IRA: Individual Retirement Account.
Distribution: Distribution refers to withdrawing funds from an IRA account
Club Deposit: club deposits offer customers an opportunity for saving for specific purposes by way of setting aside amounts at periodic intervals to build a substantial lump sum at maturity.
Continous Compounding: continous compounding refers to making the compounding period infinitely small, it is the process of calculating interest and adding it to existing principal and interest at infinitely short time intervals.
Internal Revenue Service: a United states federal government agency that collects taxes and enforces the internal revenue laws.
Partial pay off (PPF) , PPF penalty methods: the three methods used to calculate the penalty levied on a customer for making a PPF for the loan taken by him/her. There are three methods in FCR:
1. on Amount: Penalty is charged as x% of amount
2. on Amount Term: Penalty is charged as x% p.a for the remaining period.
3. Waive
Current Asset: the asset that can be used or converted into cash within the current financial year. Tables: BI_BILL_DETAILS
Current Liability: a financial obligation or liability, which is due or payable within the current financial year.
Credit Rating: A rating that measures the credit worthiness of a person, business, organization or country; the rating is determined based on the opinions of Banks and financial institutions. Tables include: BI_RISK_CARD_DETAILS, BI_ACCT_RISKCARD_XREF...
Suspense GL: A general ledger (GL) account where only those entries are posted, which could not be posted in their allocated GL accounts due to some reasons. Types of suspense GL based on the various reasons for an entry to get posted into a suspense GL.
1. Online Transaction Suspense GL
2. EOD/Automatic Suspense GL
3. Clearing Suspense GL
Also there are two other types:
1. Real Suspense GL
2. Contingent Suspense GL
Penalty Routine: The logical set of instructions used for deriving the penalty amount. Sounds like a concept in TD. Penalty applicable due to partial withdrawal can be done in two ways for all TD products at the bank level.
1. Absolute Method: The absolute penalty can be defined as a fixed rate or floating rate.
2. Incremental Method: Penalty can be defined as reduction in applicable TD interest rate. 'Penalty Interest Rate' = 'Interest Rate' - 'Net Incremental Penalty Interest Rate'
Reject of Outgoing Payment: Rejection of outgoing payment is issued by te counter party's bank to which the outgoing payment was sent. Tables include: PM_TXN_LOG, PM_PAYMENT_TYPES...
Charging in Loans: Charging of Interest is the recognition of a due or a receivable of interest from the customer. This may occur at a frequency different from accrual. All interest accrued till the time of charging is debited to the account. Accrual and charging of interest are closely interlinked functions. For most loans, charging of interest for a period takes place subsequent to accrual.
In FLEXCUBE, to raise Principal and interest component is called charging. Once charging is done that amount becomes due which the customer will pay back to the Bank as an installment.
Charging happens in BOD but holiday processing charging is done in EOD.
Table LN_TMP_RLN_INTEREST stores interest base,interest rate, and number of days for which interest is calculated.
Counterparty: the other party (that may be a customer, company, institution, or organization) out of the two parties involved in any financial contract or payment transaction.
EOD, end of day. it refers to the processes that are run on a daily basis to perform a certain action on all database items that require this action, such as interest or fee accrual, interface file generation, and so on. Tables include: BA_EOD_RESTART, BA_EOD_CTRL_PARAM.
Split day processing: the bank can close banking business in one branch but continue to process transactions in another branch on another business day. This is particularly useful when branches are spread over a large geographical area an done or more of the branches have not closed the branch batch by the End of Day.
Payments: transfer of funds from a payer to a designated account or Beneficiary. A funds transfer transaction involves a Debtor or Payer (an entity whose account is debited) and a creditor (an entity whose account is correspondingly credited) or Beneficiary. The transfer of funds between customer account can be classified into two broad categories:
1. Payments: eg. a customer requesting a transfer of funds to a customer in another bank;
2. Collections: eg. a utility company requesting collection of bill payments from accounts of its subscribers in another bank.
