Introduction Business Scenario Finacle CBS Process Overview Key Terminologies Step by Step Process Demonstration Summary

Lesson Objective Duration Intended Audience To understand the process of Opening, Pass Book Printing, Renewing and Closing a Term Deposit (TD) Account Duration 2 Hours Customer Service Intended Audience

Business Scenario Business Scenario 1 A Customer of your Post Office wants to deposit funds for a term of one year. Being a Counter Assistant how will you open the term deposit account for him?

Business Scenario Business Scenario 2 One of your Post Offices customer wants to renew the Term Deposit for a further period after maturity. Being a Counter Assistant how will you help him in renewing the Term Deposit account?

Business Scenario Business Scenario 3 A Customer of your Post Office wants to close matured Term deposit account. Being a Counter Assistant how will you help your customer by closing the account and pay the maturity proceeds.   Let us see the generic process in detail for these activities in Finacle.

Finacle Process Overview – Opening a TD Account The approach for opening and receipt printing of a Term Deposit account: Term Deposit could be opened for 1 year, 2 years, 3 years and 5 years only. Deposit amount minimum Rs.200 and no maximum, steps are multiple of Rs.200 Deposit interest is compounded quarterly The Term Deposit Module covers the entire lifecycle of an account Post Office can define different interest calculation method while defining a product. It allows Deposit pass Book printing and Duplicate Pass Book printing. Opening a TD Account  

Finacle Process Overview – Renewing a TD Account The approach for renewing a Term Deposit account: Upon maturity, if the customer wishes, he can renew his deposit The tenure will depend on the time elapsed between the maturity and minimum period of re-deposit. If the TD is renewed in the same currency, the same account number is retained else a new account will be opened.\ You can state the criteria for the renewal amount. Auto renewal is enabled in the system Renewing a TD Account  

Finacle Process Overview – Closing a TD Account The approach for closing a Term Deposit account: Normal closure on maturity or Closure before maturity Lien / Freeze should be revoked if any There are many ways to pay the maturity amount to the customer. TD interest credit to Pension a/c is not allowed You need to be careful while closing an account if linked to a loan TD interest pay-out is yearly basis . Closing a TD Account  

Key Terminologies TERMS DESCRIPTION 1 Flow Code This is associated with the financial transactions to the deposit account. This is to identify the type of transaction to and fro a deposit account (Deposit credit, interest payment, interest credit to the deposit account and so on) 2 Extension Premature Renewal of a Term Deposit 3 Principal Inflow This flow corresponds to crediting deposit amount to the deposit account for all types of deposits (except Recurring Deposits). This flow happens only once to the account, ideally at account opening. 4 Principal Outflow This flow is used for debiting (payment) of the deposit amount (principal). Normally, this is used when interest is paid periodically to the customer separately. So, on closure of the account the customer is only entitled to receive the principal amount. 5 Interest Inflow This flow corresponds to the interest credit to the deposit account. This is used in case of cumulative type of deposits. 6 Interest Outflow This flow is used for paying periodical interest to some other account of the customer instead of crediting it to the deposit account. In this case, the periodical interest paid out will not earn further interest. 7 Total Outflow This corresponds to the debit of closure proceeds which includes principal and interest credited to the deposit account. Normally this corresponds to the debit transaction of a deposit account on closure which had interest inflow.  

Step by Step Process – Opening a TD Account Given below is the step involved in opening and receipt printing of a Term Deposit account in Finacle: You need to create CIF ID before opening a Term Deposit Account. Invoke the menu CMISAO/ MISAOP/TDACTOP to open an account. Select the Product Group as TD and specify details like Account Opening and criteria for renewal on or after maturity. The account requires verification by Supervisor using the menu option CMISAOPV/ MISAVF/TDACTOPV   To modify an account before verification, use the menu option CMISAOPM / MISAMBV and after verification, use CMISAM /MISAMAV You can fund an account by cash using the menu option TRCDP/ CTM or through transfer using the menu option TRTFR/HXFER/CXFER Invoke the menu HPBP for Pass Book printing

Step by Step Process – Renewing a TD Account Given below is the step involved in renewing a Term Deposit account in Finacle: Invoke the menu option TDRED/HTDREN to renew a TD account. Enter the Function R – Renewal in the Function Code and the account number for renewal. Select the renewal Option - Maturity Value, Fixed Amount, Principal Component Only, Interest Component Only or Maturity Value + Additional Amount Specify the Renewal scheme code. Verify the above process using the same menu option HTDREN/TDRED.  

Step by Step Process – Closing a TD Account Given below is the step involved in closure of a Term Deposit account in Finacle: Invoke the menu option HCAACTD/TDACTCL to close a TD account. Select the function Z – Close and enter the account number to be closed. Repayment account has to be specified for closure of TD account. On verification of the closure, the amount will be credited to the specified repayment account. Select the radio button for Satisfy Linked Loan/OD on Pre/maturity Closure – Yes or No.   You need to visit Closure Exception Tab and Closure Details Tab. TD Account closure requires verification using the menu option HCAACVTD/TDACTCLV.

Demonstration

Summary Congratulations!! You have successfully completed the lesson on Term Deposit account in Finacle CBS. Following are the summary of important points discussed in this lesson: In Finacle CBS, the menu option for opening a Term Deposit account is CMISAOP/ MISAO. The opened account must be verified using the menu option CMISAOPV/MISAVF If you need to modify an account before verification, you should use the menu option CMISAOPM/MISAMBV. Printing and Duplicate Printing of Deposit Pass Book could be done using the menu option HPBP. Renewal of a Term Deposit account is done using HTDREN. A Term Deposit account can be closed using the menu option HCAACTD/TDACTCL and is verified using HCAACVTD/TDACTCLV You can modify the closure criteria after verification by invoking the menu option MISAMAV

Now let us do the hands on exercise on the term deposit account operations. Please refer to hands on section of the Job aid of term deposit