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

Lesson Objective Duration Intended Audience To understand the process of marking and revoking Lien of an account, freezing and unfreezing an account, and accepting and revoking of stop payment of a cheque Lesson Objective Duration 1 Hour Intended Audience Customer Service

Business Scenario Business Scenario 1 Loan has been sanctioned to a customer against aDeposit account Balance for a short period. He adjusts the loan after the specified time. How will you mark and revoke the lien in the customer’s account.

Business Scenario Business Scenario 2 An Income Tax attachment has been served in one of your customers’ Saving Account. However, the attachment has been lifted after some time. How will you freeze and unfreeze the customer’s account.

Business Scenario Business Scenario 3 One of the customers has lost a cheque and has requested for stop payment. He soon traces the cheques. How will you stop and revoke payment of the customer’s cheque.

Lien marking can be done using the menu option HALM. Finacle Process Overview The approach for Account Lien, Account Freeze and Stop Payment of Cheques in Finacle: Lien means placing a hold on an account Lien marking can be done using the menu option HALM. There are two types of Lien – System Lien and User Lien. Lien can be for partial or for an entire balance in the account Lien Marking in an Account Freezing is imposing restriction on an account. A frozen account does not allow any transactions. Freezing can only be for debit, credit or both.. Freezing an Account Stopping the payment of the cheque as requested by the customer. Stop payment of a cheque can be done using the menu option HSPP. The stop payment request needs verification using the menu option HSPPAU. Stop Payment of a Cheque  

Key Terminologies TERMS DESCRIPTION 1 2 3 Lien Lien is referred to an earmarking or blocking a certain amount in an account for a defined or a pre-defined period. 2 Freeze Freezing is referred to the restriction on an account, where Finacle restricts transactions in an account. It could be a debit freeze or a credit freeze. When it is a total freeze then the account can neither be credited nor be debited. 3 Stop Payment Stop payment of a cheque referred to when the cheque is lost or damaged. This is a precautionary step to stop cheque being realized by the person not entitled to it.  

Step by Step Process – Account Lien Given below is the step involved in Lien Marking in an Account in Finacle: Invoke the menu option HALM for lien marking an account. You need to verify the lien marking using the same menu option HALM. When the lien is marked manually, then the module type will be User Defined. Lien could also be marked by system – System Lien. You can also state the lien effective period and expiry period. Enter the Lien amount and Reason code for marking lien.   You can revoke a lien by modifying the lien amount to zero using the same menu option.

Step by Step Process – Account Freeze Given below is the step involved in Freezing an Account in Finacle: Invoke the menu option HAFSM for freezing an account. This requires verification using the same menu option HAFSM. Freezing can be for Debits Only, Credits Only or Total Freeze (both). Freezing can be done for a CIF or an Account. Invoke the same menu option HAFSM for unfreezing an account.   Before advancing a loan against NSC and KVP, the Post Office branch has to freeze the account.

Step by Step Process – Stop Payment Given below is the step involved in Stop Payment of a cheque in Finacle: Invoke the menu option HSPP for stop payment of the cheque . This requires verification using the menu option HSPPAU. Stop payment can be done for a single leaf or more than one leaf. Revocation of Stop Payment can be done using the menu option HSPP and verified using the menu option HSPPAU.   Charges for stop payment and revocation of stop payment can be viewed/modified before verification by clicking FEE Tab.

Demonstration

Summary Congratulations!! You have successfully completed the lesson on Account Maintenance – Account Lien, Freezing of Account and Stop Payment in Finacle. Following are the summary of important points discussed in this lesson: The menu option for lien marking and revoking is HALM. You can mark a lien on the entire or partial amount. the menu option for freezing and unfreezing an account is HAFSM. NSC’s and KVP’s have to be frozen by Post office branches before advancing a loan against these instruments. Account can be frozen for Debit Only, Credit Only or Both. Stop payment of a cheque and revocation of such request can be done by invoking the menu option HSPP. Stop Payment can be for a single or multiple leaves. The request and revocation of a stop payment requires verification using the menu option HSPPAU.