TD Product Master Details

        Ｐｒｏｄｕｃｔ　Ｃｏｄｅ:
　　　Currency
The currency to be used for the TD product.
     Class
class code of the TD product. 
     Conventional Deposit--Accounts under conventional products will have a normal interest treatment. You can calculate the interest amount earned, over and above the principal amount. For example, interest can be accrued, compounded and paid.
     Islamic Deposit-- Accounts under Islamic products will work on the basis of pre-determined payout ratio. Banks that practice islamic banking use Islamic TD. In Islamic deposit, the amount earned over and above the principal is termed as profit. In this case, the General Ledger entries will be different.

General
    Product Name
Name of the product.
    Discounting Type
The discounting type for the TD product.
       Not Discounted--The initial amount is deposited and interest is calculated on the deposit amount.
       Normal Discounted--The maturity amount is defined along with the interest rate and the initial amount is deposited. Only the principal amount is discounted. Maturity value is decided based on the interest calculation.
    Tax Deduction as source flag
 The mode based on which, the tax should be deducted from the interest earned on the TD.
       No Tax--No TDS will be deducted from the accounts opened under this product.
        Accrual--TDS will be calculated and deducted on every interest accrual for an account.
        Compounding-- TDS will be deducted whenever the computed interest is added to the principal amount.
        Payout--TDS will be deducted at the time of interest payment to the customer when the data becomes due, not at the event of payment to the customer.  Accordingly entries will be automatically made in the Payable GL.
        Withdrawal--TDS will be deducted in the time of interest withdrawal.
    Lien Allowed
The type of amount on which the lien should be imposed for a TD product. Lien means placing a hold on the deposit when the bank wants to provide credit to the customer for any reason where the bank wants to hold on to the deposit and ensure customer does not en-cash. Value options include:
           Principal--Lien can only be imposed on the principal portion of the deposit.
           Principal + Interest -- Lien can be imposed on the cumulative value of the principal and interest accrued and compounded till now.
           Maturity--Lien can be imposed up to the maturity amount of the deposit. This means applying lien for the interest portion, which is yet to be accrued and compounded.
   Product Expiry Date
The user can not open new accounts under the product after the Expiry Date. The existing accounts perform normally.
   History Retention Days
Setup the number of days for which the history is to be maintained in the system after a deposit is closed.
   Tax Currency
The type of currency to be used for the TD product. This is the currency in which tax has to be deducted from the account.
    Accrual Frequency
Accrual frequency for the TD product.  This specifies the time interval at which, the interest for a deposit will get accrued or accumulated.  Value options include: Daily, Monthly, Bi-Monthly, Quarterly, Half Yearly, Yearly
    Accrual Start Month
The start date from which the accrual calculation will be reflected in the account.     
    PMI Accrual Frequency
The post maturity interest accrual frequency for a TD product. Value options include: Daily, Monthly, Quarterly, Half Yearly, Yearly.
     Account Retention Days
There are the number of days, for which an initiated TD account will be retained without a payin happening for the same. If the payin does not happen within the specified period, then the TD deposit will be closed during the EOD process on the last retention day.
     Advertising Message
Advertising message for the TD product. It will be used for the purpose of product promotion.
      Credit Interest Parameters
The parameter is to be used for calculation of interest for the TD product. If payin is done through cheque, the interest can be calculated either from the posting date or value date of the cheque.  Two value options:
           Posting Date -- The posting date of the credit interest
           Value Date -- The value date of the credit interest.

Deposit Term
    Amount
    Minimum/Maximum
The minimum/maximum amount that can be accepted as a deposit under this TD product.  The system displays an error message if the TD deposit is being opened with a balance less than the amount defined in this field.
    Incremental
The incremental amount that can be deposited under the TD product. When a new deposit is made it has to be in multiples of the incremental amount. This field becomes invalid for the deposits which are being renewed.
    Terms
     Unit
The unit which be used for specifying the term of the deposit.  Value options include: Days, Months, Combination
    Minimum/Maximum
The minimum/Maximum term for the TD product. It's defined in days and/or months.
    Incremental
setup the incremental term for the TD product. A deposit term has to be in multiples of the incremental term.  Value options include: Months, Days.
      1st Slab and 2nd Slab of the Term deposit. ...

Interest Rate
      Minimum/Maximum Rate
Minimum/Maximum interest Rate allowed for accounts under this product.
      Rate control flag
type of interest rate control to be used for the TD product.
           Fixed--The interest will not change during the term of the account.
           Floating--The interest rate can be changed during the term of the account.
     Profit Ratio
The profit ratio for the Islamic product. In Islamic product, the deposit does not attract interest. They have a concept of profit sharing. This is only for Islamic deposits.
      Minimum/Maximum Variance
The minimum/maximum variance allowed to be applied on the product base for all the accounts.

Interest
    Interest Calculation
    Interest Accrual Basis
the way the number of days is to be calculated between two dates.
　　Interest Accrual Basis Broken Period
Select the interest accrual basis to be used for the broken period. The period that is less than a full payout/compounding cycle will be taken as broken period by the system.
    Interest Payout basis
The mode based on which the interest payout should take place. Value options:
         Calendar--The interest payout will take place at the end of the calendar period
          Anniversary--The interest payout will take place at the start date of placing a deposit.
    Interest compounding/Payout frequency
the interest compounding frequency at which the interest accrued will be compounded to the principal. Value options include:  None/At Maturity, Monthly, Bi-Monthly, Quarterly, Half-Yearly, Yearly.
    Minimum Deposit Term for Periodic Interest
The minimum deposit term for the periodic interest. The minimum term for which the deposit is to be kept so as to earn the initial interest payment.
    Post Maturity Interest Rate/Index
setup the post maturity interest index or rate for the TD product, to derive the interest rate for a post maturity interest.
    Include Variance on PMI
If the account level variance has to be included in the PMI interest calculation or not.
    Recompute PMI on rate change
If recompute the PMI on rate change or not.
    Post Maturity Interest routine
It's a logical set of instruments for calculating the post maturity interest rate. The bank can define its own post maturity interest calculation routine.
    Payout Option
Payout option for the TD product. Value options include:
         No Instruction--the interest will be paid and the post maturity interest will be calculated.
         Redeem--the interest will be paid, but no post maturity interest will be calculated.
         Reinvest--the interest amount will be reinvested into the principal specified in the interest payout and redemption tab.
 
