5.2.5 Specifying the Rounding Details in Rate Settings tab

You can specify the rounding details by clicking Interest tab and then clicking Rate Settings tab.

The drawdown contract inherits the currency-wise rounding rules defined for interest components, in the interest class associated with the drawdown product (as defined in the Interest Class Definition screen).

Table 5-5 Rounding Details in Rate Settings tab

Fields	Description
Int Period Basis	This field indicates how the system must consider the tenor basis upon which interest is computed over a schedule or interest period. You can select the required option from the drop down list. Include Frm Dt: For all schedules, the period considered for interest calculation would include the start date and exclude the end date. Therefore, the drawdown value date is considered for interest calculation while the maturity date is excluded. Include To Dt: In this case, the period considered for interest calculation excludes the drawdown start date and include the end date. Include Frm & To Dt: The period considered for interest calculation includes both the value date and the maturity date. Exclude Frm & To Dt: The period considered for interest calculation excludes both the value date and the maturity date.
Rounding Rule	Indicate the currency rounding rule that must be applied to round off interest amounts in the selected currency, for the main interest component. The following options are available in the drop down list: Truncate Up Down Round Near
Decimals	This indicates the number of digits after the decimal place, to which interest amount in the specified currency, is to be truncated. This specification can only be made for the rounding option Truncate. If you do not specify a value here, the system uses the number of decimals defined for the drawdown currency (in the Currency Definition screen). The number of decimals specified in this field cannot exceed the number of allowed decimal places defined for the specified currency (in the Currency Definition screen).
Units	This field indicates the lowest possible measure in which interest amounts can be considered in the specified drawdown currency. This value cannot be less than the rounding unit for the specified currency (as maintained in the Currency Definition screen). If not specified, the system picks up the rounding unit maintained for the drawdown currency.The following details default to screen and you cannot change them: Settlement details for the borrower – Settlement (Cr/Dr) Branch, Account and Currency. Payment Method: Bearing, Discounted or True Discounted as defined for the drawdown product. Schedule Type: Normal, Capitalized or Amortized, as defined for the drawdown product. Reporting Currency details: The equivalent of the drawdown amount in the reporting currency and the outstanding amount gets updated as and when repayments are made.

For more details on the Currency Definition screen, refer the Currency Maintenance chapter of the CS (Core Services) User Manual.