Flex Accounting Cube

Oracle FLEXCUBE Core
Banking
Accounting Entries User Manual
(Retail Modules)
Release 11.7.0.0.0
Part No. E87095-01
May 2017
Accounting Entries User Manual
May 2017
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Preface
Table of Contents
1. Preface ........................................................................................................................................ 6
2. CASA........................................................................................................................................... 7
1.1. Cash Withdrawal – Fast Path: 1001 ........................................................................... 9
1.2. Funds Transfer Request – Fast Path: 1006 .............................................................. 11
1.3. Miscellaneous Customer Debit – Fast Path: 1008 .................................................... 13
1.4. Bill Payment by Cash Mode – Fast Path: 1025 ........................................................ 15
1.5. Bill Payment by CASA transfer Mode – Fast Path: 1025.......................................... 16
1.6. CASA to CASA Funds transfer Request – Fast Path: 1091 ..................................... 17
1.7. CASA to GL Funds transfer Request – Fast Path: 1092 ......................................... 18
1.8. GL to CASA Funds transfer Request – Fast Path: 1093 .......................................... 19
1.9. CASA Close out withdrawal by Cash – Fast Path: 1320 .......................................... 20
1.10. CASA Close out withdrawal by Transfer to GL – Fast Path: 1321 ........................... 21
1.11. Cash Deposit – Fast Path: 1401 ............................................................................... 22
1.12. Misc. Customer Credit – Fast Path: 1408 ................................................................. 23
1.13. CASA Billing Transactions – Fast Path: CH050 ....................................................... 24
1.14. CASA Interest Accrual and Capitalization ................................................................. 26
1.15. CASA Tax Refund – Fast Path: TDS13 .................................................................... 27
1.16. Credit Type Adjustment on Credit Interest ................................................................ 28
1.17. Debit Type Adjustment on Credit Interest ................................................................. 29
3. Recurring Deposits ................................................................................................................. 30
1.18. RD Installment Payment by Cash - Fast Path: 1421 ................................................ 31
1.19. Flexible RD Deposit BY CASA - Fast Path: 1431 ..................................................... 32
1.20. Installment Payment By GL ...................................................................................... 33
1.21. Interest Accrual ......................................................................................................... 34
1.22. Interest Compounding ............................................................................................... 35
1.23. Maturity Processing : ................................................................................................. 36
1.24. Post Maturity Interest Accrual ................................................................................... 37
1.25. Premature Redemption (Conventional RD) .............................................................. 38
1.26. Flexi Saver RD Part Redemption by CASA (Fast Path : 1728) ................................ 40
1.27. Flexi Saver RD Part Redemption by GL (Fast Path : 1729) ..................................... 41
1.28. Post maturity Redemption ......................................................................................... 42
1.29. Goal Accounts ........................................................................................................... 43
4. Term Deposits .......................................................................................................................... 45
1.30. Quick TD Pay-in by transfer from CASA - Fast Path: 1007 ...................................... 46
1.31. Quick TD Pay-in by transfer from GL - Fast Path: 1021 ........................................... 47
1.32. Quick Redemption By Cash - Fast Path: 1310 ......................................................... 48
1.33. Redemption by CASA Transfer - Fast Path: 1312 .................................................... 49
1.34. Online Renewal - Fast Path: 1316 ............................................................................ 50
1.35. Quick Redemption By GL - Fast Path: 1318 ............................................................. 51
1.36. Interest Payout by Cash - Fast Path: 1337 ............................................................... 52
1.37. TD Mixed Payin - Fast Path: 1356 ............................................................................ 53
1.38. TD Mixed Redemption - Fast Path: 1358.................................................................. 54
1.39. Quick TD Pay-in by transfer from Cash - Fast Path: 1402 ....................................... 55
1.40. Quick Redemption By Reinvest To Existing Account - Fast Path: 1333 .................. 56
1.41. Quick Redemption By Reinvest To New Account - Fast Path: 1336 ........................ 57
1.42. Time Deposit Interest Accrual ................................................................................... 58
1.43. TD Interest Compounding ......................................................................................... 59
1.44. TD Interest payout during BOD processing .............................................................. 60
1.45. TD Maturity processing and Redemption by transfer to Savings Account ............... 63
1.46. Maturity TD Redemption by transfer to General Ledger (GL)................................... 64
1.47. Maturity TD Redemption by transfer to same Time Deposit (TD)............................. 65
1.48. Maturity TD Redemption by transfer to new Time Deposit (TD) ............................... 66
3
Preface
1.49. Clubbing Interest to Principal at Maturity .................................................................. 67

1.50. Transfer to Unclaimed Deposit ................................................................................. 68
1.51. Pre-mature Redemption ............................................................................................ 69
1.52. TD Online Renewal Inquiry ....................................................................................... 73
1.53. Debit Interest Adjustment .......................................................................................... 74
1.54. Credit Interest Adjustment......................................................................................... 75
1.55. Deposit Tax Refund (Fast path : TDS14) .................................................................. 76
5. Loans ........................................................................................................................................ 77
1.56. Loan Account Opening.............................................................................................. 80
1.57. Loan Account Disbursement - Fast Path: LN521 ..................................................... 81
1.58. Loan Installment Payment Inquiry - Fast Path: 1065 ................................................ 91
1.59. Partial Pay-off - Fast Path: 1066 ............................................................................. 101
1.60. Loans Advance Payment - Fast Path: 1068 ........................................................... 106
1.61. Post Dated Cheques Maintenance - Fast Path: LN046 .......................................... 109
1.62. Loan Refund Inquiry - Fast Path: 1412 ................................................................... 110
1.63. Loan Full Payoff Inquiry - Fast Path: 1067 (EFS) ................................................... 112
1.64. Loan Recission Inquiry - Fast Path: 1069 ............................................................... 117
1.65. Miscellaneous Loan Debit Transactions options - Fast Path: 9540 ........................ 120
1.66. Miscellaneous Charges Waiver - Fast Path: LN444 ............................................... 122
1.67. Common Billing Transactions - Fast Path: BAM50 ................................................. 124
1.68. Interest Adjustment Transaction - Fast Path: BAM57 ............................................. 126
1.69. Other Miscellaneous Entries ................................................................................... 129
1.70. Subsidy Loans – Subsidy Interest Accrual and charging........................................ 135
1.71. Penalty, Compounding and Diverting Interest Arrears Processing ........................ 136
1.72. Ad-hoc Charging of accrued Regular / Penalty Interest - Fast Path: LN071 .......... 145
1.73. Deductions .............................................................................................................. 150
1.74. Loan Insurance linkage as Insurance ..................................................................... 199
6. Clearing and Payments ......................................................................................................... 201
1.75. Cheque Deposit (Fast Path 6501) .......................................................................... 203
1.76. Cheques deposited to GL (Fast Path : 6520) ........................................................ 205
1.77. Cheques for Bill Payment - Fast Path: 6575 ......................................................... 206
1.78. TD Quick Payin By Cheque – Fast Path: 6505 ....................................................... 207
1.79. Loans Repayment – Fast Path: 1065 ..................................................................... 208
1.80. Loans Advance Payment – Fast Path: 1068........................................................... 209
1.81. Loans Partial Pay off – Fast Path: 1066 ................................................................. 210
1.82. Immediate Credit – Fast Path: ST060 ..................................................................... 211
1.83. Cheque Purchase – Fast Path: ST070 ................................................................... 212
1.84. Value Date Clearing Process – ............................................................................... 215
1.85. Online Cheque Return Inquiry – Fast Path 6560 .................................................... 218
1.86. Inward Clearing Process ......................................................................................... 222
1.87. Outward Returns ..................................................................................................... 224
1.88. Inward Returns ........................................................................................................ 225
1.89. OCC Batch Data Entry (Fast Path: 6566) ............................................................... 228
1.90. ICC Data Entry (Fast Path: 6565) ........................................................................... 229
1.91. Cheque Collection Processing (Fast Path: 6806) ................................................... 230
1.92. RTGS and NEFT ..................................................................................................... 236
1.93. Adhaar Payment Bridge System (APBS) ................................................................ 242
1.94. Immediate Payment Service (IMPS) ....................................................................... 244
1.95. Unified Payments Interface (UPI) ........................................................................... 246
1.96. ACH (Automated Clearing House) .......................................................................... 248
7. Remittances ........................................................................................................................... 254
1.97. Banker's Cheque Sale - Against GL (Fast Path: 8302) .......................................... 255
1.98. Banker's Cheque Sale - Against Cash (Fast Path : 8301) ...................................... 256
1.99. Banker's Cheque Sale Against Account (Fast Path : 1010) ................................... 257
1.100. Close Out Balance Inquiry (Fast Path : 1320) ........................................................ 258
1.101. Term Deposit Interest Payout (Fast Path : 1337) ................................................... 259
4
Preface
1.102. Term Deposit Redemption (Fast Path : 1311) ........................................................ 260

1.103. Banker’s Cheque Liquidation By Cash (Fast Path : 8307) ..................................... 261
1.104. Banker’s Cheque Liquidation By GL (Fast Path : 8307) ......................................... 262
1.105. Banker’s Cheque Liquidation Against A/C (Fast Path : 8309) ................................ 263
1.106. DD Sale - Against Cash (Fast Path : 8305) ............................................................ 264
1.107. DD Sale - Against GL (Fast Path : 8306) ................................................................ 265
1.108. DD Sale – Against Account (Fast Path : 1014) ....................................................... 266
1.109. DD Liquidation By Cash (Fast Path : 8310) ............................................................ 267
1.110. DD Liquidation By GL (Fast Path : 8307) ................................................................ 268
1.111. DD Liquidation against A/C (Fast Path : 8310) ....................................................... 269
1.112. FX Purchase (Walk-in) (Fast Path : 8004 ) ............................................................. 271
1.113. FX Sale - Walk-in (Fast Path : 8203 ) ..................................................................... 272
1.114. Cardless Cash Withdrawal ...................................................................................... 273
8. Digital Payments .................................................................................................................... 276
1.115. Balance Holding Wallet ........................................................................................... 277
1.116. Limit Based Wallet .................................................................................................. 279
1.117. Virtual Account ........................................................................................................ 281
1.118. Prepaid Card / Gift Card.......................................................................................... 283
9. Savings Scheme .................................................................................................................... 288
1.119. Savings Scheme Account Credit By CASA - Fast Path : 2421............................... 290
1.120. Savings Scheme Account Credit By Cash - Fast Path : 2423 ................................ 291
1.121. Savings Scheme Account Credit By GL - Fast Path: 2424..................................... 292
1.122. Savings Scheme Debit by CASA - Fast Path: 2431 ............................................... 293
1.123. Savings Scheme Debit by GL - Fast Path: 2432 .................................................... 294
1.124. Bankers Cheque - Fast Path: 2442 ......................................................................... 295
1.125. Demand Draft - Fast Path : 2443 ............................................................................ 296
1.126. Savings Scheme Account Credit By Cheque - Fast Path: 6525 ............................. 297
1.127. Savings Scheme Closeout Withdrawal CASA - Fast Path: 2441 ........................... 298
5
Preface
1. Preface
1.1. Intended Audience

This document is intended for the following audience:
 Customers
 Partners
1.2. Documentation Accessibility

For information about Oracle's commitment to accessibility, visit the Oracle Accessibility Program
website at http://www.oracle.com/pls/topic/lookup?ctx=acc&id=docacc.
1.3. Access to OFSS Support

https://support.us.oracle.com
1.4. Structure
This manual is organized into the following categories:
Preface gives information on the intended audience. It also describes the overall structure of the
User Manual
Chapters are dedicated to module wise accounting entries, covered in the User Manual
1.5. Related Information Sources

For more information on Oracle FLEXCUBE Core Banking Release 11.6.0.0.0, refer to the
following documents:
Oracle FLEXCUBE Core Banking Licensing Guide
6
CASA
2. CASA
Global Assumption
Note: All dates in DD/MM/YYYY
If the transaction branch and the account branch are the same, no Inter branch entries will be
passed.
The various GLs used in this section of the manual are listed below along with the maintenance
which is used for maintaining the same:
Sr GL Head Location of Setup

No
1 CASA Asset / Liability GL CHM01/ GL/ Liabilities balance
2 SC Income GL BAM14/ SC GL Code
3 TD Liability GL TDM01/ GL codes/ Regular

Deposits
4 Interest Expense TDM01/ GL codes/ Interest

Expense
5 Inter branch GL BAM08/ GL Details/ IB GL
6 Cash GL BAM08/ GL Details/ Bank Cash

GL
7 Future dated bridge GL BAM08/ GL Details/ Future Dated

Bridge GL
8 SC Income GL BAM14/ SC GL code
9 Dormant Deposit Credit GL BAM19/ Dormancy Processing

Parameters
10 Unclaimed Deposit Credit GL (Non BAM19/ Unclaimed Processing

Business Income GL) Parameters
11 Unclaimed Deposit Debit GL (Non Business BAM19/ Unclaimed Processing

Expense GL) Parameters
12 Interest Payable GL CHM01/ GL Codes/ Interest

Payable GL
7
CASA
* The entries can be passed to the Asset / Liability GL or Suspended Asset GL based on the
status of the account at the time of posting. For all entries, it is assumed that the account is in
normal status unless it is required to be suspended.
8
CASA
1.1. Cash Withdrawal – Fast Path: 1001

Cash withdrawal from CASA account from same branch.
Date Branch GL Head Dr / Amount Remarks
Cr
Posting Value TCY LCY
(INR) (INR)
25-05-2016 25-05- Txn CASA Dr 10,000 10,000
2016 Branch Asset/
Liability GL
25-05-2016 25-05- Txn Cash GL Cr 10,000 10,000
2016 Branch
Cash withdrawal from CASA account from different branch.

Cr
(INR) (INR)
25-05-2016 25-05- Account CASA Dr 10,000 10,000
2016 Branch Asset/
Liability GL
25-05-2016 25-05- Account Inter-branch Cr 10,000 10,000
2016 Branch GL
25-05-2016 25-05- Txn Inter-branch Dr 10,000 10,000
2016 Branch GL
25-05-2016 25-05- Txn Cash GL Cr 10,000 10,000
2016 Branch
Cash Withdrawal from CASA with SC levied. CASA account in Branch A and transaction done from
Branch B
Cr
(INR) (INR)
25-05-2016 25-05-2016 Account CASA Dr 10,000 10,000

Branch Asset/
Liability
GL
25-05-2016 25-05-2016 Account CASA Dr 100 100 Applicable
Branch Asset/ SC to be
Liability charged
GL over the
withdrawal
amount
25-05-2016 25-05-2016 Account Inter- Cr 10,100 10,100
Branch branch GL
9
CASA
25-05-2016 25-05-2016 Txn Inter- Dr 10,100 10,100

Branch branch GL
25-05-2016 25-05-2016 Txn Cash GL Cr 10,000 10,000 Cash
Branch payout
25-05-2016 25-05-2016 Txn SC Cr 100 100 Collected
Branch Income SC to
GL GL income
10
CASA
1.2. Funds Transfer Request – Fast Path: 1006

Transfer funds from account A to account B within same branch.
Cr
(INR) (INR)
25-05-2016 25-05-2016 Account CASA Dr 10,000 10,000 “FROM”
Branch Asset/ CASA
Liability GL Account
25-05-2016 25-05-2016 Account CASA Cr 10,000 10,000 “TO”
Branch Asset/ CASA
Funds transfer in FCY.

Funds transfer of (FCY) USD 150 (Equivalent to INR10000) from Account A to INR Account B
within same branch.
Cr
(INR)
25-05-2016 25-05-2016 Account CASA Dr USD 10,000 “FROM”
Branch Asset/ 150 CASA
25-05-2016 25-05-2016 Account CASA Cr INR 10,000 “TO”
Branch Asset/ 10,000 CASA
Funds Transfer from Account A to account B within same branch with SC levied.
Cr
(INR) (INR)
25-05-2016 25-05-2016 Account CASA Dr 10,000 10,000 “FROM”
Branch Asset/ CASA
Liability Account
GL
25-05-2016 25-05-2016 Account CASA Dr 100 100 Applicable
Branch Asset/ SC to be
Liability charged
GL over the
withdrawal
amount
25-05-2016 25-05-2016 Account CASA Cr 10,000 10,000 “TO”
Branch Asset/ CASA
Liability Account
GL
11
CASA
25-05-2016 25-05-2016 Account SC Cr 100 100 Collected

Branch Income SC to
GL GL income
Fund Transfer from CASA Account maintained with Branch A to CASA account in branch B
Cr
(INR) (INR)
25-05-2016 25-05-2016 From CASA Dr 10,000 10,000 “FROM”
Account Asset/ CASA
Branch Liability GL Account
25-05-2016 25-05-2016 From Inter-branch Cr 10,000 10,000
Account GL
Branch
25-05-2016 25-05-2016 To Inter-branch Dr 10,000 10,000
Account GL
Branch
25-05-2016 25-05-2016 To CASA Cr 10,000 10,000 “TO”
Account Asset/ CASA
Fund Transfer from CASA Account maintained with Branch A to CASA account in branch B.
Transaction performed from Branch C.
Cr
(INR) (INR)
25-05-2016 25-05-2016 From CASA Dr 10,000 10,000 “FROM”
Account Asset/ CASA
25-05-2016 25-05-2016 From Inter-branch Cr 10,000 10,000
Account GL
Branch
25-05-2016 25-05-2016 Txn Inter-branch Dr 10,000 10,000
Branch GL
25-05-2016 25-05-2016 Txn Inter-branch Cr 10,000 10,000
Branch GL
25-05-2016 25-05-2016 To Inter-branch Dr 10,000 10,000
Account GL
Branch
25-05-2016 25-05-2016 To CASA Cr 10,000 10,000 “TO”
Account Asset/ CASA
12
CASA
1.3. Miscellaneous Customer Debit – Fast Path: 1008

Transfer funds from CASA account to GL Account.
Cr
(INR) (INR)
25-05-2016 25-05-2016 Account CASA Dr 10,000 10,000
Branch Asset/
Liability GL
25-05-2016 25-05-2016 GL Specified GL Cr 10,000 10,000
Account
Branch
Transfer funds from CASA account maintained in branch A to GL Account of transacting branch.
Cr
(INR) (INR)
25-05-2016 25-05-2016 Account CASA Dr 10,000 10,000
Branch Asset/
Liability GL
25-05-2016 25-05-2016 Account Inter-branch Cr 10,000 10,000
Branch GL
Branch GL
25-05-2016 25-05-2016 Txn Specified GL Cr 10,000 10,000
Branch
Cheque Withdrawal – Fast Path: 1013

Cash withdrawal by cheque.
Cr
(INR) (INR)
25-05-2016 25-05-2016 Account CASA Dr 10,000 10,000
Branch Asset/
Liability GL
25-05-2016 25-05-2016 Txn Cash GL Cr 10,000 10,000
Branch
Cash withdrawal by cheque from CASA Account maintained with Branch A and cash payout in
Branch B.
13
CASA

Cr
(INR) (INR)
25-05-2016 25-05-2016 Account CASA Dr 10,000 10,000
Branch Asset/
Liability GL
25-05-2016 25-05-2016 Account Inter-branch Cr 10,000 10,000
Branch GL
Branch GL
25-05-2016 25-05-2016 Txn Cash GL Cr 10,000 10,000
Branch
14
CASA
1.4. Bill Payment by Cash Mode – Fast Path: 1025

Bill of INR 2000 is paid by paying cash.
Cr
(INR) (INR)
01-08-2016 01-08-2016 Txn Cash GL Dr 2000 2000
Branch
01-08-2016 01-08-2016 Txn Inter-Branch Cr 2000 2000

Branch GL
01-08-2016 01-08-2016 Account Inter-Branch Dr 2000 2000
Branch GL
01-08-2016 01-08-2016 Account CASA Assets / Cr 2000 2000 As per
Branch Liability GL setup in
Or Company
Utility Comp Master (FP
any GL : BAM81)
15
CASA
1.5. Bill Payment by CASA transfer Mode – Fast Path:

1025
Bill of INR 2000 is debited from an account.
Cr
(INR) (INR)
01-08-2016 01-08-2016 Debit CASA Assets / Dr 2000 2000 Consumer
Account Liability GL Account
Branch
01-08-2016 01-08-2016 Debit Inter-Branch Cr 2000 2000
Account GL
Branch
01-08-2016 01-08-2016 Credit Inter-Branch Dr 2000 2000
Account GL
Branch
01-08-2016 01-08-2016 Credit CASA Assets / Cr 2000 2000 As per setup in
Account Liability GL Company Master
Branch Or (FP : BAM81)
Utility Comp
any GL
16
CASA
1.6. CASA to CASA Funds transfer Request – Fast Path:

1091
Transfer of INR 1000 from Account A to Account B. These transactions are future dated and are
executed on value date basis.
Cr
(INR) (INR)
01-08-2016 01-08-2016 Txn CASA Assets / Dr 1000 1000
Branch Liability GL
01-08-2016 01-08-2016 Txn Future Dated Cr 1000 1000

Branch Bridge_CR GL
02-08-2016 02-08-2016 Txn Future Dated Dr 1000 1000

Branch Bridge_DR GL
02-08-2016 02-08-2016 Txn CASA Assets / Cr 1000 1000

Branch Liability GL
17
CASA
1.7. CASA to GL Funds transfer Request – Fast Path:

1092
Future dated funds transfer of INR 1000 from Account A to GL Account.
Cr
(INR) (INR)
01-08-2016 01-08-2016 Txn CASA Assets / Dr 1000 1000
Branch Liability GL

Branch Bridge_CR GL

Branch Bridge_DR GL
02-08-2016 02-08-2016 Txn Specified GL Cr 1000 1000

Branch
18
CASA
1.8. GL to CASA Funds transfer Request – Fast Path: 1093

Transfer of INR 1000 from selected GL to CASA account.
Cr
(INR) (INR)
01-08-2016 01-08-2016 Txn Specified GL Dr 1000 1000
Branch

Branch Bridge_CR GL

Branch Bridge_DR GL

Branch Liability GL
19
CASA
1.9. CASA Close out withdrawal by Cash – Fast Path:

1320
CASA account is closed and closeout withdrawal is done by Cash payout of INR 1200 from a
CASA account.
Cr
(INR) (INR)
01-08-2016 01-08-2016 Account CASA Assets / Dr 1200 1200
Branch Liability GL
01-08-2016 01-08-2016 Account Inter-Branch Cr 1200 1200

Branch GL
01-08-2016 01-08-2016 Txn Inter-Branch Dr 1200 1200

Branch GL
01-08-2016 01-08-2016 Txn Cash GL Cr 1200 1200

Branch
20
CASA
1.10. CASA Close out withdrawal by Transfer to GL – Fast

Path: 1321
Transfer of Close out proceeds in INR 1200 from a CASA account, maintained with a different
branch to a GL account.
Cr
(INR) (INR)
Branch Liability GL

Branch GL

Branch GL

Branch
21
CASA
1.11. Cash Deposit – Fast Path: 1401

Cash deposit of INR 1000 made in the CASA Account.
Cr
(INR) (INR)
01-08-2016 01-08-2016 Txn Cash GL Dr 1000 1000
Branch

Branch Liability GL
Cash deposit of INR 1000 made in the CASA Account maintained in different branch.
Cr
(INR) (INR)
01-08-2016 01-08-2016 Txn Cash GL Dr 1000 1000
Branch

Branch GL

Branch GL

Branch Liability GL
22
CASA
1.12. Misc. Customer Credit – Fast Path: 1408

Credit transfer of INR 1000 received in a CASA account from a GL Account.
Cr
(INR) (INR)
Branch

Branch Liability GL
23
CASA
1.13. CASA Billing Transactions – Fast Path: CH050

Common Billing
Bill insurance Premium of INR 800 to CASA Account.
Cr
(INR) (INR)
01-08-2016 01-08-2016 CASA CASA Assets / Dr 800 800
Account Liability GL
Branch
01-08-2016 01-08-2016 Txn Insurance Cr 800 800
Branch Premium GL
Bill Service Charge of INR 800 to CASA Account.