On Maturity
    Maturity Parameters
    Maturity Due Notice Days
the maturity due notice days for the TD product. This field specifies the number of days in advance a notice will be sent to the customer, informing about the maturity of the deposit accounts under this product.
   Unclaimed Deposit Transfer Days
A matured term deposit with no renewal/redemption instruction will remain in the matured GL. The user can specify a time period after which such deposit will be closed automatically by the system and the proceeds will be transferred to the unclaimed GL.
    Unclaimed Deposit Processing Frequency
 The frequency at which the unclaimed deposits will be processed for the TD product.  The system's process of transferring of deposit and subsequent closure of accounts could be scheduled to take place either monthly or daily.  Value options include: Daily, Monthly.
    Forced Renewal Term
The term for which the deposit is to be automatically renewed on the maturity if there is lien on the deposit.  The lien can be internal lien( i.e. for availing an overdraft against TD) or it can be an external lien like a court order. This term can be specified in months and/or days. 
     Auto Renewal Term
setup the auto renewal term, in which the deposit is to be automatically renewed, if the customer has not given any renewal instructions and there is no lien on the deposit.  Values include: Months, Days.
     Renew with Maturity Date
Select the check box to renew the TD account as on the maturity date even if the TD account grace days has expired.  Grace days is not applicable in this case.
     Renewal Rate
the renewal rate to be applied in case renewal is done from maturity.  Values include:
         Current--The interest rate effective as on the renewal date will be applied to the TD account;
         Higher--Higher of the interest rate applicable on the maturity date of the TD and the renewal/processing date will be applied.
         Lower--Lower of the interest rate applicable on the maturity date of the TD and the renewal/processing date will be applied.
         None--...
     Renewal Grace Period
A deposit is kept in the matured GL, in case no instructions for payment of the matured deposit has been received from the customer at the time of deposit initiation. However, the customer can come to the bank well after the mature date and request to renew the deposit effective from maturity date. You can define a period at the product level, within which a matured deposit can be renewed with back dated effect from the maturity date.
     Maturity Option
Maturity option that is available for interest and principal. Value options include:
        No instructions--the amount gets transferred to the matured deposits GL and the amount would earn post-maturity interest for the grace days. Beyond grace days, no PMI interest will be applicable.
        Redeem--the amount gets transferred to the payable GL and this amount would not earn post-maturity interest.
        Reinvest--The amount gets added to the existing account with the auto renewal term.
     Add Pending Interest to Principal on Maturity
if add any uncollected interest and due interest, which is not collected, to the principal at the time of maturity of the account. The adding of amounts to principal on maturity will be done in the BOD.
     Restriction Options on principal payouts
Appropriate restriction options on the principal payouts.  Values include : None, Deposit and Deneficiary Blocked.

Redemption
    Redemption Parameters
    Premature Redemption Allowed
If premature redemption is allowed. If not, then the deposit cannot be renewed before maturity.
    Part redemption allowed--if partial redemption is allowed or not.
    Units of redemption--The amount can be partially or prematurely redeemed should be multiples of this units.
    Change Slab on redemption--After redemption, the principal balance may go below the specified slab level according to which interest rate was applied to the TD account. If the check box is selected the interest rate will be reapplied according to the new principal balance.
    Penalty Rate to use--Penalty rate to be used for a TD product. Value options include: Bank Rate, Product Rate; Slab Rate.
   Fixed Penalty Rate/Variance:
   Penalty Index:
   Penalty Routine to Use:
   Penalty Routine:
   Partial Period Interest Payable Upto:
   Minimum Term for Penalty Interest:
   Lock In term
this period indicates the term for which the deposit needs to be retained in the system before it can be allowed to redeem.
   Service Charge Package:



GL Codes



Advices



Special Ｆｅａｔｕｒｅｓ


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Ｄｅｎｏｍｉｎａｔｉｏｎ　Ｄｅｔａｉｌｓ

End Point Master Detail Info

Endpoint is the clearing intermediary, is the super-set of correspondent bank and automated clearing house.

Endpoint code: Endpoint code is a manually generated unique number representing the clearing house / correspondent bank code.

GL Inward Account: Credit entries are passed in this GL during inward clearing. The balance in this GL represents the amount owed by the bank to the clearing house due to inward clearing instruments. This is a liability type GL.

GL Inward Returns Account: Debit entries are recorded in this GL when inward clearing cheque get rejected. The balance in this GL represents the amount owed by the bank to the clearing house due to inward clearing return instruments.  This is an asset type GL.

GL outward Account: Debit entries are passed in this GL when a cheque goes for outward clearing. The balance in this GL represents the amount owed by the clearing house due to outward clearing instruments.  This a an asset type GL.

GL outward returns Account: Credit entries are recorded in this GL when outward clearing cheque get rejected. The balance in this GL represents the amount returned to the clearing house due to outward clearing instruments. This is a liability type GL.

CFC Credit GL: The credit entries for Cheque For Collection(CFC) are recorded in the GL. At the time of running outward clearing, the CFC credit GL is credited for the value of cheques and contra is passed to the endpoint GL. on the customer value date for the instrument, during value date clearing, the CFC debit GL is debited and the CASA account is credited. This is a liability type of GL.

