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1 OF 58 ADVANCES - LOANS

TOPIC

UNION BANK OF INDIA


DEPARTMENT OF INFORMATION TECHNOLOGY
CENTRAL OFFICE MUMBAI.

JOB CARD

OPENING OF TERM LOAN ACCOUNTS


MENU OPTION OAAC
OUTLINE: -

1. 2. 3. 4. 5. 6. 7.

General Details. Scheme Details. MIS Details Document Details Interest Details. Repayment Details. Related Party Details.

Option Option Option Option Option Option Option

G S V 5 I E A

VERIFICATION OF TERM LOAN ACCOUNTS


MENU OPTION OAACAU

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General details Scheme description System gen a/c No Acct prefix Nxt number tbl code FCNR scheme Acct closure across SOLs allowed EEFC Scheme?

Small scale industries Y 11 TLNUM N N N

Staff Scheme NRE scheme New account duration Min. post work class

No No Nil 020

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Tran ref no Peg interest for a/c? Exception codes

No No

Exception codes 3

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Exception codes

GL sub head codes 71500 71900 73100 73900

Demand loans- Repay. In Instrl NPA DLRI Inland Term loans Term loan- NPA

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Interest paid Interest col Service charge Interest col a/c placeholder

No Yes No 401/1000

Interest calculation frequency Limit level int flag Interest on QIS Interest on Stock

Monthly, last day if it is holiday, next day No No No 5

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Scheme details Loan period Loan period Loan amount Loan repayment method Hold in operative a/c for amount due Upfront instalment collection Interest details Interest base method Interest product method Interest route flag

Min. 6 months Max. 84 months and 30 days Min. Rs. 100.00 and Max. 999999999999.99 Effective available amount Yes No Daily EOD balance method Loan account

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Equated instalments Compounding frequency

No Quarterly

Priority loan Agril loan Covered by DICG

Yes No No 7

8 OF 58 ADVANCES - LOANS C=]8 Subsidy available Refinance scheme Prepayment details Interest benefit on pre-payment Apply prepayment charges Min; amount for pre-payment

No No No No 0.00

Default EI flow id Default Principal flow id Default disbursement flow id Default Collection flow id Interest demand flow id Penal interest demand flow id Interest on principal Penal int on principal demand overdue Principal demand overdue at the

EMI PRDEM DISBT COLLC INDEM PENIN Yes Yes Yes 8

9 OF 58 ADVANCES - LOANS end of the month Interest on interest demand Penal interest on interest demand overdue Exception codes

Yes No

Interest demand overdue at End of Month? Overdue interest on principal? Apply preferential for overdue interest Apply late fee for delayed payment Tolerance limit for Delinquency period cycle Consider tolerance for late fee Create interest demand from repayment schedule Rephasement capitalize interest Rephasement carry overdue demands?

Yes No No No Fixed amount No Yes

Yes No

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Exception codes

Customer details Acceptance report code Default customer preferential to account

73100 No

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Cash limit Clg limit

0.00 0.00

Interest table code Min. interest col amount

BPLR Rs. 5.00 11

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Tax flag

Exceptional codes

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Past Due Main asset Sub asset Int definition classification classification accrued Upto days Upto years 90 1 2 2 1 2 Y N

Int booked Y N

Int Past collected due flag Y N N Y

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14 OF 58 ADVANCES - LOANS Upto 3 years Upto 5 years Exceeding 5 years Exceeding 5 years 3 3 3 4 3 4 5 6 N N N N N N N N N N N N Y Y Y Y

Document details Other- STIP sanction advice SD-01 Letter of guarantee SD-03 Hyp of goods agreement SD-18- General Term Loan agreement SD- 21 Demand promissory note

Not mandatory Not mandatory Not Mandatory Mandatory Mandatory

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Processing charges Yes

OPENING OF ACCOUNTS

MENU OPTION

OAAC-

Type OAAC in the Finacle Menu Option and Press <Enter> or double click on Open an account in the Favorites.

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OAAC- First Screen


Functions Function Customer id

Description
Enter O to open an account. Use Enter key to move to the next field. Enter the customer id for which the account is to be opened. To select the id press F2. Enter the short name and press F4. Use the mouse or the down arrow to select the record and press Shift+F4. The default value in this field will be INR- Indian Rupees. Press F2 to list the currencies and press shift+F4 to select the applicable currency Press F2. Use the down arrow or mouse to locate the scheme and select the same using Shift+F4 keys. For faster search operation, type TL (for Term Loan schemes) in the field and press F2. The screen will display only the relevant schemes. Select the applicable scheme. Along with the selection of the scheme, the default GL sub-head is also gets selected. In case of loans, the same may be a DLRI or a TERM loan. While selecting the scheme, care has to be taken to select the correct scheme and the corresponding GL sub head. Do not enter any value in this field.

Currency Code Scheme Code

GL Sub Head

Permanent Account Number

Press F4 to go to the General Account Details Screen

GENERAL DETAILS: - SUB OPTION G [MANDATORY]

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17 OF 58 ADVANCES - LOANS Functions Account Name Account Short Name Account Opened date Special Charge Code (Optional) Mode Of Operation Location Code Account Manager Cash Exception Limit Dr. and Cr. Clearing Exception Limit Dr. and Cr. Transfer Exception Limit Dr. and Cr. Account Report Code Ledger Number Collect Charges Turnover details Staff Id Relative to staff Relative Staff Id

Description
Name will be default populated. Short name will be default populated. The BOD date will be default populated. This date can be modified to open a back dated account. Future dated account opening is not allowed. Do not enter anything in this field Enter the valid mode of operation of the account. Press F2 for list and select. This value will be shown during transaction creations. Press F2 for list and select the location. Leave it blank Default Zero in Cash debit. Do not change the default values. Default Zero in Clearing debit Do not change the default values Do not change the default values. Default populated value. Do not change the default values. Leave it blank Default value is N. Default value is N. Enter the staff employee id if the account holder is a staff. Enter Y if the customer is a relative of the staff, else N. If the above value is Y, enter the employee id of the staff to which the customer is related.

Press F6 to go to the next screen


Passbook/Statemen t Statement frequency Local Calendar Enter S or P as the case may be Enter M/ / /31/N. Enter N

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18 OF 58 ADVANCES - LOANS Dispatch Mode Next Print Date Down load to PBF Contact Phone No Functions Pay Interest Collect Interest Customer Prefere ntial interest Cr. / Dr. Account Prefere ntial interest Cr./ Dr. Interest Credit Accoun t Flag Interest Debit accoun t flag Interest debit accoun t number Interest Credit accoun t number Interest Rate Code If Statement of account enter C Enter the next date on which the pass sheet has to be printed. Default value N. Press F6 Type the phone number of the contact person Details The default value will be N in case of Loans. The default value will be Y in case of Loan accounts. It is shown as nil

Enter the preferential rate for the account, if higher interest to be charged put positive value in A/c preferential Dr. or vice versa. Default value is S. Default value is S. Non-enterable field.

Non-enterable field.

Account Pegged

Pegging Review Date Pegging Freque ncy Net Interest Rate

The Interest table is defaulted from the scheme level. The user can modify the table. Press F2 for list of interest table and select the applicable table. Do not modify the tables populated in Union Schemes (TLU02 to TLU14), Agricultural loan schemes (TLA01 to TLA05), Staff loans (TLS01, TLS03, TLS04 and TLS06) The N flag will be default populated. In Union Schemes except TLU15 and in case of Staff Simple interest loan schemes, the default value will be Y. Do not modify the flag. Not applicable Not applicable. This field cannot be entered.

Press F6 to go to the next Screen

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Functions

Details
Enter the contact phone number. Default value is N. Not applicable to Loan accounts Do not enter any values in these fields.

