2.2.4 Limits Block(Facility)

This topic describes about the information on blocking funds for the limits.

Note:

Limits block maintenance can also be performed using Limit Blocks which is a common block maintenance screen for both collateral and Block.

Banks often need to ensure that funds or credit limits associated with a loan or credit Block are reserved and remain available for their customer’s intended future contract use. By "blocking" (or reserving) a portion of the customer's overall credit limit or Block, banks can guarantee that these funds are not used for other transactions, ensuring availability when required for specific purposes (such as trade finance, guarantees, or drawing down loans). This blocking reduces the risk of over-commitment and improves compliance and risk management. The functionality, referred to as ‘Block blocking’, helps banks efficiently manage exposures, maintain regulatory compliance, and meet customer commitments.

Note:

  • Limits Block screen should be used only to trigger corrective transactions in the ELM system when a transaction was initiated by an external product processor and successfully completed in the originating system.
  • Block details for each transaction that takes place in the external product processor must be sent to Oracle Banking ELM via the Gateway Online Inbound or Gateway Batch Inbound process.
  • During block transaction, non-revolving facilities will act as revolving facilities, decrease block will restore the available balance.
  • All Actions that are available for Utilization are also supported for Block transactions, user can refer to earlier section for details.

Parent topic: Transactions