CFC Debit GL: At the time of running outward clearing, the CFC credit GL is credited for the value of cheques and the contra is passed to Endpoint GL. On the customer value date for the instrument, during value date clearing, the CFC debit GL is debited and the CASA account is credited. This is an asset type of GL.

Correspondent Bank Name: The correspondent bank which is donging the clearing.

Transit GL: The transit GL code.

Is Correspondent bank or not: when the clearing will happen through a correspondent bank.

Electronic Clearing: If the Endpoint supports electronic clearing.

CASA Product Master Information

Product Code: code for identifying the CASA product in FCR.

RD Option: The type of account to be defined. The default value is CASA.
    CASA: CASA account type.
    RD:     recurring deposit type of account

Statement and Advices
  Statement Parameters
   1. SC Analysis Flag: If the get a split of the consolidated services charges applied on the account. The breakup can be viewed in a separate report.
   2. Statement Frequency: The time frequency or interval at which the account statement should be generated.
   3. Statement to all Inactive accounts: If the statement is to be generated for all the accounts on which no transactions have been posted during the statement cycle.
   4. Branch Name Address Flag: if the appearance of branch name and address is desired on the statement
   5. Year to Date Number Flag: If the generated statement must display the number of occurrence of the statement within a year.
   6. Account Closing Statement: If the statement is to be generated after the account closure procedure.
   7. Deferred Statement Generation Day: The day or date on which all the account statements should be generated, instead of the regular month end schedule.

Rate Change Advices
    1. Generate Rate change Intimation: Whether to generate the rate change intimation for accounts.
    2. Lead Days for Intimation: the lead days for intimation. The advice will be generated these number of days before a future dated rate change.

Notice Format Parameters
    1. SI Failed Notice Format: setup the format in which the advice for the failure of the standing instruction execution is to be generated during the EOD process.
     2. Insufficient Funds Advice Format: The format in which the insufficient advice will be generated. An insufficient fund advice is generated at the EOD process if the account does not have the minimum balance.
     3. Tax Deduction Notice Format: Setup the format in which the TDS notice will be generated. The TDS notice will be generated during EOD process if TDS is applicable and is deducted for an account.
     4. Reminder Plan Code: The plan code for the generation of payment reminders. The advice is generated when the payment is outstanding on the account for a number of days greater than number of days specified for the generation of an advice as specified in the reminder plan code.
     5. Minimum arrear for reminder: setup the minimum amount after which reminder is generated.
     6. Minimum arrear for TOD/Overline report:

Credit Line
     1. OD Notice Format: the format in which the OD notice will be generated. OD notice is generated for accounts whose balance falls within the OD limit ceiling.  The system generates an advice stating that there is an balance outstanding in the customer's account.
     2. Overdraft Notice Past Due days: the number of days after which a notice will be sent to the customer after the expire of the OD.
     3. Limit Exp. Notice Format: The format in which the limit expiry notice will be generated.
     4. Cr Line Exp. Notice Lead Days: The number of days prior to the expiry of the credit line when a notice will be sent to the customer.

SI Advice
     1. SI Credit/Debit Advice Format: setup the format in which the SI credit/Debit advice will be generated.  The system generates the SI credit advice for the beneficiary's account after the successful execution of the standing instructions.

Uncleared Funds Advance Line
      1. Expiry Notice Format: The format in which the uncleared funds expiry notice will be generated. The system will generated an advice in this format before Expiry Notice Lead days of expiry of the advance against uncleared funds on the account.
      2. Expiry Notice Lead Days: setup the number of days prior to the expiry of the uncleared funds advance line when a notice will be sent to the customer.

RD
   Installment Amount
    1. Minimum/Maximum: the Minimum/Maximum amount per installment for the accounts under the product.
    2. Incremental: The incremental amount per installment for the accounts under the product.
    Draw-down instructions
    1. Draw-down execution for holiday duedates on: The drawdown day in case the drawdown execution day is a holiday.  Options include: Next working day, Previous working day.
    2. Max No. of Retries: Setup the maximum number of retries allowed. The maximum number of retries which should be undertaken by the system in event of drawdown failure.
    Term
    1. Term Unit: The unit in which the term of the RD will be defined. (Month, Year, Week)
    2. Min/Max Term. The minimum/maximum number of terms units allowed for the accounts under the product.
    3. Minimum Lock-in Period: The unit in which the minimum lock-in period of the RD account will be defined.  Values include Days, Months, Years.
    Other RD Parameters
    1. Installment Frequency: the installment frequency of RD.
    2. Rest Period Basis: The basis for rest period.  Value include : Anniversary and Calendar.
    3. Partial payment Allowed: If the payment of an installment amount different from the regular outstanding installment amount & penalty.
    4. Holiday Grace Days Facility: check to enable the system not be charge penalty if installment due date is a holiday and customer makes payment on next working day.
    5. Interest Calculation Method: The method to be used for interest calculation.  Values include: Actual--the interest will be computed on the actual balance. Expected--the interest calculation will not look at the actual balance and will compute interest on the scheduled expected balance.
    6. Penalty Calculation Basis: The criteria for penalty calculation. Values include: Online--online is supported only for EAB type of Maturity value computation; Account closure--Penalty is calculated on account closure.
    7. Maturity Value Routine: The maturity value routine to be used to compute the maturity value of the RD.  AP_CH_RD_EAB_COMP_INT is an instance of such routine.
    8. Penalty Rate-Control Flag: type of penalty rate to be used for the product.  Values include: Fixed--Fixed penalty rate is allowed for EAB type of maturity value computation; Floating--Floating penalty rate is allowed for IBA and RBTT type of maturity value computation.
    9. RD Matured GL: Set up the GL account to which the RD account is transferred after maturity.
    10. Penalty Income GL: The GL account to which the penalty amount is transferred after maturity
    11. Extend Maturity on late payment: if the maturity date of the accounts falling under this product is to be extended by one installment frequency from the date of payment, in case the last installment payment happens after the grace period.
   