Contact Phone Numbe r Allow sweeps Interest Calcula tion Freque ncy Cr. Next Interest calculat ion date Cr. Interest Calcula tion Freque ncy Dr. Next Interest calculat ion date Dr. Daily Compo unding of Interest Tax Category Withholding tax borne by Withholding tax floor limit Withholding tax% TDS operative accoun t

Not applicable for loan accounts.

By default the frequency comes as M/ / /31/P

Enter the next interest calculation date. CARE should be taken to define this date accurately. This field once entered and committed cannot be modified. Default value N

TAX DETAILS Default value N. Not applicable in debit interest. Default populated from customer master. Default populated from customer master. Default populated from customer master. Not applicable.

Press F4 to go to the sub-menu options field.

Press F2 to list the sub menu options. Select (Shift+F4) S- Scheme details. The sub option S comes to the function field. Press F4. The screen showing the Scheme details is displayed.

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SCHEME DETAILS: -SUB OPTION S [MANDATORY]

Menu sub-options Loan Amount

Description

Enter the sanctioned loan amount. The system validates whether the amount indicated here is within the range mentioned at product level. Else exception would be raised based on the set up. Loan period Enter the period for which the loan is sanctioned. Month/D Validates the period mentioned in scheme level. ays Credit File Enter the file number for the account or Sanction advice Number no. Review Level Press F2 and Select from the list the level at which this account will be reviewed. Reviewing Press F2 and Select from the list the authority that will Authorit be reviewing this account. y Hold in operative Default Y. account for amount due. Repayment Default E. method Repayment Not applicable. currenc y rate code. Operative Mandatory if the above two flags are Y and E Account respectively. Number Enter the operative account number from which the . repayment will be done.

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21 OF 58 ADVANCES - LOANS Related deposit account number Acknowledgemen t of debt period start Debt acknowl edgeme nt date Value of asset Priority loan Enter the related deposit account number, if any. Default value L for loan paper date. Valid values are L,M & R Enter the date of first DP Note

Transfer in account Debit interest to Default L Valuation required Not applicable. This can be yes in case of loan accounts where valuation is required from time to time. Bank IRR Enter banks internal rate of return for this account. Margin Enter the margin maintained in sanction advice.

Enter the value of asset generated through loan amount Default value Y. Enter N if not a priority sector advance. Default N. Applicable to transfer in accounts.

Press F6 to go to the next screen

Menu sub-options

Description
Default N, If covered by CGFSI in case of SSI loans, enter Y. Default N. Enter the fees percentage. Enter the date. Enter the claim date Enter the amount of refinance. 21

Credit Insurance cover Credit insurance fee borne by borrower. Insurance fee percent Refinance sanction date Refinance claim date Refinance

22 OF 58 ADVANCES - LOANS amount Refinance sanction Ref number Refinance scheme Initial payment by hirer Subsidy available Subsidy amount Subsidy agency Subsidy deposit account number Subsidy claimed date Subsidy received date Subsidy activity code Activity code

Enter the reference number. Default NONE. Default 0.00, not applicable. Default N. If available enter Y. Enter the subsidy amount. Press F2 and select. Enter the subsidy credit account number. (FDR number) Enter the claimed date. Enter the received date. Free text. Free text PRESS F4.

The cursor comes back to the enter option in the first screen. Type I to go to the interest details.
INTEREST DETAILS: - SUB OPTION I [MANDATORY]

Functions Interest on principal Penal Interest on principal demand overdue. Principal demand overdue at the end of the month. Principal overdue period month/days Interest on interest demand

Details
Default Y. Default Y. Default Y. NA Default Y. This field is N in case of simple interest schemes. 22

23 OF 58 ADVANCES - LOANS Penal Interest on interest demand overdue. Interest demand overdue at the end of the month. Principal overdue period month/days Overdue interest on principal Apply late fee for delayed payment Grace period for late fee (month/days) Interest demand effective date Default Y. This field is N in case of simple interest schemes Default Y. NA Default N. Default N. NA Enter the date on which the interest demand should be made effective. In case of staff clean,

housing, conveyance 31.12.2099.

NSC loan,

and enter

PRESS F4. The cursor comes back to the option block in the main menu. Type E in the option block and press F4
REPAYMENT SCHEDULE DETAILS: - SUB OPTION E [MANDATORY]

Functions Flow id

Details
Default populated from the scheme. Do not modify the flow id. For EI (Equated monthly installments it is EMI) and for Non EI (Non Equated Installments it is PRDEM) Enter the start date of repayment. For non-EMI loans this should be last day of the month. For EMI loans, enter the actual date i.e. if an EI loan is disbursed on 15.01.2003 give the start date as 15.02.2003. Enter the number of installments. Enter the frequency of repayment. For EI Loans-Equated Installments 23

Start date

Number Frequency

24 OF 58 ADVANCES - LOANS For EMI (Monthly) M/ / /31/P, for EQI (Quarterly) Q/ / / 31/P, for EHYI(half yearly) H/ / /31/P and for EYI(Yearly) Y/ / /31/P In case of Non-EMI Loans. We have to describe the principal repayment schedule with moratorium period if any For EI Loans press F4. The system calculates the EMI and is displayed on the screen. Enter Y. Enter the amount in case of Non-EMI Loans as per repayment schedule. Press F4 A pop up window appears which asks for the next Interest demand date and Interest frequency enter the next interest demand date and Interest frequency as per the sanction terms. Press F4

Amount

The cursor comes back to the enter option in the main screen. Type V for MIS details and press F4
MIS DETAILS: - SUB OPTION V [MANDATORY] The MIS codes are used for generation of various statutory reports for MIS purpose. The accuracy in filling up these fields will ensure the proper reporting of the advances portfolio. This is also important from the point of view of generation of Form A1 to A4.

Function Sector Code

Details

Press F2 to get the sector codes. Select the code and press F4. Sub-Sector code Press F2 to get the sub-sector codes. Select the code and press F4. Occupation code This field is default populated from the customer master. Borrower Press F2 to get the borrower category codes. Select the category code and press F4. Purpose of Press F2 to list all the purpose of advances. These BSR 24

25 OF 58 ADVANCES - LOANS advance Mode of advance


Type of advance Nature of advance Guarantee cover code Industry type Free code 1 Free code 2 Free Code 3 Free code 4 Free Code 5 Free Code 6 Free Code 7 Free Code 8 Free code 9 Free code 10

codes are to be entered and the field is mandatory. Select 001 for direct advance, 002 for indirect advance and 009 for others.
These are the facility codes used for asset classification. The field is mandatory. Select 001 for fully secured, 002 for partly secured and 003 for unsecured advance. Press F2 and Select from the list. Press F2 and Select from the list. Optional Optional Dummy for upload Optional Optional Optional Dummy 9999 Dummy 999 Optional Optional. Press F4

DOCUMENT MAINTENANCE: - SUB OPTION 5 [MANDATORY]

The document screen displays a list of documents, which are applicable to the scheme. The list is only illustrative and any specific document mentioned in the sanction advice for the particular account can be added in the text fields. Additional information about each document can be captured by exploding for each document. The following screen will be displayed.

