2.11 Dual Authorization of Utilization Transaction

This topic describes about the detailed information about dual authorization of utilization transaction.

During Utilization Transaction process if the utilization amount crosses the breach amount specified, then the transaction requires dual authorization. Transactions which are breached can be authorized using UI Multi Auth screen. You can specify the facility maintenance breach amount and breach percentage in OBELCM.

When the transaction amount entered is more than breach amount or percentage, during utilization process Oracle Banking Enterprise Limits and Collateral Management would flag dual authorized indicator and updates the dual authorization error code as part of response. If response from the Oracle Banking Enterprise Limits and Collateral Managemen contains dual authorization error code, then Oracle FLEXCUBE, logs the transaction details in dual authorization tables and processes it completely.

The authorization for the breached (dual auth) transactions are authorized using function ID GEDDAUTH of Oracle Banking Enterprise Limits and Collateral Management.

However, till the dual authorization happens, Oracle FLEXCUBE does not allow you to authorize the main transaction. You can also perform dual authorization using Oracle FLEXCUBE screen, but system performs certain validations to ensure that Oracle FLEXCUBE does not authorize the OBELCM breach transactions.

Example: Assume that for liability TATA line TATABILL is created with below details.

Limit amount - 10,000.00

Collateral amount - 0.00

Breach percentage - 110 (which is equal to 11,000)

Breach amount - 15,000

The system calculated values:

Available amount - 10,000.00

Utilized amount - 0

Assume that as part of BC, a contact line TATABILL is linked. As part of the contact data input, when you link the line TATABILL and press Save button during transaction processing in Oracle Banking Enterprise Limits and Collateral Management, if the transaction requires dual authorization then the system displays this information to the user.

Till the dual authorization error code (breached transaction) is authorized in Oracle Banking Enterprise Limits and Collateral Management, Oracle FLEXCUBE does not allow the contact to be authorized. In case, if the breached transaction is rejected, then you have to delete the contact Information irrespective of whether the error code has been authorized or Contracts requiring multilevel authorization can be viewed using Oracle FLEXCUBE function OVDAUDET.

If you delete the dual authorization contract in Oracle FLEXCUBE, then the system deletes the contract details in Oracle FLEXCUBE and Oracle Banking Enterprise Limits and Collateral Management deletes the utilization Oracle Banking Enterprise Limits and Collateral Management.

Note:

Oracle Banking Enterprise Limits and Collateral Management deletes the utilization transaction if any dual authorization error is not authorized and the system updates the status as Ignored so that this information is not shown to the user. However if the error code is authorized, then this information is ignored.