Bank Master Detail Information in FCR

Bank code
   A three digit bank code for the bank. Each code uniquely identifies a different bank. Central Bank assigns a bank code for each bank. The bank code defined in FCR can be the same code assigned by the  central bank.
    Bank code and entity code's mapping is stored in the table BA_ENTITY_MAST.

Clearing Bank Code
   The code given to the bank by the clearing bank/central clearing authority.  This code will be present on all the instruments of the bank and shall be used to identify if the instruments are the bank's own instruments or other bank's instruments.

Bank Identifier
   The code will be a part of the IBAN number when it is generated.

ISO Code
   The ISO country code entered will be a part of IBAN number whenever it is generated.

Last Process Date
   The date on which the EOD process was last run. The date will be maintained for the first time when the bank starts its operations on FCR. Subsequently, this will be maintained automatically by FCR based on the holiday calendar of the bank.

Current Process Date
   By default, the current date will be the next process date after the last EOD was run on the system.

Next Process Date
   By default, the next process date will be the next working date after the current process date.

GL Process Date
   The current process date for the general Ledger module. The system completes the processing of each module separately while running the EOD.  Thus, the current process date, i.e. the next process date after the last EOD was run on the system, for each module is displayed separately for information purposes.  The same principle applies to other module's process date.

STL Process Date
   The current process date for the settlement module.

CHQ Process Date
   The current process date for the CASA module.

TD Process Date
   The current process date for the term deposit module.

LN Process Date
   The current process date for the loans module.

IBAN Mask (International Bank Account Number)
   IBAN Mast constitutes the following :
     First 2 digits: ISO Country Code
     Next 2 digits: Check digit generated based on an algorithm
     Next 5 digits: Bank identifier
     Last 11 digits: the first 11 digits of the FCR account number...
   Maybe different bank can use different IBAN Mask schema.
     The first 4 digits are needed in every IBAN, but the remaining part of the IBAN (both schema and length) is defined by the national bank community.

GL details of a bank

  Credit Suspense Account
An offline credit transaction, which is rejected by the host after becoming online, will be posted to this account. Branches will have to manually reverse out entries from this GL and post it to the relevant account after undertaking suitable corrective mechanisms.
  
   Debit Suspense Account
An offline debit transaction, which is rejected by the host after becoming online, will be posted in this account. Branches will have to manually reverse out entries from this GL and post it to the relevant account after undertaking suitable corrective mechanisms.

   IB Credit Account
The GL entries for all the inter branch transactions are recorded in this account. At the end of every business day the balance in this account across all the branches in the bank should be zero. For the transactions done on accounts of the other branches, contra inter branch entries are generated automatically by FCR during EOD and posted against this GL.

   IB Debit Account
The similar as the IB Credit Account.

    Future Dated Bridge GL-CR/DR Account (Two accounts)
All the bridging debit entries for future dated transactions, from the transaction date to the value date, will be recorded in this account.

    Withholding Tax GL
Used in accumulating withholding tax. The GL entries for tax deducted at source (TDS) for CASA and TD accounts will be recorded in this GL. Withholding tax, also known as TDS or Tax deducted at source, is an amount withheld by the bank making an interest payment to customer and paid to the taxation authorities.  The payee is assessed on the interest income, and the tax to be withheld(the withholding tax) is computed in that assessment. The purpose of withholding tax is to facilitate or accelerate collection, by collecting tax from payers rather than a much greater number of payees, and by collecting tax from payers within the jurisdiction rather than payees who may be outside the jurisdiction. It may also be used to counteract tax evasion and tax avoidance.

Sounds like this GL is used by the bank to collect interest tax for the tax authorities.

  VAT GL Account (Value Added Tax)
A GL account, don't know the exact usage of this account.

  Bank Cash GL
The central bank GL. The GL entries for the buy and sell transactions between the vault of the branch and the central bank will be recorded in this GL.

   Branch Vault Cash GL
Cash GL for the branch.  The GL entries for the debit and credit transactions for a customer in a branch will be recorded in this GL. Don't know why, debit and credit transactions should be recorded in their respective product GL???

   Cash Overage GL
The liability type GL for excess cash. The credit entries for the reconciliation of excess cash physically held by the teller will be recorded in this GL.

   Cash shortage GL
The asset type GL for cash shortage. The debit entries for the reconciliation of the shortage of cash physically held by the teller will be recorded in this GL.

   FX Profit Sundry GL
Sundry GL for FX profit.

   FX Profit/Loss GL
Income GL for FX profit/loss.

   IB IBD Credit GL account and Debit GL account
GL code for the inter branch international business department credits.  The GL entries for all the inter branch transactions are recorded in this account. At the end of every business day the balance in this account across all the branches in the bank should be zero. For the transactions done on accounts of other branches, contra inter branch entries are generated automatically during EOD and posted against this GL.

   Contingent Asset/Liability GL code for Limit
Set up the contingent asset GL code to which contingent balance needs to be posted if the contingent entries are passed at limit level.  The system will pass contingent accounting entry for un-utilized limit amount (Sanctioned Amount-Disbursed Amount) for Term loans, revolving loan and OD account.
 
   Position Currency
Maybe this is related to the position accounting. If position accounting is to be done, then the system shall pass one pair of entries for every foreign currency entry. 

   Tax Receivable GL
This GL is used to debit for tax refund on the backdated debit interest adjustment.  It's an asset type of GL account.