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If the document is mandatory one, then he will not be able to mark it as deleted. Functions Details Document code The document code is predefined at the scheme level. Document Description of the document is populated. description Due date Default BOD date. This date is the date on which the documents supposed to be taken. I.e. Received date Enter the date of document. Remarks Enter remarks, if any. This is a free text field. Expiry date Enter the date on which the document expires. After entering all the values Press F4, the cursor comes back to the option block. Press F2 to list the sub-options. Select A- Related Party Details. Press F4 to go to Related Party details. RELATED PARTY DETAILS: - SUB OPTION A If the account is a joint account or more than one person is associated by way of guarantor or in any other form, the details of such person can be entered in this screen. By default the first record will be of the person whose customer id is associated for account opening.( Screen 1) To add the record of the joint account holder details or the guarantor details, use down arrow to go to the next screen. Functions Relation Type Relation Code Dispatch mode Designation Code Customer id

Details (Next Screen) 2


Press F2 for list of relation types. Valid values are Ppower of attorney, J- joint holder, H- legal heir and GGuarantor Press F2 for list of relations. Select the relation (shift+F4) List and select the mode through which the account statements are to be sent. Enter designation of the related party. Select from the list available. If the related party is an existing customer, enter the customer id and press F4 and all the fields below get 26

27 OF 58 ADVANCES - LOANS default populated. If the related party is not a customer enter the name of the party. Enter address. Select from the list. Select from the list. Select from the list. Enter the postal code. Enter the telephone/telex and fax numbers, if any. Enter e-mail id of the related party, if any. Enter Y or N

Name Address City Code State code Country code Postal Code Telephone/Telex/Fa x number e-mail id Print account statement Print advice for SI Print deposit notice Print loan notice Start date

Enter Y or N Enter Y or N Enter Y or N If the person is a joint account holder or a power of attorney enter the date from which the person is authorized to operate the account. End date If the person is a joint account holder or a power of attorney enter the date till which the person is authorized to operate the account. Amount Enter the maximum amount allowed for the authorized signatory. Remarks Free text field. Delete flag Enter N. Exclude for Enter Y if the related partys statements are to be combined statement excluded for combined statement.

Press F4 to come back to the Option menu.


User can also capture loan message details (not mandatory) through M option. Certain ready made codes are available which can be selected or else can be manually entered.

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28 OF 58 ADVANCES - LOANS Disbursement details: User can also capture disbursement schedule details under

Press F10 to commit the record. The system generates an account number. Please note down this account number.

VERIFICATION OF THE ACCOUNT MENU OPTION [OAACAU]


The account opening has to be verified by a higher authority. Use OAACAU menu option for verification of the account. Type OAACAU at the Finacle Menu Option. Press <ENTER>. Type V in the function Press F4. During verification, all the screens in all sub-options viz. G, S, V, 5, I, E and A have to be visited and authenticated. After all screens have been visited at the Option block Press F10 to commit. If there is any error/mistake in the data entry, come out of the OAACAU menuusing Esc.(Escape / Quit). Go in modification mode in menu OAACAU and modify the relevant field. Press F10. Verify the same through the same menu option OAACAU. In case of Cumulative account the interest provision is credited to the customer cumulative account. This entry will be shown in the ledger as well as Pass book. Customer to be educated about the change in procedure. block. Enter the account number to be verified.

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29 OF 58 ADVANCES - LOANS The accounts which are migrated it is observed that the Repayment account field is blank. The user to update the field by modifying through ACM-0 option or through ACM- C option. Select interest outflow (IO) and give details by F6. The account can be intersol. Also. Caution: While modifying the limit details, the application date should be either BOD date or any date after the last interest applied date. If the user after entering the said date, escapes and presses F4, system inserts the last application date. In this case the system recalculates the entire interest from the last applicable date and refund/charges to the account in the next interest run. Hence user under no circumstances to escape and press F4 once the applicable date is taken as BOD date or date not beyond the last interest applied date. LOAN DISBURSEMENT: Loan disbursement is to be done through TM. Dr loan account with loan amount sanctioned Do not enter any instrument type System mandatorily takes the user to Additional details screen, select the flow id DISBT. Cr the account or issue the DD/PO as per the instructions of the party. Post it and verify it. Generate the DD/PO through menu option DDPRNT. Note: Wherever loan disbursement is done along with margin, debit the Loan amount and margin amount separately. In other words do not transfer the margin amount to loan account and do the disbursement. System presumes the credit to loan account towards the margin as collection and shown as Recovery. EMI calculation: Menu option: LAMOD

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Note: Verification of Account opening/modification of verification has to be completed day to day basis. For this authorized users has to go to AFI and inquire.

Press F4

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note down the accounts numbers and verify the account opening through OAACAU and modifications through respective menus. If this is not done, system may not calculate interest in those accounts. REFERENCE CODES USED IN LOANS:

REF TYPE
00 11 12 13 15 17 18 22 23 24 27 31 31 38 39 40 41 92 BF BG BX AFI TABLES: 1 2 GAM GAC

Description BORROWER CATEGORY CODE SANCTION LEVEL CODE SANCTION AUTHORITY CODE COMMUNITY CODE CUSTOMER GROUP CODE HEALTH CODE CUSTOMER INDUSTRY TYPE CODE CUSTOMER SECTOR CODE CUSTOMER SUB SECTOR CODE CUSTOMER RATING CODE MODE OF OPERATION CODE FREEZE REASON CODE GL CODE NATURE OF ADVANCE CODE TYPE OF ADVANCE CODE MODE OF ADVANCE PURPOSE OF ADVANCE ASSET SUB CLASSIFICATION CODE LEIN REASON CODE ASSET MAIN CLASSIFICATION CODE DOCUMENT CODE

GENERAL ACCT MASTER TABLE GEN ACCT CLASS TABLE 31

32 OF 58 ADVANCES - LOANS 3 4 5 6 7 8 9 10 LAM LRS LDT LMT ADCT SBHT LSP IST LOAN ACCT MASTER TABLE LOAN DISBURSEMNT SCHEDULE TABLE LOAN DEMAND TABLE LOAN REPAYMENT SCHEDULE TABLE ACCOUNT DOCUMENT TABLE SCHEDULE BALANCE HISTORY TABLE LOAN SCHEME PARAMETER TABLE INTEREST SUMMARY TABLE

CLASSIFICATION OF NPA ACCOUNTS: When the branch is migrated to CBS all accounts are shown as Std asset. The branch with the assistance of Implementation team should modify the status of NPA accounts through menu option MEAC.

The accounts can be selected on the basis of customer id, scheme code, regd type (in case of Inland or foreign bills) or account number. Press F4

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This menu option is available to the Branch Manager only. The branch has to take the latest A1 to A4 statement and modify the status. User is to select both Main asset classification and sub asset classification. Select A for account wise. User to modify the account one by one and modify both the main asset classification and sub asset classification. Then change the GL sub head code from regular to NPA by modifying through menu TACBSH. Tips: Through Menu option PREFINT a report can be generated giving a list of accounts where preferential interest has been applied. Tips: How to review loan accounts every year? After opening the account the user to go to ACLHM in modification mode. Furnish the Loan account number and modify the sanction limits.

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The expiry date default display shows the end date of loan period, whereas the user requires to review the account every year. In such cases user has to delete the default expiry date and put the effective one year end date. Once the above field is modified, the system forces him to fill the fields such as Document date, Review date, Sanction level, Sanction authority and Sanction reference number. This requires verification. REVERSAL OF LOAN DISBURSEMENT: There are possibilities that wrong disbursement would have happened in a loan account. In such cases the Bank may like to reverse those transactions. Such reversal of disbursement should be done using the menu TM. Firstly note down the Tran id of disbursement through ACLI

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Go to TM and put the new transaction by crediting the loan account. By accepting system brings the following screen. Change the flow id from COLLS to DISBT. Enter the tran id of disbursement, part tran number and date of tran. Accept and enter the account where the amount to be debited.

