3.1.4 Revaluation Process

This topic provides the information on Revaluation Process.

• Batch process revaluates all collaterals which are marked for automatic revaluation type.
• All collaterals which are marked for automatic revaluation and next revaluation date = business date, then they are candidates for revaluation.
• Collaterals with depreciation methods are revaluated duly considering the revaluation method and rate of depreciation and modified collateral value is updated on the collateral after revaluation.
• Depreciation calculation logic follows as per the collateral depreciation methods.
• In respect of collaterals which are marked for external method of revaluation where next revaluation date is equal to business date, the system considers the closest (latest) available price for the price code attached and considers this price to revaluate the collateral.
• Last revaluation date is updated as current business date when revaluation is done and next revaluation date is updated duly considering the frequency from the last revaluation date+holiday processing setting.
• Next revaluation date also follows existing cascade functionality with holiday processing when enabled.
• In respect of collaterals which are getting revaluated, collateral value will be appropriately updated as part of revaluation at individual child level.
• Revaluation details of the collaterals are logged separately and available for inquiry.
• History of revaluation is made available at the collateral level with details.
• Collaterals with ignore holidays setting, when revaluation date falls on a holiday, GEDPARAM setting – S or N is considered for revaluating the collateral.
• If next revaluation date is holiday and holiday processing setting is other than ignore holidays, the system follows normal holiday processing done elsewhere in the system and appropriately update the next revaluation date.