Other Details

    Bank Tax Id
The identity number provided by the tax authorities in your country under which the bank pays the tax. This field is only for information purposes.

     Central Bank Code
The central bank code. This code is assigned to a bank by the central bank.

     Head Office LO
Don't know what is LO yet... Maybe Local Office????

     Head office Cost Center
Cost center of the HO

     Default Bank Currency
The currency code of the local currency of the bank.

     Head Office Currency
Currency code applicable for your head office.

    Start Year Month
First Month of the financial year. Interest/charges capitalization dates for CASA/TD products are determined based on the value in this field.  For example, if the value in this field is set as 7 and if the capitalization frequency  is set as half-yearly at the product level, the credit capitalization for the CASA product will take place in June and December every year.

    Income Tax Circle Number (Income Tax)
Income Tax number where annual returns are filed.

     TDS Next Remittance Date
Set up the next date on which tax is to be remitted by the bank to the government agents.  This field is for information purpose only.

     Interface Flag
For Universal Banking implementation with interface to Flexcube Corporate modules.

     TD variance for OD
Variance that is added to interest rate of a term deposit against which an overdraft is granted.  When the term deposit is kept as security against an overdraft, the OD interest rate is calculated as follows:
(OD interest rate) = (TD interest rate) + (TD variance for OD)
The interest rate is taken as a variance above the term deposit rate.

     TDS Start Month
The month that represents the beginning of the tax year.

     Week Start Day
The day that represents the beginning of the week for the bank.

     Automatic Acct No. Generation
If the bank want the system to automatically generate account numbers. The number is generated as a combination of branch/product code/serial number and a check digit.
    
      Rate VAT
percentage value, don't know the exact meaning.

     IS Interface
Universal Banking implementation with interface to Flexcube retail investor service modules.

     Amount VAT
don't know the exact meaning.

     Reserve Calculation Frequency
The frequency at which provisioning should take place for CASA and loan accounts based on the customer CRR codes.

    Hold Amt.Flg
The Flag is to allow the bank to put a hold on the customer's available balance  in case of future transactions. The hold will be removed on the value date. If  it was not selected, the system will post the future dated transaction only on the value date.

    Flier to be sent with statement
The type of flier to be sent along with the statement. A flier is additional information with the statement. The nature of OMR mark in the output statement file will be determined based on this flag.

Service Charge Package
  Set up the service charge package for transactions which do not have account numbers (e.g. Walk-In transactions).

  Don't know what is Walk-In.
 
    Service Charge Package Name

AML Dr/Cr Limit
   Anti Money laundering limit for debit/credit transactions

     AML Daily Dr/Cr Limit
 Anti Money laundering limit for cumulative debit/credit transactions on a particular day.

Future Dated Funds Transfer Parameters
 
Hold for Asset/Liability Product
  If credit hold is required for asset type product for future dated transactions.

Holiday Processing
  The processing date of the transaction if the value date of the transaction is on a non-working day according to bank calendar.
   The options are Next and Previous.

Last Revaluation Date
   The last date of revaluation of the bank.

Limit Revaluation Frequency
   The frequency of the limit revaluation.

Next Revaluation Date
   The next date of revaluation of the bank.

Revaluation Base
   The base of revaluation of the bank.

   

Core banking buzzword-3

Minimum Balance to Accrue Interest: Interest will get accrued to the account only if the account balance(depends on the product parameter: book balance or collected balance) is greater than the minimum balance to accrue interest.

Interest Type: Credit Interest/Debit Interest/Overline Interest/TOD intertest.

TOD: Temporary overdraft.

Overline: overline is the account going over and above the sanctioned oD limits. Overline can be defined as credit utilization in excess of the sanctioned overdraft amount. Generally, banks charge a separate rate of interest for the overline amount. Overline amount is the amount which exceeds the overdraft limits. 

Group Accounts: grouping of various accounts of the customer for notional pooling of funds into designated parent account for interest computation. Group accounts in the group are assigned primarily three roles.
   1. Parent; 2. Member; 3. Ex-Member. In a group only one parent account can be defined and this is the account which is actually debited or credited with interest liquidation amount and rests of the accounts are not impacted by interest processing. Only Daily accrual based accounts can be considered for forming group. 
   Interest treatment for Group Accounts:  The total interest earned by the group can be credited to the Lead/Parent account or distribute interest to member accounts or other methods.

Customer Identification Criteria: The criteria for the customer identification. Four options: Birth Certificate Number, Corporate Number, Identity Card Number, Passport Number. This sounds the four options in FCR. In China, I think there should be more, seems a little difficult to configure the other options.  Only one IC type can be configured for a particular customer type.

Collateral: 抵押品/担保品. The collateral and the account to which the collateral is attached should have the same currency. A valuable pledged by a loan borrower to the bank for repayment of the loan in case it cannot be repaid through the normal repayment procedure.  
  Collateral Type: Property/Automobile/Deposit/Financial Security/.../Personal Guarantee
  Valuation Level: Two options:
     Master: The value of the collateral that are highly volatile in the market are valued at the master value. These collateral requires updating or monitoring on regular basis. For example, the price of shares and debentures. The market price of all the reliance shares held as collateral will be the same.
     Detail:  The value will be specific to the collateral that is attached. The price of the collateral are more stable. For example, the price of the property differs from location to location.  
   Deeds Tracking Required: the deeds are with external authority and required tracking or not.
   Insurance Type:
   Collateral Review Period: setup the frequency at which the collateral should be reviewed.