ACCOUNT CLOSURE: Any account that needs to be closed in CBS should not have any balance outstanding in the account. The user has to ensure the following, before closure of the account. 1. The account balance is zero. 2. There is no shadow balance in the account 3. There are no pending transactions for the account which is entered status 35

36 OF 58 ADVANCES - LOANS 4. Interest is calculated up to date. 5. Fee/charges are assessed not collected up to date. If the above conditions are satisfied the user can invoke a menu option CAAC for closure of the account. The system provides additional features of inquiring into some of the details like: 1. Accounts of customer 2. Message maintenance 3. Dependents accounts list 4. Standing instructions details 5. Documents maintenance User can carry out the following process as a part of the account opening. 1. Interest calculation 2. Posting of transactions (create a transaction for the balance outstanding in the account or post the pending transaction- the user is taken to TM screen once this option is invoked). LOAN REVIEW REPORT: Users can get the report of Advance accounts due for review through menu option LAROR.

Scroll to the right

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Tips: How to know whether simple or compound interest is charged to the loan account. ACM- S option 4th screen

In the above screen Interest on interest demand is shown as N. Note: Branches to note that once their branch is migrated they have to update the security details in SRM menu for all loan accounts. These security may be in the form of Primary or Collateral. Tips: How to open loan account with subsidy amount where no interest is to be charged on the subsidy component of Loan? 37

38 OF 58 ADVANCES - LOANS 1. Open Term deposit for subsidy amount as usual. Modify the interest in INTTM. Give A/c pref cr as minus ROI as applicable for the said deposit. 2. Open the Term loan for full amount as usual 3. Open the term loan for subsidy component. In General details mention Collect int as N. 4. Debit the full amount under Term loan for subsidy component and credit the Main Term loan account. Tips: Opening Demand loan against NSC for Staff members. Scheme code to be selected: TLS05 General details: Second screen: the interest table code by default shown as STNSC. If the ROI is differed from STNSC, then give account preferential Dr. I- Interest details: Interest effective date as maturity date of NSC Under E details (Repayment period): Flow start date: Maturity date of NSC Number of installments: 1 Tips:

How to handle transfer- in NSC loan account of Staff?


First step: Open account through OAAC- Account open date to be Old account opened date at the transferor branch. I-Interest details- Interest demand date to be maturity date of NSC E- Repayment details- No of installments 1 S Amount- Disbursement amount, Period- 72 months

Verify the account opening through OAACAU. Second step: Pass the tran through TM. Dr NSC loan account with disbursement amount Cr Local branch or BPARD. Tips: Opening of Educational loan: Scheme code: TLU05 Simple Rate of interest Interest rate code in General account details second screen: BPLR 38

39 OF 58 ADVANCES - LOANS Difference of interest is given in Account preferential Dr. E -for Repayment period: -Flow start date to be given after moratorium. I- Interest details -Interest demand date to be given after moratorium. After moratorium is over the account needs to be rephrased through ACM. E- Repayment details: Mark Y in capitalize interest. Mention period of repayment as repayment period mentioned in Sanction advice. Note of caution: While closing the loan accounts users not to invoke menu option CACC. If it is invoked, it will not allow account closure verification. Tips: To reduce the instances of unposted Standing instructions, go for conditional SI creation so that system tries for execution of SI s only when condition is met. Tips: When the account closure is completed by pressing F10, a screen is displayed with all the details of account details with closure details. How to inquire for such details later on? There is no facility to inquire such details except ACM. Even ACM menu will not furnish all the details as displayed in the CAAC screen. However, system generates a report in the background of the user who is closing the account. Users are advised to take a print out of the same for records. Tips: How to inquire on interest details 1. Total interest charged from the date of opening account-ACM- enter option ?. 2. To know the month wise details of interest-ACM- E enter option. Press Shift F4. System shows principal and interest demand separately. For EMI based loans, indicative EMI can be found out through menu LAMOD. For actual EMI, it can be seen only through account opening OAAC- E option. Tips: How to see interest slab history for an account? Go to INTTM Give account number and press F4. To see the penal interest charged for a month; say May, 2004. Go to LAOPI. Enter a/c number and as on date type 1.05.2004. Explode. It shows the details of demand and overdue month by month. Tips: Example. Interest is not applied. Reasons for the same and how to proceed further for charging of interest? 1. For a/c no. 495806820001065 Mr, Shinde Ashok Rama, collect interest flag is "N" .Hence system has not charged interest to this account. For changing the flag, invoke menu option ACM sub option "O" and modify the flag as "Y". 39

40 OF 58 ADVANCES - LOANS 2. For a/c no. 495806820001066 Ms. Aban R. Talati run LADGEN with value date 31.05.2004, force interest run-Y and and trial mode "N" This will apply the interest. 3.For a/c no. 495806830001072 Mr. Kailash Mahajan run LADGEN with value date 31.05.2004, force interest run-Y and and trial mode "N" This will apply the interest. Tips: Ashok Vihar Branch is trying to close loan account No 396606310311001 ( This is NPA Account ) Fatal error is displayed while CACC is verified -ObservationFor loan type of accounts it is not necessary to invoke menu option CACC. When the user invokes the menu option CACC before going in for closure of account, while verification of the record, system gives fatal error , if the operative account to which the charges are to be debited is not specified in ACM.( In earlier version of finacle this error was not encountered. If any charges were to be recovered, the system was debiting to the loan account.) Some times the system also prompts the user to visit the CACC menu, and the aforesaid error is popped up. ResolutionInvoke menu option ACM sub option "S" and on second screen find out if operative account number is given. If the account no is not given, specify the operative account number and get the record verified. Once the ACM record is verified specify the same operative account in CACC menu while verifying the same. The record will be verified. Tips: System has not applied interest in few loan accounts Trial run in LADGEN gives the following message for the accounts 535606510000013 & 535606510000015 53560 INR 200033970 Pegged interest Not Reviewed beyond [25-03-2004 00:00:00] -Under Staff Housing Loan account interest calculation frequency is Half yearly. Sometimes interest in Staff housing loan will not be calculated if the account master it is given as monthly in E details. However, when INTCAL report is generated at the month end, the report will list out such accounts. Tips: In educational loans the EMI is to be calculated twice. Once at the time of opening the account. Next when moratorium is over and repayment starts. This is needed because the accrued interest is capitalized (added to principal). Tips: In case of Staff Housing loan and Clean loan is rephrased, the Capitalize interest in E details should be N only. Tips: In case of following loans the Interest Demand effective date to be given in Interest details of OAAC/ACM. - Educational loan - the date of completion of principal repayment - Staff Housing loan- The date of completion of principal repayment - Staff clean loan-the date of completion of principal repayment - Staff NSC- The maturity date of NSCs - Loan against Term deposits- the maturity date of Term deposit receipts Tips: Reversal of Unrecovered interest on NPA accounts newly identified. 40

