2.2 Deposit Redemption on Loan liquidation

Once the loan linked deposit contract is created from OL, the redemption is done when the linked loan contract is liquidated. The deposit redemption is done through web service.

If Liquidate Deposit is selected in the Manual Payment (OLDPMNT) screen, the deposit redemption takes place accordingly.

• On payment of backdated and current dated principal pre-payments in loans, for the same amount with current system date as value date.
• Initiates future dated principal payments in the deposit side, on the value date of the payment of the loan contract.
• Initiates full deposit contract liquidation as part of full-pre-payment of the loans or final schedule payment.

Processing of deposit redemption is explained in the below table.

Table 2-5 Processing of Deposit Redemption

Process	Description
OL Contract Payment Deletion	If CD redemption is unprocessed/failed, then OL contract payment deletion is not allowed. If CD redemption is processed, OL contract payment deletion is allowed. Initiates reverse deposit redemption.
OL Contract Payment Authorization	OL Contract payment authorization is validated with the deposit redemption status. If deposit redemption is processed, then OL contract payment authorization is allowed. If deposit redemption is failed/unprocessed, then OL payment contract authorization is not allowed.
OL Payment Reversal	On reversal of OL Payment contract, deposit redemption reversal request is initiated.
OL Contract Payment Reversal Authorization	OL Contract payment reverse authorization is validated with the deposit redemption reversal status. If the reverse deposit redemption is processed, then OL contract payment reversal authorization is allowed. If the reverse deposit redemption authorization is unprocessed or failed, then OL contract payment reverse authorization is not allowed. Once deposit redemption reverse gets processed, OL contract payment reversal deletion is not allowed.