FCDU: Foreign Currency Deposit Units
   The foreign currency deposit accounts and loan accounts and their corresponding cover shall be considered as funds separate and distinct from the regular assets and liabilities of the bank. The bank shall maintain a separate accounting for the transactions conducted in FCDU accounts and will enable preparation of the balance sheet and profit and loss statement covering the FCDU funds. FCDU does not carry out transactions in local currency. The base currency of the FCDU shall be a currency other than the local currency only.
    FCDU branches will be logical branches holding foreign currency accounts and will not have tellers linked to those branches.
    Local currency as well as foreign currency deposit and loan accounts shall be maintained and transacted in RBU (Regulare Banking Unit) books. However, withdrawal of foreign currency from local currency accounts in RBU shall not be permitted. Base currency of the RBU shall be the currency of the country.  Local currency withdrawal on all FCY accounts shall be permitted.

Internal Clearing Check: Internal clearing check refers to whether a nostro 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 this bank-branch.  If the bank-branch is not an 'Internal Clearing' type, then the system determines the network to which the message for this transaction should be routed.

Value Date Clearing: Clearing Process to release unclear funds to account.  Value Date clearing is the clearing process as termed in Flexcube which when run either automatically as part of Beginning of Day (EOD) operation or manually releases the uncleared funds due to release to the account as per the calculated float. Once value date clearing process for the clearing type and Endpoint is run successfully the uncleared funds are reduced to that effect and the net available balance for the customer to utilize increases. Value date clearing can be run for previous days (if required or if missed) by selecting the date while the process is run.  Value Date clearing is the next step of outward clearing. Only those cheques where outward clearing has been run successfully earlier qualify to be processed in Value Date Clearing.

Net Available Balance: Balance available in the CASA account for a debit transaction. The net available balance is calculated based on the following components in the CASA accounts (in table CH_ACCT_MAST)
    (1). Available balance in the Account (bal_available)
    (2). Sweepin Amount from TD (Amt_Sweepin_lien)
    (3). Hold on the Account (Amt_hld)
    (4). Min Balance to be maintained in the account (bal_acct_min_reqd)
    (5). Net Configuration Balance (Credit_confirmation_bal - debit_confirmation_bal)
   The calculation of Net available balance is as below:
   Net Available Balance = (1) + (2) - (3) - (4) + (5)

Correspondent Bank: Corr bank is nothing but an intermediary bank. Such intermediary banks are of help to a bank or a branch of a bank, when a cheque has to be sent for outstation clearing in a location where own bank branch is not present.

Small Clearing Account Number: A 10-digit number generated serially by the OFCR system during the issuing of a cheque book for a CASA account, to help identify an OFCR account that is involved in a clearing transaction.

IC OC clearing reference: Mapping between outward clearing and inward clearing types.  IC OC clearing reference is the mapping between the outward clearing and inward clearing types. Any instrument coming for Inward clearing, which get rejected will be processed through outward clearing. This mapping will decide which outward clearing type will be inward instrument be processed if it is rejected. If the mapping is not there, then default OC type is picked up from ST_BANK_PARAMS, ST_IC_OC_TYPE_XREF table stores IC OC clearing mapping.

Bank's Cheque: A bank's cheque or bankers draft is a cheque where the funds are withdrawn directly from a bank's funds, not from an individual's account.
   Normal banking cheques: If an individual or company operates a current account (or checking account), they may draw cheques to transfer funds from their account to an account belonging to a creditor. The creditor passes that cheque to their own bank, which will use a clearing house or similar system to arrange for the funds to be moved from the debtor to the creditor during a clearance period of a few days. Any debt is thus settled.
   Bank's cheque as a reduction of risk: The problem with normal cheques is that they are not as secure as cash. A cheque received in the post could be potentially worthless if there are insufficient funds for the cheque to be honoured. In this instance, the clearance house or bank will return the cheque to the creditor, who will receive no money. Therefore, any cheque carries the risk that it might be returned unpaid.

Float Extension: Float is the number of working days after which the credit of the deposited instrument is expected to receive in the account as per central bank or clearing house guidelines subject to clearing of the instrument.  Many a times, due to internal or external entities, there maybe a requirement to extend the number of float days.

Central Bank Credit/Debit Line:  The central bank debit line indicates the line to which an account under a GL should report, if it is in credit/Debit.

Auto Generated Values in SOAP UI Request

Sometimes, it's really important to generate the request's value in a SOAP UI Request. Here is the method shared in our team.
In the SOAP UI menu, go to the “Settings”  option.

 

Following screen will be displayed.

Go to Global properties option.

Click on the ‘+’ icon to add a new property.

Specify the name of the property as below

In the SOAP UI request that you are testing enter the following value in the externalReferenceNo field

${#Global#externalRef}

Save the script.

You need not enter a reference number whenever you fire this saved request.  A unique reference number will auto generated, every time you fire the request.

Book Balance and Collected Balance

The Collected Balance is the amount that is collected in an account post clearing. It includes the account book balance as well as any other amount in the account that is on hold.

Collected Balance = Available Balance + Funds on Hold.

Example: Account 'X' opened on 20110101 with RMB 5000. The book balance and the collected balance on the end-of-day 20110101 are both RMB 5000. Now, on 20110102, the customer deposits a cheque of RMB 5000. In such a case, as on the end-of-day of 20110102, the account's book balance(cleared balance) would still be RMB 5000 since the deposited cheque is not settled, but the account's collected balance would be RMB 10000.

Collected balance plays a significant role during interest calculation, since in FCR, interest can be calculated based on either the book balance amount or the collected balance amount.

In the table CH_PROD_MAST, a flag flg_book_coll_bal is used to decide whether interest calculation should be done on the basis of collected balance or book balance. The bank can set this flag during product creation.

Sweep out and Sweep in

Sweep out is a functionality in OFCR by which excess balance or fund in a customer's CASA account is transferred to another account that may be a CASA, TD or even a non-FCR account.