41 OF 58 ADVANCES - LOANS 1. In case of CC/OD accounts- Find out the amount of interest not recovered through ACLI. Pass a fresh transactions through TM by debiting the Income a/c and crediting the CC account. 2. In case of loan accounts the concerned transaction to be reversed. Go to ACLI. Note down the tran id of interest debit (where it is not recovered). Pass the tran through TM by debiting Income a/c and crediting Loan account with flow id as INDEM. Tips: 1. Branch has opened one account on 05.07.2002 In the name of M/s GMR TECHNOLOGIES with Rs.5.00 crores. The system has calculated interest on 31.03.2004 and the balance in the a/c was Rs.5,29,76,541 as on 31.03.2004. The borrower has paid 4.00 crores on 15.04.2004 and the branch has transferred the balance amount of Rs.1,29,76,541from their cd a/c without closing the account. Subsequently, on 04.05.2004, the branch has sanctioned another loan of Rs.5.00 crores and controlled the same in the same loan account (601104) which is not as per guidelines. We have verified the INTTM where int. pegged is given as Y. On referring the matter to us, we tried to close the account 601104 where message stating "PEGGED INTEREST NOT REVIEW BEYOND 31.12.2003" is coming. ObservationUser has disbursed the loan amount in the old a/c which has been adjusted but not closed, which is wrong. ResolutionBranch should open a new loan account with a/c opening date as 4.05.2004.The entry for 50000000/- in the old loan a/c should be reversed by crediting old a/c and debiting new a/c. While reversing the entry through TM credit FLOW ID should be DISBT and the transaction should be value dated as 04.05.2004.After putting the FLOW ID as DISBT system will ask for reversal details. Give reversal details as follow- Transaction ID AA14836, Part tran No. 1 and date as 04.05.2004. While putting the TM first enter the Credit to old A/c No 601104 and then Debit to New a/c no. with flow ID as DISBT. with value date as 04.05.2004. After reversal of this transaction go for closure of old loan account. Tips: The standing instructions in case of loan account repayment is posing inconvenience because in cases where there is no balance in the operative accounts, system creates transactions and left in entered status. Branch at the end of the day before EOD has to delete such transactions, which takes considerable amount of time. - While creating the SI master through SIM, the flag Delete tran if not posted is N to be selected. This is for the reason that there are SI s towards, Cumulative installments and Loan installments. The system has not posted such transactions for want of Additional details. In such cases, users has go to TM in modification mode and furnish the additional (flow id) details and post/verify the transactions. In other words such transactions cannot be simply deleted. - However, the instances of creation of SI without funds are in large numbers the work around to minimize this kind of transactions are as follows: - Create a conditional SI through SIM o Account balance: Mention the balance to be maintained in the operative account o Bal indicator: C for credit 41

42 OF 58 ADVANCES - LOANS o Excess/short: E for excess o Delete tran of if not posted: to be N o Max. times: 99 Tips: In an loan account disbursement is done wrongly. How to reverse it? Go to TM and reverse the transaction by; Credit the loan account- select the flow id DISBT in additional details screen. System seeks 3 details namely: Reversal tran id, Part tran number, and date of original transaction. Type the same. If the information furnished is correct then only system allows to proceed. Debit the account where earlier credit is given. Tips: Tried to close loan a/c 479506120000822 of Harish Arora. System has prompted to invoke CACC & they have done the same. Now we are unable to either Verify the CACC or Cancel CACC. The system displays a message -"Finacle Core Fatal Error 1403, Table GAM Option SI"AS SUCH THE LOAN ACCOUNT IS NOT CLOSED Resolution: The fatal error appears because the system searched for on operative account to collect closure charges. So kindly enter an operative account of the same customer in the field "operative a/c no." in the second screen of scheme details in ACM menu and verify the same. After this you will be able to verify/cancel CACC and then close the account. Tips: Interest is not being calculating/applied in scheme "TLS04" & running ACINT for above scheme does not generate even success/failure report. Please do the needful & guide us in the matter so as to enable us to apply interest in above-mentioned scheme. For the Scheme "TLS04" interest frequency is defined as Half yearly as such interest will be calculated half yearly for these accounts. In ACM "E" option interest frequency is wrongly given as "M" by the user and as such the "INTCAL" gives a report interest not being charged. Branch has to modify the interest frequency from monthly to half yearly and also has to rephrase the account. Tips: While inquiring through INTCAL we came to know that in scheme code "LNSEC", "ODGEN", "ODSTF" system has not applied interest up to 31.05.2004. We have verified in some a/cs through "ACINT" menu & found that int. calculation report is generated successfully.,( i.e. success report) where system has calculated int. as iarm , normal,& penal int. but not applied in respective a/cs. Please look in to the matter & guide us accordingly. Resolution: Due to some technical reason the interest was not applied on cc/od/lnsec accounts on 31.05.2004. You are requested to apply the interest to all these accounts through menu option ACINT by giving value date as 31.05.2004 and post transaction flag as Y. The menu should be run scheme wise by giving scheme type as ODA/CCA etc. Tips:

42

43 OF 58 ADVANCES - LOANS System is not allowing us to close the housing loan a/c 344906650000804 pertaining to Sanjay Bhalla. When we go to CACC menu and Function- V, the system displays fatal error and logs out. User has to enter operative a/c or Sundry A/c in "S" option in ACM menu. Get it verified and then verify the CACC. Tips: OUR HOUSINGLOAN AC 380806510010126 KINDLY SCRUTINISE ABOVE LOAN ACCOUNT AND ADVISE US HOW INTEREST CHARGED IN ABOVE LOAN ACCOUNT WAS CREDITED TO THE LOAN ACCOUNT INSTEAD OF DEBITING. -ObservationOn 02.0.2004 a transaction has been put in the account for Rs.14200.00 which is value dated as 31.07.2004. As such system has refunded interest and penal int. on this amount. Tips: Excess int charged in Housing loan a/cs 1) system charges penal int @ Rs.3,2,6, etc every month . (2) instead of single Dr. system makes 2 to 3 entries (3) the interest charged in the month of Mar 04 is more than previous month (4) segregation of principle and interest part in the EMI. representation recd from N Raveendran Pillai a/c no.336306650220773. 1)This is a housing loan account. The installment flow id is EMI. The flow start date is 10.11.2003 and next installment date is 20th of every month. Interest frequency is 31st of every month. It has so happened that the system is raising the installment demand on 20th of every month and interest demand on 31st of every month. The flow frequency in case of EMI type of account should be invariably last day of the month. Due to this the repayment is not matching with the demands generated by the system and penal interest is charged. 2) There are always separate entries for interest and penal interest. 3) During the month of Mar.04(20.03.2004) interest rate is revised from 7.93% to 8.75% w.e.f 01.01.2004.This has resulted in system calculating interest from 01.01.2004 at higher rate of interest and charging the same at the time of march 04. 4) It is possible to see the segregation of principal and interest in ACM. Invoke menu option ACM in Inquiry mode. Use sub option E and press SHIFT+F4. Tips:
WHILE REPHASEMENT OF HOUSING LOAN ACCOUNTS SYSTEM NOT ALLOWING BY GIVING MESSAGE PROXY TRANSACTION EXISTS.

-Please check whether Standing Instruction for the account is created. If the standing instruction is there please delete it and then go for Rephasement of the account. Tips: This error is due to wrong classification of the accounts in the old system. While migrating the data this error could have been rectified. Now the user has to close all these accounts and transfer the balance to new loan accounts under correct scheme code. Close the current accounts through menu option CAAC and transfer the balance to Suspense account -Misc. Open new account as transfer in account and then transfer the balance in Suspense. A/c to new account. LNSEC accounts need not be opened as transfer in accounts. Tips: 43

