3.5 Specifying the Logic for Currency Rounding

You can maintain tenor based, currency-wise interest limits for a combination of Product and Interest Component through the Interest Limits screen.

When an interest class for which currency-wise interest limits have been maintained is associated with a Loans product (in the Interest Definition screen), the product inherits the limits, by default. Such default limits can be modified if required, when the interest limits for the product and branch combination are maintained, in the Interest Limits screen.

For details about the Interest Limits screen, refer to the Interest User Manual.

For loans products, you can also define the following currency rounding rules in the Interest Limits screen:

• How the interest amounts in respect of the interest component in the specified currency are to be rounded – truncated, rounded up, rounded down, or rounded near.
• If truncation is opted for, the number of digits after the decimal place, to which interest amounts in respect of the interest component in the specified currency must be truncated. The number of digits specified for truncation cannot exceed the allowed decimal places for the specified currency. If not specified, the number of decimals indicated in the Currency Definition for the specified currency is taken by the system.
• For the Round Up, Round Down, and Round Near options, the rounding unit, which is the lowest possible measure in which the interest amounts in respect of the interest component in the specified currency can be considered. This value cannot be less than the rounding unit for the specified currency in the Currency Definition. If not specified, the rounding unit indicated in the Currency Definition for the specified currency is taken by the system.

Note:

When generic interest limits are being defined for all currencies in the Interest Limits screen (that is, the ALL option has been selected in the Currency field), the fields relating to rounding rules are not available for definition.