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.
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.