Cr
(INR) (INR)
Branch
01-08-2016 01-08-2016 Txn SC Income GL Cr 800 800
Branch
Bill Outgoings of INR 800 to CASA Account.

Cr
(INR) (INR)
Branch
01-08-2016 01-08-2016 Txn Outgoings GL Cr 800 800
Branch
Bill Legal Fees of INR 800 to CASA Account.

Cr
(INR) (INR)
24
CASA

Branch
01-08-2016 01-08-2016 Txn Legal Fees GL Cr 800 800
Branch
25
CASA
1.14. CASA Interest Accrual and Capitalization

Interest Accrual of Rs 1200.
Cr
(INR) (INR)
31-08-2016 31-08-2016 CASA Interest Dr 1200 1200
Account Expense GL
Branch
31-08-2016 31-08-2016 CASA Interest Cr 1200 1200
Account payable GL
Branch
Interest capitalization and tax if any.

Cr
(INR) (INR)
31-08-2016 31-08-2016 CASA Interest Dr 120 120
Account payable GL
Branch
31-08-2016 31-08-2016 CASA Tax Withheld Cr 120 120
Account GL
Branch
31-08-2016 31-08-2016 CASA Interest Dr 1080 1080

Account payable GL
Branch
31-08-2016 31-08-2016 CASA CASA Assets / Cr 1080 1080
Branch
26
CASA
1.15. CASA Tax Refund – Fast Path: TDS13

Tax refund through Cash mode in the same branch set up.

Cr
(INR) (INR)
01-08-2016 01-08-2016 CASA Tax withheld Dr 500 500
Account GL
Branch
01-08-2016 01-08-2016 Txn Cash GL Cr 500 500
Branch
Tax refund into a CASA Account maintained with a different Branch.

Cr
(INR) (INR)
01-08-2016 01-08-2016 CASA Tax withheld Dr 500 500 Tax
Account GL withholding
Branch branch
01-08-2016 01-08-2016 CASA Inter-Branch Cr 500 500
Account GL
Branch
01-08-2016 01-08-2016 CASA Inter-Branch Dr 500 500
Account GL
Branch
01-08-2016 01-08-2016 CASA CASA Assets / Cr 500 500 Beneficiary
Account Liability GL CASA
Branch account
branch
27
CASA
1.16. Credit Type Adjustment on Credit Interest

Cr
(INR) (INR)
01-08-2016 01-08-2016 CASA Interest Dr 500 500
Account Expense GL
Branch
01-08-2016 01-08-2016 CASA CASA Assets / Cr 500 500
Branch
28
CASA
1.17. Debit Type Adjustment on Credit Interest

Cr
(INR) (INR)
Branch
01-08-2016 01-08-2016 CASA Interest Cr 500 500
Account Expense GL
Branch
29
Recurring Deposits
3. Recurring Deposits

passed.
The various GLs used in this manual are listed below along with the maintenance which is used
for maintaining the same:
Sr No GL Head Location of Setup
1 CASA Asset / Liability GL CHM01/ GL/ Liabilities balance
2 SC Income GL BAM14/ SC GL Code
3 Interest Expense CHM01/ GL/ Interest Expense
4 Inter branch GL BAM08/GL Details / IB Credit or Debit Account
5 Cash GL BAM08/GL Details / IB Credit or Debit Account
30
Digital Payments
1.18. RD Installment Payment by Cash - Fast Path: 1421

RD installment of 1000 deposited in cash.
Cr
(INR) (INR)
01-08-2016 01-08-2016 TXN Cash GL Dr 1000 1000
Branch
01-08-2016 01-08-2016 TXN Inter-Branch Cr 1000 1000

Branch GL
01-08-2016 01-08-2016 RD Inter-Branch Dr 1000 1000

Account GL
Branch
01-08-2016 01-08-2016 RD CASA Liability Cr 1000 1000
Account GL
Branch
31
Recurring Deposits
1.19. Flexible RD Deposit BY CASA - Fast Path: 1431

RD installment of 1000 deposited by transfer to a CASA Account.
Cr
(INR) (INR)
01-08-2016 01-08-2016 CASA CASA Assets/ Dr 1000 1000 CASA
Account Liability GL account
Branch
01-08-2016 01-08-2016 RD Inter-Branch Cr 1000 1000
Account GL
Branch
Account GL
Branch
01-08-2016 01-08-2016 RD CASA Liability Cr 1000 1000 RD account
Account GL
Branch
32
Recurring Deposits
1.20. Installment Payment By GL

RD Installment of 1000 paid from a GL Account.
Cr
(INR) (INR)
01-08-2016 01-08-2016 Txn Specified GL Dr 1000 1000 GL account
Branch

Branch GL

Account GL
Branch
01-08-2016 01-08-2016 RD CASA Liability Cr 1000 1000 RD account
Account GL
Branch
33
Recurring Deposits
1.21. Interest Accrual

Interest Accrual of 200 on RD Account.
Cr
(INR) (INR)
01-08-2016 01-08-2016 RD Interest Dr 200 200
Account Expense GL
Branch
01-08-2016 01-08-2016 RD Interest Cr 200 200
Account Payable GL
Branch
34
Recurring Deposits
1.22. Interest Compounding

Interest compounded on RD Account.
Cr
(INR) (INR)
01-08-2016 01-08-2016 RD Interest Dr 200 200
Account Payable GL
Branch
01-08-2016 01-08-2016 RD Interest Cr 200 200
Account Compounded
Branch GL
01-08-2016 01-08-2016 RD Interest Dr 20 20
Account Compounded
Branch GL
01-08-2016 01-08-2016 RD Tax Withheld Cr 20 20
Account GL
Branch
35
Recurring Deposits
1.23. Maturity Processing :

Cr
(INR) (INR)
01-08-2016 01-08-2016 RD Interest Dr 2180 2180
Account Compounded
Branch GL
Account GL
Branch
01-08-2016 01-08-2016 RD CASA Liability Dr 12180 12180
Account GL
Branch
01-08-2016 01-08-2016 RD RD Matured Cr 12180 12180
Account GL
Branch
01-08-2016 01-08-2016 RD RD Matured Dr 200 200
Account GL
Branch
01-08-2016 01-08-2016 RD Late Penalty Cr 200 200 Penalty
Account Income GL Income, if
Branch any
36
Recurring Deposits
1.24. Post Maturity Interest Accrual

Cr
(INR) (INR)
01-08-2016 01-08-2016 RD PMI Interest Dr 100 100
Account Expense GL
Branch
01-08-2016 01-08-2016 RD Interest Cr 100 100
Account Payable GL
Branch
37
Recurring Deposits
1.25. Premature Redemption (Conventional RD)

Cr
(INR) (INR)
01-08-2016 01-08-2016 RD Interest Dr 100 100 Reversal of
Account Payable GL Interest
Branch Accrual
01-08-2016 01-08-2016 RD Interest Cr 100 100
Account Expense GL
Branch
01-08-2016 01-08-2016 RD Interest Dr 300 300 Reversal of
Account Compounded Interest
Branch GL Compounded
(Net of Tax)
01-08-2016 01-08-2016 RD Interest Cr 300 300
Account Expense GL
Branch
01-08-2016 01-08-2016 RD Interest Dr 350 350 Recomputed
Account Expense GL Interest
Branch
01-08-2016 01-08-2016 RD Interest Cr 350 350
Account Compounded
Branch GL
01-08-2016 01-08-2016 RD Interest Dr 5 5 Incremental

Account Compounded Tax
Branch GL
01-08-2016 01-08-2016 RD Tax Withheld Cr 5 5

Account GL
Branch
01-08-2016 01-08-2016 RD Interest Dr 345 345
Account Compounded
Branch GL

Account GL
Branch
Account GL
Branch
01-08-2016 01-08-2016 RD Late Penalty Cr 100 100
Account Income GL
Branch
Account GL
Branch
38
Recurring Deposits
01-08-2016 01-08-2016 RD Inter-Branch Cr 5245 5245

Account GL
Branch
Account GL
Branch
01-08-2016 01-08-2016 Txn Cash GL Cr 5245 5245
Branch
39
Recurring Deposits
1.26. Flexi Saver RD Part Redemption by CASA (Fast Path

: 1728)
Cr
(INR) (INR)
01-08-2016 01-08-2016 RD CASA Liability Dr 10000 10000 RD Account
Account GL
Branch
01-08-2016 01-08-2016 CASA CASA Assets / Cr 10000 10000 CASA
Account Liability GL Account
Branch
40
Recurring Deposits
1.27. Flexi Saver RD Part Redemption by GL (Fast Path :

1729)
Cr
(INR) (INR)
01-08-2016 01-08-2016 RD CASA Liability Dr 10000 10000 RD Account
Account GL
Branch
01-08-2016 01-08-2016 Txn Specified GL Cr 10000 10000 GL Account
Branch
41
Recurring Deposits
1.28. Post maturity Redemption

Cr
(INR) (INR)
01-08-2016 01-08-2016 RD RD Interest Dr 200 200 PMI
Account payable GL Interest
Branch capitlization
01-08-2016 01-08-2016 RD RD Maturity Cr 200 200 PMI
Account GL Interest
Branch capitlization
01-08-2016 01-08-2016 RD RD Maturity Dr 13200 13200 Principal+In
Account GL terest+PMI
Branch
01-08-2016 01-08-2016 RD Cash/CASA/G Cr 13200 13200
Account L
Branch
42
Recurring Deposits
1.29. Goal Accounts

The Goal Accounts are opened for achieving various purposes like buying car,
purchasing house, buying jewels etc.
Goal Funding by Cash (Fast path : 1494)
Cr
(INR) (INR)
31-05-2016 31-05-2016 Txn Cash GL Dr 5000 5000
Branch
31-05-2016 31-05-2016 Txn Inter-branch Cr 5000 5000

Branch GL
31-05-2016 31-05-2016 Account Inter-branch Dr 5000 5000
Branch GL
31-05-2016 31-05-2016 Account Goal Account Cr 5000 5000 As
Branch Liability GL maintaine
d in
CHM01
Goal Funding by Fund Transfer (Fast path : 1495)

Cr
(INR) (INR)
31-05-2016 31-05-2016 From CASA Dr 5000 5000
Account Asset/
Branch Liability GL
31-05-2016 31-05-2016 From Inter-branch Cr 5000 5000
Account GL
Branch
31-05-2016 31-05-2016 Goal Inter-branch Dr 5000 5000
Account GL
Branch
31-05-2016 31-05-2016 Goal Goal Account Cr 5000 5000 As
Account Liability GL maintaine
Branch d in
CHM01
Goal Fund Withdrawal (Fast path : 1495)

Cr
(INR) (INR)
43
Recurring Deposits
31-05-2016 31-05-2016 Goal Goal Account Dr 15000 15000 As maintained in

Account Liability GL CHM01
Branch
31-05-2016 31-05-2016 Goal Inter-branch Cr 15000 15000
Account GL
Branch
31-05-2016 31-05-2016 To Inter-branch Dr 15000 15000
Account GL
Branch
31-05-2016 31-05-2016 To CASA Cr 15000 15000
Account Asset/
Branch Liability GL
44
Term Deposits
4. Term Deposits

passed.
The various GLs used in this manual are listed below along with the maintenance which is used
for maintaining the same:
The accounting entries which are explained in the below topic involves following GLs:
Sr. No GL Head Location of Setup
1 Regular Deposits GL TDM01/ GL codes
2 Payment GL TDM01/ GL codes
3 Interest Expense TDM01/ GL codes
4 Interest Accrued TDM01/ GL codes
5 Tax1 With held TDM01/ GL codes
6 Tax2 With held TDM01/ GL codes
7 Interest Compounded TDM01/ GL codes
8 Interest Payable TDM01/ GL codes
9 Redemption Payable GL TDM01/ GL codes
10 Matured deposits GL TDM01/ GL codes
11 Unclaimed deposit TDM01/ GL codes
12 Savings A/c. Liability GL CHM01/ General Ledger
45
Term Deposits
1.30. Quick TD Pay-in by transfer from CASA - Fast Path:

1007
Quick Pay-in of 10000 by transfer from CASA to a TD account.
Cr
(INR) (INR)
31-05-2016 31-05-2016 TD CASA Dr 10000 10000
Account Asset/
Branch Liability GL
31-05-2016 31-05-2016 TD TD Payment Cr 10000 10000
Account GL
Branch
31-05-2016 31-05-2016 TD TD Payment Dr 10000 10000
Account GL
Branch
31-05-2016 31-05-2016 TD Regular Cr 10000 10000
Account Deposit GL
Branch
Quick Pay-in by transfer from CASA for 10000 in a TD account. CASA and TD accounts are
maintained in different branches.
Cr
(INR) (INR)
31-05-2016 31-05-2016 CASA CASA Dr 10000 10000
Account Asset/
Branch Liability GL
31-05-2016 31-05-2016 CASA Inter branch Cr 10000 10000
Account GL
Branch
31-05-2016 31-05-2016 TD Inter branch Dr 10000 10000
Account GL
Branch
31-05-2016 31-05-2016 TD TD Payment Cr 10000 10000
Account GL
Branch
31-05-2016 31-05-2016 TD TD Payment Dr 10000 10000
Account GL
Branch
31-05-2016 31-05-2016 TD Regular Cr 10000 10000
Account Deposit GL
Branch
46
Term Deposits
1.31. Quick TD Pay-in by transfer from GL - Fast Path: 1021

Pay-in by transfer from GL Account.
Cr
(INR) (INR)
31-05-2016 31-05-2016 GL Specified GL Dr 10000 10000
Account
Branch
31-05-2016 31-05-2016 GL Inter branch Cr 10000 10000
Account GL
Branch
Account GL
Branch
31-05-2016 31-05-2016 TD TD Payment Cr 10000 10000
Account GL
Branch
31-05-2016 31-05-2016 TD TD Payment Dr 10000 10000
Account GL
Branch
31-05-2016 31-05-2016 TD Regular Cr 10000 10000
Account Deposit GL
Branch
47
Term Deposits
1.32. Quick Redemption By Cash - Fast Path: 1310

Redemption of TD with payout in cash.
Cr
(INR) (INR)
31-05-2016 31-05-2016 TD Redemption Dr 12000 12000
Account payable GL
Branch
31-05-2016 31-05-2016 TD TD Payment Cr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 TD TD Payment Dr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 TD Inter branch Cr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 Txn Inter branch Dr 12000 12000
Branch GL
31-05-2016 31-05-2016 Txn Cash GL Cr 12000 12000
Branch
48
Term Deposits
1.33. Redemption by CASA Transfer - Fast Path: 1312

Redemption of TD with payout by transfer to a CASA account.
Cr
(INR) (INR)
31-05-2016 31-05-2016 TD Redemption Dr 12000 12000
Account payable GL
Branch
31-05-2016 31-05-2016 TD TD Payment Cr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 TD TD Payment Dr 12000 12000
Account GL
Branch
Account GL
Branch
31-05-2016 31-05-2016 CASA Inter branch Dr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 CASA CASA Assets Cr 12000 12000
Account / Liability GL
Branch
49
Term Deposits
1.34. Online Renewal - Fast Path: 1316

TD Redemption by pay in to a new TD.

Cr
(INR) (INR)
31-05-2016 31-05-2016 TD Redemption Dr 12000 12000
Account payable GL
Branch
31-05-2016 31-05-2016 TD TD Payment Cr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 TD TD Payment Dr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 TD Regular Cr 12000 12000
Account Deposit GL
Branch
50
Term Deposits
1.35. Quick Redemption By GL - Fast Path: 1318

Cr
(INR) (INR)
31-05-2016 31-05-2016 TD Redemption Dr 12000 12000
Account payable GL
Branch
31-05-2016 31-05-2016 TD TD Payment Cr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 TD TD Payment Dr 12000 12000
Account GL
Branch
Account GL
Branch
31-05-2016 31-05-2016 GL Inter branch Dr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 GL Specified GL Cr 12000 12000
Account
Branch
51
Term Deposits
1.36. Interest Payout by Cash - Fast Path: 1337

Pending interest or uncollected interest is paid to customer online.
Cr
(INR) (INR)
31-05-2016 31-05-2016 TD Interest Dr 900 900
Account Payable GL
Branch
31-05-2016 31-05-2016 TD Payment GL Cr 900 900
Account
Branch
31-05-2016 31-05-2016 TD Payment GL Dr 900 900
Account
Branch
Account GL
Branch
Branch GL
31-05-2016 31-05-2016 Txn Cash GL Cr 900 900
Branch
When Interest is transferred to CASA account

Cr
(INR) (INR)
31-05-2016 31-05-2016 TD Interest Dr 900 900
Account Payable GL
Branch
31-05-2016 31-05-2016 TD Payment GL Cr 900 900
Account
Branch
31-05-2016 31-05-2016 TD Payment GL Dr 900 900
Account
Branch
Account GL
Branch
Account GL
Branch
Branch
52
Term Deposits
1.37. TD Mixed Payin - Fast Path: 1356

TD Mixed pay in by cash and transfer from CASA.
Cr
(INR) (INR)
31-05-2016 31-05-2016 Txn Cash GL Dr 10000 10000
Branch
31-05-2016 31-05-2016 Txn Inter branch Cr 10000 10000

Branch GL
Account GL
Branch
31-05-2016 31-05-2016 TD Payment GL Cr 10000 10000
Account
Branch
31-05-2016 31-05-2016 CASA CASA Assets Dr 5000 5000
Branch
31-05-2016 31-05-2016 CASA Inter branch Cr 5000 5000
Account GL
Branch
Account GL
Branch
31-05-2016 31-05-2016 TD Payment GL Cr 5000 5000
Account
Branch
31-05-2016 31-05-2016 TD Payment GL Dr 15000 15000
Account
Branch
31-05-2016 31-05-2016 Txn Regular Cr 15000 15000
Branch Deposit GL
53
Term Deposits
1.38. TD Mixed Redemption - Fast Path: 1358

Cr
(INR) (INR)
31-05-2016 31-05-2016 TD Redemption Dr 20000 20000
Account Payable GL
Branch
31-05-2016 31-05-2016 TD Payment GL Cr 20000 20000
Account
Branch
31-05-2016 31-05-2016 TD Payment GL Dr 15000 15000
Account
Branch
Account GL
Branch
Branch GL
31-05-2016 31-05-2016 Txn Cash GL Cr 15000 15000
Branch
31-05-2016 31-05-2016 TD Payment GL Dr 5000 5000
Account
Branch
Account GL
Branch
Branch GL
Branch
54
Term Deposits
1.39. Quick TD Pay-in by transfer from Cash - Fast Path:

1402
Pay-in by transfer from GL Account.
Cr
(INR) (INR)
31-05-2016 31-05-2016 Txn Cash GL Dr 10000 10000
Branch
31-05-2016 31-05-2016 Txn Inter branch Cr 10000 10000

Branch GL
Account GL
Branch
31-05-2016 31-05-2016 TD TD Payment Cr 10000 10000
Account GL
Branch
31-05-2016 31-05-2016 TD TD Payment Dr 10000 10000
Account GL
Branch
31-05-2016 31-05-2016 TD Regular Cr 10000 10000
Account Deposit GL
Branch
55
Term Deposits
1.40. Quick Redemption By Reinvest To Existing Account -

Fast Path: 1333
Cr
(INR) (INR)
31-05-2016 31-05-2016 Old TD Redemption Dr 12000 12000
Account payable GL
Branch
31-05-2016 31-05-2016 Old TD TD Payment Cr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 Old TD TD Payment Dr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 Old TD Inter branch Cr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 New TD Inter branch Dr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 New TD TD Payment Cr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 New TD TD Payment Dr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 New TD Regular Cr 12000 12000
Account Deposit GL
Branch
56
Term Deposits
1.41. Quick Redemption By Reinvest To New Account -

Fast Path: 1336
TD redemption by reinvesting the redeemed amount in a new TD account.

