migrated to OBRDEP on 28-June-2025:

• • A backdated deposit of 7,000 USD (representing the outstanding principal balance) is created with an account opening date of 01-Jan-2024, which is the greater of the original account opening date and the last rollover date. This applies to both capitalized and non-capitalized term deposits (TDs).
• The interest rate applicable on 01-Jan-2024 for the amount of 7,000 USD is applied—in this case, 7%.
• After migration, when End-of-Day (EOD) processing is executed, the system performs pending interest calculation, accrual, and liquidation up to the current date.

Case3 – Top-up of 3,000 USD Executed on 15-June-2024 :

• • This approach is not suitable in scenarios where the deposit balance changes across multiple dates (e.g., due to top-ups). It assumes a constant balance maintained from Day 1, and therefore does not accurately reflect deposits with historical balance variations.