Sweep out can be set up only on CASA accounts. The Account from which funds are being swept out is referred to as the Provider Account and the Account into which funds are being swept in is referred to as the Beneficiary Account.

Depending on the type of accounts involved in the funds transfer, there can be three types of sweep-outs:
   1. Sweep-out from CASA to CASA
   2. Sweep-out from CASA to TD
   3. Sweep-out from CASA to non-FCR account

Sweep-outs can also be of the following two types:
  1. Normal Sweep-out: funds are swept out from the Provider Account to the Beneficiary Account
  2. Reverse Sweep-out: funds are swept out of the Beneficiary Account back to the Provider Account.

Sweep-out of funds takes place typically at the end of the business day during the EOD batch process.

Sweep-in is a functionality in which funds are pulled in to a customer's CASA account from a specified account that may be a CASA, or a TD account.

The functionality is the reverse of the sweep-out functionality. Usually, a sweep-in of funds take place into an account in the case where there is insufficient balance to honor a debit transaction and funds are swept in from a specified account linked to this account to honor the debit.

Accrual Bases/Basis and Interest Rules

Interest Accrual Basis is a component of the formula that is used to calculate the accrued interest. The formula is as below:
  Accrued Interest = (Principal)　＊　( Interest Rate per Day) * (Days in a Month).
  If Interest Rate per Day is not available and only the Annual Interest Rate is available(Which is often the case). The formula is as below:
  Accrued Interest = (Principal) * (Annual Interest Rate/ Days in a Year) * (Days in a Month), so changed to:
  Accrued Interest = (Principal) * (Annual Interest Rate) * (Days in Month) / (Days in a Year)
 
So the (Days in Month) / (Days in a Year) is named as the Accrual Basis. The rules have a Numerator and a Denominator.
  The Numerator represents the number of days between the from data and the to date in the accrual cycle = Days in a Month = 30/31/Actual
  The Denominator represents the number of days in a year in the accrual cycle = Days in a Year = 360/365/366

There are a number of rules/conventions/bases to calculate the days in a month and the days in year and thereby the Interest Rate per Day. These rules /conventions/bases are termed as Accrual Basis, it is based on these rules that the accrued interest is calculated.

The Accrual basis is also referred to as 'Day count convention' . There is an item in wiki, see refer for more: http://en.wikipedia.org/wiki/Day_count_convention.

The wiki's version is much more complex than FCR's. It's for bond interest computing.

 

Two concepts for interest calculation: Accrual (计息) vs. Capitalization ( 结息).

       Accrual is the process of calculating interest on each of the accounts and accumulate it and show it on bank’s books. Interest is not added to customer account during accrual.

Broken Period:  The period during which the interest is charged at a different rate if Index, Account or product level is changed between two installment calculations.

 

Several dimensions when considering different interest rule.

 

A. Credit/Debit Accrual Basis: (借/贷方计息基础)

B. Interest Rate & Balance Base (利率和余额基础)

C. Interest Capitalization Basis & Capitalization Frequency (结息基础和结息频率)

D. Tier Type (分层类型)

E. Interest Accrual Frequency (计息频率)

 

For Accrual Basis, let’s give a sample. When using the Actual/360 and Actual/365 type basis, the days of a month and a year is showed in the below table:

Serial No.	Month	Year	Computation using Actual/360	Computation using Actual/365
1	January	Normal Year	31/360	31/365
2	January	Leap Year	31/360	31/366
3	February	Normal Year	28/360	28/365
4	February	Leap Year	29/360	29/366
5	April	Normal Year	30/360	30/365
6	April	Leap Year	30/360	30/366
7	Broken Period	Normal Year	15/360	15/365
8	Broken Period	Leap Year	15/360	15/366

 

 

Accrual Frequency:  Accrual has following frequencies in FC. It is defined at the product level. Interest Accrual posts to the following two GL accounts:

    Dr. Interest Expense GL

    借: 利息支出科目

    Cr. Interest Accrual GL

    贷: 应计利息科目

FCR supports the following frequency:

• Daily
• Monthly
• Bi-Monthly
• Quarterly
• Half-Yearly
• Yearly

  In FCR, the process of Daily Accrual is as below:

    For all accounts having daily accrual frequency, individual account level accrual are not passed. But one consolidated entry is passed for a branch and product combination, that is one entry for all accounts of one product belongs to a particular branch.

  In FCR, the process of Monthly Accrual is as below:

    GL entries are passed at account level. Individual GL entries will be passed for each account separately.

 

Balance Base: someone or some products would prefer the daily end balance or average balance or monthly average balance or minimum monthly balance.  Balance Base should match with the accrual frequency specified, although some frequencies can use several different balance bases.

 

Interest Rate: Sometimes, interest rate should be maintained at the account level tiers.  Since in most of the cases, the interest rates are tiered, so cumulative or incremental interest can be calculated based on the specified rules.

 

Interest Capitalization: After capitalization, the account’s balance will be updated.  So the interest frequency will influence the amount of interest.

 

Incremental vs Cumulative

For the interest charging / payment to the customer the bank can use tiers /slabs, there are two methods on which bank can pay /charge interest to the customer.

• Increment – the interest will be calculated on the basis of each slab, the amount to be considered for interest payment / charging is incremented on the slabs that are defined.
• Cumulative – interest charging /payment will be considered on the basis of the slab, the highest slab interest rate is considered while payment /charging the interest.

Tier No.	Interest Index Code	Interest Rate
1	2000	10
2	3000	15
3	4000	20

 

In case the customer’s account balance is 3500 then in the case of cumulative type, the interest rate for 3500 will be 20%.

In case of increment type, the interest will be calculated as 2000 @10%, 1000@ 15% and the balance 500 @20%.

Suspense Entries and GL

 A suspense GL is a GL account where only those entries are posted, which could not be posted in the appropriate GL account due to some discrepancy, and the entries that get posted into suspense GLs are referred to as suspense entries.