Cr
(INR) (INR)
31-05-2016 31-05-2016 Old TD Redemption Dr 12000 12000
Account payable GL
Branch
31-05-2016 31-05-2016 Old TD TD Payment Cr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 Old TD TD Payment Dr 12000 12000
Account GL
Branch
Account GL
Branch
Account GL
Branch
31-05-2016 31-05-2016 New TD TD Payment Cr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 New TD TD Payment Dr 12000 12000
Account GL
Branch
31-05-2016 31-05-2016 New TD Regular Cr 12000 12000
Account Deposit GL
Branch
57
Term Deposits
1.42. Time Deposit Interest Accrual

Interest Accrual frequency and the accrual anniversary month is defined at the Product level. In
the event of accrual, Interest amount is recognized as expense and the equivalent liability is
created in the form of credit to Interest Accrual GL.
If the tax is at accrual, system passes the accrual entries for the total amount and tax entry is
passed separately by debiting the Interest Accrual Entry and crediting the Tax Withheld GL.
Example
The Interest to be accrual is 1000 INR, for the period 20/07/2016 to 20/08/2016.
Cr
(INR) (INR)
20-08-2016 20-08-2016 TD Interest Dr 1000 1000
Account Expense GL
Branch
20-08-2016 20-08-2016 TD Interest Cr 1000 1000
Account Accrued GL
Branch
58
Term Deposits
1.43. TD Interest Compounding

At the event of compounding, system increases the interest base and the accrued income since
the last capitalization event is transferred to compounding GL.
If the tax is at compounding, system passes the compounding entries for the total amount and tax
entry is passed separately by debiting the Interest Compounded GL and crediting the Tax
Withheld GL.
Example
The Interest to be compounded is 3000 INR, for the period 20/05/2016 to 20/08/2016. Tax
applicable is Tax1 = 300
Cr
(INR) (INR)
20-08-2016 20-08-2016 TD Interest Dr 3000 3000
Account Accrued GL
Branch
20-08-2016 20-08-2016 TD Interest Cr 3000 3000
Account Compounded
Branch GL
20-08-2016 20-08-2016 TD Interest Dr 300 300
Account Compounded
Branch GL
20-08-2016 20-08-2016 TD Tax Withhold Cr 300 300
Account 1 GL
Branch
59
Term Deposits
1.44. TD Interest payout during BOD processing

At BOD

Cr
(INR) (INR)
20-08-2016 20-08-2016 TD Interest Dr 3000 3000
Account Compounded/
Branch Interest
Accrued
20-08-2016 20-08-2016 TD Interest Cr 3000 3000
Account Payable GL
Branch
20-08-2016 20-08-2016 TD Interest Dr 300 300
Account Payable GL
Branch
20-08-2016 20-08-2016 TD Tax Withhold Cr 300 300
Account 1 GL
Branch
Transfer to Savings Account

Cr
(INR) (INR)
20-08-2016 20-08-2016 TD Interest Dr 2700 2700
Account Payable GL
Branch
20-08-2016 20-08-2016 TD Payment GL Cr 2700 2700
Account
Branch
20-08-2016 20-08-2016 TD Payment GL Dr 2700 2700
Account
Branch
Account GL
Branch
Account GL
Branch
Branch
60
Term Deposits
Transfer to GL Account

Cr
(INR) (INR)
20-08-2016 20-08-2016 TD Interest Dr 2700 2700
Account Payable GL
Branch
20-08-2016 20-08-2016 TD Payment GL Cr 2700 2700
Account
Branch
20-08-2016 20-08-2016 TD Payment GL Dr 2700 2700
Account
Branch
20-08-2016 20-08-2016 TD Specified GL Cr 2700 2700
Account
Branch
Interest Pay Out by Reinvest to Existing Account

Cr
(INR) (INR)
20-08-2016 20-08-2016 Old TD Interest Dr 2700 2700
Account Payable GL
Branch
20-08-2016 20-08-2016 Old TD Payment GL Cr 2700 2700
Account
Branch
20-08-2016 20-08-2016 Old TD Payment GL Dr 2700 2700
Account
Branch
Account GL
Branch
Account GL
Branch
20-08-2016 20-08-2016 New TD Payment GL Cr 2700 2700
Account
Branch
20-08-2016 20-08-2016 New TD Payment GL Dr 2700 2700
Account
Branch
20-08-2016 20-08-2016 New TD Regular Cr 2700 2700
Account Deposit GL
Branch
61
Term Deposits
Interest Pay Out by Reinvest to New Account

Cr
(INR) (INR)
20-08-2016 20-08-2016 Old TD Interest Dr 2700 2700
Account Payable GL
Branch
20-08-2016 20-08-2016 Old TD Payment GL Cr 2700 2700
Account
Branch
20-08-2016 20-08-2016 Old TD Payment GL Dr 2700 2700
Account
Branch
Account GL
Branch
Account GL
Branch
20-08-2016 20-08-2016 New TD Payment GL Cr 2700 2700
Account
Branch
20-08-2016 20-08-2016 New TD Payment GL Dr 2700 2700
Account
Branch
20-08-2016 20-08-2016 New TD Regular Cr 2700 2700
Account Deposit GL
Branch
Note: If no Instructions are maintained for the Interest Payout, then the amount is transferred to
the Payable GL. The amount is transferred from the Payable GL to the relevant GL at the time of
actual interest payout based on the payout mode selected.
62
Term Deposits
1.45. TD Maturity processing and Redemption by transfer

to Savings Account
Generic

Cr
(INR) (INR)
31-08-2016 31-08-2016 TD Regular Dr 12000 12000
Account Deposit GL
Branch
31-08-2016 31-08-2016 TD Redemption Cr 12000 12000
Account payable GL
Branch
By Transfer to Savings account

Cr
(INR) (INR)
31-08-2016 31-08-2016 TD Redemption Dr 12000 12000
Account payable GL
Branch
31-08-2016 31-08-2016 TD Payment GL Cr 12000 12000
Account
Branch
31-08-2016 31-08-2016 TD Payment GL Dr 12000 12000
Account
Branch
Account GL
Branch
Account GL
Branch
31-08-2016 31-08-2016 CASA CASA Cr 12000 12000
Account Assets /
Branch Liability GL
63
Term Deposits
1.46. Maturity TD Redemption by transfer to General

Ledger (GL)
Generic

Cr
(INR) (INR)
31-08-2016 31-08-2016 TD Regular Dr 12000 12000
Account Deposit GL
Branch
31-08-2016 31-08-2016 TD Redemption Cr 12000 12000
Account payable GL
Branch
By transfer to General Ledger account

Cr
(INR) (INR)
31-08-2016 31-08-2016 TD Redemption Dr 12000 12000
Account payable GL
Branch
31-08-2016 31-08-2016 TD Payment GL Cr 12000 12000
Account
Branch
31-08-2016 31-08-2016 TD Payment GL Dr 12000 12000
Account
Branch
Account
Branch
64
Term Deposits
1.47. Maturity TD Redemption by transfer to same Time

Deposit (TD)
Generic

Cr
(INR) (INR)
31-08-2016 31-08-2016 TD Regular Dr 12000 12000
Account Deposit GL
Branch
31-08-2016 31-08-2016 TD Redemption Cr 12000 12000
Account payable GL
Branch
By Transfer to same TD Account

Cr
(INR) (INR)
31-08-2016 31-08-2016 TD Redemption Dr 12000 12000
Account payable GL
Branch
31-08-2016 31-08-2016 TD Payment GL Cr 12000 12000
Account
Branch
31-08-2016 31-08-2016 TD Payment GL Dr 12000 12000
Account
Branch
31-08-2016 31-08-2016 TD Regular Cr 12000 12000
Account Deposits GL
Branch
Note: New Deposit is created in the same TD account.
65
Term Deposits
1.48. Maturity TD Redemption by transfer to new Time

Deposit (TD)
Generic Pay-in

Cr
(INR) (INR)
31-08-2016 31-08-2016 TD Regular Dr 12000 12000
Account Deposit GL
Branch
31-08-2016 31-08-2016 TD Redemption Cr 12000 12000
Account payable GL
Branch
By transfer to New TD Account

Cr
(INR) (INR)
20-08-2016 20-08-2016 TD Redemption Dr 12000 12000
Account payable GL
Branch
20-08-2016 20-08-2016 TD Payment GL Cr 12000 12000 Parking
Account entries
Branch matured
deposit
20-08-2016 20-08-2016 TD Payment GL Dr 12000 12000
Account
Branch
20-08-2016 20-08-2016 TD Payment GL Cr 12000 12000 Parking
Account entries
Branch new
deposit
20-08-2016 20-08-2016 TD Payment GL Dr 12000 12000
Account
Branch
20-08-2016 20-08-2016 TD Regular Cr 12000 12000
Account Deposits GL
Branch
66
Term Deposits
1.49. Clubbing Interest to Principal at Maturity

Example
The TD account is an INR account. The Principal amount is 12000. The Interest to be added to
Principal at Maturity is 1250 and reinvested in same TD account.
At Interest Processing

Cr
(INR) (INR)
20-08-2016 20-08-2016 TD Interest Dr 1250 1250
Account Compounde
Branch d/ Interest
Accrued
20-08-2016 20-08-2016 TD Interest Cr 1250 1250
Account Payable
Branch
On Maturity

Cr
(INR) (INR)
20-08-2016 20-08-2016 TD Interest Dr 1250 1250
Account Payable
Branch
20-08-2016 20-08-2016 TD Redemption Cr 1250 1250
Account Payable GL
Branch
20-08-2016 20-08-2016 TD Regular Dr 12000 12000
Account Deposit GL
Branch
20-08-2016 20-08-2016 TD Redemption Cr 12000 12000
Account payable GL
Branch
20-08-2016 20-08-2016 TD Redemption Dr 13250 13250
Account payable GL
Branch
20-08-2016 20-08-2016 TD Payment GL Cr 13250 13250
Account
Branch
20-08-2016 20-08-2016 TD Payment GL Dr 13250 13250
Account
Branch
20-08-2016 20-08-2016 TD Regular Cr 12000 12000
Account Deposits GL
Branch
67
Term Deposits
1.50. Transfer to Unclaimed Deposit

The General Ledger (GL) entries will be passed for the deposit only if at the product level
“Redemption Renewal flag” is unchecked.
A deposit can be marked unclaimed in case no maturity instruction is maintained and the
unclaimed transfer period is over.
No Maturity instructions are maintained
The amount transferred to matured deposit for the matured deposit of the account is INR 10000
as no maturity instructions are maintained for the deposit.
Cr
(INR) (INR)
31-08-2016 31-08-2016 TD Matured Dr 10000 10000
Account Deposit GL
Branch
31-08-2016 31-08-2016 TD Unclaimed Cr 10000 10000
Account Deposit GL
Branch
68
Term Deposits
1.51. Pre-mature Redemption

 In case of premature redemption of a term deposit, the amount in the Interest Accrued GL and
Interest Compounded GL proportionate to the redemption amount is first reversed.
 The interest and tax calculations are done at the penalty rate for the redemption amount.
 If the interest paid out on the deposit towards the redemption amount is less than the penalty
interest calculated then the differential amount is recovered from the principal amount being
redeemed. Similarly, if the penalty interest is higher than the interest paid out, then the
differential amount is added to the net redemption amount.
 If the tax deducted till date for the interest earned on the principal amount being redeemed is
less than the tax calculated on the penalty interest then the differential tax is recovered from
the redemption amount. However, if the tax deducted till date for the interest earned on the
principal amount being redeemed is more than the tax calculated on the penalty interest then
the differential tax is not recovered from the redemption amount.
 The Principal amount redeemed is routed through the Redemption payable GL to the Payment
GL only in case the premature redemption instruction is maintained in the system. In case of
Online premature redemption the principle amount is directly credit to the Payment GL.
Example
Case 1: The Penalty interest is more than the interest compounded till date.
A premature redemption is done for a term deposit. The term deposit was opened on 01/04/2016
for a period of 24 months. The Principal amount is 10000 INR. The Interest Accrual frequency is
Monthly, the Interest Compounded frequency is Quarterly for the deposit opened.
The Interest Accrued for the deposit is 167 INR.

The Interest compounded for the deposit is 250 INR.
Premature redemption for the deposit is done on 31/08/2016.
The Penalty interest calculated is 333 INR.
Date Branch GL Head Dr / Amount Remar
Cr ks
(INR) (INR)
31-08-2016 31-08-2016 TD Interest Dr 250 250
Account Compounde
Branch d GL
31-08-2016 31-08-2016 TD Interest Cr 250 250
Account Expense GL
Branch
31-08-2016 31-08-2016 TD Interest Dr 167 167
Account Accrued GL
Branch
31-08-2016 31-08-2016 TD Interest Cr 167 167
Account Expense GL
Branch
69
Term Deposits
31-08-2016 31-08-2016 TD Interest Dr 333 333

Account Expense GL
Branch
31-08-2016 31-08-2016 TD Payment GL Cr 333 333
Account
Branch
31-08-2016 31-08-2016 TD Regular Dr 10000 10000
Account Deposit GL
Branch
31-08-2016 31-08-2016 TD Payment GL Cr 10000 10000
Account
Branch
31-08-2016 31-08-2016 TD Payment GL Dr 10333 10333
Account
Branch
Account
Branch
Case 2: The Penalty interest is more than the interest paid till date.
Monthly, the Interest Payout frequency is Quarterly for the deposit opened.

The Interest Paid till date is 250 INR.
Cr
(INR) (INR)
31-08-2016 31-08-2016 TD Interest Dr 167 167
Account Accrued GL
Branch
31-08-2016 31-08-2016 TD Interest Cr 167 167
Account Expense GL
Branch
31-08-2016 31-08-2016 TD Interest Dr 333 333
Account Expense GL
Branch
31-08-2016 31-08-2016 TD Interest Cr 250 250
Account Expense GL
Branch
31-08-2016 31-08-2016 TD Payment GL Cr 83 83
Account
70
Term Deposits
Branch
31-08-2016 31-08-2016 TD Regular Dr 10000 10000

Account Deposit GL
Branch
31-08-2016 31-08-2016 TD Payment GL Cr 10000 10000
Account
Branch
31-08-2016 31-08-2016 TD Payment GL Dr 10083 10083
Account
Branch
Account
Branch
Case 3: The Penalty interest is less than the interest paid till date.
Monthly, the Interest Payout frequency is Quarterly for the deposit opened.

The Interest Paid till date is 250 INR.
Cr
(INR) (INR)
31-08-2016 31-08-2016 TD Interest Dr 167 167
Account Accrued GL
Branch
31-08-2016 31-08-2016 TD Interest Cr 167 167
Account Expense GL
Branch
31-08-2016 31-08-2016 TD Interest Dr 200 200
Account Expense GL
Branch
31-08-2016 31-08-2016 TD Interest Cr 250 250
Account Expense GL
Branch
31-08-2016 31-08-2016 TD Payment GL Dr 50 50
Account
Branch
31-08-2016 31-08-2016 TD Regular Dr 10000 10000
Account Deposit GL
Branch
71
Term Deposits
31-08-2016 31-08-2016 TD Payment GL Cr 10000 10000

Account
Branch
31-08-2016 31-08-2016 TD Payment GL Dr 9050 9050
Account
Branch
Account
Branch
72
Term Deposits
1.52. TD Online Renewal Inquiry

At the time of TD Online renewal, along with the principal amount, any post maturity interest
earned on the account, or any interest due but still not paid to customer is also renewed.
The Principal amount of the matured deposit is INR 10000. The Interest Payable is INR 1200.
The post maturity interest on the deposit is INR 80
The Online renewal is done on 31/08/2016 with the value date same as the online renewal date
Cr ks
(INR) (INR)
31-08-2016 31-08-2016 TD Matured Dr 10000 10000
Account Deposit GL
Branch
31-08-2016 31-08-2016 TD Redemption Cr 10000 10000
Account payable GL
Branch
31-08-2016 31-08-2016 TD Redemption Dr 10000 10000
Account payable GL
Branch
31-08-2016 31-08-2016 TD Payment GL Cr 10000 10000
Account
Branch
31-08-2016 31-08-2016 TD Interest Dr 80 80
Account Expense GL
Branch
31-08-2016 31-08-2016 TD Interest Cr 80 80
Account Payable GL
Branch
31-08-2016 31-08-2016 TD Interest Dr 80 80
Account Payable GL
Branch
31-08-2016 31-08-2016 TD Payment GL Dr 80 80
Account
Branch
31-08-2016 31-08-2016 TD Interest Dr 1200 1200
Account Payable GL
Branch
31-08-2016 31-08-2016 TD Payment GL Cr 1200 1200
Account
Branch
31-08-2016 31-08-2016 TD Payment GL Dr 11280 11280
Account
Branch
31-08-2016 31-08-2016 TD Regular Cr 11280 11280
Account Deposit GL
Branch
73
Term Deposits
1.53. Debit Interest Adjustment

The Interest accrued amount is INR 2000 and the debit interest adjustment has to be done for
INR 110 on 20/08/2016.
Cr
(INR) (INR)
20-08-2016 20-08-2016 TD Interest Dr 110 110
Account Accrued GL
Branch
20-08-2016 20-08-2016 TD Interest Cr 110 110
Account Expense GL
Branch
74
Term Deposits
1.54. Credit Interest Adjustment

The Interest accrued amount is INR 2000 and the debit interest adjustment has to be done for
INR 130 on 20/08/2016
Cr
(INR) (INR)
20-08-2016 20-08-2016 TD Interest Dr 130 130
Account Expense GL
Branch
20-08-2016 20-08-2016 TD Interest Cr 130 130
Account Accrued GL
Branch
75
Term Deposits
1.55. Deposit Tax Refund (Fast path : TDS14)

This fast path used to refund the excess tax deducted on Term Deposit and recurring Deposit.
a. Tax refund through Cash mode in the same branch set up.

Cr
(INR) (INR)
01-08-2016 01-08-2016 TD/RD Tax withheld Dr 500 500
Account GL
Branch
01-08-2016 01-08-2016 Txn Cash GL Cr 500 500
Branch
b. Tax refund into a CASA Account maintained with a different Branch.

Cr
(INR) (INR)
01-08-2016 01-08-2016 TD/RD Tax withheld Dr 500 500 Tax
Account GL withholding
Branch branch
01-08-2016 01-08-2016 TD/RD Inter-Branch Cr 500 500
Account GL
Branch
01-08-2016 01-08-2016 CASA Inter-Branch Dr 500 500
Account GL
Branch
01-08-2016 01-08-2016 CASA CASA Assets / Cr 500 500 Beneficiary
Account Liability GL CASA
Branch account
branch
76
Loans
5. Loans
Note
All dates are in the DD/MM/YYYY format

passed.
Setups of GLs
The various GLs used in manual are listed below along with the maintenance which is used for
maintaining the same:
1 Cash GL Branch Database
2 Interbranch GL Bank Master
3 Endpoint GL Endpoint Master
4 CFC GL Settlement Bank Parameters
5 CASA Asset / Liability CASA Product Master
6 Issuer GL Issuer Master
7 Loan Asset GL Loan Product Master *
8 Selected GL GL Code as entered on the screen
9 Premium Receivable GL Insurance Master
10 Suspended Premium Insurance Master

Receivable GL
11 Loan Suspended Asset GL Loan Product Master
12 Misc. Income Loan Product Master
13 Legal Fee Payable GL Loan Product Master
14 Suspended Legal Fees GL Loan Product Master
15 Outgoing Payable GL Loan Product Master
16 Suspended Outgoing Loan Product Master

Receivable GL
17 SC/Fees Receivable GL Loan Product Master
18 Outgoing Receivable GL Loan Product Master
19 Legal Fees Receivable Loan Product Master
77
Loans
20 Suspended SC/Fees Loan Product Master
21 Bad Debt Reserve GL Loan Product Master
22 Unapplied Advance (RPA) GL Loan Product Master
23 Small Balance Forfeited GL Loan Product Master
24 Small Balance Waiver GL Loan Product Master
25 Write-off Expense GL Loan Product Master
26 Interest Income GL Loan Product Interest Attribute
27 Penalty Interest Income GL Loan Product Interest Attribute
28 Interest Accrued GL Loan Product Interest Attribute
29 Interest Receivable GL Loan Product Interest Attribute
30 Penalty Interest Receivable Loan Product Interest Attribute

GL
31 Interest Compounded Loan Product Interest Attribute
32 Suspended Interest Income Loan Product Interest Attribute
33 Suspended Penalty Interest Loan Product Interest Attribute

GL
34 Suspended Interest Accrued Loan Product Interest Attribute
35 Suspended Interest Loan Product Interest Attribute

Receivable
36 Suspended Penalty Interest Loan Product Interest Attribute

Receivable

Compounded

Recovered
39 Unearned Interest Loan Product Interest Attribute
40 SC/Fee Income GL SC Code Maintenance
41 Premium Remittance GL Insurance Master
42 Contingent Liability Collateral Codes Maintenance
43 Contingent Asset Collateral Codes Maintenance
44 Network GL Network Master Maintenance
45 Premium Asset GL Loan Product Master
46 Interest Waived Loan Product Interest Attribute
78
Loans
47 Claim Settlement GL Insurance Master Maintenance
48 RPA GL Loan Product Master
49 Subsidy Parking GL Loan Product Master
50 Account Payable GL Third Party Company Details
51 Account Receivable GL Third Party Company Details
52 Unclaimed Payable GL Third Party Company Details
53 Unclaimed Receivable GL Third Party Company Details
54 Inventory Asset GL Loan Product Master
55 Inventory Liability GL Loan Product Master
56 Total Margin receivable GL Loan Product Master
57 Deferred Margin Income GL Loan Product Master
58 Margin / Profit GL Loan Product Interest Attribute
59 Amortisation GL Rewards and Service Charges

definition.
Note: The entries can be passed to the Loan Asset GL or Suspended Asset GL based on the status
of the account at the time of posting. For all entries, it is assumed that the account is in normal
status unless it is required to be suspended.
79
Loans
1.56. Loan Account Opening

