1.2 Limits Management

These are the limits management enhancement are released as part of OBELCM 14.8.0.0.0 version.

Pricing

• Pricing functionality is supported for facility with the following features.
  • New Pricing sub-system is introduced in facility maintenance.
  • Pricing components like Interest, Charges and Commission are supported.
  • Multiple records of pricing components can be signified for a facility.
  • Based on facility type, applicable pricing components can be signified. For ex., for Funded type of facility, Interest and Charges are supported whereas for non-funded type of facility, Commission and charge components are supported.
  • Applicable attributes are provided for each pricing component.
  • The Pricing details captured in ELCM can be used by other PPs (Loans, OD etc) by querying the facility.

Facility fee liquidation on month-end

‘Month-End Liquidation’ is supported for Facility Fee - Fee liquidation will happen on the last date of every month. This configuration is available at the Fee Class Maintenance level.

Fee Beyond Expiry and Facility Logical Closure

• Facility Expiry functionality is now enhanced to handle below transactions.
  • Handling of contingent GL accounts due to de-utilizations on the facility post expiry, in case of revolving line.
  • Posting of entries between contingent accounts on extension duly considering payments post expiry.
• Users can terminate the facility duly signifying logical closure.
  • Logical closure of facility can be done when there is no outstanding utilization on the facility.
  • Facility once logically closed cannot be activated again.
  • CLOS event will be triggered with contingent entries in case facility is closed before expiry duly updating the user defined status as closed.
• Enhanced Fee functionality allows fee collection post expiry of the facility.
  • Fees can now continue to be collected post expiry of the facility till logical closure or till fee end date.
  • On logical closure, all due fees till the date of closure are handled and appropriate accrual and liquidation entries are posted.

Facility-Limit schedule (dropline limits and seasonal schedule)

• Limit schedule functionality in OBELCM is enhanced to support the following.
  • Dropline limits
  • One-time schedule
  • Recurring schedule
• Dropline limits
  • Dropline limit schedule is based on limit amount. This can be signified as part of facility creation as well as during facility amendment.
  • User can signify dropline limit duration, schedule frequency and percentage/ amount to be considered for schedule generation.
  • Limit schedule will be generated covering the signified duration and limit amount will get zeroised at the end of the schedule.
  • System will prompt appropriate message if the limit amount is not dropping down to zero on end date based on percentage/amount signified.
  • Multiple instances of schedule definition can be signified with validation that generated schedules are not overlapping.
  • One time configuration is provided to allow/disallow application of limit amount as per dropline schedule considering the utilization amount at the time of limit updating and appropriately logged when available balance goes to negative on account of schedule application.
• One-time schedule
  • User can specify the duration during which schedule limit amount to be considered on the facility.
  • Start date to be signified by the user with validation that start date is greater than facility start date/business date when one time schedule is defined.
  • Schedule limit amount is derived considering the percentage/amount signified on the limit amount based on increase/decrease specified. User can also specify fixed amount to be considered for the schedule.
  • Multiple instances of schedule definition can be signified duly ensuring they are not overlapping.
  • System provides option to reset the limit amount at the end of schedule definition.
• Recurring schedule
  • In line with seasonal requirements of the borrower, limit amount at facility level will be updated (increase or decrease) based on the recurring frequency.
  • User can signify specific dates in a month during which limit amount to be updated across specified number of months.
  • Modified limit amount will be derived based on the percentage/amount specified based on increase/decrease/fixed opted.
  • Likewise, user can specify month/s during which limit amount to be updated across specified number of years.
  • System provides an option to reset the limit amount at the end of specified duration.