9.2.2.2 Interest Refund Required

This check box is selected if the bank intends to pass the interest benefit of certain events to the borrower.

Following are instances of such events.

• VAMI - Interest decrease, Maturity date is advanced.
• Prepayments including full prepayments leading to contract closure.

If the check box is selected, the interest is recomputed based on the event that has occurred and the borrower's CASA/GL is credited for BADJ event (Backdated adjustments) defined at the product.This check box is not relevant if rates are decreased as a result of index changes.

If you have opted for ECA, then the refund adjustment amount (BADJ) is considered for ECA check. When netting is opted, the Principal / Interst to be paid subjected to the BADJ amount is validated for ECA.