Payment Transaction: A unique combination of a payment type and the service that it provides to the initiator of the transaction. A payment transaction uniquely describes a payment message.
payment Network: a logical end-point of any payment transaction. Network adapter is a physical channel on which payment transactions can be sent or received. Network calendar is used to maintain working days for the network. Tables include: PM_NETWORK_MAST, PM_NETWORK_ADPTR_MAST
Mandate(委托,托管,指令): An agreement between a creditor and a debtor, which allows funds transfer between them.
1. Incoming Direct Debit Transaction: A debtor is the customer of the bank and mandate is maintained to authorize debits on his/her account;
2. outgoing direct debit: Creditor is the customer of the bank and he/she would like to send a mandate related information to the debtor's bank for his/her request for debit on the debtor's account.
3. incoming payment: creditor is the customer of the bank and mandate is maintained to authorize credits on his/her account.
Tables include: PM_MANDATE_DETLS, PM_MANDATE_LOG, PM_MANDATE_STATUS
Outgoing Payment: refers to transfer of funds from a customer's account to a counterparty's account in another bank. The funds flow out of an account in the bank and the transaction is initiated in the bank's FCR system. Tables include: PM_TXN_LOG, PM_PAYMENT_TYPES
Network Float Days: The number of working days that the selected network takes to make funds available to the counter party's bank, since the dispatch of the message on the network.
Counterparty float days: The number of working days that the bank takes to make funds available to the counter party. Related table: PM_FLOAT_CONFIG...
Outgoing request for debit: refers to a collection of funds from a counterparty's account in another branch to a customer's account, wherein the credit occurs after the counter party's bank sends a confirmation.
Recall of outgoing direct debits: refers to an initiation for canceling the outgoing direct debit, which the bank has sent on behalf of the customer. This outgoing direct debit will not be cancelled until the other bank responds.
Reject of outgoing request for debit: rejection of an outgoing request for debit is sent by the counter party's bank to which the outgoing request for debit was sent by us.
Approval of outgoing RFD: approval of an outgoing RFD is sent by the counter party's bank to which the outgoing RFD was sent by us.
Network value date: The date on which the debtor's bank transfers funds to the payment network i.e. from the intermediary GL to the network GL. Usually calculates as below: Network Value Date = Activation Date (Back date) + Network float.
Dispatch Date: The date on which a payment transaction is actually sent out on the network; it is calculated and tracked by the payments system. Dispatch date is the sum of Activation Date/Debit date and dispatch offset days.
Activation Date: The date on which the customer requests the Bank to execute the payment transaction.
Outgoing Direct Debit: refers to a collection of funds from a counter party account in another bank to a customer account, wherein the credit occurs after a specified period.
Collection: Refers to a transaction initiated by a creditor to transfer funds from the debtor's account to the creditor's account where the debtor's bank and creditor's bank are different. Collection is associated with two significant events:
1. A request for pulling funds is initiated from the creditor and this request reaches the debtor's bank
2. later, the funds are credited to the creditor's account
Zone and Circles: zone and circles are used to segregate a payment area geographically. They will be maintained if the network behaves differently for different geographical entities. Examples of zones and circles could be clearing sectors, zip codes, EURO area and Non-Euro area.
Incoming Direct Debit: refers to a collection of funds from a customer account to a counter party account in another bank, wherein the credit to counter party occurs after a specific period of time.
Incoming Payment: Funds or payments transferred from a counter party's account to our customer's account, where the counter party's account is in another bank. The creditor is the bank's customer, the debtor is the counter party bank's customer. The funds flow into an account in our bank and the transaction is initiated in the counter party's bank system.
Bank-Branch Directory: A bank directory that contains information of all possible beneficiary banks and their branches that are likely to participate in domestic transactions. The bank directory will be maintained as a list of banks and their branches.
Internal Clearing Check: refers to whether a nostro(往来帐，本国银行在国外银行持有的外币账户) account is maintained or not for a particular bank-branch for a payment transaction. If the bank-branch is flagged as being an internal clearing type of bank-branch, then there is no need to send a network message because the payment transaction will be settled against the Nostro account maintained for the bank-branch. otherwise, the system determines the network to which the message for this transaction should be routed. Tables : PM_NETWORK_MAST...
