2.2.10 Restriction Maintenance

This topic describes about the procedure to define restrictions for a line.

Note:

The fields, which are marked with an asterisk, are mandatory.

By default, all customers, branches, and products maintained in your bank can utilize the limit defined for a credit line. User can also define the limit for a line in any currency. However, user can opt to restrict the limit available under a credit line to specific customers, branches, products and currencies.

1. On Facilities Maintenance screen, click the Limit Restrictions tab.
   The Restriction Maintenance screen is displayed

   Figure 2-15 Restriction Maintenance

   
   

   
   Description of "Figure 2-15 Restriction Maintenance"

   
   

   For more information on fields, refer to the field description table.

   Table 2-34 Restriction Maintenance - Field Description

   Fields	Description
   Restriction Type	Select the restriction type for each restrictions defined for the facility from the following options: Allowed Disallowed
   Customer Restrictions	Specify the details under Customer Restrictions section.
   Customer No	Click the icon and select the customer number linked to liability from linked customers sub-system in liability maintenance.
   Short Name	Specify the short name for the customer.
   Currency Restrictions	Specify the details under Currency Restrictions section.
   Currency	Click the icon and select the currency from the list.
   Currency Name	Displays the currency name based on the selected currency.
   Branch Restrictions	Specify the details under Branch Restrictions section.
   Branch Code	Click the icon and select the branch code from the list.
   Branch Name	Displays the branch name based on the selected branch code.
   Product Restrictions	Specify the details under Product Restrictions section.
   Product Code	Click the icon and select the product code from the list. Allowed products at the sub-line level must be equal to or a sub set of the allowed products at the main line level.
   Product Description	Displays the description based on the selected product code.
   Exposure Restrictions	Specify the details under Exposure Restrictions section.
   Exposure Code	Click the icon and select the exposure code from the list.
   Exposure Description	Displays the description based on the selected exposure code.
   Exposure Type	Specify the exposure type.
   Exposure Type Code	Specify the code for the exposure type.

   Maintaining Customer Restrictions for a Line

   To recall, user can assign a limit to a Line - Liability combination. A liability code can have several customers linked to it. By default, the line that user define is available to all customers linked to the liability code.

   user can restrict the limit available under this line-liability combination to specific customers. If user choose the restriction type as Allowed, click on the + button and select the customer code from the list to indicate that they are allowed to use the line. If user choose the restriction type as Disallowed, click on the + button and select the customer code from the list to indicate that they are not allowed to use the line. Once user choose restriction type as Allowed, user can restrict a customer(s), from using the credit under a line by highlighting the code that identifies the customer and clicking on the - button. User can remove the restrictions earlier imposed on a customer, that is, (allow a restricted customer usage of the limit under a line). To allow a restricted customer usage of a line, select the customer code from the list and click on the + button.

   Maintaining Branch Restrictions for a Line

   User can restrict the usage of a credit line that user have defined to certain branches of your bank. If user choose the restriction type as Allowed, click on the + button and select the branch code from the list to indicate that those branches of your bank can use the line. If user are choose the restriction type as Disallowed, click on the + button and select the branch code from the list to indicate that those branches of your bank are not allowed to use the line.

   Once user choose restriction type as Allowed, user can disallow a branch(s) from using this line by selecting code that identifies the branch and clicking on the - button. User can remove the restrictions earlier imposed on a branch that is, to allow a restricted branch usage of the limit under this line. To allow a restricted branch usage of a line, select the code that identifies the branch from the option list and click on the + button.

   Maintaining Currency Restrictions for a Line

   Just as user can restrict the limit defined for a line to specific customers, branches, and products, user can restrict it to specific currencies. Once user choose the restriction type as Allowed, select the currencies to which user would like to restrict application from the available option list. The list of currency codes user choose in this field is described in the adjacent column.

   To remove a currency from the list of allowed currencies, highlight the currency code and click on the Minus icon (-). To add a currency to the list of allowed currencies, click on the Plus icon (+), and choose the currency from the option list available.

   Currency Restrictions at Facility Level

   • Sub-line currency is one of the currencies allowed at main line level and the system does not allow user to create sub-line in any other currency.
   • Allowed currencies at the sub-line level should be equal to or a sub set of the allowed currencies at the main line level.
   • Once a utilization is linked to the sub-line or main line in a certain currency, user are restricted from removing the respective currency from the facility. The system throw an error that Utilization Exist with the Currency. Hence, it cannot be removed from the allowed currencies.
   • For a utilization attached to either the sub-line or the main-line directly, the system should check that the utilization currency is among the allowed currencies at the facility level, including that of the main-line. The same should be applicable for Block transaction. If it is different, system throws an error that Utilization Currency is not an Allowed Currency at the Facility Level.
   • During block transaction, the system converts the currency in the block amount if Block and Facility (GEDFACLT) are in different currencies after considering the rate maintained at GEDPARAM
   • If user provide the fixed/derived rate at the facility level (GEDFACLT), the same is picked up during the utilization for the currency conversion.
   • When the main-line and sub-line are in different currencies, rate for conversion between sub-line and main-line is to be picked from GEDPARAM.
   • The system checks the consistency of currency of the sub-line and allowed currencies at the main-line
   • The system ensures that the utilization currency is among the allowed currencies of the facility(ies) attached, including that of the main-line, in case the utilization is attached to sub-line.

   Maintaining Exposure Restrictions for a Line

   User can also define the types of exposures that should be allowed (or disallowed) for a line. Based on the list user maintain, the system displays an error message if a utilization request with a transaction exposure is received where the exposure for the facility is either disallowed or not maintained as part of the allowed exposures.

   Indicate if the exposure codes that user are specifying should be allowed or disallowed. From the option list available, select the exposure codes. The system defaults the description of the chosen exposure codes. To remove an exposure code from the list, highlight the code and click on the - button. To add to the list, click on the + button, and choose the exposure code from the option list available.

   While saving the record, if the exposures disallowed here are found to be linked to existing Facility Exposures or Customer Liability Exposures, the system displays an error message and does not save the details.

   Maintaining Product Restrictions for a Line

   User can define the types of products that should be allowed or disallowed for a line. To add a product to the list of allowed products, click on the Plus icon (+) and select the Source and Product Code from the adjoining option lists. The system defaults the description of the chosen source and product code.

   To remove a product from the list of Allowed Products, select the Product Code and click the - button.

   Note:

   The system considers both the source and the product code to validate the restriction.

   • System considers both the source and the product code to validate the restriction
   • Sub-line product must be one of the products allowed at main line level. The system does not allow user to create sub-line with any other product
   • Allowed products at the sub-line level must be equal to or a sub set of the allowed products at the main line level
2. Click Save to navigate to the Facilities Maintenance screen.