Date Branch GL Dr / Cr Amount Default
Head Description
Postin Value TCY- LCY-
g INR INR
01/01/ 01/01/ Accou Contin Dr 50000 50000 Sancti oned

05 05 nt gent Amoun t
Branch Asset
01/01/ 01/01/ Accou Conti Cr 50000 50000 Sancti oned

05 05 nt n Amoun t
Branch gent
Liabil
it y
APS and Account Opening
No Accounting entries are generated Application Header

No Accounting entries are generated Recommend
No Accounting entries are generated Maintain Result
No Accounting entries are generated Authorize Result
No Accounting entries are generated Customer Acceptance
No Accounting entries are generated Offer Letter Printing
No Accounting entries are generated Offer Reject
No Accounting entries are generated Offer Extension
No Accounting entries are generated View
No Accounting entries are generated View Result
No Accounting entries are generated Trial Calculation
No Accounting entries are generated Installment Calculation
No Accounting entries are generated Insurance Enquiry
No Accounting entries are generated Loan Direct Account Opening
No Accounting entries are generated
80
Loans
1.57. Loan Account Disbursement - Fast Path: LN521

Disbursement of loans is possible only after the following conditions are fulfilled:
 The loan has been sanctioned and the loan account has been opened. Loan account can
be opened either by using the APS module/ORS module or the Loan Direct Account
Opening (Fast Path: LN057)
 All mandatory documents pertaining to the loan account have been received using the
Account Document Maintenance option. (FP-LN323).
 In case the loan is a secured loan the appropriate collaterals should have been attached to
the loan account.
Disbursements can be classified into the following stages:
 First Disbursement
 Subsequent disbursements (disbursements can be done even during the regular stage of
the loan unlike the earlier versions)
 Final Disbursement
Disbursement involves two legs of accounting entries, viz., one at the Head Office and the other at
the Branch where the disbursement is normally done. Host end disbursement is done by generating
the loan schedule using option (LN521-Setup Account Schedule). After the schedule creation is
authorized the host end entry for the disbursement is completed. The system prompts the user,
whether to proceed for the branch disbursement. If the user selects the OK button the system
proceeds for the branch disbursement (FP-1413). If not, the user at the branch can do the branch
disbursement later, using the same option, Disbursement-1413.
No GL entries are passed only when the host leg of the disbursement is done for a loan account
and they will be passed only when the branch disbursement of the loan account is initiated.
At the Head Office (that is at the Host end), the preliminary entry for disbursement is done.
Disbursement by Cash – Rs. 20000 disbursed to loan Account
Date Branch GL Dr / Amount Default

Head Cr Description
g INR INR
01/01/ 01/01/ Accou Loan Dr 20000 20000 Disbur

05 05 nt Asset sement By
Branch GL Cash
01/01/ 01/01/ Accou Inter Cr 20000 20000 Disbur

05 05 nt Branch sement By
Branch GL Cash
01/01/ 01/01/ Transa Inter Dr 20000 20000 Disbur

05 05 ction Branch sement By
Branch GL Cash
81
Loans
01/01/ 01/01/ Transa Cash Cr 20000 20000 Disbur

05 05 ction GL sement By
Branch Cash
01/01/ 01/01/ Accou Contin Dr 20000 20000 Comp

05 05 nt gent ensation
Branch Liabilit Amoun t
y
01/01/ 01/01/ Accou Contin Cr 20000 20000 Comp

05 05 nt gent ensation
Branch Asset Amoun t
82
Loans
Disbursement by Bankers Cheque – INR 5000 disbursed by bankers cheque
Date Branch GL Dr / Cr Amount Default

Head Descrip
Postin Value TCY- LCY- tion
g INR INR
01/01/ 01/01/ Accou Loa Dr 5000 5000 Disbur

05 05 nt n semen t
Branch Ass By
et Chequ e
GL

05 05 nt Branc semen t
Branch h GL By
Chequ e

05 05 ction Branc semen t
Branch h GL By
Chequ e
01/01/ 01/01/ Transa Banke Cr 5000 5000 Disbur

05 05 ction r’s semen t
Branch Cheq By
ue Chequ e
Issue
GL
A/C
Rs. 20000 loan disbursed by transfer to CASA Account
Date Branch GL Dr / Cr Amount Defaul

Head t
Postin Value TCY- LCY- Descri
g INR INR ption

05 05 nt n semen
Branch Ass t By
et Chequ
GL e

05 05 nt Branc semen
Branch h GL t By
Chequ
e
01/01/ 01/01/ CASA Inter Dr 20000 20000 Disbur

05 05 Accou Branc semen
nt h GL t By
Branch Chequ
e
83
Loans

Head t
g INR INR ption
01/01/ 01/01/ CASA CASA Cr 20000 20000 Disbur

05 05 Accou Asset semen
nt / t By
Branch Liabili Chequ
t y e
GL
Top-up Disbursement Example:
Outstanding loan amount = INR 40000

Arrears capitalized during restructure =INR 3000 Top-Up Disbursed = INR 5000
1. Arrears capitalized during restructure

Head t
g INR INR ption
01/01/ 01/01/ Accou Loa Dr 3000 3000 Interes

05 05 nt n t
Branch Ass Arrear
et Capital
GL ization
01/01/ 01/01/ Accou Intere Cr 3000 3000 Interes

05 05 nt st t
Branch Recei Arrear
v able Capital
ization
2. Top-Up Disbursed

Head t
g INR INR ption

05 05 nt n semen
Branch Ass t To
et CASA
GL
01/01/ 01/01/ Accou Disb Cr 5000 5000 DISBU
05 05 nt ur RSEM
Branch seme ENT
n t TO
GL CASA
(Loan
Accou
nt)
84
Loans
Contingent Entry Event if Collateral is attached

Head t
g INR INR ption
01/01/ 01/01/ Collate Contin Dr 1200 1200 Collate

05 05 ral gent ral
Home Asset Value
Branch
01/01/ 01/01/ Collate Conti Cr 1200 1200 Collate

05 05 ral n ral
Home gent Value
Branch Liabil
it y
Insurance Premium Collection

Head t
g INR INR ption
01/01/ 01/01/ Loan Premi Dr 1200 1200 Premiu

05 05 A/c um m
Branch Asset Amoun
GL t
01/01/ 01/01/ Loan Premi Cr 1200 1200 Premiu

05 05 A/c um m
Branch Remit Amoun
t ance t
GL
Insurance Premium Payment to Insurer

Head t
g INR INR ption
01/01/ 01/01/ Loan Premi Dr 5000 5000 Sum of

05 05 A/c um Premiu
Branch Remit m
t ance Amoun
GL ts
01/01/ 01/01/ Clearin Endp Cr 5000 5000 Sum of

05 05 g oi nt Premiu
Branch GL m
Amoun
ts
85
Loans

Head t
g INR INR ption
01/01/ 01/01/ Loan Premi Dr 5000 5000 Sum of

05 05 A/c um Premiu
Branch Remit m
t ance Amoun
GL ts
01/01/ 01/01/ Loan SC Cr 5000 5000 Sum of

05 05 A/c GL Premiu
Branch m
Amoun
ts
Interest Waived After Claim Acceptance

Head t
g INR INR ption
01/01/ 01/01/ Loan Intere Dr 400 400 Penalt

05 05 A/c st y
Branch Waiv charge
ed d from
claim
effectiv
e date
01/01/ 01/01/ Loan Intere Cr 400 400 Penalt

05 05 A/c st y
Branch recei charge
v d from
able claim
effectiv
e date
Claim Received from Insurer

Head t
g INR INR ption
01/01/ 01/01/ Clearin Endp Dr 200 200 Claim

05 05 g oi nt Amoun
Branch GL t
01/01/ 01/01/ Loan Claim Cr 200 200 Claim

05 05 A/c Settle Amoun
Branch ment t
GL
86
Loans
Claim Adjustment with Loan Account

Head t
g INR INR ption
01/01/ 01/01/ Loan Claim Dr 200 200 Claim

05 05 A/c Settle Amoun
Branch ment t
GL
01/01/ 01/01/ Loan Loan Cr 200 200 Total

05 05 A/c Acco due
Branch u nt amoun
t from
Insurer
till date
Excess Amount Received as Claim

Head t
g INR INR ption
01/01/ 01/01/ Loan RPA Dr 800 800 Exces

05 05 A/c GL s
Branch Amoun
t
01/01/ 01/01/ Accou Cust Cr 800 800 Exces

05 05 nt o s
branch mer' Amoun
/Cleari s t
ng Acco
branch u nt
Schedule Set Up
Loans Disbursement Inquiry
Loan Disbursement Reversal
The loan, which is disbursed, can be reversed using the Loan Disbursement Reversal option. A loan
disbursement transaction may have to be reversed due to administrative reasons or any error in the
disbursement set-up for the loan account.
87
Loans
Initially the reversal of the branch disbursement needs to be done through EJ (FP 6006) and
subsequently, the reversal at the host should be done using the option of Loans Disbursement Reversal.
Reversal of Disbursement at Branch
If the teller has already disbursed the loan amount at the branch, the same teller should reverse the loan
disbursement transaction on the same day using the 6006 Electronic Journal option. At the Branch, the
actual disbursement is made by cash, bankers cheque, or transfer to CASA.
At the Head office (Host), the loan disbursement transaction reversal is done by using the option LN045
Reversal of Disbursement by Cash - 1200 disbursed by cash

Head t
g INR INR ption
01/01/ 01/01/ Transa Cas Dr 1200 1200 Revers

05 05 ction h al
Branch GL entry
01/01/ 01/01/ Transa Inter Cr 1200 1200 Revers

05 05 ction Branc al
Branch h GL entry
01/01/ 01/01/ Accou Inter Dr 1200 1200 Revers

05 05 nt Branc al
Branch h GL entry
01/01/ 01/01/ Accou Loa Cr 1200 1200 Revers

05 05 nt n al
Branch Ass entry
et
GL
Reversal of Disbursement by Bankers Cheque - 1200 disbursed by Bankers Cheque

Head t
g INR INR ption
01/01/ 01/01/ Transa Issuer Dr 1200 1200 Revers

05 05 ction GL al
Branch A/C entry

Branch h GL entry

05 05 nt Branc al
Branch h GL entry
01/01/ 01/01/ Accou Loa Cr 1200 1200 Revers

05 05 nt n al
Branch Ass entry
et
GL
88
Loans
Reversal of Disbursement by transfer to CASA - 1200 disbursed by transfer to CASA account

Head t
g INR INR ption
01/01/ 01/01/ Transa CASA Dr 1200 1200 Revers

05 05 ction Asset al
Branch / entry
Liabili
t y GL
Branch h GL entry

05 05 nt Branc al
Branch h GL entry
01/01/ 01/01/ Accou Loan Cr 1200 1200 Revers

05 05 nt Asse al
Branch t GL entry
Backdated installment reversal to CASA or GL
Date Amount
Dr / Default
Branch GL Head
Posting Value Cr TCY LCY Description
- -
INR INR
14/08/0 01/08/0 Accoun Asset D 500 500 Principal
8 8 t r Arrear
branch Appropriatio
n
14/08/0 01/08/0 Accoun Interest D 50 50 Interest

8 8 t receivabl r Arrear
branch e Appropriatio
n
14/08/0 01/08/0 Accoun Other 50 50 Fee Arrear

D
8 8 t receivabl Appropriatio
r
branch e n
14/08/0 01/08/0 Accoun CASA / C 600 600 BKDT

8 8 t GL r Installment
branch account Refund to
(asset or CASA: (loan
liability a/c no.)
GL)
Loan Account CBR Details
No accounting entries are generated
89
Loans
Loan Account Application Details Maintenance
Additional Document Maintenance
Account Documents Maintenance
Loan Approved Amount Maintenance
90
Loans
1.58. Loan Installment Payment Inquiry - Fast Path: 1065

Installment payment of loan can be done when the installment has become due. The loan installment
can be paid by cash, local cheque, transfer from CASA or GL transfer by using this option.
Loan Installment - Payment by Cash.
Assume that the loan account has the following arrears and
Principal Arrears = INR 1200
Service Charges = INR 100
Legal Fees Receivable = INR 200
Interest receivable = INR 300

Head t
g INR INR ption
01/01/ 01/01/ Transa Cas Dr 1800 1800 LN.

05 05 ction h Install
Branch GL ment
Payme
nt By
Cash
01/01/ 01/01/ Transa Inter Cr 1800 1800 LN.

05 05 ction Branc Install
Branch h GL ment
Payme
nt By
Cash
01/01/ 01/01/ Accou Inter Dr 1800 1800 LN.

05 05 nt Branc Install
Branch h GL ment
Payme
nt By
Cash
01/01/ 01/01/ Accou Unapp Cr 1800 1800 LN.

05 05 nt l ied Install
Branch Adva ment
n ce Payme
(RPA) nt By
GL Cash
01/01/ 01/01/ Accou Unapp Dr 1200 1200 LN.

Branch Adva ment
n ce Payme
(RPA) nt By
GL Cash
91
Loans
01/01/ 01/01/ Accou Loa Cr 1200 1200 LN.

05 05 nt n Install
Branch Ass ment
et Payme
GL nt By
Cash
01/01/ 01/01/ Accou Unapp Dr 100 100 LN.

Branch Adva ment
n ce Payme
(RPA) nt By
GL Cash
01/01/ 01/01/ Accou SC/F Cr 100 100 LN.

05 05 nt ee Install
Branch Recei ment
vable Payme
GL nt By
Cash
01/01/ 01/01/ Accou Unapp Dr 200 200 LN.

Branch Adva ment
n ce Payme
(RPA) nt By
GL Cash
01/01/ 01/01/ Accou Legal Cr 200 200 LN.

05 05 nt Fees Install
Branch Recei ment
v able Payme
GL nt By
Cash
01/01/ 01/01/ Accou Unapp Dr 300 300 LN.

Branch Adva ment
n ce Payme
(RPA) nt By
GL Cash
01/01/ 01/01/ Accou Intere Cr 300 300 LN.

05 05 nt st Install
Branch Recei ment
v able Payme
GL nt By
Cash
01/01/ 01/01/ Accou Contin Dr 300 300 Princip

05 05 nt gent al Paid
Branch Asset
01/01/ 01/01/ Accou Conti Cr 300 300 Princip

05 05 nt n al Paid
Branch gent
Liabil
it y
92
Loans
Loan Installment - Payment by Local Cheque
Cheque of value 1100 deposited on Loan Account in on 01/01/2005. Float Days = 5. The clearing of the
cheque is done on the value date of the cheque.
Assume that the loan account has the following arrears
Principal Arrears = 800
Service Charges = 60
Outgoing Receivable = 80
Interest receivable = 160

Head t
g INR INR ption
01/01/ 01/01/ Clearin Endp Dr 1100 1100 Chequ

05 05 g oi nt e
Branch GL Deposi
t
01/01/ 01/01/ Clearin Inter Cr 1100 1100 Chequ

05 05 g branc e
Branch h GL Deposi
t
01/01/ 01/01/ Accou Inter Dr 1100 1100 Chequ

05 05 nt branc e
Branch h GL Deposi
t
01/01/ 01/01/ Accou CF Cr 1100 1100 Chequ

05 05 nt C e
Branch GL Deposi
t
On Value Date clearing

Hea t
Postin Value d TCY- LCY- Descri
g INR INR ption
05/01/ 05/01/ Accou nt C Dr 1100 1100 Chequ

05 05 Branch F e
C Deposi
G t
L
93
Loans
05/01/ 05/01/ Accou nt Unap Cr 1100 1100 LN

05 05 Branch pl ied Install
Adva ment
n ce By
(RP Local
A) Chequ
GL e
05/01/ 05/01/ Accou nt Unap Dr 800 800 LN

Adva ment
n ce By
(RP Local
A) Chequ
GL e
05/01/ 05/01/ Accou nt Loa Cr 800 800 LN

05 05 Branch n Install
Ass ment
et By
GL Local
Chequ
e

Adva ment
n ce By
(RP Local
A) Chequ
GL e
05/01/ 05/01/ Accou nt SC/F Cr 60 60 LN

05 05 Branch ee Install
Rec ment
eiva By
ble Local
GL Chequ
e

Adva ment
n ce By
(RP Local
A) Chequ
GL e
05/01/ 05/01/ Accou nt Outg Cr 80 80 LN

05 05 Branch oi ng Install
Rec ment
eiv By
able Local
GL Chequ
e
94
Loans

Adva ment
n ce By
(RP Local
A) Chequ
GL e
05/01/ 05/01/ Accou nt Inter Cr 160 160 LN

05 05 Branch es t Install
Rec ment
eiv By
able Local
GL Chequ
e
Online Cheque Return
Cheque of value 1100 deposited on Loan Account on 01/01/2005. Float Days = 5. Cheque was returned
on 03/01/2005, before the value date of the cheque.
If the return is being passed through the inward clearing route, the Inward clearing will pass the GL
entries. For online cheque return, the End of Day will pass the entries.

Head t
g INR INR ption
01/01/ 01/01/ Clearin Endp Dr 1100 1100 Chequ

05 05 g oi nt e
Branch GL Deposi
t
01/01/ 01/01/ Clearin Inter Cr 1100 1100 Chequ

05 05 g branc e
Branch h GL Deposi
t
01/01/ 01/01/ Accou Inter Dr 1100 1100 Chequ

05 05 nt branc e
Branch h GL Deposi
t
01/01/ 01/01/ Accou CF Cr 1100 1100 Chequ

05 05 nt C e
Branch GL Deposi
t
03/01/ 03/01/ Accou CF Dr 1100 1100 Chequ

05 05 nt C e
Branch GL Return
95
Loans
03/01/ 03/01/ Accou Inter Cr 1100 1100 Chequ

05 05 nt branc e
Branch h GL Return
03/01/ 03/01/ Clearin Inter Dr 1100 1100 Chequ

05 05 g branc e
Branch h GL Return
03/01/ 03/01/ Clearin Endp Cr 1100 1100 Chequ

05 05 g oi nt e
Branch GL Return
Loan Installment Payment from CASA Account to a Loan Account

Principal Arrears 960
Service Charges 80
Legal Fees Receivable 160
Interest receivable 240

Head t
g INR INR ption
01/01/ 01/01/ CASA CASA Dr 1440 1440 Loan

05 05 Accou Asset Install
nt / ment
Branch Liabili Payme
t y nt
GL
01/01/ 01/01/ CASA Inter Cr 1440 1440 Loan
05 05 Accou Branc Install
nt h GL ment
Branch Payme
nt
01/01/ 01/01/ Loan Inter Dr 1440 1440 Loan

nt h GL ment
Branch Payme
nt
01/01/ 01/01/ Loan Unapp Cr 1440 1440 Loan

05 05 Accou l ied Install
nt Adva ment
Branch n ce Payme
(RPA) nt
GL
96
Loans
01/01/ 01/01/ Loan Unapp Dr 960 960 Loan

nt Adva ment
Branch n ce Princip
(RPA) al
GL Amoun
t
01/01/ 01/01/ Loan Loa Cr 960 960 Loan

05 05 Accou n Install
nt Ass ment
Branch et Princip
GL al
Amoun
t

nt Adva ment
Branch n ce Servic
(RPA) e
GL Charg
es
Payme
nt
01/01/ 01/01/ Loan SC/F Cr 80 80 Loan

05 05 Accou ee Install
nt Recei ment
Branch vable Servic
GL e
Charg
es
Payme
nt

nt Adva ment
Branch n ce Legal
(RPA) Fees
GL
01/01/ 01/01/ Loan Legal Cr 160 160 Loan

05 05 Accou Fees Install
nt Recei ment
Branch v able Legal
GL Fees
97
Loans

nt Adva ment
Branch n ce Norma
(RPA) l
GL Interes
t
(Accru
al
basis)
01/01/ 01/01/ Loan Intere Cr 240 240 Loan

05 05 Accou st Install
nt Recei ment
Branch v able Norma
GL l
Interes
t
(Accru
al
basis)
Loan Installment Payment by GL Transfer

Service Charges 80

Head t
g INR INR ption
01/01/ 01/01/ CASA Speci Dr 1440 1440 Loan

05 05 Accou fied Install
nt GL ment
Branch Payme
nt
01/01/ 01/01/ CASA Inter Cr 1440 1440 Loan

nt h GL ment
Branch Payme
nt
01/01/ 01/01/ Loan Inter Dr 1440 1440 Loan

nt h GL ment
Branch Payme
nt
98
Loans
01/01/ 01/01/ Loan Unapp Cr 1440 1440 Loan

nt Adva ment
Branch n ce Payme
(RPA) nt
GL

nt Adva ment
Branch n ce Princip
(RPA) al
GL Amoun
t
01/01/ 01/01/ Loan Loa Cr 960 960 Loan

05 05 Accou n Install
nt Ass ment
Branch et Princip
GL al
Amoun
t

nt Adva ment
Branch n ce Servic
(RPA) e
GL Charg
es
Payme
nt
01/01/ 01/01/ Loan SC/F Cr 80 80 Loan

05 05 Accou ee Install
nt Recei ment
Branch vable Servic
GL e
Charg
es
Payme
nt

nt Adva ment
Branch n ce Legal
(RPA) Fees
GL
01/01/ 01/01/ Loan Legal Cr 160 160 Loan