Customer Value Date: the date on which a customer's account is debited. In case of Backdated outgoing payment, this date is the activation date. Customer Value date = Activation Date + Deviation for Customer
Message Value Date: The date that is specified in the incoming message itself as the credit value date. It's not mandatory to have a message value date. If the value date is specified in the message, then Message value date is used for dates calculation instead of Message arrival date. Message Value date is expected to be there in the message.
Message Arrival Date: refers to the posting date on which the incoming payment transaction/message is received by the payments system. Message Arrival Date is expected to be there in the message. By default it will be the posting date.
Customer credit value date: The date on which the credits is affected on the account of the customer.
'Customer Credit Value Date' = 'Message Arrival Date'/'Message Value Date' + 'Customer Float'
Implemented GL: implemented GL is of 2 types: Miscellaneous credit,Miscellaneous Debit.
Miscellaneous Credit: The general ledger account for the transaction branch will be credited first followed by any number of subsequent debit transactions. The master transaction is always the credit transaction.
Miscellaneous Debit: The master transaction is always the debit transaction.
Account Revaluation: Account revaluation is a process by which the LCY equivalents of balances in the FCy accounts are marked to market.
Cross Currency Transaction: A transaction in which the currency of the debit leg is different from the currency of the credit leg.
GL Recon Number: for an implemented GL, all the transactions done against that GL have a common number called Recon Number.
Reporting Line: Head office, central Bank office, branch office... Their reporting hierarchy. Tables include: GLTM_REPLINES
Payment Type: a unique way to identifying a payment message based on the following criteria:
1. Whether it is a payment or a collection
2. Whether it is incoming or outgoing
3. Whether it is a reject message
4. Whether it is a recall message(recall is reject after the value date)...
There are lots of pre-defined payment types in FCR. Tables include: PM_PAYMENT_TYPES
Reject of Incoming Direct Debit: rejection of incoming direct debit is issued by us to the counter party's bank, which has issued the incoming direct debit.
Recall of incoming direct debit: refers to an initiation for cancelling the incoming direct debit, which the counter party's bank has issued the customer. The incoming direct debit will not be cancelled until we respond to the counter party's bank.
Direct and indirect participant: direct participant: a bank or its branch that has a direct participation in the network defined in the payment system; indirect participant: a bank or its branch that has an indirect participation in the network defined in the payment system.
GL Type, Code class: Category of GL can be queried from the 'TYPE' column of the GLTM_GLMASTER table or the 'COD_CLASS' of the GL_TABLE. A head GL can be assigned any of the following categories:
Asset : 1 ;
Liability : 2 ;
Expense : 3;
Income : 4;
Contingent Asset 5;
Contingent Liability 6;
Memo : 7;
Position :8;
Position Equivalent -9;
Beneficiary Account: The account that receives funds in a funds transfer/payments transaction. Beneficiary account is a commonly used term in Banking parlance and specifically in OFCR to denote the Account, which is getting funds from another account or institution or external sources such as third parties through EFTs. Funds are always credited to a beneficiary account. The beneficiary account can be of the following types:
1. Customer Account
2. General Ledger
3. Internal Account of Bank
Late Clearing: Process of Marking clearing cutoff for the business day. Late clearing is the process by which the branch indicates the cutoff point for the cheques accepted to go in that day's clearing.
Back-to-Back loan: A loan account that has a Term Deposit as collateral or a loan given against a TD is referred to as Back-to-Back loan. Tables related: LN_PROD_RATES, LN_ACCT_RATES...
Floor Rate for Loan: It is the minimum rate that will be maintained for a product or a account if defined in product/account level.
Eligibility Plan: Eligibility plans are used to sort customers into 2 sets, those who meet the conditions defined in the plan and those who do not. Eligibility plans apply to customers and not to account. Rules are applicable to customers and accounts. Tables related include: RP_ELIG_PLAN_MAST, RP_ELIG_PLAN_DETAILS. .
Adjustable Rate Mortgage: A loan in which the interest rate is periodically adjusted, moving higher or lower in the same ratio as a pre-selected index such as treasury bill rates. ARM loans may include caps on interest rate increases in a given time period, and over the life.