44 OF 58 ADVANCES - LOANS During the month end interest on 31.07.2004, after generation of 'INTCAL' we found that for 3 a/cs under 'Standard Category' interest was not charged. For one of the a/c interest later has been charged on 3.8.04 and 2 a/cs are left out. Details of which are as under: A/c.6038005- Mohan Krishna Agro Farms This is a agriculture term loan a/c. Upto Mar'2004 interest used to be applied monthly. But interest was not charged in the account from April'04 onwards. When we contacted the CBS team, forced interest run was done 20.07.2004 by using 'LADGEN' and interest for the months of April. May and June'04 was debited to the account. But again, interest for this a/c was not charged on 31.07.2004. -This is an Agriculture Loan. The interest frequency for this type of account is "H" Half year. The batch job is set for 30.09 and 31.03. As such system is not calculating interest for this account. When user runs Ladgen the force int. Flag is made as "Y" as such interest is applied. Interest will be applied to this account on 30.09.2004. Tips: We have allowed SOD in ODGEN scheme facility in two different account against the single deposits . The system is not allowing us to enter the same DRC in the other account in SRM. . A/C NO 493704010028036 error "one account /cd denomination can be used as a primary security only once". One deposit receipt can be used only once for SRM. If the branch wants to give the same deposit for different accounts then the deposit has to be split open and then try for SRM. Tips: PL.REFER TO TRANSACTION .NO.SAA 516815 DT.10.08.2004(DAY-END PROXY TXN.) LN.DEMAND OF A/C-665 57048 & 57049 --IS BEING SATISFIED BY CREATING PROXY INSPITE OF HAVING BALANCE IN THE OP.A/C. IT IS ALSO RECOVERING AN AMOUNT MORE THAN THE INTEREST APPLIED. Whenever there is no sufficient amount in operative account to satisfy both interest and principal demand, system recovers entire amount lying to the credit of borrowers account and then the transaction is proxy posted by the system as the minimum balance is not maintained. The amount due from the customer can be viewed through following procedureInvoke menu option ACM in Inquiry mode. Go to sub option "E" and press shift+F4. In the record that pops up user can view the demand creation date for interest and principal amount date wise and the date of satisfaction of these demands. This will be useful for answering customers query. Tips: While rephrasing system throws the message "REPHASEMENT NOT POSSIBLE SINCE PROXY TRANSACTIONS EXIST". This error occurs due to two thingsa. If any proxi transaction is pending for this account b. If there is a Standing Instruction for the said account. Reverse any pending proxy reversal transaction. Delete the Standing Instruction through menu SIM and then proceed with Rephasement. Tips: WE HAVE CLOSED LOAN A/C NO 615 1002 THROUGH CAAC. SYSTEM ASKED US TO GO TO CACC MENU. WE HAVE POSTED CLOSURE AMT BY 44

45 OF 58 ADVANCES - LOANS TM. NOW CACC IS NOT ALLOWING AUTHORISATION AND CAAC OPTION GIVE REMARK FOR AUTHORISATION. Sometime system asks to go to CACC for collection of charges in advances a/cs and it may ask for some operative account for collection of charges. then user have to specify operative a/c in ACM option and give same a/c no for CACC option. this may allow you to close the a/c. Tips: Not able to verify home loan a/c 6511364 of gnida for rs.70 crore reason being given "non conforming loan amount". The account was being opened in wrong scheme code the above error message was flashed by the system. Branch was advised to open the account in TL11 scheme code. Tips: During verification of Balancing report as of 31.07.2004 we observe that in respect of GL SH 71200 LNSEC Secured Loans Interest for loan A/c from 703/085 to 703/895 is getting charged on quarterly basis, i.e. interest charged on 31.03.04 & 30.06.2004 & not on monthly basis. ResolutionWhile opening the account interest frequency is given as Quarterly. As such interest calculation is happening at quarterly intervals. Invoke menu option ACM sub option "0" (zero) and on the third screen change the interest calculation frequency from "Q" to "M" and date as 31.08.2004 instead of 30.09.2004.Commit the record and get it verified. This will change the frequency from quarterly to monthly. Tips: There is an error in the calculation of interest in the Housing loan account no 319606810000529 of Renu T.Amin loan account. The following are the interest applied in the account after the implementation of CBS in the branch. 31/3/2003 Rs. 498.00 29/9/2003 Rs 11338.00 31/3/2004 Rs. 181.00 It is evident from the above that there is an error in the calculation of interest for September 2003. It seems that interest has been charged on the interest component also. Branch has reported that system has charged interest at compound interest instead of simple interest on staff account no.681529 on29.09.2003. Kindly arrange to send interest dump generated in user ID JB293311 on 29.09.2003 account no 319606810000529 to verify the interest calculation A/c migrated in finacle on 29.12.2002. Interest for Mar 03 is calculated correctly. On 16.06.2003 user has modified the ACLHM record to change the limit expiry date from 03.09.1999 to 30.04.2004. However while changing the record the applicable date has not been changed to BOD date but has been kept as 02.04.1996. As such system has recalculated the interest from 02.04.1996. The calculation is as follow, 1) Normal interest for the period 01.04.2003 to 30.09.2003 @ 5% 487.85 2) Interest from 03.04.1996 to 31.03.2003 3) Interest already charged from 29.12.02 to 31.03.2003 Int. charged due to changes in ACLHM Interest charged on 30.09.2003 Normal int from 03.04.2003 to 30.09.2003 Int charged due to changes in ACLHM 11213.61 364.47 10849.14 487.85+ 10849.14 45

46 OF 58 ADVANCES - LOANS _________ 11336.99 Branch has to refund the excess interest charged Rs. 10849.14 after taking approval from competent authority. Tips: ON SIMULATION OF LADGEN FOR LOAN ACCOUNTS OF MYLAPORE BR TRIAL BASIS; FAILURE OF INT CALCULATION TAKEN PLACE IN THE FOLLOWING ACCOUNTS WITH THE REASON "DEMAND NOT RAISED AS PRINCIPAL DEMAND DATE IS LESS THAN XFER EFF DATE". Renew the limits through the menu option ACLHM with applicable date as last interest posted dates for the particular account. The last interest posted date can be ascertained from the Menu option ACM sub option "?" Note: While closing loan accounts (say 450506820009241) the system flashes an alert message that closure charge calculation has not taken place and the user is advised to go to CACC menu for the same. Since the Bank does not charge for closure of loan accounts the users may ignore this message. However, having gone to CACC menu, the system throws a fatal error on verification of the same. This happens because the system does not find any operative account to debit charges. Hence, in ACM menu, second screen of scheme details, please enter any operative account of the customer in the field "operative account no." and verify the modification. Thereafter you will be able to verify CACC and then close the account through CAAC menu. In some cases you may find that the system will not permit ACM modification. In such instances, the operative account can be entered. K.J. International A/C no 639861 of Majith Mandi Amritsar Branch is NPA A/C since long time. After the migration of the branch to CBS on 29.05.2004, system has applied the normal interest and debit interest on this A/C Of Rs. 26,76,007/= on 31.05.20045 and 30.06.2004. Subsequently this huge amount of interest has also been included in closing set of branch for 30.06.2004. Kindly advise its solution. -ObservationThis account is showing as Standard Assets in menu option ACM sub option Y. This means that the Branch has not marked this account as NPA immediately after migration through menu option MEAC. ResolutionMark the account as NPA through menu option MEAC. This is to be done by Branch Manager through his id. After Marking of the Account as NPA, system will not calculate interest. Change the GL sub head code from regular to NPA through TACBSH menu option. However for the period prior to this, Branch will have to reverse the interest manually after taking prior approval from competent authority. Tips: The system has not applied interest in the loan accounts nos. 651-13 and 651-15. even after running 'LADGEN' twice on 01.07.2004. The system has also applied interest in loan account no. 651-30 which has already been adjusted on 06.05.2004 and up to date interest has already been charged on that day. In account no 651-13 and 651-15 the user has made changes in INTTM. While making changes in the interest rate, the user has put the end date as 46