05 05 Accou Fees Install
nt Recei ment
Branch v able Legal
GL Fees
99
Loans

nt Adva ment
Branch n ce Norma
(RPA) l
GL Interes
t
(Accru
al
basis)
01/01/ 01/01/ Loan Intere Cr 240 240 Loan

05 05 Accou st Install
nt Recei ment
Branch v able Norma
GL l
Interes
t
(Accru
al
basis)
01/01/ 01/01/ Networ Netwo Dr 1440 1440 Loan

05 05 k r k GL Install
Branch ment
Payme
nt
01/01/ 01/01/ Loan Loan Cr 1440 1440 Loan

05 05 A/c Acco Install
Branch u nt ment
Payme
nt
100
Loans
1.59. Partial Pay-off - Fast Path: 1066

Partial Payoff is repayment of loan amount over and above the normal installment due amount. The
accounting entries for Partial Pay-off are the same as explained under the Loan Installment Payment.
Following are the differences in a Partial pay-off transaction:
In a Partial Pay-off transaction the amount being paid will be greater than the normal installment amount.
If there are arrears on the loan account, then the payment amount will be first appropriated against the
arrears and the excess balance will be credited to Loan Principal Account. The effect of interest payment
would happen based on the effect of payment defined at the loan product master.
The bank can charge interest till date in which case the system will calculate interest from the last
accrual date till the date of the partial pay-off payment.
The bank can charge penalty for the Partial Pay-off transaction. The same is calculated online as a
certain percentage of the pay-off amount, or certain percentage (p.a.) of the amount and the remaining
term or the bank may even waive the penalty amount. The penalty rule and rate for the Partial Pay-off
are defined in Schedule Type definition (LNM98). The accounting basis for the same are defined in
Product Interest Attributes Maintenance (LNM42).
Partial payoff transaction ultimately results in rescheduling of the loan. The user can select from either of
the Rescheduling modes viz., Recalculate Term or Recalculate Installment.
No entries are generated during rescheduling of the loan account. However, if the user opts for the
option of capitalize all Arrears then the behavior would be similar as that of Restructuring of Loan
account which is explained in the later part of the document.
Partial Pay-off - Payment by Cash
Assume that the customer pays 3000 as partial pay-off amount. The loan account has the following
arrears amounting to 1970
Service Charges 100
Legal Fees Receivable 200 Interest receivable 300
Catch up Interest (interest accrued/charged till the date of payment) 100 Penalty (Billed/Charged) – 50
Partial Pay-off Penalty (Cash Basis) – 20
The balance excess amount i.e. 1030 will be credited to the Asset Principal GL. Thus, the total
contribution towards the principal payment will be (Principal arrears + excess amount paid) 1200+1030 =
2230

Head t
g INR INR ption
01/01/ 01/01/ Transa Cas Dr 3000 3000 Partial

05 05 ction h Payoff
Branch GL –
Payoff
Amoun
t
101
Loans
01/01/ 01/01/ Transa Inter Cr 3000 3000 Partial

05 05 ction Branc Payoff
Branch h GL –
Payoff
Amoun
t
01/01/ 01/01/ Accou Inter Dr 3000 3000 Partial

05 05 nt Branc Payoff
Branch h GL –
Payoff
Amoun
t
01/01/ 01/01/ Accou Unap Cr 3000 3000 Partial

05 05 nt pl ied Payoff
Branch Adva –
n ce Payoff
(RPA Amoun
) GL t
01/01/ 01/01/ Accou Unap Dr 2230 2230 Partial

Branch Adva Princip
n ce al
(RPA Amoun
) GL t
01/01/ 01/01/ Accou Loa Cr 2230 2230 Partial

05 05 nt n Payoff
Branch Ass Princip
et al
GL Amoun
t

Head t
g INR INR ption

Branch Adva Servic
n ce e
(RPA Charg
) GL es
Payme
nt
102
Loans
01/01/ 01/01/ Accou SC/F Cr 100 100 Partial

05 05 nt ee Payoff
Branch Rece Servic
ivabl e
e GL Charg
es
Payme
nt

Branch Adva Legal
n ce Fees
(RPA
) GL
01/01/ 01/01/ Accou Legal Cr 200 200 Partial

05 05 nt Fees Payoff
Branch Recei Legal
v Fees
able
GL
Branch Adva Norma
n ce l
(RPA Interes
) GL t(Accru
al
basis)
01/01/ 01/01/ Accou Intere Cr 300 300 Partial

05 05 nt st Payoff
Branch Recei Norma
v l
able Interes
GL t(Accru
al
basis)

Head t
g INR INR ption
01/01/ 01/01/ Accou Intere Dr 100 100 Catch

05 05 nt st up
Branch Accru Accrua
ed l
GL Norma
l
Interes
t
103
Loans
01/01/ 01/01/ Accou Inter Cr 100 100 Catch

05 05 nt es t up
Branch Inco Accrua
me l
GL Norma
l
Interes
t
01/01/ 01/01/ Accou Intere Cr 100 100 Catch

05 05 nt st up
Branch Accru Norma
ed l
GL Interes
t
Charg
ed

05 05 nt st up
Branch Recei Norma
v l
able Interes
GL t
Charg
ed

Branch Adva Catch
n ce up
(RPA Accrua
) GL l
Norma
l
Interes
t

Head t
g INR INR ption
01/01/ 01/01/ Accou Intere Cr 100 100 Partial

05 05 nt st Payoff
Branch Recei Catch
v up
able Accrua
GL l
Norma
l
Interes
t
104
Loans

Branch Adva Penal
n ce Interes
(RPA t
) GL
01/01/ 01/01/ Accou Penal Cr 50 50 Partial

05 05 nt ty Payoff
Branch Intere Penal
st Interes
Recei t
v
able
GL
Branch Adva Penalt
n ce y
(RPA (Cash
) GL Basis)
01/01/ 01/01/ Accou Pena Cr 20 20 Partial

05 05 nt lt y Payoff
Branch Inter Penalt
es t y
Inco (Cash
me Basis)
GL
Note: The accounting entries for Partial Pay-off by other mode of payments will be
same as the Normal Installment payment except for the funding GL, catch
up accrual and penal interest.
Assumption for the above accounting entry: the payoff benefit is considered as immediate at the loan
product level.
105
Loans
1.60. Loans Advance Payment - Fast Path: 1068

This option is used for advance repayment of loan installment. The amount paid as advance installment
is posted in the Reserve Pending Appropriation account (RPA). At end of day (EOD), depending upon
the treatment specified for advance payment, the advanced installment amount paid reduces the
principal base for interest calculation. Unlike Partial Pay-off where the excess amount is utilized to
reduce the Asset Principal balance, in an Advance Payment the excess amount (after all the arrears due
are paid) continue to reside in the Unapplied Advance (RPA) GL. All future dated loan installments,
which become due, are set off against the RPA account. The advance payment of loan installments can
be paid by cash, local cheque, transfer from CASA or GL transfer by using this option.
Advance Payment-Payment by Cash.
Assume that the customer pays 3000 as Advance Payment. The loan account has the following arrears
amounting to 1850.
Service Charges 100
Insurance Premium 200
Penal Interest – 50
After adjusting the above arrears the balance excess amount i.e. 1150 will remain as balance in the
Unapplied Advance (RPA) GL. As and when the arrears become due the system will utilize the amount
from the RPA GL.

Head t
g INR INR ption
01/01/ 01/01/ Transa Cas Dr 3000 3000 Advan

05 05 ction h ce
Branch GL Payme
nt
01/01/ 01/01/ Transa Inter Cr 3000 3000 Advan

05 05 ction Branc ce
Branch h GL Payme
nt
01/01/ 01/01/ Accou Inter Dr 3000 3000 Advan

05 05 nt Branc ce
Branch h GL Payme
nt
01/01/ 01/01/ Accou Unapp Cr 3000 3000 Advan

05 05 nt l ied ce
Branch Adva Payme
n ce nt
(RPA)
GL
106
Loans
01/01/ 01/01/ Accou Unapp Dr 1200 1200 Advan

05 05 nt l ied ce
Branch Adva Payme
n ce nt-
(RPA) Princip
GL al
Amoun
t
01/01/ 01/01/ Accou Loa Cr 1200 1200 Advan

05 05 nt n ce
Branch Ass Payme
et nt-
GL Princip
al
Amoun
t

05 05 nt l ied ce
Branch Adva Payme
n ce nt-
(RPA) Servic
GL e
Charg
es
01/01/ 01/01/ Accou SC/F Cr 100 100 Advan

05 05 nt ee ce
Branch Recei Payme
vable nt-
GL Servic
e
Charg
es

05 05 nt l ied ce
Branch Adva Payme
n ce nt-
(RPA) Insura
GL nce
Premiu
m

Head t
g INR INR ption
107
Loans
01/01/ 01/01/ Accou Insur Cr 200 200 Advan

05 05 nt a nce ce
Branch Premi Payme
um nt-
GL Insura
nce
Premiu
m
01/01/ 01/01/ Accou Unap Dr 300 300 Advan

05 05 nt pl ied ce
Branch Adva Payme
n ce nt-
(RPA Norma
) GL l
Interes
t(Accru
al
basis)
01/01/ 01/01/ Accou Intere Cr 300 300 Advan

05 05 nt st ce
Branch Recei Payme
v nt-
able Norma
GL l
Interes
t(Accru
al
basis)
01/01/ 01/01/ Accou Unap Dr 50 50 Advan

05 05 nt pl ied ce
Branch Adva Payme
n ce nt-
(RPA Penal
) GL Interes
t
(Accru
al
basis)
01/01/ 01/01/ Accou Penal Cr 50 50

05 05 nt ty
Branch Intere
st
Recei
v
able
GL
Note: The accounting entries for Advance Payment by other mode of payments will
be same as the cash mode except for the funding GL.
108
Loans
1.61. Post Dated Cheques Maintenance - Fast Path: LN046

No accounting entries are passed. Though, on the respective cheque dates the posted dated cheques
towards the loan installment payments are presented for clearing. For accounting entries refer to the
Loan Installment Payment by Local Cheque above.
109
Loans
1.62. Loan Refund Inquiry - Fast Path: 1412

Excess credit balance in the loan account can be refunded to the customer by Cash or Transfer to CASA
account
Excess credit of 5000 to be refunded by Cash

Head t
g INR INR ption
01/01/ 01/01/ Accou Unap Dr 5000 5000 Loan

05 05 nt pl ied Exces
Branch Adva s
n ce Amoun
(RPA) t
GL Refun
d
01/01/ 01/01/ Accou Inter Cr 5000 5000 Loan

05 05 nt Branc Exces
Branch h GL s
Amoun
t
Refun
d
01/01/ 01/01/ Transa Inter Dr 5000 5000 Loan

05 05 ction Branc Exces
Branch h GL s
Amoun
t
Refun
d
01/01/ 01/01/ Transa Cas Cr 5000 5000 Loan

05 05 ction h Exces
Branch GL s
Amoun
t
Refun
d
Excess credit of 1100 to be refunded to CASA Account

Head t
g INR INR ption
110
Loans
01/01/ 01/01/ Accou Unap Dr 1100 1100 Loan

05 05 nt pl ied Exces
Branch Adva s
n ce Amoun
(RPA) t
GL Refun
d
01/01/ 01/01/ Accou Inter Cr 1100 1100 Loan

05 05 nt Branc Exces
Branch h GL s
Amoun
t
Refun
d
01/01/ 01/01/ Transa Inter Dr 1100 1100 Loan

05 05 ction Branc Exces
Branch h GL s
Amoun
t
Refun
d
01/01/ 01/01/ Transa CASA Cr 1100 1100 Loan

05 05 ction Asset Exces
Branch / s
Liabili Amoun
t y t
GL Refun
d
111
Loans
1.63. Loan Full Payoff Inquiry - Fast Path: 1067 (EFS)

The balance loan outstanding amount can be prepaid by the customer in full by Cash, Transfer from
CASA or GL Transfer by using this option.
EFS - Payment by Cash
Assume the loan account has the following dues amounting to 3800
Insurance Premium = INR 150
Catch up Interest (interest accrued/charged till the date of payment) = INR 200
Penalty (Billed/Charged) = INR 120
EFS Penalty (Cash Basis) = INR 50

Head t
g INR INR ption
01/01/ 01/01/ Transa Cas Dr 3800 3800 LN.

05 05 ction h EFS.
Branch GL By
Cash

05 05 ction Branc EFS.
Branch h GL By
Cash
01/01/ 01/01/ Accou Inter Dr 3800 3800 LN.

05 05 nt Branc EFS.
Branch h GL By
Cash
01/01/ 01/01/ Accou Unapp Cr 3800 3800 LN.

05 05 nt l ied EFS.
Branch Adva By
n ce Cash
(RPA)
GL
01/01/ 01/01/ Accou Unapp Dr 2000 2000 LN.

05 05 nt l ied EFS.
Branch Adva By
n ce Cash-
(RPA) Princip
GL al
Amoun
t
112
Loans
01/01/ 01/01/ Accou Loa Cr 2000 2000 LN.

05 05 nt n EFS.
Branch Ass By
et Cash-
GL Princip
al
Amoun
t
01/01/ 01/01/ Accou Unapp Dr 150 150 LN.

05 05 nt l ied EFS.
Branch Adva By
n ce Cash-
(RPA) Servic
GL e
Charg
es
Payme
nt
01/01/ 01/01/ Accou SC/F Cr 150 150 LN.

05 05 nt ee EFS.
Branch Recei By
vable Cash-
GL Servic
e
Charg
es
Payme
nt
01/01/ 01/01/ Accou Unapp Dr 200 200 LN.

05 05 nt l ied EFS.
Branch Adva By
n ce Cash-
(RPA) Legal
GL Fees

Head t
g INR INR ption
01/01/ 01/01/ Accou Legal Cr 200 200 LN.

05 05 nt Fees EFS.
Branch Recei By
v Cash-
able Legal
GL Fees
113
Loans
01/01/ 01/01/ Accou Unap Dr 150 150 LN.

05 05 nt pl ied EFS.
Branch Adva By
n ce Cash-
(RPA Insura
) GL nce
Premiu
m
01/01/ 01/01/ Accou Insur Cr 150 150 LN.

05 05 nt a nce EFS.
Branch Premi By
um Cash-
GL Insura
nce
Premiu
m
01/01/ 01/01/ Accou Unap Dr 930 930 LN.

Branch Adva By
n ce Cash-
(RPA Norma
) GL l
Interes
t(Accru
al
basis)

05 05 nt st EFS.
Branch Recei By
v Cash-
able Norma
GL l
Interes
t(Accru
al
basis)

Head t
g INR INR ption

05 05 nt st up
Branch Accru Accrua
ed l
GL Norma
l
Interes
t
114
Loans
01/01/ 01/01/ Accou Inter Cr 200 200 Catch

05 05 nt es t up
Branch Inco Accrua
me l
GL Norma
l
Interes
t

05 05 nt st up
Branch Recei Norma
v l
able Interes
GL t
Charg
ed
01/01/ 01/01/ Accou Intere Cr 200 200 Catch

05 05 nt st up
Branch Accru Accrua
ed l
GL Norma
l
Interes
t
01/01/ 01/01/ Accou Unap Dr 200 200 LN.

Branch Adva By
n ce Cash-
(RPA Catch
) GL up
Accrua
l
Norma
l
Interes
t

Head t
g INR INR ption
115
Loans

05 05 nt st EFS.
Branch Recei By
v Cash-
able Catch
GL up
Accrua
l
Norma
l
Interes
t
01/01/ 01/01/ Accou Unap Dr 120 120 LN.

Branch Adva By
n ce Cash-
(RPA Penal
) GL Interes
t
01/01/ 01/01/ Accou Penal Cr 120 120 LN.

05 05 nt ty EFS.
Branch Intere By
st Cash-
Recei Penal
v Interes
able t
GL
01/01/ 01/01/ Accou Unap Dr 50 50 LN.
Branch Adva By
n ce Cash-
(RPA Penalt
) GL y
(Cash
Basis)
01/01/ 01/01/ Accou Pena Cr 50 50 LN.

05 05 nt lt y EFS.
Branch Inter By
es t Cash-
Inco Penalt
me y
GL (Cash
Basis)
Note: The accounting entries for Loan Full Pay-off (EFS) by other mode of
payments will be same as the above except for the funding GL.
116
Loans
1.64. Loan Recission Inquiry - Fast Path: 1069

Recission implies reversal of all entries passed during disbursement, if customer wishes to return the
loan within a pre-specified time. The available mode for performing Loan recission is cash, transfer from
CASA or GL Transfer. Rescission will be allowed only if no interest and/or charge has been applied on
the account.
Loan Recission by Cash
Assume a recission done by cash for a Loan of 8000

Head t
g INR INR ption
01/01/ 01/01/ Transa Cas Dr 8000 8000 LN.

05 05 ction h Rescis
Branch GL sion
By
Cash

05 05 ction Branc Rescis
Branch h GL sion
By
Cash
01/01/ 01/01/ Accou Inter Dr 8000 8000 LN.

05 05 nt Branc Rescis
Branch h GL sion
By
Cash
01/01/ 01/01/ Accou Ass Cr 8000 8000 LN.

05 05 nt et Rescis
Branch GL sion
By
Cash
01/01/ 01/01/ Contin Accou Dr 8000 8000 Disbur

05 05 gent nt sed
Asset Branc Amoun
h t
01/01/ 01/01/ Contin Accou Cr 8000 8000 Disbur

05 05 gent nt sed
Liabilit Branc Amoun
y h t
Loan Recission by Transfer from CASA
Assume a recission done by transfer from CASA Account for a Loan of 7400
117
Loans

Head t
g INR INR ption
01/01/ 01/01/ CASA CASA Dr 7400 7400 LN.

05 05 Accou Asset Rescis
nt / sion
Branch Liabili By
t y Xfer.
GL From
CASA
01/01/ 01/01/ CASA Inter Cr 7400 7400 LN.

05 05 Accou Branc Rescis
nt h GL sion
Branch By
Xfer.
From
CASA
01/01/ 01/01/ Loan Inter Dr 7400 7400 LN.

05 05 Accou Branc Rescis
nt h GL sion
Branch By
Xfer.
From
CASA
01/01/ 01/01/ Loan Ass Cr 7400 7400 LN.

05 05 Accou et Rescis
nt GL sion
Branch By
Xfer.
From
CASA
Loan Recission by Transfer from GL
Assume a recission done by transfer 9500 from GL Account to Loan Account

Head t
g INR INR ption
01/01/ 01/01/ Transa Selec Dr 9500 9500 LN.

05 05 ction t ed Rescis
Branch GL sion
By GL

05 05 ction Branc Rescis
Branch h GL sion
By GL
118
Loans
01/01/ 01/01/ Accou Inter Dr 9500 9500 LN.

05 05 nt Branc Rescis
Branch h GL sion
By GL
01/01/ 01/01/ Accou Ass Cr 9500 9500 LN.

05 05 nt et Rescis
Branch GL sion
By GL
Loan Account Payoff Notice Maintenance
Other Transactions Reminder Plan Maintenance
Product Interest Attributes Maintenance
Schedule Type
Installment Rules
Interest Rules
Loan Balance Inquiry
Account Status Audit Trail Inquiry
Account Schedule Inquiry
Account Transactions Inquiry
Account Rates
Rate Change

119
Loans
1.65. Miscellaneous Loan Debit Transactions options - Fast

Path: 9540
Once a disbursement is made to a loan account, normally the loan account would only receive credits in
the form of payments from the customer. If any debit has to be made to the account apart from regular
interest/fees charging, then the Miscellaneous Loan debits (MLD) option may be used. It can be used in
any of the following cases:
1. To reverse wrong installment payment into the account on a previous transaction day.
2. To increase the outstanding principal on the account for any reason.
On entering the debit amount the system validates that the amount is less than the loan outstanding. The
amount is credited to any GL as specified by the teller.
Assume a loan account has the following credits which have to be reversed using MLD option:
Principal = INR 13500
Outgoing Receivable = INR 1200
Interest = INR 4050
Misc. Income = INR 350
Date Branch GL Dr / Amount Default

Head Cr Description
Postin Value TCY- LCY
g INR -
INR
01/01/ 01/01/ Transa Selec Cr 19250 1925 Miscell
05 05 ction t ed 0 aneou s LN.
Branch GL Debit
01/01/ 01/01/ Transa Inter Dr 19250 1925 Miscell

05 05 ction Branc 0 aneou s LN.
Branch h GL Debit
01/01/ 01/01/ Accou Inter Cr 19250 1925 Miscell

05 05 nt Branc 0 aneou s LN.
Branch h GL Debit
01/01/ 01/01/ Accou Loan Dr 13500 1350 Miscell

05 05 nt Asse 0 aneou s LN.
Branch t GL Debit
01/01/ 01/01/ Accou SC/Fe Dr 150 150 Miscell

05 05 nt e aneou s LN.
Branch Recei Debit - SC
vable Payme nt
GL
120
Loans
01/01/ 01/01/ Accou Outgo Dr 1200 120 Miscell

05 05 nt i ng 0 aneou s LN.
Branch Recei Debit -
v able Outgoi ng
GL Receiv able
01/01/ 01/01/ Accou Intere Dr 4050 405 Miscell

05 05 nt st 0 aneous LN.
Branch Recei Debit –
v able Normal
GL Interest
01/01/ 01/01/ Accou Misc.I Dr 350 350 Miscell

05 05 nt n aneous LN.
Branch come Debit -
GL Normal
Interest
121
Loans
1.66. Miscellaneous Charges Waiver - Fast Path: LN444

Miscellaneous charges levied on an account can be waived using Miscellaneous Charges Waiver. These
charges are arrears that have been raised on the account which are still pending payment. Payment
pending may be part or all of arrears assessed.
Assume a loan account has the following arrears which are to be waived:
Service Charge = INR 100

Head t
g INR INR ption
01/01/ 01/01/ Accou Premi Dr 200 200 LN.