Distribution: Distribution refers to withdrawing funds from an IRA account
Club Deposit: club deposits offer customers an opportunity for saving for specific purposes by way of setting aside amounts at periodic intervals to build a substantial lump sum at maturity.
Continous Compounding: continous compounding refers to making the compounding period infinitely small, it is the process of calculating interest and adding it to existing principal and interest at infinitely short time intervals.
Internal Revenue Service: a United states federal government agency that collects taxes and enforces the internal revenue laws.
Partial pay off (PPF) , PPF penalty methods: the three methods used to calculate the penalty levied on a customer for making a PPF for the loan taken by him/her. There are three methods in FCR:
1. on Amount: Penalty is charged as x% of amount
2. on Amount Term: Penalty is charged as x% p.a for the remaining period.
3. Waive
Current Asset: the asset that can be used or converted into cash within the current financial year. Tables: BI_BILL_DETAILS
Current Liability: a financial obligation or liability, which is due or payable within the current financial year.
Credit Rating: A rating that measures the credit worthiness of a person, business, organization or country; the rating is determined based on the opinions of Banks and financial institutions. Tables include: BI_RISK_CARD_DETAILS, BI_ACCT_RISKCARD_XREF...
Suspense GL: A general ledger (GL) account where only those entries are posted, which could not be posted in their allocated GL accounts due to some reasons. Types of suspense GL based on the various reasons for an entry to get posted into a suspense GL.
1. Online Transaction Suspense GL
2. EOD/Automatic Suspense GL
3. Clearing Suspense GL
Also there are two other types:
1. Real Suspense GL
2. Contingent Suspense GL
Penalty Routine: The logical set of instructions used for deriving the penalty amount. Sounds like a concept in TD. Penalty applicable due to partial withdrawal can be done in two ways for all TD products at the bank level.
1. Absolute Method: The absolute penalty can be defined as a fixed rate or floating rate.
2. Incremental Method: Penalty can be defined as reduction in applicable TD interest rate. 'Penalty Interest Rate' = 'Interest Rate' - 'Net Incremental Penalty Interest Rate'
Reject of Outgoing Payment: Rejection of outgoing payment is issued by te counter party's bank to which the outgoing payment was sent. Tables include: PM_TXN_LOG, PM_PAYMENT_TYPES...
Charging in Loans: Charging of Interest is the recognition of a due or a receivable of interest from the customer. This may occur at a frequency different from accrual. All interest accrued till the time of charging is debited to the account. Accrual and charging of interest are closely interlinked functions. For most loans, charging of interest for a period takes place subsequent to accrual.
In FLEXCUBE, to raise Principal and interest component is called charging. Once charging is done that amount becomes due which the customer will pay back to the Bank as an installment.
Charging happens in BOD but holiday processing charging is done in EOD.
Table LN_TMP_RLN_INTEREST stores interest base,interest rate, and number of days for which interest is calculated.
Counterparty: the other party (that may be a customer, company, institution, or organization) out of the two parties involved in any financial contract or payment transaction.
EOD, end of day. it refers to the processes that are run on a daily basis to perform a certain action on all database items that require this action, such as interest or fee accrual, interface file generation, and so on. Tables include: BA_EOD_RESTART, BA_EOD_CTRL_PARAM.
Split day processing: the bank can close banking business in one branch but continue to process transactions in another branch on another business day. This is particularly useful when branches are spread over a large geographical area an done or more of the branches have not closed the branch batch by the End of Day.
Payments: transfer of funds from a payer to a designated account or Beneficiary. A funds transfer transaction involves a Debtor or Payer (an entity whose account is debited) and a creditor (an entity whose account is correspondingly credited) or Beneficiary. The transfer of funds between customer account can be classified into two broad categories:
1. Payments: eg. a customer requesting a transfer of funds to a customer in another bank;
2. Collections: eg. a utility company requesting collection of bill payments from accounts of its subscribers in another bank.
