Agenda Introduction Slide 2 Introduction Business Scenario Finacle CBS Process Overview Key Terminologies Step by Step Process Demonstration Summary
Recurring Deposit Slide 3 Introduction Lesson Objective Duration Intended Audience To understand the process of operating (opening modification & closure) of a Recurring Deposit (RD) account in Finacle 1 Hour Customer Service
Recurring Deposit Slide 4 Business Scenario - 1 One of your customers approaches you for Opening an RD account. As a Counter Assistant, how will you process to open the Recurring Deposit account? Let us see the process in detail.
Recurring Deposit Slide 5 Finacle Process Overview The approaches for opening an RD in Finacle are as follows: The customer can open an RD for a fixed amount and for a fixed period of time (every month). An RD account can be opened for single or with joint holders with nomination facility. There will not be any nomination facility provided for minor accounts. The minimum amount for opening an RD is Rs.10/- in multiples of Rs.5/- every month. Default for an RD is considered, if the RD payment has not been made within due date. For example, an RD account was opened during 1 st to 15 th of a month, and then the next RD installment can be paid anytime till the 15 th of the succeeding month. If the RD was opened during 16 th to 30 th / 31 st of any month, then the next RD installment can be paid anytime till the 30 th / 31 st of the succeeding month. Penalty at Rs. 2/- per month for Rs. 100 is charged for default in installments If there are not more than four defaults in the monthly deposits, the depositor may extend the maturity period of the account by as many months as number of defaults and deposit the defaulted installments during the extended period.
Recurring Deposit Slide 6 Finacle Process Overview (Contd…) The approaches for opening an RD in Finacle are as follows: In case of more than four defaults the account will be treated as discontinued and revival of such an account will be permitted within a period of two months from the month of fifth default. Interest at the rate of 10 paisa, for every five rupees of a defaulted installment for each month of default, will also be paid along with such deposit in lump sum. An account where such defaulted installments are not deposited shall be treated as a discontinued RD. Rebate shall be allowed on accounts wherein installments are received in advance; there should not be any discontinuity in earlier installments paid. A minimum of six months installments can be accepted in advance for availing the benefit of rebate. The rebate will be slab based. Half- Withdrawal/Loan against RD accounts can be allowed where 12 installments have been received and the RD has not been discontinued and the account has been operation in the last 12 months, subject to a maximum of 50% of the deposit amount.
Recurring Deposit Slide 7 Key Terminologies TERMSDESCRIPTION 1Recurring DepositAccounts can be opened for a fixed amount and for a certain fixed period. 2Pre mature withdrawalWithdrawal of the amount from the account before the due date. 3Nomination Person authorized to receive the money after the death of the account holder. 4Rebate on instalments Rebate will be allowed on accounts wherein instalments are received in advance, which have not become discontinued and where not less than six monthly instalments have been made in any calendar month and the rebate would be slab based. 5Maturity of deposit An account has run full term with accepted terms and the interest due is credited to it. 6Instalment Inflow(NI) The amount deposited as instalment for a Recurring Deposit account. 7Penalty Inflow(PE) The penalty charged for the pre closure of the account and delay in depositing the instalments. 8Interest Inflow (II) The interest credited to the Recurring Deposit account. 9Total Outflow(TO) The total maturity value paid at the time of maturity of the Recurring Deposit account.
Recurring Deposit Slide 8 Step by Step Process Given below is the step by step process to open an RD account in Finacle: Customer request for opening a recurring deposit account to be obtained Collection of the required documents, verification and validity of documents has to be checked New customer – creation of a CIF_id from the menu option “CCRC” Invoke menu option for opening of recurring deposit account through “CRDOAAC/RDAOCM” Function- O-Open Funding of the account – mode of funding can be Cash, transfer from the operative account maintained in the same branch and also by depositing through Bank cheques. For depositing Cash more than Rs.50000/- in the RD account PAN Card is mandatory. Transaction can also be done at the time of opening the account from the menu option “CRDOAAC/RDAOCM” The account has to be verified from the menu option “CRDOAAC/RDACLM” Modification in the account before verification can be done from the menu option “CRDOAACM/RDMAO” Pass book can be issued for Recurring deposit through the menu option “HPBP”
Recurring Deposit Slide 10 Business Scenario - 2 One of your customer approaches you for closing an RD account on maturity. As a Customer Assistant, how will you process to close the RD account? Let us see the process in detail.
Recurring Deposit Slide 11 Finacle Process Overview The approaches for closing an RD in Finacle are as follows: Closure of an RD account can be of two types: o On-Maturity closure o Pre-mature closure Pre-mature closure of an RD attracts simple interest @ saving account only rate. On closure of an RD, the maturity payment to pension account will not be allowed. On death of the depositor, no further instalments are paid in the account. In case of any further deposit made after the death of the customer, those instalments will not be given any interest and will be refunded back to the customer. System will apply savings bank interest rate for overdue RD accounts meant for closure after 120 months.
Recurring Deposit Slide 12 Step by Step Process Given below is the step by step process to close an RD account in Finacle: A customer can close the account on maturity of the RD or pre-mature closure before maturity. The proceeds of the closure can be paid by cash, up to Rs.20000/- any amount above this can be either paid by cheque or credited to the customer account. Invoke menu option “CRDCAAC/RDACLM” for closure of recurring deposit account. Select Functions: Z – Close, V- Verify and Cancel as required. Enter the account number for closure. Verification of the closure account has to be done from the menu option CRDCAACV/RDACLM by another user.
Recurring Deposit Slide 13 Congratulations!! You have successfully completed the lesson Recurring Deposit using Finacle. Following are the summary of important points discussed in this lesson: For a new customer create a CIF ID using the menu option CVRC. Invoke CRDOAAC/RDAOCM menu option for opening of Recurring Deposit account. The mode of funding of the account can be Cash, transfer from the operative account maintained in the same branch and also by depositing through Bank cheques. Transaction can also be done at the time of opening the account using the menu option CRDOAACRDAOCM. The account has to be verified using the menu option CRDOAACV/RDACLM. Summary
Recurring Deposit Slide 14 Modification of the account before verification can be done using the menu option CRDOAACM/RDMAO. Pass book can be issued for Recurring Deposit using the menu option HPBP. Invoke the menu option CRDCAAC/RDACLM for closure of an RD account. Select Functions: Z – Close, V- Verify and Cancel as required. Enter the account number for closure. Verification of the closure account has to be done from the menu option CRDCAACV/RDACLM by another user. Summary (Contd…)