05 05 nt um Charg
Branch Remit e
t ance Waiver
GL
01/01/ 01/01/ Accou Insura Cr 200 200 LN.

05 05 nt nce Charg
Branch Premi e
um Waiver
GL
01/01/ 01/01/ Accou SC/F Dr 100 100 LN.
05 05 nt ee Charg
Branch Inco e
me Waiver
GL
01/01/ 01/01/ Accou SC/F Cr 100 100 LN.
05 05 nt e es Charg
Branch Recei e
v able Waiver
GL
01/01/ 01/01/ Accou Outg Dr 350 350 LN.

05 05 nt oi ng Charg
Branch Paya e
bl e Waiver
GL
01/01/ 01/01/ Accou Outg Cr 350 350 LN.
05 05 nt oi ng Charg
Branch Recei e
v able Waiver
GL
01/01/ 01/01/ Accou Legal Dr 400 400 LN.

05 05 nt Fees Charg
Branch Paya e
bl e Waiver
GL
122
Loans
01/01/ 01/01/ Accou Legal Cr 400 400 LN.

05 05 nt Fees Charg
Branch Recei e
v able Waiver
GL
Account Payment Instructions
Loan Account Address Maintenance
Loan Account Master Attributes Maintenance
123
Loans
1.67. Common Billing Transactions - Fast Path: BAM50

Common Billing is used to levy a charge on a loan account. The Common Billing Transaction is used for
billing of one time miscellaneous service charges/outgoing charges/insurance premium/legal fees.
Loan account has the following charges to be levied:
Service Charge = INR 130

Head t
g INR INR ption
01/01/ 01/01/ Accou Insura Dr 1500 1500 Comm

05 05 nt nce on
Branch Premi Billing
um
GL
01/01/ 01/01/ Accou Premi Cr 1500 1500 Comm
05 05 nt um on
Branch Remitt Billing
ance
GL
01/01/ 01/01/ Accou SC/F Dr 130 130 Comm

05 05 nt e es on
Branch Recei Billing
v able
GL
01/01/ 01/01/ Accou SC/Fe Cr 130 130 Comm

05 05 nt e on
Branch Incom Billing
e GL
01/01/ 01/01/ Accou Outgo Dr 450 450 Comm

05 05 nt i ng on
v able
GL
01/01/ 01/01/ Accou Outgo Cr 450 450 Comm

05 05 nt i ng on
Branch Paya Billing
bl e
GL
01/01/ 01/01/ Accou Legal Dr 700 700 Comm
05 05 nt Fees on
v able
GL
124
Loans
01/01/ 01/01/ Accou Legal Cr 700 700 Comm

05 05 nt Fees on
Branch Paya Billing
bl e
GL
Third Party Account Address Maintenance
Loan Collateral Link Maintenance
125
Loans
1.68. Interest Adjustment Transaction - Fast Path: BAM57

Unaccounted Interest

Accounted Interest
Debit Interest Adjustment
Debit interest adjustment increases the dues of interest. The account gets debited to the extent of
adjustment and a new arrear of type interest gets raised on the account.
Debit Interest Adjustment of 600 is done for Normal Interest

Head t
g INR INR ption
01/01/ 01/01/ Accou Intere Dr 600 600 LN.

05 05 nt st Interes
Branch Recei t
v able Adjust
GL ment

05 05 nt st Interes
Branch Inco t
me Adjust
GL ment
Debit Interest Adjustment of 300 is done for Penal Interest

Head t
g INR INR ption
01/01/ 01/01/ Accou Penal Dr 300 300 LN.

05 05 nt ty Penalt
Branch Intere y
st Interes
Recei t
v able Adjust
GL ment
01/01/ 01/01/ Accou Penal Cr 300 300 LN.

05 05 nt ty Penalt
Branch Intere y
st Interes
Inco t
me Adjust
GL ment
126
Loans
Debit Interest Adjustment of 150 is done for Post Maturity Interest (PMI)

Head t
g INR INR ption

05 05 nt st PMI.
Branch Recei Adjust
v able ment
GL

05 05 nt st PMI.
Branch Inco Adjust
me ment
GL
Credit Interest Adjustment
A credit adjustment to a loan account indicates that excess interest charged and received from the
borrower must be refunded. A credit interest adjustment can be done only for the unpaid portion of the
interest and will not be possible if the same is already paid.
Credit Interest Adjustment of 600 is done for Normal Interest

Head t
g INR INR ption

05 05 nt st Interes
Branch Inco t
me Adjust
GL ment

05 05 nt st Interes
Branch Recei t
v able Adjust
GL ment
Credit Interest Adjustment of 300 is done for Penal Interest
Date Branch GL Dr / Amount Defaul

Head Cr t
g INR INR ption
127
Loans
01/01/ 01/01/ Accou Penalt Dr 300 300 LN.

05 05 nt y Penalt
Branch Interes y
t Incom Interes
e GL t
Adjust
ment
01/01/ 01/01/ Accou Penalt Cr 300 300 LN.

05 05 nt y Penalt
Branch Interes t y
Receiv Interes
able GL t
Adjust
ment
Credit Interest Adjustment of 150 is done for Post Maturity Interest (PMI)
Dat Branch GL Dr / Cr Amount Defaul

e Head t
g INR INR ption
01/01/ 01/01 Accou Interes Dr 150 150 LN.

05 / nt t Incom PMI.
05 Branch e GL Adjust
ment
01/01/ 01/01 Accou Interes Cr 150 150 LN.

05 / nt t PMI.
05 Branch Receiv Adjust
able ment
GL
128
Loans
1.69. Other Miscellaneous Entries

Small Balance Forfeiture
In case the loan amount repaid is slightly higher the bank may wish to close such accounts and treat the
remaining amount as income. This situation is commonly encountered in case of Post Dated EMI
Cheques where the amount of the last EMI cheque is higher than the last installment amount.
Assume the value of the last EMI cheque is 1100 deposited on Loan Account on 01/01/2005. However
the total of all arrears is 1095. The balance 5 will be treated as income. Float Days = 5. The clearing of
the cheque is done on the value date of the cheque.
The loan account has the following arrears
Service Charges 60
Outgoing Receivable 80
Date Branc h GL Dr / Cr Amount Default

Head Description
g INR INR
01/01/ 01/01/ Clearin Endp Dr 1100 1100 Chequ e

05 05 g oi nt Deposi t
Branch GL
01/01/ 01/01/ Clearin Inter Cr 1100 1100 Chequ e

05 05 g branc Deposi t
Branch h GL
01/01/ 01/01/ Accou Inter Dr 1100 1100 Chequ e

05 05 nt branc Deposi t
Branch h GL
01/01/ 01/01/ Accou CF Cr 1100 1100 Chequ e

05 05 nt C Deposi t
Branch GL
05/01/ 05/01/ Accou CF Dr 1100 1100 Chequ e

05 05 nt C Deposi t
Branch GL
05/01/ 05/01/ Accou Unapp Cr 1100 1100 Chequ e

05 05 nt l ied Deposi t
Branch Adva
n ce
(RPA)
GL
129
Loans
05/01/ 05/01/ Accou Unapp Dr 800 800 LN

05 05 nt l ied Install ment
Branch Adva By Local
n ce Chequ e
(RPA) Princip al
GL Amoun t
05/01/ 05/01/ Accou Loa Cr 800 800 LN

05 05 nt n Install ment
Branch Ass By Local
et Cheque
GL Principal
Amoun t
05/01/ 05/01/ Accou Unapp Dr 60 60 LN

05 05 nt l ied Install ment
n ce Cheque
(RPA) Service
GL Charg es
Payme nt
05/01/ 05/01/ Accou SC/F Cr 60 60 LN

05 05 nt ee Install ment
Branch Inco By Local
me Chequ e
GL Servic e
Charges
Payment
05/01/ 05/01/ Accou Unap Dr 80 80 LN

05 05 nt pl ied Install ment
n ce Chequ e
(RPA Outgoi ng
) GL Receivable
05/01/ 05/01/ Accou Outg Cr 80 80 LN

05 05 nt oi ng Install ment
Branch Recei By Local
v Chequ e
able Outgoi ng
GL Receivable
05/01/ 05/01/ Accou Unap Dr 155 155 LN

05 05 nt pl ied Install ment
n ce Chequ e
(RPA Norma l
) GL Interes t
(Accru al
basis)
130
Loans
05/01/ 05/01/ Accou Intere Cr 155 155 LN

05 05 nt st Install ment
Branch Recei By Local
v Chequ e
able Norma l
GL Interes t
(Accru al
basis)
05/01/ 05/01/ Accou Unap Dr 5 5 Small Balanc

05 05 nt pl ied e Forfeit ed
Branch Adva
n ce
(RPA
) GL
05/01/ 05/01/ Accou Small Cr 5 5 Small Balanc

05 05 nt Balan e Forfeit ed
Branch ce
Forfei
t ure
GL
Small Balance Waiver

In case the amount repaid is slightly lesser the bank may still wish to waive the remaining amount due
and close the account, by absorbing the same in the expenses of the Bank. This situation is commonly
encountered in case of Post Dated EMI Cheques where the amount of the last EMI cheque is lesser than
the last installment amount.
Assume the value of the last EMI cheque is 1100 deposited on Loan Account on 01/01/2005. However
the total of all arrears is 1105. The shortfall 5 will be treated as Expense. Float Days = 5. The clearing of
the cheque is done on the value date of the cheque.
Note: The appropriation sequence followed is all other arrears to be appropriated

before the capital (Principal) arrears.
Loan account has the following arrears:

Date Branch GL Dr / Cr Amount Default Descri

Head ption
g INR INR
01/01/ 01/01 Clearin Endpoi Dr 1100 1100

05 /05 g nt GL
Branch
131
Loans
01/01/ 01/01 Clearin Inter Cr 1100 1100

05 /05 g branch
Branch GL
01/01/ 01/01 Accou Inter Dr 1100 1100

05 /05 nt branch
Branch GL
01/01/ 01/01 Accou CFC Cr 1100 1100

05 / nt GL
05 Branch
05/01/ 05/01 Accou CFC Dr 1100 1100

05 / nt GL
05 Branch
05/01/ 05/01 Accou Unappl Cr 1100 1100

05 / nt ied
05 Branch Advan
ce
(RPA)
GL
05/01/ 05/01 Accou Unappl Dr 800 800

05 / nt ied
05 Branch Advan
ce
(RPA)
GL
05/01/ 05/01 Accou Loan Cr 800 800

05 / nt Asset
05 Branch GL
05/01/ 05/01 Accou Unappl Dr 60 60

05 / nt ied
05 Branch Advan
ce
(RPA)
GL
05/01/ 05/01 Accou SC/Fe Cr 60 60 LN

05 / nt e Install ment
05 Branch Incom By Local
e GL Chequ e
Servic e
Charg es
Payme nt
132
Loans
05/01/ 05/01 Accou Unappl Dr 135 135 LN

05 / nt ied Install ment
05 Branch Advan By Local
ce Chequ e
(RPA) Outgoi ng
GL Receiv able
05/01/ 05/01 Accou Outgoi Cr 135 135 LN

05 / nt ng Install ment
05 Branch Receiv By Local
able Chequ e
GL Outgoi ng
Receiv able
05/01/ 05/01 Accou Unappl Dr 110 110 LN

05 / nt ied Install ment
05 Branch Advan By Local
ce Chequ e
(RPA) Norma l
GL Interes t
(Accru al
05/01/ 05/01 Accou Interes Cr 110 110 basis)
LN
05 / nt t Install ment
05 Branch Receiv By Local
able Chequ e
GL Norma l
Interes t
(Accru al
05/01/ 05/01 Accou Small Dr 5 5 basis)
Small Balanc
05 / nt Balanc e Waiver
05 Branch e
Waiver
GL
05/01/ 05/01 Accou Loan Cr 5 5 Small Balanc

05 / nt Asset e Waiver
05 Branch GL
Interest Subsidy and Rebate
Date Amount
Default Descriptio
Dr /
Posting Value Branch GL Head TCY- LCY- n
Cr
INR INR
133
Loans
01/08/ 01/08/ Casa Cash/CAS Dr 1000 1000 Loan Interest

08 08 Account A/GL subsidy pay-in by
Branch/ cash/Savin
GL- /GL Tr.
Account
Branch
01/08/ 01/08/ Loan Subsidy Cr 1000 1000 Loan Interest

08 08 Account Parking subsidy pay-in by
Branch GL cash/Savin
/GL Tr.
01/08/ 01/08/ Loan Dr 1000 1000 LN.Subsid y Interest

08 08 Account Income
Branch Subsidy
parking
GL
01/08/ 01/08/ Loan Income Cr 1000 1000 LN.Subsidy Interest

08 08 Account GL Income
Branch
134
Loans
1.70. Subsidy Loans – Subsidy Interest Accrual and charging

The subsidy interest will accrue as per the accrual frequency specified for Regular Interest in ‘Product
Master Maintenance (FP: LNM11)’.
The accrual and charging entries will be passed to the GL set up in Product Interest attributes (FP:
LNM42) for subsidy type of interest. The following GLs will be maintained:
1. Subsidy Interest Accrued
2. Subsidy Interest Income
3. Subsidy Interest Receivable Subsidy Interest Accrual
Date Amount
Default
Dr /
Posting Value Branch GL Head TCY- LCY- Description
Cr
INR INR
Loan Subsidy
01/08/ 01/08/ Subsidy Dr 1000 1000
Account Interest
08 08 Interest
Branch accrued.
Accrued
Subsidy
01/08/ 01/08/ Loan Subsidy Cr 1000 1000
interest
08 08 Account Interest
accrued
Branch Income
booked to
Income
Subsidy Interest Charging
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
Posting Value TCY- LCY-
INR INR
01/08/11 01/08/11 Account Subsidy Dr 1000 1000 Subsidy

Branch Interest Interest
Receivabl charged
e
01/08/11 01/08/11 Account Subsidy Cr 1000 1000 Subsidy

Branch Interest interest
Accrued accrued
reversed
on
charging
135
Loans
1.71. Penalty, Compounding and Diverting Interest Arrears

Processing
Penalty Interest – Penalty Interest apart from charging on Cash basis can also be configured on accrual
basis. Accrual frequency for Penalty can be specified in Loan Product Master (FP: LNM11). The
frequencies can be defined as ‘Daily’ or ‘Monthly’. An option ‘None’ is also available which will signify
that the penalty interest will not accrue and will directly be computed and charged on the due dates.
Performing Loans
If Penalty is accrued
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
INR INR
01/08/11 01/08/11 Account Penalty Dr 1000 1000 Penalty

Accrued accrued
01/08/11 01/08/11 Account Penalty Cr 1000 1000 Income

Branch Interest booked
Income on
Penalty
interest
accrual
Charging of Penalty Interest
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
INR INR

Receivabl charged
e
01/08/11 01/08/11 Account Penalty Cr 1000 1000 Penalty

Accrued accrual
reversed
on
charging
136
Loans
Repayment of Penalty Interest by customer
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
INR INR
01/08/11 01/08/11 Account Cash/CAS Dr 1000 1000 Penalty

Branch A Interest
Asset/Liab paid by
ility GL customer
01/08/11 01/08/11 Account Penalty Cr 1000 1000 Penalty

Receivabl receivabl
e e
reversed
on
repayme
nt
If Penalty is not accrued
Charging of Interest
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
INR INR

Receivabl charged
e
01/08/11 01/08/11 Account Penalty Cr 1000 1000 Income

Branch Interest booked
Income on
Penalty
interest
charging
137
Loans
Non Performing Loans
Claw back of accrued Penalty arrears
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
INR INR
01/08/11 01/08/11 Account Suspende Dr 100 100 PA to

Branch d Penalty NPA GL
Interest moveme
Accrued nt
01/08/11 01/08/11 Account Penalty Cr 100 100 PA to

Branch Interest NPA GL
Accrued moveme
nt
01/08/11 01/08/11 Account Penalty Dr 100 100 PA to

Income moveme
nt
01/08/11 01/08/11 Account Suspende Cr 100 100 PA to

Interest moveme
Income nt
Claw back of unpaid Penalty arrears
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
INR INR
01/08/11 01/08/11 Account Suspende Dr 100 100 PA to

Interest moveme
Receivabl nt
e
138
Loans
01/08/11 01/08/11 Account Penalty Cr 100 100 PA to

Receivabl moveme
e nt
01/08/11 01/08/11 Account Penalty Dr 100 100 PA to

Branch /Compoun NPA GL
ding moveme
Interest nt
Income
01/08/11 01/08/11 Account Suspende Cr 100 100 PA to

Interest moveme
Income nt -
booking
to liability
GL
If Penalty interest is accrued
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
INR INR
01/08/11 01/08/11 Account Suspende Dr 150 150 Accrual

Branch d Penalty of
Interest Penalty
Accrued Interest
when
accrual
status is
Suspend
ed
01/08/11 01/08/11 Account Suspende Cr 150 150 Accrual

Branch d Penalty of
Interest Penalty
Income Interest
when
accrual
status is
Suspend
ed –
booking
to liability
GL
Charging of accrued penalty interest
139
Loans
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
INR INR
01/08/11 01/08/11 Account Suspende Dr 150 150 Charging

Branch d Penalty of
interest Penalty
Receivabl interest
e when
accrual
status is
Suspend
ed
01/08/11 01/08/11 Account Suspende Cr 150 150 Charging

Branch d Penalty of
Interest Penalty
Accrued interest
when
accrual
status is
Suspend
ed
Repayment by customer
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
INR INR
01/08/11 01/08/11 Account Cash/CAS Dr 150 150 Suspend

Branch A ed
Asset/Liab Penalty
ility GL Interest
paid by
customer
01/08/11 01/08/11 Account Suspende Cr 150 150 Suspend

Branch d Penalty ed
interest Penalty
Receivabl Interest
e receivabl
e
reversed
on
repayme
nt
140
Loans
01/08/11 01/08/11 Account Suspende Dr 150 150 Reversal

Branch d Penalty of
Interest Penalty
Income Interest
Income
(Liability)
on
repayme
nt
01/08/11 01/08/11 Account Suspende Cr 150 150 Booking

Branch d Penalty of
Interest Interest
Recovere income
d on
repayme
nt
If Penalty is not accrued

Charging of Interest
Amount Default
Date Descript
Dr ion
Branch GL Head
/
Posting Value Cr TCY- LCY-
INR INR
01/08/11 01/08/11 Account Suspende Dr 100 100 Suspend

Branch d Penalty ed
Interest Penalty
Receivabl Interest
e charged
01/08/11 01/08/11 Account Suspende Cr 100 100 Liability

Branch d Penalty booked
Interest on
Income Suspend
ed
Penalty
interest
charging
Interest Repayment by customer
Amount Default
Date Descript
Dr / ion
141
Loans
Branch GL Head Cr TCY- LCY-
Posting Value
INR INR
01/08/11 01/08/11 Account Cash/CAS Dr 100 100 Suspend

Branch A ed
Asset/Liab Penalty
ility GL Interest
paid by
customer
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
INR INR
01/08/11 01/08/11 Account Suspende Cr 100 100 Suspend

Branch d Penalty ed
Interest Penalty
Receivabl Interest
e receivabl
e
reversed
on
repayme
nt

Branch d Penalty of
Interest Suspend
Income ed
Penalty
Interest
Income
(Liability)
on
repayme
nt
142
Loans
01/08/11 01/08/11 Account Suspende Cr 100 100 Booking

Branch d Penalty of
Interest Interest
Recovere income
d on
repayme
nt
143
Loans
Reversal of Penalty Interest accrued in Normal bucket (this will apply if claw back is not enabled)
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
INR INR
01/08/11 01/08/11 Account Penalty Dr 10 10 Reversal

Branch Interest of
Income Penalty
Interest
Income
on write
off
01/08/11 01/08/11 Account Penalty Cr 10 10 Reversal

Branch Interest of
Accrued Penalty
Interest
Accrued
on write
off
Reversal of Penalty Interest accrued in Suspended bucket
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
INR INR

Branch d Penalty of
Interest Suspend
Income ed
Penalty
Interest
Income
(Liability)
on write
off
01/08/11 01/08/11 Account Suspende Cr 15 15 Reversal

Branch d Penalty of
Interest Suspend
Accrued ed
Penalty
Interest
Accrued
on write
off
144
Loans
1.72. Ad-hoc Charging of accrued Regular / Penalty Interest -

Fast Path: LN071
Using the Ad-hoc Interest Application option the user can apply accrued interest as and when required
on the dates other than interest charging date.This facility is available for both regular as well as penalty
interest.
Charging of accrued Regular / Penalty Interest – Normal
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
INR INR
01/08/11 01/08/11 Account Interest Dr 100 100 Interest

Branch Receivabl charged
e
01/08/11 01/08/11 Account Interest Cr 100 100 Interest

Branch Accrued accrual
reversed
on
charging
Charging of accrued Regular / Penalty interest -Suspended
Amount Default
Date Descript
Dr / ion
Branch GL Head
Cr
INR INR
01/08/11 01/08/11 Account Suspende Dr 100 100 Suspend

Branch d Interest ed
Receivabl Interest
e charged
01/08/11 01/08/11 Account Suspende Cr 100 100 Reversal

Branch d Interest of
Accrued Suspend
ed
accrued
interest
on
charging
145
Loans
Notary / Insurance Fees
1. Notary/Insurance Fees Collected in a Third Party Fee Collection transaction from a Loan Account
Date Amount
Default
Dr
Branch GL Head Descriptio
Posting Value / TCY- LCY-
n
Cr INR INR
01/08/0 01/08/0 Account Loan A/c D 100 100 Text input

