1.1 Process Interest

This topic describes the processing of interest.

You process interest in Oracle Banking Treasury Management in the following manner:

• Before a product module becomes operational, you will need to maintain certain basic information on interest, which will later be linked to a product. To create this information, you will have to define floating rate codes, floating rates and interest rules.
• You create Interest Rules for interest with attributes suitable for the product where these rules will be applied. You will give each interest rule a specific Rule ID. When you define a rule, you restrict the use of the rule for the different branches of the bank, for different transaction currency, for different customer group and for a particular customer.
• When you define a product, you can choose the required interest rules that are applicable for contracts in the product and link these rules to the product. The product will inherit the Rule ID’s that are linked in this manner. Other attributes like rate of interest - fixed interest rate or floating interest rate etc are defined for individual products.
• When you enter a contract, the interest details defined for the product involved in the contract would be applied automatically on the contract. In other words, the interest rule is ‘defaulted’ from the product under which the contract is processed. However, if required, you can change some of the attributes, for a specific contract.