1. Loan Against Recurring Deposit and PPF

2. Loan Against Recurring Deposit and PPF (LNRDPPF) Table of Contents Introduction Slide 2  Introduction  Business Scenario  Finacle CBS Process Overview  Step by Step Process  Demonstration  Summary

3. Loan Against Recurring Deposit and PPF (LNRDPPF) Slide 3 Introduction Lesson Objective Duration Intended Audience To understand the process of Loan against Recurring Deposit (RD) and Public Provident Fund (PPF) in Finacle 2 Hours Counter PA

4. Loan Against Recurring Deposit and PPF (LNRDPPF) Slide 4 Business Scenario Business Scenario 1 A customer has a Recurring Deposit Account. He wants a loan/Half Withdrawal against his account. How will you sanction loan/Half Withdrawal against RD?

5. Loan Against Recurring Deposit and PPF (LNRDPPF) Slide 5 Business Scenario Business Scenario 2 A customer has a Public Provident Fund Account. He wants a loan against his account. How will you sanction loan against PPF? Let us see the generic process in detail for these activities in Finacle CBS.

6. Loan Against Recurring Deposit and PPF (LNRDPPF) Slide 6 Finacle Process Overview The approach for managing a Loan Account against RD and PPF in Finacle: Sanctioned amount should not exceed 50% of the outstanding balance in the RD account. Loan amount should be a multiple of Rs. 5 and could be repaid either in bullet repayment or equal monthly instalment. For bullet payment the Interest is calculated on the amount of withdrawal for full calendar months from the month of withdrawal to the month of repayment. Loan Account Against a RD Account Sanctioned amount should not exceed 25% of the outstanding balance amount that stood to his credit at the end of the second year immediately preceding the year in which the loan is applied for Rate of interest for the loan would be 2% interest if the loan period is less than 36 months beyond which interest would be 6% interest. The principal amount of the loan can be repaid in multiple instalments whereas the interest portion has to be repaid in two instalments. Loan Account Against a PPF Account

7. Loan Against Recurring Deposit and PPF (LNRDPPF) Slide 7 Step by Step Process – Loan Account Against RD Given below is the step involved in managing a Loan Account against a RD account. Invoke the menu option CAOLARD to open a loan account against RD. The account requires verification by another user using the menu option CAOVLARD. Invoke the menu option LARDD for disbursement of the sanctioned amount. Invoke the menu option HPAYOFF menu for closure of the account which needs to be verified using the same menu option HPAYOFF.

8. Loan Against Recurring Deposit and PPF (LNRDPPF) Slide 8 Step by Step Process – Loan Account Against PPF Given below is the step involved in managing a Loan Account against a PPF account. Invoke the menu option CLPPFAO to open a loan account against PPF. The account requires verification by another user using the menu option CLPPFAOV. Invoke the menu option CPWTM/ PPFWLINT for disbursement of the sanctioned amount. Invoke the menu option CLPR and HACINT before proceeding with account closure. Invoke the menu option CPDTM/ PPFDPLR for the repayment of the loan and closing the loan account and this process needs verification using the same menu option CPDTM./PPFDPLR

9. Loan Against Recurring Deposit and PPF (LNRDPPF) Slide 9 Demonstration

10. Loan Against Recurring Deposit and PPF (LNRDPPF) Slide 10 Congratulations!! You have successfully completed the lesson on Loan against RD and PPF account in Finacle. Following are the summary of important points discussed in this lesson: Invoke the menu option CAOLARD to open a loan account against RD and verify it using CAOVLARD. For disbursement, use the menu option LARDD. Repayment and closure of a loan account against RD is done using the menu option HPAYOFF. Invoke the menu option CLPPFAO to open a loan account against PPF and verify it using CLPPFAOV. For disbursement, use the menu option CPWTM/PPFWLINT Repayment and closure of a loan account against PPF is done using the menu option CPDTM/PPFDPLR Invoke the menu option CLPR and HACINT before proceeding with account closure. Summary

11. Loan Against Recurring Deposit and PPF (LNRDPPF) Slide 11 Any Questions?