8 8 Branch – r 0 0 in
Outgoing Narrative
Receivabl field in
e GL BAM79
screen
under
collection
tab
01/08/0 01/08/0 Transact Accoun C 100 100 Text input

8 8 io n t r 0 0 in
Payabl Narrative
Branch
e GL field in
BAM79
screen
under
collection
tab
2. Notary/Insurance Fees Collected in a Third Party Fee Collection transaction from a Loan
Account(Fee recovered from a CASA Account)
E.g.: SC Amount: 1000 Available Balance in CASA – 700
Date Amount
Default
Dr /
Posting Value Cr TCY LCY
n
- -
INR INR
01/08/0 01/08/0 Account CASA D 700 700 Text input

8 8 Branch A/C r in Narrative
field in
BAM79
screen
under
collection
tab
146
Loans
Date Amount
Default
Dr
Branch GL Head Descripti
Posting Value / TCY- LCY-
on
Cr INR INR
01/08/0 01/08/0 Transactio Account D 300 300 Text input

8 8 n receivabl r in
e GL Narrative
Branch
field in
BAM79
screen
under
collection
tab
01/08/0 01/08/0 Transactio Account C 1000 1000 Text input
8 8 n Payable r in
GL Narrative
Branch
field in
BAM79
screen
under
collection
tab
3. NSF Condition-Part Debit/Part Hold)-CASA A/C- Third Party Fee Collection Txn E.g.: SC Amount:
1000
Available Balance in CASA 700
Amount debited from Account receivable GL- 300
Date Amount
Default
Dr /
n
- -
INR INR
01/08/0 01/08/0 Account CASA D 700 700 Text input
8 8 Branch A/C r in Narrative
field in
BAM79
screen
under
collection
tab
01/08/0 01/08/0 Transactio Account D 300 300 Text input

8 8 n receivabl r in Narrative
e GL field in
Branch
BAM79
screen
under
collection
tab
147
Loans
01/08/0 01/08/0 Transactio Account C 100 100 Text input

8 8 n Payable r 0 0 in Narrative
GL field in
Branch
BAM79
screen
under
collection
tab
4. After Expiry of threshold days for unclaimed processing account payable
Date Amount
Default
Dr /
n
-INR - NR
01/12/0 01/12/0 Transactio Account D 300 300 Unclaimed

8 8 n Payable r Collection
GL Processing
Branch
01/12/0 01/12/0 Transactio Unclaime C 300 300 Unclaimed

8 8 n d r Collection
Payable Processing
Branch
GL
5. After Expiry of threshold days for unclaimed processing account receivable
Date Amount Default

Dr /
Branch GL Head Descripti
Cr
Posting Value TCY- LCY- on
INR INR
01/12/ 01/12/ Account CASA D Available Available Expense

08 08 branch A/C r Amount Amount Processi
ng:
Recover
Avail Bal
01/12/ 01/12/ Transact Account C Available Available Expense

08 08 ion receiva r Amount Amount Processi
ble GL ng:
Branch
Recover
Avail Bal
01/12/ 01/12/ Transact Account C Uncollec Uncollec Expense

08 08 ion receiva r ted ted Processi
ble GL amount amount ng: NSF
Branch
Loss
148
Loans
01/12/ 01/12/ Account Unclaim D Uncollec Uncollec Expense

08 08 branch ed r ted ted Processi
receiva amount amount ng: NSF
ble Loss
(Expens
e GL)
The Relationship Pricing benefits - For the loan accounts in the form of cash back to the linked CASA
account.
Date Amount
Dr / Default
Branch GL Head
Posting Value Cr TCY LCY- Description
- INR INR
01/08/08 01/08/08 Loan Expense Dr 500 500 (SC code

Account GL name)+loa
Branch (Interest n cash
Income back for
Waiver) (Loan
Account
01/08/08 01/08/08 CASA Cr 500 500 no) code
(SC
Account a/c name)+loa
(Linked n cash
Branch
account back for
for (Loan
Loan) Account
no)
149
Loans
1.73. Deductions
There are 3 modes in which deductions can be made at the time of loan disbursements. These are Bill,
Deduct or Debit. The GL used for deduction will be the Income GL set up in service charge code set up.
Bill
The Billing mode indicates that there will be an arrear on the account on the amount due. The system will
pass entries and raise actual arrears on account.
Cash- 1200 disbursed to loan Account. The disbursement fee is 5% of the Disbursed amount i.e. 60

Head t
g INR INR ption

05 05 nt Asse semen
Branch t GL t By
Cash

Branch h GL t By
Cash

05 05 ction Branc semen
Branch h GL t By
Cash
01/01/ 01/01/ Transa Cas Cr 1200 1200 Disbur

05 05 ction h semen
Branch GL t By
Cash
01/01/ 01/01/ Accou SC/F Dr 60 60 LN.

05 05 nt e es Disb.
Branch Recei SC./Ot
v able her
GL Incom
e
01/01/ 01/01/ Accou SC/Fe Cr 60 60 LN.

05 05 nt e Disb.
Branch Incom SC./Ot
e GL her
Incom
e
Deduct
The deduct option reduces the disbursed amount by the fee amount immediately. There is no outstanding
on the account in this case.
150
Loans
Rs 1200 loan disbursed by transfer to CASA Account. The disbursement fee is fixed amount of 50

Head t
g INR INR ption

05 05 nt n semen
Branch Ass t to
et CASA
GL
Branch h GL t to
CASA
01/01/ 01/01/ CASA Inter Dr 1200 1200 Disbur

05 05 Accou Branc semen
nt h GL t to
Branch CASA
01/01/ 01/01/ Accou SC/F Cr 50 50 LN.

05 05 nt ee Disb.
Branch Inco SC./Ot
me her
GL Incom
e
01/01/ 01/01/ CASA CASA Cr 1150 1150 Disbur

05 05 Accou Asset semen
nt / t to
Branch Liabili CASA
t y
GL
Debit
Debit adds the amount of the deduction to the principal amount. The amount then gets capitalized over the
term of the loan.
Disbursement by Bankers Cheque - 1200 disbursed by bankers cheque. The disbursement fee is fixed
amount of 50

Head t
g INR INR ption

05 05 nt Asse semen
Branch t GL t By
Chequ
e
151
Loans

Branch h GL t By
Chequ
e

05 05 ction Branc semen
Branch h GL t By
Chequ
e
01/01/ 01/01/ Transa SC/Fe Cr 50 50 LN.

05 05 ction e Disb.
Branch Incom SC./Ot
e GL her
Incom
e
01/01/ 01/01/ Transa Issuer Cr 1200 1200 Disbur

05 05 ction GL semen
Branch A/C t By
Chequ
e
System Initiated Service Charge Example: SC is 150

Head t
g INR INR ption
01/01/ 01/01/ Accou Recei Dr 150 150 Loan

07 07 nt v SC
Branch ables charge
d
01/01/ 01/01/ Accou Servi Cr 150 150 Loan

07 07 nt ce SC
Branch charg charge
e d
Inco
me
GL
Realization of the charges through DD/RFD

Head t
g INR INR ption
152
Loans
01/01/ 01/01/ Accou Inter Dr 150 150 Loan

07 07 nt m Extern
Branch ediar al
y GL Payme
(Reci nt
pi ent receiv
of ed
DD/R
01/01/ 01/01/ Accou Recei
F D) Cr 150 150 Loan
07 07 nt v Extern
Branch ables al
Payme
nt
receiv
ed
Amortization of Service Charges
Example: At the time of Recovery of SC by way of Deduction (loan Amount Disbursed = 52,000, SC=
2,000)

Head t
g INR INR ption
01/01/ 01/01/ Loan Loa Dr 52000 52000 Disbur

07 07 Accou n semen
nt Ass t To
Branch et CASA
GL
01/01/ 01/01/ Loan Cust Cr 50000 50000 Loan
07 07 Accou o Disbur
nt mers semen
Branch CAS t to
A CASA
A/c
01/01/ 01/01/ Loan Amor Cr 2000 2000 Amorti
07 07 Accou ti zation
nt satio SC
Branch n GL
Example: If the SC is recovered by way of Debit (loan Amount Disbursed = 52,000, SC = 2,000)

Head t
g INR INR ption
01/01/ 01/01/ Loan Asse Dr 52000 52000 Loan

07 07 Accou t Disbur
nt Acco semen
Branch u nt t to
CASA
153
Loans
01/01/ 01/01/ Loan Asse Dr 2000 2000 Loan

07 07 Accou t Debit
nt Acco SC
Branch u nt
01/01/ 01/01/ Loan Cust Cr 52000 52000 Loan

nt mers semen
Branch CAS t to
A CASA
01/01/ 01/01/ Loan Unear Cr 2000 2000 Loan

07 07 Accou ned Debit
nt Finan SC
Branch c ial
Charg
es
Example: If the SC is recovered by way of Bill (loan Amount Disbursed = 52,000, SC = 2,000)

Head t
g INR INR ption
01/01/ 01/01/ Loan Asse Dr 52000 52000 Loan

07 07 Accou t Disbur
nt Acco semen
Branch u nt t to
CASA
01/01/ 01/01/ Loan Cust Cr 52000 52000 Loan

nt mers semen
Branch CAS t to
A CASA
01/01/ 01/01/ Loan SC Dr 2000 2000 Loan

07 07 Accou Recei Bill SC
nt v able
Branch

07 07 Accou ned Bill SC
nt Finan
Branch c ial
Charg
es
Example: Receipt of Insurance Premium, Guarantee Premium, Penalty Charges assuming each is 6000,
9000 and 12,000
154
Loans
Postin Value Head Cr TCY- LCY- t

g INR INR Descri
ption
01/01/ 01/01/ Loan Cash Dr 27000 27000 Loan
07 07 Accou / Dues
nt Cust Receiv
Branch o ed
mers
01/01/ 01/01/ Loan RPA
CAS Dr 27000 27000 Loan
07 07 Accou GL
A Dues
nt Acco Receiv
Branch u nt ed
01/01/ 01/01/ Loan RPA Cr 27000 27000 Loan

07 07 Accou GL Dues
nt Acco Appro
Branch u nt priated

07 07 Accou ned Insura
nt Insura nce
Branch nce Payme
Premi nt
um Receiv
ed
01/01/ 01/01/ Loan Guara Cr 9000 9000 Loan

07 07 Accou ntee Guara
nt Premi ntee
Branch um Premiu
m
Receiv
ed
01/01/ 01/01/ Loan Penal Cr 12000 12000 Loan

07 07 Accou ty Penalt
nt Intere y
Branch s t GL Interes
t
Receiv
ed
Service Charge Amortization Entry
Example: If on a payment date the interest is 8,700 and it has to be paid by the customer at a rate of 12%
(Nominal Rate of Loan) and based on Amortization method if the interest amount is 9,000 then the excess
300 is appropriated to income by posting the following entry:

Head t
g INR INR ption
155
Loans
01/01/ 01/01/ Loan Amor Dr 300 300 LN.

07 07 Accou ti Disb.
nt satio SC./Ot
Branch n GL her
Incom
e
01/01/ 01/01/ Loan SC Cr 300 300 LN.

07 07 Accou /Fee Disb.
nt s SC./Ot
Branch Inco her
m e Incom
GL e
Adjustment entry at the time of receipt of last installment
Example: There will be an adjusted entry in the last month to appropriate the balance in the Unearned
Financial Charge GL for an amount of 120.

Head t
g INR INR ption
01/01/ 01/01/ Loan Unea Dr 120 120 Loan

07 07 Accou r ned Final
nt Finan Incom
Branch ce e
Char Adjust
ge ed
01/01/ 01/01/ Loan Inco Cr 120 120 Loan

07 07 Accou me Final
nt GL Incom
Branch e
Adjust
ed
Amortization of Dealers Commission: (Deferred Financial Charges) Dealers Commission is paid by way of
issuing a Managers Cheque. Example: A dealers commission of 600 is paid.

Head t
g INR INR ption
01/01/ 01/01/ Loan Deferr Dr 600 600 Loan

07 07 Accou ed Dealer
nt Expe s
Branch n ses Commi
GL ssion
paid
156
Loans
01/01/ 01/01/ Loan CASA Cr 600 600 Loan

07 07 Accou Accou Dealer
nt nt of s
Branch Deale Commi
r ssion
Paid
In the existing entry, the Rewards Expense GL is debited and CASA Account is credited. This will be
replaced by debiting Deferred Expense GL and Crediting to Dealers CASA Account.
On the Month End the first amortization entry will be posted. Subsequently on each month end this entry
will be repeated. In the end there will be an adjustment entry in the end of last month to nullify the Deferred
Expenses GL.
MONTH END ENTRIES

Head t
g INR INR ption
31/01/ 31/01/ Loan Expen Dr 75 75 Loan

07 07 Accou se GL Dealer
nt s
Branch Commi
ssion
Amorti
zed
31/01/ 31/01/ Loan Defe Cr 75 75 Loan

07 07 Accou rr ed Dealer
nt Expe s
Branch n ses Commi
GL ssion
Amorti
zed
Last Adjustment Entry

Head t
g INR INR ption
157
Loans
31/01/ 31/01/ Loan Expen Dr 60 60 Loan

07 07 Accou se GL Dealer
nt s
Branch Commi
ssion
final
amorti
zation
adjust
ment
31/01/ 31/01/ Loan Defe Cr 60 60 Loan

07 07 Accou rr ed Dealer
nt Expe s
Branch n ses Commi
GL ssion
final
amorti
zation
adjust
ment
158
Loans
Interest Accrual
Accrual of Interest on loan accounts is the process by which income is "earned" or recognized. Interest
accrual of 600

Head t
g INR INR ption

05 05 nt st Interes
Branch Accru t
ed Accrua
GL l

05 05 nt st Interes
Branch Inco t
me Accrua
GL l
Interest Charging
Definition: "Charging" of Interest is the recognition of a "due" or a "receivable" of Interest from the
customer. All interest accrued till the time of charging is debited to the account. The entries for charging
will be passed as part of the End of Day action on the installment due date.
Interest Charging of 600

Head t
g INR INR ption

05 05 nt st Interes
Branch Recei t
v able Charg
GL ed

05 05 nt st Interes
Branch Accru t
ed Charg
GL ed
Adding Moratorium Interest to first Installment:
Moratorium Period and Interest charged during the Moratorium Period

Head t
g INR INR ption
159
Loans
Accrual (Moratorium Period)
01/01/ 01/01/ Accou Accru Dr 600 600 Loan

07 07 nt al GL Interes
Branch t
Accrue
d
01/01/ 01/01/ Accou Inco Cr 600 600 Loan

07 07 nt me Interes
Branch GL t
accrue
d
End of Moratorium period
31/03/ 31/03/ Accou Uncol Dr 1800 1800 Loan

07 07 nt l Morato
branch ected rium
Intere Interes
s t GL t
transfe
rred to
Uncoll
ected
Interes
t
31/03/ 31/03/ Accou Accru Cr 1800 1800 Loan

07 07 nt a l GL Morato
branch rium
Interes
t
transfe
rred to
Uncoll
ected
Interes
t
Charging of Moratorium Interest (Regular Period)
30/04/ 30/04/ Accou Recei Dr 900 900 Loan E

08 08 nt v able Morato O
branch rium D
Interes
t
charge
d
30/04/ 30/04/ Accou Uncol Cr 900 900 Loan E

08 08 nt l Morato O
branch ected rium D
Intere Interes
st t
charge
d
160
Loans
Interest Compounding
Penalty computation on Repayment
Date Branch GL Dr / Amount Defaul G

Head Cr t e
Postin Value TCY- LCY- Descri n
g INR INR ption e
r
Full amount is received
a
01/01/ 01/01/ Transa Cash/ Dr 750 750 Loan O
t
08 08 ction CASA Penalt n
e
Branch GL y ld
Receiv i
ed n
D
e
u
01/01/ 01/01/ Transa Penalt Cr 750 750 Loan E
r
08 08 ction y Penalt O
i
Branch Incom y D
n
e GL Receiv
ed g
Partial Amount is received i.e. Due penalty is partially paid.
For unpaid amount, following entry will be passed:
01/01/ 01/01/ Accou Contin Dr 300 300 Loan E

08 08 nt gent Penalt O
Branch Asset y D
GL Contin
gent
Entry
01/01/ 01/01/ Accou Contin Cr 300 300 Loan E

Branch Liabilit y D
y GL Contin
gent
Entry
On receiving amount:

Branch Liabilit y D
y GL Contin
gent
Entry
Revers
ed
161
Loans
Postin Value Head Cr TCY- LCY- t e

g INR INR Descri n
ption e
r
a
Branch Asset y D
t
GL Contin
e
gent
d
Entry
Revers
D
ed
u
01/01/ 01/01/ Transa Cash/ Dr 300 300 Loan Or
08 08 ction CASA Penalt ni
Branch GL y ln
Receiv i
ed g
n
e
Branch incom y D
e GL Receiv
ed
Penalty computation on Due date

Head Cr t e
Postin Value TCY- LCY- Descri n
g INR INR ption e
r
On Due date
a
01/01/ 01/01/ Accou Penalt Dr 600 600 Loan E
t
08 08 nt y Penalt O
e
Branch Receiv y D
d
able GL Charg
ed D
u
01/01/ 01/01/ Accou Penalt Cr 600 600 Loan E
r
08 08 nt y Penalt O
i
Branch Incom y D
n
e GL Charg
ed g
On receipt date

Branch GL y l
Receiv i
ed n
e
162
Loans

Branch Receiv y D
able GL Receiv
ed
Partial Amount is received i.e. Due penalty is partially paid.
For unpaid amount, following entry will be passed:

Branch Asset y D
GL Contin
gent
entry

Branch Liabilit y D
y GL Contin
gent
Entry
On receiving the amount:

Branch Liabilit y D
y GL Contin
gent
Entry
Revers
ed

Branch Asset y D
GL Contin
gent
Entry
Revers
ed

Branch GL y l
Receiv i
ed n
e
Branch Incom y D
e GL Receiv
ed
163
Loans
Capitalization of Arrears
Capitalization adds the arrears amount to the Principal and removes from IOA base. Basically, the arrears
become part of the principal. Capitalization can happen in case of Rescheduling of Loan account,
Restructuring of Loan account or the End of Period (EOP) treatment defined in schedule definition
(LNM98).
A loan account has the following arrears: Interest Receivable 770
Outgoing Receivable 150
Fees Receivable 120
Insurance Premium 250

Head Cr t
g INR INR ption
01/01/ 01/01/ Accou Loan Dr 1560 1560 Arrear

05 05 nt Asset Capital
Branch GL ization
01/01/ 01/01/ Accou Interes t Cr 770 770 Interes

05 05 nt Receiv t
Branch able GL Arrear
Capital
ization
01/01/ 01/01/ Accou Legal Cr 270 270 Legal

05 05 nt Fees Arrear
Branch Receiv Capital
able GL ization
01/01/ 01/01/ Accou Outgoi Cr 150 150 Outgoi

05 05 nt ng ngs
Branch Receiv Arrear
able GL Capital
ization
01/01/ 01/01/ Accou SC/Fe Cr 120 120 Fees

05 05 nt es Arrear
able GL ization
01/01/ 01/01/ Accou Insura Cr 250 250 Premiu

05 05 nt nce m
Branch Premiu Arrear
m GL Capital
ization
164
Loans
NPL Processing
For a loan account it is very important for the bank to track the status of repayments. This is both from a
regulatory point of view as well as for banks own profitability. This can be done by setting up and attaching
a classification plan and classification rules to the loan product. This will determine how the classification
should happen, what the past due period should be, whether the Credit risk rating (CRR) movement
should be manual or automatic and the provisioning rate for secured and unsecured loans. Entries will be
passed only if the CRR movement happens across the accrual status – Normal to Suspended and vice-a-
versa.
Account Interest Freeze Maintenance No Accounting entries are generated
CRR Movement
Account A belongs to Product P having the following features:

Total outstanding loan amount = 2200
Interest Accrual = Monthly
Interest Charging = Monthly
Financial Year End = 31st March, 2005
The CRR definition for Product P indicates that Account A will be marked as NPL when the oldest arrears
have not been paid for 3 months. The following arrears are overdue on the account on the day of NPA
processing:
Sr No Date Type of Arrear Sum of

Arrears Amount Arrears
1 31-Jan-05 Interest 100.00 198.00

Arrear
2 28-Feb-05 Interest 98.00

Arrear
3 28-Feb-05 Penalty 12.00 12.00

Arrear
4 15-Feb-05 Outgoing 10.00 10.00

Arrear
5 15-Mar-05 Legal Arrear 110.00 110.00
The NPA processing for this account will be done on 31-Mar-05. The following arrears are to be raised
after the NPA processing is complete:
Sr No Date Type of Arrears Arrear Amount
1 31-Mar-05 Interest Arrear 95.00
2 31-Mar-05 Legal Arrear 20.00
3 31-Mar-05 Outgoings Arrear 25.00
165
Loans
Interest Accrued on the account till 30-Apr-05 is 95.00
Clawback Option
By clawing back of unpaid arrears, system basically de-recognizes income. GL entries passed to income
GL are reversed and entries passed to respective suspended GL. The income will be recognized only
when payment in made into the account. The user has the option to enable or disable the clawback.
Clawback Enabled
The following entries shall be passed during NPA processing on 31-Mar-05:

Head Cr t
g INR INR ption
31/03/ 31/03/ Accou Loan Cr 2200 2200 PA. To

05 05 nt Asset NPA.
Branch GL GL.
Move
ment
31/03/ 31/03/ Accou Loan Dr 2200 2200 PA. To

05 05 nt Suspe NPA.
Branch nded GL.
Asset Move
GL ment
31/03/ 31/03/ Accou Interes t Cr 198 198 PA. To

05 05 nt Receiv NPA.
Branch able GL GL.
Move
ment
31/03/ 31/03/ Accou Suspe Dr 198 198 PA. To

05 05 nt nded NPA.
Branch Interes t GL.
Receiv Move
able GL ment
31/03/ 31/03/ Accou Interes Dr 198 198 PA. To

05 05 nt t Incom NPA.
Branch e GL GL.
Move
ment
31/03/ 31/03/ Accou Suspe Cr 198 198 PA. To

05 05 nt nded NPA.
Branch Interes GL.
t Incom Move
e GL ment
166
Loans
31/03/ 31/03/ Accou Penalt Cr 12 12 PA. To

05 05 nt y NPA.
Receiv Move
able GL ment

05 05 nt nded NPA.
Branch Penalt GL.
y
Move
Interes t
ment
Receiv
able GL
31/03/ 31/03/ Accou Penalt Dr 12 12 PA. To

05 05 nt y NPA.
Branch Interes GL.
t Incom Move
e GL ment

05 05 nt nded NPA.
Branch Penalt GL.
y Move
Interes
ment
t GL
31/03/ 31/03/ Accou Outgoi Cr 10 10 PA. To
05 05 nt ng NPA.
Branch Receiv GL.
able GL Move
ment
05 05 nt nded NPA.
Branch Outgoi GL.
ng Move
Receiv ment
able GL
31/03/ 31/03/ Accou Legal Cr 110 110 PA. To

05 05 nt Fees NPA.
Branch Receiv GL.
able GL Move
ment
05 05 nt nded NPA.
Branch Legal GL.
Fees Move
GL ment
167
Loans
The following GL entries will be passed for the arrears to be raised on 31-Mar-05:

Head Cr t
g INR INR ption
31/03/ 31/03/ Accou Interes Dr 95 95 LN.