47 OF 58 ADVANCES - LOANS 25.03.2004. In this account the pegged interest flag is "Y". As such the system is not accepting any change in interest rate after this date and the interest will not be charged to this account till such time the pegged date is not reviewed. The menu option BROPEG ( for review of pegged date) is not available for user application. Again this option is a batch job and not for particular account ResolutionAs regards the reversal of interest charged to account no 651-30 on 01.07.2004 branch should reverse it through menu option TM. After putting the credit to the loan account the flow ID in additional details should be given as INDEM. The system will now ask for reversal transaction details such as Tran ID no., Part Tran No. and date of reversal transaction. User should give here the details of interest entry debited on 01.07.2004.and press F4.this will bring him back in the option field. now post the transaction by debiting Income account for the amount of interest. Tips: While trying to close loan account No 396606310311001 ( This is NPA Account ) Fatal error is displayed while CACC is verified. ObservationFor loan type of accounts it is not necessary to invoke menu option CACC. When the user invokes the menu option CACC before going in for closure of account, while verification of the record, system gives fatal error , if the operative account to which the charges are to be debited is not specified in ACM.( In earlier version of finacle this error was not encountered. If any charges ware to be recovered , the system was debiting to the loan account.) Some times the system also prompts the user to visit the CACC menu, and the aforesaid error is popped up. ResolutionInvoke menu option ACM sub option "S" and on second screen find out if operative account no. is given. If the account no is not given, specify the operative account no. and get the record verified. Once the ACM record is verified specify the same operative account in CACC menu while verifying the same. The record will be verified. Tips: How to get the overdue as per DCB register? Menu option is LOANODUE. Tips: Trying to close loan account No 396606310311001 ( This is NPA Account ) Fatal error is displayed while CACC is verified. ObservationFor loan type of accounts it is not necessary to invoke menu option CACC. When the user invokes the menu option CACC before going in for closure of account, while verification of the record, system gives fatal error , if the operative account to which the charges are to be debited is not specified in ACM.( In earlier version of Finacle this error was not encountered. If any charges ware to be recovered , the system was debiting to the loan account.) Some times the system also prompts the user to visit the CACC menu, and the aforesaid error is popped up. ResolutionInvoke menu option ACM sub option "S" and on second screen find out if operative account no. is given. If the account no is not given, specify the operative account no. and get the record verified. Once the ACM record is verified specify the same operative account in CACC menu while verifying the same. The record will be verified. 47

48 OF 58 ADVANCES - LOANS Tips: One secured loan a/c no: 312806820001506 are migrated as zero int. rates. The said a/c is having total limit of Rs. 35000/= out of which int. is to be charged @ 7.5% upto Rs.15000/= & @ 12% for rest amount. While adding the limit through "ACLHM" the limit level int. flag is showing as "N" in mask & system does not allow us to change as "Y'. -ObservationWe observe that this is a staff clean loan account. For staff clean loan account the interest table code is stipulated as LZERO. User has to give account preferential interest rate through menu option INTTM. Further the rate is in one single slab. The user should first check the correct limit sanctioned because the maximum amount permissible under the scheme is Rs.30000/ only. If there is a special sanction for this staff then branch has to open two different accounts with two different rates. Resolution- Split the single account into two accounts in the same scheme. Tips: We are having housing loan account No.665/100831. present outstanding Rs.630623.00 Party wants repayments to be rephased for 10 years. (original sanction 15 years) and new EMI to be given is Rs.9200/- (existing EMI Rs.13220/-). Rate of Interest 8.75% floating. New EMI to be effected w e f May 2004 However while doing modification in ACM and option No.E, the message given by system is "NO REPHASEMENT ALLOWED, AS PROXY TRANSACTION EXISTS FOR THIS ACCOUNT". However we find from the system that no proxy transactions existing in the account. - The SIM exists for these accounts. Before doing rephasement delete the SIM and go for rephasement. New SIM's need to be created for new EMI after rephasement. The error was occurring as there was a SI for this account. On removing the SI the rephasement will go through. Note: Logging has been enabled in LADGEN, so that we can log at each stage , what is happening in the system. Running with the logs on a month end should give us enough clue as to accounts getting skipped. The logs can be enabled by exporting LADGEN_FAILURE_LOG=Y System will in such cases continue to raise Interest demands till complete repayment happens ( EOD balance method). For Schedule balance method, since the principal has anyway become zero , interest demands will anyway not be raised. However, one limitation still exists. Lets say , for a account for which partial disbursement has happened, then all demands have been raised and system then continues to raise Interest only demands. Now, the bank can do a further disbursement for this account and principal demands should continue to get raised in this case. Bank then has to procedurally rephase this account for correct principal ( in case of Non-EI) , and EMI ( in case of EI) to be raised. If this is not done, then default behavior will be like this. For EI , system will raise principal demand which is EMI - ( sum of interest demands raised since last principal demand raised) . For Non-EI , system will start raising principal demands from the date on which it stopped raising principal demands, in which case they may become overdue as of today and penal interest might be applied on them. This behavior is consistent with demand generation behavior in earlier versions of Finacle. Tips: 48

49 OF 58 ADVANCES - LOANS Since the value date has been given wrongly for A/C No. 366206810000181 as 14/02/03 instead of 14/02/04 , and value date of loan has been given as 24/01/1994 system has excessively charged int , need solution to reverse the same: The user had wrongly mentioned the last interest posted date as 14.02.2003 instead 14.02.2004, while feeding "U" details. The branch may manually refund the excess interest after obtaining necessary permission. Tips: In loan account 703/1219 system charges around 9% instead of Limit level interest of 7% for month of Feb& March-04. While going through menu ACLHM of the aforesaid account in OPERATION mode "D" for drawing power, it is observed that account RECALLED flag is put 'Y' by the branch. Hence the system is calculating penal interest on the whole outstanding amount, because of recalled status of the account since 11.02.2004. Branch can modify the status by changing RECALLED flag as 'N' in ACLHM. Tips: The balance in the account 359306810001261 is Rs. 501485 out of which the interest portion is Rs.66485.00. Hence the system has charged interest correctly at 10 %, but in ACM second screen of general details, the interest rate displayed is 11%. System shows the display of incorrect rate because while showing the interest rate , it takes into consideration the entire balance of the account. But while doing the interest calculation it calculates based on the parameter set up of whether interest is to be applied on interest or not. Tips: Home Loan a/c 319406650160030 - sanctioned on 05/11/2003. Party repaying the installments regularly. But system charges interest excess. -In OAAC - sub option 'E'. The user has entered the repayment start date as 05/12/2003.The recovery effective date is stipulated as M/-/-31/P , which means that demand for principal will be raised on 31 st every month. However actual recovery in the account is effected after 31st in most of the months. There fore the system has charged overdue interest from 31st of the earlier month till actual recovery of loan installment. So the frequency type should be modified suitably as m/-/-5/P. RESOLUTION: The user should rephase the account through menu option ACM in modify mode and sub-option "E". The user should change the flag of rephasement from " N" to "Y" and capitalize interest flat from "Y" to "N". Further change the start date from 05.12.2003 to 05.05.2004 and frequency as M/-/-/5/P and get it verified. These change will rephase the account and will not charge penal interest from the date. Tips: HARGING OF PENAL INTEREST IN LOAN A/C NO. 3533065201780 - MR ISHTIYAQ HUSSAIN RIZVI, RETD. STAFF OF OUR BRANCH THE STATEMENT OF ABOVE LOAN ACCOUNT IS CONSTANTLY SHOWING LEVYING OF PENAL INTEREST WHEREAS THE INSTALMENTS ARE NOT OVERDUE. -Penal interest of Rs. 5.00 was charged on this account on 31.1.2004. In the account, the repayment start date is indicated as 31-12-2003, which is the account open date. As a result, an EMI demand was raised on 31-12-2003, which was satisfied only on 12-01-2004. As a result the system has charged overdue interest. The system will not consider whether any excess amount has been credited while 49