Reversing (Also referred to as re-conciliating or balancing) suspense entries refers to the process of correcting or balancing suspense entries such that they got removed from the suspense GLs(where they had got posted by mistakes) and got posted to the right GLs where they belong such that the balance in the suspense GLs at any time is 0.

In FCR/PingAn project, a suspense GL sounds like the implemented GL(Misc. Credit and Misc. Debit GL)

GL Type and GL Category

GL type indicates the type of accounting entries that can be posted into it.
Type sin FCR include:
  1. Normal: The debits and credits entries of accounts that don't fall into any of the other types can be assigned to the normal type GL. By default, the leaf GL will be of normal GL type.
  2. Cash: all cash transactions are posted directly into a GL by linking the GL with the Till ID.
  3. Inter-branch: This option indicates that only inter-branch related accounting entries can be posted to the GL.
  4. Implemented GL (Misc. Debit/Misc. Credit)...
  5. Nostro: The nostro GL should cater only to entries related to your banks account with another bank.

GL category
  A. Asset, Code: 1
  B. Liability, Code : 2
  C. ...
  D. ...

GL group
  Another way to identify GL type:
  cod_gl_group in GL_TABLE has three values 0, 2, 3. 2 means Misc. Debt , 3 means Mics. Credit and 0 maybe means general.

Type of a Financial Transaction card originated message

ISO 8583 defines the Card originated messages.

In FCR, cod_msg_tye in td_nobook, ch_nobook stores the transaction message's type.

ISO defines message types as below:
 A. 200: Normal
 B. 220: advice (also called force post)
 C. 400: reversal
 D. 420: advice reversal (also called force post reversal)
FCR has one more:
 E. 401: auto-reversal.
Seems there are other types of message in the ISO 8583, please ｒｅｆｅｒｅｎｃｅ:
http://en.wikipedia.org/wiki/ISO_8583#Message_class.

When two systems communicate with messages, they can use the common request-response protocol.  System 1 sent a message to System 2 (called a request), and System 2 replies back to System 1 (response). System 1 need not wait for any response and can keep sending requests, and Sytsems will keep replying as and when it's able to reply.

Requests are indicated with message type and every message has an id, call it REF_STAN.

There are cases where you would want to reverse a request.  This is message with type 400, also you have to indicate which is the message that you are requesting for reversing, which is indicated by REF_ORG_STAN.

There are also time out problems to handler.

For example, three messages as below:
MSG_TYPE = 200, REF_STAN =1
MSG_TYPE = 400, REF_STAN=2, REF_ORG_STAN = 1
MSG_TYPE = 401, REF_STAN=3, REF_ORG_STAN = 2

If the MSG_TYPE is 420/220, it means it can't be rejected. ..

In FCR, there is another concept as same-day reverse transaction. Currently, I take it as the same as reversal transaction.

Table function in PL/SQL

 Table functions sound like a very powerful feature of PL/SQL.
 Needs digging.

Collection in PL/SQL

Have the following code:
--CREATE TABLE
CREATE TABLE account_temp (
sub_account_no VARCHAR2(30),
dep_no NUMBER
);
--IN THE package declare
TYPE sub_account IS RECORD OF(
 sub_account_no VARCHAR2(30),
 dep_no   NUMBER
);
TYPE tab_sub_accounts IS TABLE OF sub_account;

Now We defined a Record Type in the PL/SQL and a collection of this record type.

--In the package body's function or procedure
var_l_tab_accounts tab_sub_accounts;
SELECT cod_account_no, td_dep_no
BULK COLLECT INTO var_l_tab_accounts
FROM TD_NOBOOK;

IF(var_l_tab_accounts.FIRST IS NOT NULL) THEN
  FOR i IN var_l_tab_accounts.FIRST .. var_l_tab_accounts.LAST LOOP
    DBMS_OUTPUT.put_line('sub_account_no is '|| var_l_tab_accounts(i).sub_account_no || ', dep_no is '|| var_l_tab_accounts(i).dep_no);
    INSERT INTO account_temp VALUES var_l_tab_accounts(i);
  END LOOP;
END IF;

We can even don't define the RECORD, but use the RECORD table as below:
TYPE tab_sub_accounts IS TABLE OF ACCOUNT_TEMP%ROWTYPE;
--ACCOUNT_TEMP is the name of the table.
Although it's very convenient to use the table directly, but I think it was not a good practice, since when the table changes, the package code also need changes to add new column; Also I think the insert into clause should also list the columns and values, not using the way above.

As a Java developer, after about one year's PL/SQL coding in the past year, I think PL/SQL should and already is playing a very important role in enterprise applications. EBS, Flexcube as well as other application products in Oracle all depend on PL/SQL heavily.  Know some guy who is doing in Asset management software in Reuters also using PL/SQL a lot.  Maybe I should dig a little more in PL/SQL.  PL/SQL really has some advantages over Java(JDBC, ORM) or other Process-oriented/Object-Oriented Languages when interact with database.  Maybe I should call it data-oriented programming language or record-oriented language.

running balance in TD no_book

There are two columns in the TD_NOBOOK table, one is amt_acct_running_bal and the other is amt_dep_running_bal. Generally, the amt_dep_running_bal is for TD transaction's running balance, but only in the following case that cod_passbk_lvl was set to 2 in the td_prod_mast table when amt_dep_running_bal will be populated.

So we still have to calculating running balance of TD transactions by first query the opening balance/previous transaction's running balance, then Dr/Cr the amount from the previous transaction's running balance(for the first transaction, the previous transaction's running balance is the opening balance).

If the cod_passbk_lvl was not set to 2, then NULL will be set to the amt_dep_running_bal column.