Payment Transaction: A unique combination of a payment type and the service that it provides to the initiator of the transaction. A payment transaction uniquely describes a payment message.
payment Network: a logical end-point of any payment transaction. Network adapter is a physical channel on which payment transactions can be sent or received. Network calendar is used to maintain working days for the network. Tables include: PM_NETWORK_MAST, PM_NETWORK_ADPTR_MAST
Mandate(委托,托管,指令): An agreement between a creditor and a debtor, which allows funds transfer between them.
1. Incoming Direct Debit Transaction: A debtor is the customer of the bank and mandate is maintained to authorize debits on his/her account;
2. outgoing direct debit: Creditor is the customer of the bank and he/she would like to send a mandate related information to the debtor's bank for his/her request for debit on the debtor's account.
3. incoming payment: creditor is the customer of the bank and mandate is maintained to authorize credits on his/her account.
Tables include: PM_MANDATE_DETLS, PM_MANDATE_LOG, PM_MANDATE_STATUS
Outgoing Payment: refers to transfer of funds from a customer's account to a counterparty's account in another bank. The funds flow out of an account in the bank and the transaction is initiated in the bank's FCR system. Tables include: PM_TXN_LOG, PM_PAYMENT_TYPES
Network Float Days: The number of working days that the selected network takes to make funds available to the counter party's bank, since the dispatch of the message on the network.
Counterparty float days: The number of working days that the bank takes to make funds available to the counter party. Related table: PM_FLOAT_CONFIG...
Outgoing request for debit: refers to a collection of funds from a counterparty's account in another branch to a customer's account, wherein the credit occurs after the counter party's bank sends a confirmation.
Recall of outgoing direct debits: refers to an initiation for canceling the outgoing direct debit, which the bank has sent on behalf of the customer. This outgoing direct debit will not be cancelled until the other bank responds.
Reject of outgoing request for debit: rejection of an outgoing request for debit is sent by the counter party's bank to which the outgoing request for debit was sent by us.
Approval of outgoing RFD: approval of an outgoing RFD is sent by the counter party's bank to which the outgoing RFD was sent by us.
Network value date: The date on which the debtor's bank transfers funds to the payment network i.e. from the intermediary GL to the network GL. Usually calculates as below: Network Value Date = Activation Date (Back date) + Network float.
Dispatch Date: The date on which a payment transaction is actually sent out on the network; it is calculated and tracked by the payments system. Dispatch date is the sum of Activation Date/Debit date and dispatch offset days.
Activation Date: The date on which the customer requests the Bank to execute the payment transaction.
Outgoing Direct Debit: refers to a collection of funds from a counter party account in another bank to a customer account, wherein the credit occurs after a specified period.
Collection: Refers to a transaction initiated by a creditor to transfer funds from the debtor's account to the creditor's account where the debtor's bank and creditor's bank are different. Collection is associated with two significant events:
1. A request for pulling funds is initiated from the creditor and this request reaches the debtor's bank
2. later, the funds are credited to the creditor's account
Zone and Circles: zone and circles are used to segregate a payment area geographically. They will be maintained if the network behaves differently for different geographical entities. Examples of zones and circles could be clearing sectors, zip codes, EURO area and Non-Euro area.
Incoming Direct Debit: refers to a collection of funds from a customer account to a counter party account in another bank, wherein the credit to counter party occurs after a specific period of time.
Incoming Payment: Funds or payments transferred from a counter party's account to our customer's account, where the counter party's account is in another bank. The creditor is the bank's customer, the debtor is the counter party bank's customer. The funds flow into an account in our bank and the transaction is initiated in the counter party's bank system.
Bank-Branch Directory: A bank directory that contains information of all possible beneficiary banks and their branches that are likely to participate in domestic transactions. The bank directory will be maintained as a list of banks and their branches.
Internal Clearing Check: refers to whether a nostro(往来帐，本国银行在国外银行持有的外币账户) account is maintained or not for a particular bank-branch for a payment transaction. If the bank-branch is flagged as being an internal clearing type of bank-branch, then there is no need to send a network message because the payment transaction will be settled against the Nostro account maintained for the bank-branch. otherwise, the system determines the network to which the message for this transaction should be routed. Tables : PM_NETWORK_MAST...