50 OF 58 ADVANCES - LOANS calculating this overdue. On 28-2-2004, the system has raised an interest demand of Rs.1998.00 which was satisfied only on 17-2-2004. The system has charged Rs. 2.00 as penal interest for the late servicing of the interest. The excess amount credited earlier will not be adjusted against the interest demand. In order to avoid such charging of penal interest mark the "Hold in operative account for amount due" as "Y" and the "repayment method as "E" in the first screen of scheme details in ACM menu. In the second screen of the scheme details in the same menu, enter the operative account of the customer. Verify the modifications. This will ensure that the system will adjust the interest as well as principal demands on the dates they are raised, provided there is sufficient balances in the operative account. Since the customer need not be penalized for errors in data entry, the excess interest charged may be refunded to him after obtaining permission from the concerned authority. Tips: While charging interest for the month of March'04 in the FITL account of M/s. Dharani Sugars & Chemicals Ltd,(635106) the system has calculated interest from 6.3.04, the date of opening the account with "NIL" balance, instead of charging interest from the date of first debit on 22.3.04. i.e. Interest should have been charged from 22.3.04, when the account was first debited with Rs.1.79 cr. Instead, interest was charged on Rs1.79cr from 6.3.04 itself, on which date the account balance was "Nil" . Kindly advise us as to how this has been charged and how to rectify the same. Whether the same should be corrected by passing vouchers manually, or the same will be rectified at the time of charging interest for the month of Apl'04. - The first debit tran of 22.03.04, it has been value dated 06.03.04. Tips: How to see the demand and collection in the loan account? - Go to ACM- E sub option. Press Shift+F4. System will display how the demand is raised and how it is met.

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Tips: In ACM-? For interest details. How the system arrives the amount? -The system arrives the amount of interest in ACM- ? is the amount of interest from the date of opening loan account.

After repahsement of loan account the rephased loan account can be seen in ACME sub option in Schedule No. 2. Tips: How to see the penal interest charged in the loan account? -Go to menu option LAOPI. Give the account number/scheme code and start date from which details required. System displays the record and explode. It shows the demand and overdue month by month.

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Explode to see date-wise break up of Demand, Collection and Overdue

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Further explode will display the adjustment amount and date.

Tips: How to generate housing loan interest certificates? Menu option is HSGCERT. However, this menu will not be useful if the Housing loan account is rephrased.

Tips: What are the steps for opening of transfer-in Staff Housing loan account where only interest is due? 1. Open the account through OAAC 2. In I Option- Int on principal is N. 53

54 OF 58 ADVANCES - LOANS 3. Sanction amount: O/s amount 4. E sub option- Repayment flow id is shown as PRDEM by default. Change it to INDEM. Next int date- mention the next interest run date. 5. Put the transactions through TM - Dr loan account with flow id as INDEM - And credit local branch or BPARD (224/3000) Tips: Whether multiple interest slabs are supported in loan accounts? -No. Multiple interest slabs are supported in the form of sub limits in the accounts of having features of ODA scheme type. Examples are SOD, Demand loan against deposits. For loan accounts, user need to open separate accounts.

Tips: How to generate loan account ledgers? Menu option: ACLPOA- Account ledger print office account. Tips: In NSC loan, system is not accepting multiple limit with different rate of interest. NSC loan accounts have to be opened individually for each rate of interest. Tips: How to close migrated NPA account which is not modified as NPA in the new system? Migrated account and account is not modified as NPA: -System charges interest from migrated date up to the date of account closure. User might have maintained dummy ledger. Pass the transaction for interest recovery from date of NPA in old system to the migration date through TM giving flow id as INDEM. 54

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Note: SI created on loan accounts will be kept in entered status if there is no sufficient balance in the operative account. Users are required to delete such transactions on day to day basis. Tips: In Staff Housing loan there is not provision to maintain principal and accrued interest separately. The balance shown in the account level is the total of principal plus interest. However, in ACM menu the sub option- ? can be used to view the interest report. Tips: System is not accepting other branches deposit receipts as security for Secured loans against deposits. Other branch deposit receipt is to be shown as other security. Once the other branch whose deposit receipt is offered as security also brought under CBS then the system would accept such deposit receipts of other branches also as security. Till such time, the branches can enter the value of such deposits under security code-117 (other securities) where insurance and charge detail is not mandatory. Tips: Against one deposit receipt, system is not accepting multiple facilities to different parties. One deposit receipt can be linked as a Primary security to only one loan account for deriving DP. Tips: System does not allow debit to loan account in case of outward clearing cheques returned in the account. The normal practice is to credit the amount in Sundry first and only on realization of the cheque the proceeds are credited to the Loan account. The same procedure has to be followed in Finacle also. Tips. What is Interest demand date and Interest demand effective date? Interest demand date is the next date of interest calculation. Interest demand effective date is the date from which interest becomes payable. e.g. Staff housing loan can be taken as example. Tips: How to know whether a particular account is charging simple or compound interest? - ACM- S option 4th screen. Interest on Interest flag will be Y for compound interest cases. Tips: How to obtain total liability of a customer? - CUSTBALP menu option. 55

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Tips: It has been informed that once the principal repayment is over, the Staff housing loan accounts need to be rephrased. Is there is any menu option to get the list of accounts where principal is repaid? Yes. Menu option REPHRPT
Tips Account details with limits and Rate of interest: Menu option is INTLIST The above details can be had in accounts under Scheme type ALL, LAA, CAA, ODA and CCA

Report is generated in Background

The solutions in the form of workarounds & FAQs in the form of tips is given to create general awareness on solving routine issues which may arise on day to day operations

Tips: On maturity of NSC in Staff NSC loan is to be adjusted. If there is delay in getting realization and no overdue interest to be charged for the delay, how to handle it? 56

57 OF 58 ADVANCES - LOANS Go to ACM in modification mode. Select S option and press F6 go to Interest details and modify the following fields:

Penal interest on Principal Demand Overdue: Make it N System will not charge penalty either on principal or interest overdue. Tips: The projected instalments of loan accounts can be seen through LARSH for EMI and non EMI based schemes. Tips ACM-E. By exploding the system shows only principal overdues. To see both principal and interest overdue, use LAOPI. Through LAOPI the report can be generated and printed Tips:
TWO OF OUR LOAN A/CS NOS. BEING 6510000354 AND 6510000357 ARE SANCTIONED WITH THE STIPULATION "INTEREST TO BE CHARGED AT HALF YEARLY INTERVALS". INSTEAD OF GIVING INTEREST FREQUENCY AT HALF YEARLY, THE SYSTEM IS APPLYING/COMPOUNDING MONTHLY INTEREST IN BOTH THE ACCOUNTS. -The batch job for all advances accounts except for staff loans and agricultural loans is set as monthly interval. Batch jobs can not be changed for one particular account. Branch is requested to modify the ACM and change the flag Collect Interest as "N". This will not apply interest to this account. Branch can then collect the interest procedurally by calculating it manually and passing a TM for the same.

Tips:
We are receiving constant complaint from our customer that interest in their account are being charge excess. Every time we try to generate the product sheet through the option AINTRPT it gives/shows different interest amt. compared to the int. charged in the account in actual. Through which option we can verify the product and interest charged by the computer at what rate. -AINTRPT gives correct interest and products for the account provided there is no value dated transaction in this account( value date of previous months). As also if the rate of interest is changed in INTTM with start date as back date, the AINTRPT will not give correct picture for that month. On the interest application date detail interest report is generated in the background of the person doing CSOLOP on that day. This is an authentic proof and is very exhaustive. We request you to

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save these reports on the hard drive using menu option PTW. This will help you a lot to attend to the queries raised by customers/auditors.

Tips: Is there any menu for generation of overdues in Staff housing loan? Yes, Menu is SHLOD.
The solutions in the form of workarounds & FAQs in the form of tips is given to create general awareness on solving routine issues which may arise on day to day operations. However whenever users encounter migration issues/issues which are branch/user/scheme specific, it is advised to seek guidance from Help Desk before proceeding to handle the same. /var/www/apps/conversion/current/tmp/scratch20599/91645587.doc

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