Customer Value Date: the date on which a customer's account is debited. In case of Backdated outgoing payment, this date is the activation date. Customer Value date = Activation Date + Deviation for Customer
Message Value Date: The date that is specified in the incoming message itself as the credit value date. It's not mandatory to have a message value date. If the value date is specified in the message, then Message value date is used for dates calculation instead of Message arrival date. Message Value date is expected to be there in the message.
Message Arrival Date: refers to the posting date on which the incoming payment transaction/message is received by the payments system. Message Arrival Date is expected to be there in the message. By default it will be the posting date.
Customer credit value date: The date on which the credits is affected on the account of the customer.
'Customer Credit Value Date' = 'Message Arrival Date'/'Message Value Date' + 'Customer Float'
Implemented GL: implemented GL is of 2 types: Miscellaneous credit,Miscellaneous Debit.
Miscellaneous Credit: The general ledger account for the transaction branch will be credited first followed by any number of subsequent debit transactions. The master transaction is always the credit transaction.
Miscellaneous Debit: The master transaction is always the debit transaction.
Account Revaluation: Account revaluation is a process by which the LCY equivalents of balances in the FCy accounts are marked to market.
Cross Currency Transaction: A transaction in which the currency of the debit leg is different from the currency of the credit leg.
GL Recon Number: for an implemented GL, all the transactions done against that GL have a common number called Recon Number.
Reporting Line: Head office, central Bank office, branch office... Their reporting hierarchy. Tables include: GLTM_REPLINES
Payment Type: a unique way to identifying a payment message based on the following criteria:
1. Whether it is a payment or a collection
2. Whether it is incoming or outgoing
3. Whether it is a reject message
4. Whether it is a recall message(recall is reject after the value date)...
There are lots of pre-defined payment types in FCR. Tables include: PM_PAYMENT_TYPES
Reject of Incoming Direct Debit: rejection of incoming direct debit is issued by us to the counter party's bank, which has issued the incoming direct debit.
Recall of incoming direct debit: refers to an initiation for cancelling the incoming direct debit, which the counter party's bank has issued the customer. The incoming direct debit will not be cancelled until we respond to the counter party's bank.
Direct and indirect participant: direct participant: a bank or its branch that has a direct participation in the network defined in the payment system; indirect participant: a bank or its branch that has an indirect participation in the network defined in the payment system.
GL Type, Code class: Category of GL can be queried from the 'TYPE' column of the GLTM_GLMASTER table or the 'COD_CLASS' of the GL_TABLE. A head GL can be assigned any of the following categories:
Asset : 1 ;
Liability : 2 ;
Expense : 3;
Income : 4;
Contingent Asset 5;
Contingent Liability 6;
Memo : 7;
Position :8;
Position Equivalent -9;
Beneficiary Account: The account that receives funds in a funds transfer/payments transaction. Beneficiary account is a commonly used term in Banking parlance and specifically in OFCR to denote the Account, which is getting funds from another account or institution or external sources such as third parties through EFTs. Funds are always credited to a beneficiary account. The beneficiary account can be of the following types:
1. Customer Account
2. General Ledger
3. Internal Account of Bank
Late Clearing: Process of Marking clearing cutoff for the business day. Late clearing is the process by which the branch indicates the cutoff point for the cheques accepted to go in that day's clearing.
Back-to-Back loan: A loan account that has a Term Deposit as collateral or a loan given against a TD is referred to as Back-to-Back loan. Tables related: LN_PROD_RATES, LN_ACCT_RATES...
Floor Rate for Loan: It is the minimum rate that will be maintained for a product or a account if defined in product/account level.
Eligibility Plan: Eligibility plans are used to sort customers into 2 sets, those who meet the conditions defined in the plan and those who do not. Eligibility plans apply to customers and not to account. Rules are applicable to customers and accounts. Tables related include: RP_ELIG_PLAN_MAST, RP_ELIG_PLAN_DETAILS. .
Adjustable Rate Mortgage: A loan in which the interest rate is periodically adjusted, moving higher or lower in the same ratio as a pre-selected index such as treasury bill rates. ARM loans may include caps on interest rate increases in a given time period, and over the life.