05 05 nt t Accrue Interes
Branch d GL t
Accrua
l
31/03/ 31/03/ Accou Interes Cr 95 95 LN.

05 05 nt t Incom Interes
Branch e GL t
Accrua
l
31/03/ 31/03/ Accou Interes t Dr 95 95 LN.

05 05 nt Receiv Interes
Branch able GL t
Charg
ed

Branch d GL t
Charg
ed

Branch e GL GL.
Move
ment

05 05 nt nded NPA.
Branch Interes GL.
t Incom Move
e GL ment

05 05 nt nded NPA.
Receiv Move
able GL ment
168
Loans
31/03/ 31/03/ Accou Interes t Cr 95 95 PA. To

05 05 nt Receiv NPA.
Branch able GL GL.
Move
ment
31/03/ 31/03/ Accou Legal Dr 20 20 Legal

05 05 nt Fees Fees
Branch Receiv Charg
able GL ed

05 05 nt Fees Fees
Branch Payabl Charg
e GL ed

05 05 nt nded NPA.
Branch Legal GL.
Fees Move
GL ment

05 05 nt Fees NPA.
Branch Receiv GL.
able GL Move
ment
31/03/ 31/03/ Accou Outgoi DR 25 25 Outgoi

05 05 nt ng ngs
Branch Receiv Due
able GL

05 05 nt ng ngs
Branch Payabl Due
e GL

05 05 nt nded NPA.
Branch Outgoi GL.
ng Move
Receiv ment
able GL
31/03/ 31/03/ Accou Outgoi Cr 25 25 PA. To

05 05 nt ng NPA.
Branch Receiv GL.
able GL Move
ment
169
Loans
Interest Accrual entries on 30-Apr-05 are:

Head Cr t
g INR INR ption
30/04/ 30/04/ Accou Susp Dr 95 95 Int.

05 05 nt Int Receiv
Branch Receiv able
able
30/04/ 30/04/ Accou Susp Cr 95 95 PA To

05 05 nt Int NPA
Branch Incom GL
e Move
ment:S
uspen
ded
Interes
t
30/04/ 30/04/ Accou Suspe Dr 95 95 PA To

05 05 nt nded NPA
Branch Asset GL
Move
ment
FOR
(Accou
nt No.)
30/04/ 30/04/ Accou Susp Cr 95 95 Int.

05 05 nt Int Receiv
Branch Receiv able
able
30/04/ 30/04/ Accou Susp Dr 95 95 Int.

05 05 nt Int receiv
Branch Receiv able
able
30/04/ 30/04/ Accou Susp Cr 95 95 PA To

05 05 nt Int NPA
Branch Incom GL
e Move
ment:S
uspen
ded
Clawback Not Enabled Interes
t
No entries are passed during NPA processing for unpaid arrears prior to 31-Mar-05. The following GL
entries will be passed for the arrears to be raised on 31-Mar-05:

Head Cr t
g INR INR ption
170
Loans
31/03/ 31/03/ Accou Interes Dr 95 95 LN.

Branch d GL t
Accrua
l

Branch e GL t
Accrua
l

Branch able GL t
Charg
ed

Branch d GL t
Charg
ed

Branch e GL GL.
Move
ment

05 05 nt nded NPA.
Branch Interes GL.
t Incom Move
e GL ment
05 05 nt nded NPA.
Branch Interes GL.
t Move
Receiv ment
able
31/03/ 31/03/ Accou Interes
GL Cr 95 95 PA. To
05 05 nt t NPA.
Branch Receiv GL.
able Move
GL ment
31/03/ 31/03/ Accou Legal Dr 20 20 Legal
05 05 nt Fees Fees
Branch Receiv Charg
able ed
GL
171
Loans

05 05 nt Fees Fees
Branch Payabl Charg
e GL ed

05 05 nt nded NPA.
Branch Legal GL.
Fees Move
GL ment
05 05 nt Fees NPA.
Branch Receiv GL.
able Move
GL ment
31/03/ 31/03/ Accou Outgoi Dr 25 25 Outgoi
nt ng ngs
05 05
Branch Receiv Due
able
GL

05 05 nt ng ngs
Branch Payabl Due
e GL

05 05 nt nded NPA.
Branch Outgoi GL.
ng Move
Receiv ment
able GL
31/03/ 31/03/ Accou Outg Cr 25 25
05 05 nt oi ng
Branch Rece
iv
able
GL
Interest Accrual entries on 30-Apr-05 are:

Head Cr t
g INR INR ption
30/04/ 30/04/ Accou Suspe Dr 95 95 LN.

05 05 nt nded Susp.
Branch Interes Interes
t Accrue t
d GL Accrua
l
172
Loans
30/04/ 30/04/ Accou Suspe Cr 95 95 LN.

05 05 nt nded Susp.
t Incom t
e GL Accrua
l
30/04/ 30/04/ Accou Suspe Dr 95 95 LN.

05 05 nt nded Susp.
Branch Interes t Interes
Receiv t
able GL Charg
ed
30/04/ 30/04/ Accou Suspe Cr 95 95 LN.

05 05 nt nded Susp.
t Accrue t
d GL Charg
ed
Movement from Suspended to Normal Status
In case there are any suspended arrears outstanding at the time of reverse movement (case where the
Reverse Movement Control Flag is “Classification Plan”) then the following entries will be passed to move
back the suspended arrears to normal status based on the arrears outstanding.
Assume that:
1. The Loan account is a suspended loan account.
2. Total Principal outstanding is 2200.
Following are the suspended arrears totaling to 140: Suspended Interest 30
Suspended Service Charges 10
Suspended Premium 55
Suspended Legal Fees 29
Suspended Outgoing 16

Head Cr t
g INR INR ption
01/01/ 01/01/ Accou Loan Dr 2200 2200 NPA.

05 05 nt Asset To PA.
Branch GL GL.
Move
ment
173
Loans
01/01/ 01/01/ Accou Loan Cr 2200 2200 NPA.

05 05 nt Suspe To PA.
Branch nded GL.
Asset Move
GL ment
01/01/ 01/01/ Accou Interes t Dr 30 30 NPA.

05 05 nt Receiv To PA.
Branch able GL GL.
Move
ment
01/01/ 01/01/ Accou Suspe Cr 30 30 NPA.

05 05 nt nded To PA.
Receiv Move
able GL ment
01/01/ 01/01/ Accou Suspe Dr 30 30 NPA.

Branch Interes GL.
t Incom Move
e GL ment
01/01/ 01/01/ Accou Interes Cr 30 30 NPA.

05 05 nt t Incom To PA.
Branch e GL GL.
Move
ment
01/01/ 01/01/ Accou SC/Fe Dr 10 10 NPA.

05 05 nt es To PA.
Branch Receiv GL.
able GL Move
ment

Branch SC/Fe GL.
es Move
Receiv ment
able

Branch SC/Fe GL.
es Move
ment
01/01/ 01/01/ Accou SC/Fe Cr 10 10 NPA.

05 05 nt e To PA.
Branch Incom GL.
e GL Move
ment
174
Loans
01/01/ 01/01/ Accou Premiu Dr 55 55 NPA.

05 05 nt m To PA.
Branch Receiv GL.
able GL Move
ment

Branch Premiu GL.
m Move
Receiv ment
able GL
01/01/ 01/01/ Accou Legal Dr 29 29 NPA.

05 05 nt Fees To PA.
Branch Receiv GL.
able GL Move
ment

Branch Legal GL.
Fees Move
GL ment
01/01/ 01/01/ Accou Outgoi Dr 16 16 NPA.

05 05 nt ng To PA.
Branch receiv GL.
able Move
GL ment
01/01/ 01/01/ Accou Suspe Cr 16 16 01/01/

05 05 nt nded 05
Branch Outgoi
ng
receiv
able
GL
Payments on a Suspended Account
Assume that:
 The loan a/c is a suspended loan account.
 Total Principal outstanding is 2200.
 Following arrears totaling to 960 being paid by cash in full:
 Suspended Principal Arrears 820
 Suspended Service Charges 10
 Suspended Legal Fees 29
 Suspended Interest 30
 Suspended Outgoing 16
 Suspended Premium 55
175
Loans
 Provision made in the account 150

Head Cr t
g INR INR ption
01/01/ 01/01/ Transa Cash Dr 960 960 LN.

05 05 ction GL Install
Branch ment
Payme
nt By
Cash

05 05 ction Branch Install
Branch GL ment
Payme
nt By
Cash
01/01/ 01/01/ Accou Inter Dr 960 960 LN.

05 05 nt Branch Install
Branch GL ment
Payme
nt By
Cash
01/01/ 01/01/ Accou Unappl Cr 960 960 LN.

05 05 nt ied Install
Branch Advan ment
ce Payme
(RPA) nt By
GL Cash
01/01/ 01/01/ Accou Unappl Dr 820 820 LN.

Branch Advan ment
ce Payme
(RPA) nt By
GL Cash
01/01/ 01/01/ Accou Loan Cr 820 820 LN.

05 05 nt Suspe Install
Branch nded ment
Asset Payme
GL nt By
Cash

Branch Advan ment
ce Payme
(RPA) nt By
GL Cash
176
Loans
01/01/ 01/01/ Accou Suspe Cr 10 10 LN.

05 05 nt nded Install
Branch SC/Fe ment
es Payme
Receiv nt By
able Cash

Branch SC/Fe GL.
es Move
ment
01/01/ 01/01/ Accou SC/Fe Cr 10 10 NPA.

05 05 nt e To PA.
Branch Incom GL.
e GL Move
ment

Branch Advan ment
ce Payme
(RPA) nt By
GL Cash
01/01/ 01/01/ Accou Suspe Cr 29 29 LN.

Branch Legal ment
Fees Payme
Receiv nt By
able GL Cash

Branch Advan ment
ce Payme
(RPA) nt By
GL Cash
01/01/ 01/01/ Accou Suspe Cr 30 30 LN.

Branch Interes t ment
Receiv Payme
able GL nt By
Cash
01/01/ 01/01/ Accou Suspe Dr 30 30 Suspe

05 05 nt nded nded
t Incom t
e GL recove
red
177
Loans
01/01/ 01/01/ Accou Suspe Cr 30 30 Suspe

05 05 nt nded nded
t Recov t
ered recove
GL red

Branch Advan ment
ce Payme
(RPA) nt By
GL Cash
01/01/ 01/01/ Accou Suspe Cr 16 16 LN.

Branch Outgoi ment
ng Payme
receiv nt By
able Cash
GL

Branch Advan ment
ce Payme
(RPA) nt By
GL Cash
01/01/ 01/01/ Accou Suspe Cr 55 55 LN.

Branch Premiu ment
m Payme
receiv nt By
able GL Cash
01/01/ 01/01/ Accou Loan Dr *1380 1380 NPA.

Branch GL GL.
Move
ment
01/01/ 01/01/ Accou Loan Cr *1380 1380 NPA.

Branch nded GL.
Asset Move
GL ment
01/01/ 01/01/ Accou Bad Dr 150 150 LN.

05 05 nt debt Reserv
Branch Reserv e
e GL Provisi
ons
Revers
al
178
Loans
01/01/ 01/01/ Accou Write- Cr 150 150 LN.

05 05 nt off Reserv
Branch Expen e
se GL Provisi
ons
Revers
al
Note: * Net amount - Principal outstanding less principal arrears repaid (2200-820
= 1380)
Provisioning
System automatically calculates provision on the accounts based on the account CRR. Provisioning –
Unsecured Loan
Assume a loan account is an unsecured loan account:
Outstanding Loan Amount =INR 2500
Type – Unsecured Loan
Provisioning Rate Unsecured – 20%
Provisioning Frequency Monthly

Head Cr t
g INR INR ption
31/01/ 31/01/ Accou Write- Dr 500 500 LN.

05 05 nt off Provisi
Branch Expen ons
se GL Expen
se
Debit
31/01/ 31/01/ Accou Bad Cr 500 500 LN.

Branch Reserv e
e GL Provisi
ons
Provisioning - Secured Loan
If the account is secured then the system uses the secured provisioning rate. Assume a loan is a secured
loan account:
Outstanding Loan Amount =INR 9000
Type – Secured Loan (Readily Realizable – as defined in Collateral Codes Maintenance – BAM39)
Collateral Value =INR 35000 (Fully Secured)
179
Loans
Provisioning Rate Secured - 5%


Head Cr t
g INR INR ption
31/01/ 31/01/ Accou nt Write- Dr 450 450 LN.

05 05 Branch off Provisi
Expen ons
se GL Expen
se
Debit
31/01/ 31/01/ Accou nt Bad Cr 450 450 LN.

05 05 Branch debt Reserv
Reser e
v e GL Provisi
ons
Provisioning - Partially Secured Loan
In case account is partially secured, the system splits the principal amount into secured and unsecured
portions and provisions at applicable rates. This situation usually arises due to erosion/ diminution in the
value of the security.
Assume a loan account is a secured loan account: Outstanding Loan Amount =INR 9000
Present Collateral Value=INR 5000 (Fully Secured)
Provisioning Rate Secured – 5%
Provisioning Rate Unsecured – 20%

Head Cr t
g INR INR ption
31/01/ 31/01/ Accou Write- Dr *1050 1050 LN.

Branch Expen ons
se GL Expen
se
Debit
31/01/ 31/01/ Accou Bad Cr *1050 1050 LN.

Branch Reserv e
e GL Provisi
ons
A - Secured 5% of 5000 = 250
180
Loans
B - Unsecured 20% of 4000(Outstanding Loan amount 9000 – Collateral Value 5000=4000) = 800
Total Provision Amount (A+B) = 1050
Provisioning – Reversal
In case of reversal of provision (user initiated or due to movement to better CRR status) the following entry
will be passed.
Assume a loan account is a secured loan account: Outstanding Loan Amount – 9000
Collateral Value =INR 35000 (Fully Secured)
Provisioning Rate Secured – 5%

Head Cr t
g INR INR ption
01/01/ 01/01/ Accou Bad Dr 450 450 LN.

Branch Reserv e
e GL Provisi
ons
Revers
al
01/01/ 01/01/ Accou Write- Cr 450 450 LN.

Branch Expen ons
se GL Expen
se
Revers
al
Normal Uncollected Interest Provisioning

Head Cr t
g INR INR ption
31/12/ 31/12/ Accou nt Provi Dr 1800 1800 Loan

07 07 Branch si on Uncoll
for ected
Loss- Interes
Uncol t
l Provid
ected ed
Intere
st
(expe
n se)
181
Loans
31/12/ 31/12/ Accou nt Allow Cr 1800 1800 Loan

07 07 Branch a nce Uncoll
for ected
Loss Interes
– t
Uncoll Provid
ected ed
Intere
st
(contr
a
asset)
Reversal of Normal Uncollected Interest Provisioning on Repayment

Head Cr t
g INR INR ption
31/01/ 31/01/ Accou Allowa Dr 600 600 Loan

08 08 nt nce for Uncoll
Branch Loss – ected
Uncoll Interes
ected t
Interes Revers
t (contra ed
asset)
31/01/ 31/01/ Accou Provisi Cr 600 600 Loan

08 08 nt on for Uncoll
Branch Loss- ected
Uncoll Interes
ected t
Interes t Revers
(expen ed
se)
Write-off Entries for Uncollected (Normal) Interest

Head t
g INR INR ption
15/01/ 15/01/ Accou Allow Dr 1200 1200 Loan

08 08 nt a nce a/c
Branch for write
Loss off
–
Uncoll
ected
Intere
st
(contr
a
asset)
182
Loans
15/01/ 15/01/ Accou Intere Cr 1200 1200 Loan

08 08 nt st a/c
Branch Recei write
v able off
GL
Write-off
Write-off is to charge an asset amount to expense or loss.
Full Write-off
The system will display the account balance, outstanding arrears, provisions made and the security
available. The user will not be allowed to modify anything other than commit the transaction.
Assume a loan account with accrual status as Suspended has the following arrears totaling to 140 as
under:
Total Principal outstanding =INR 2200
Cash realized from sale of collateral security =INR 300
Provisioning done in the loan account =INR 250
Suspended Premium =INR 55
Suspended Legal Fees =INR 29
Suspended Outgoing =INR 16
Suspended Interest =INR 30
Suspended Service Charges =INR 10
The account also has the following suspended interest accruals:
Suspended Interest =INR 20
Suspended Penalty Interest =INR 12
Suspended Post Maturity Interest =INR 35

Head t
g INR INR ption
01/01/ 01/01/ Transa Ca Dr 300 300 Cash

05 05 ction sh realize
Branch GL d from
sale of
collate
ral
securit
y
183
Loans
01/01/ 01/01/ Transa Inter Cr 300 300 Cash

05 05 ction Branc realize
Branch h GL d from
sale of
collate
ral
securit
y
01/01/ 01/01/ Accou nt Inter Dr 300 300 Cash

05 05 Branch Branc realize
h GL d from
sale of
collate
ral
securit
y
01/01/ 01/01/ Accou nt Bad Dr 250 250 LN.

05 05 Branch debt Write-
Rese off
rv e Prov.
GL Debit
01/01/ 01/01/ Accou nt Write Dr 1750 1750 LN.

05 05 Branch - off Write-
Expe off
n se Expen
GL se
Debit
01/01/ 01/01/ Accou nt Loan Cr 2200 2200 LN.

05 05 Branch Susp Princip
e al
nded Write-
Asse off
t GL
01/01/ 01/01/ Accou Suspe Cr 55 55 LN.
05 05 nt nded Susp.
Branch Premiu Premiu
m m
Receiv Write-
able off
GL
01/01/ 01/01/ Accou Suspe Cr 29 29 LN.

05 05 nt nded Legal
Branch Legal Fees
Fees Write-
GL off
184
Loans
01/01/ 01/01/ Accou Suspe Cr 16 16 LN.

05 05 nt nded Outgoi
Branch Outgoi ngs
ng Write-
receiv off
able
GL
01/01/ 01/01/ Accou Suspe Dr 30 30 LN.

05 05 nt nded Interes
Branch Interes t
t Write-
Incom off
e GL
01/01/ 01/01/ Accou Suspe Cr 30 30 LN.

Branch Interes t
t Write-
Receiv off
able
GL
01/01/ 01/01/ Accou Suspe Dr 10 10 LN.

05 05 nt nded Susp.
Branch SC/Fe Fees
es Write-
off
01/01/ 01/01/ Accou Suspe Cr 10 10 LN.

05 05 nt nded Susp.
Branch SC/Fe Fees
es Write-
Receiv off
able
01/01/ 01/01/ Accou Suspe Dr 20 20 LN.

05 05 nt nded Susp.
Branch Intere Interes
st t
Incom Accrua
e GL l Write-
off
01/01/ 01/01/ Accou Suspe Cr 20 20 LN.

05 05 nt nded Susp.
Branch Intere Interes
st t
Accrue Accrua
d GL l Write-
off
185
Loans
01/01/ 01/01/ Accou Suspe Dr 12 12 LN.

05 05 nt nded Susp.
Branch Penalt Penalt
y y
Interes Interes
t GL t
Accrua
l Write-
off
01/01/ 01/01/ Accou Suspe Cr 12 12 LN.

05 05 nt nded Susp.
Branch Intere Penalt
st y
Accrue Interes
d GL t
Accrua
l Write-
off
01/01/ 01/01/ Accou Suspe Dr 35 35 LN.

05 05 nt nded Susp.
Branch Intere PMI
st Interes
Incom t
e GL Accrua
l Write-
off
01/01/ 01/01/ Accou Suspe Cr 35 35 LN.

05 05 nt nded Susp.
Branch Intere PMI
st Interes
Accrue t
d GL Accrua
l Write-
off
Partial Write-off
The entries for partial write-off will be the same as Full Write-off. The user will be allowed to specify the
amount of arrears being written off against each type of arrear. Also, the user will be allowed to specify the
amount of provision to be drawdown to write off. The net of the total write- off and the provision drawdown
will be taken from the write –off expense GL.
Assume a loan account with accrual status as Suspended has the following arrears totaling to 140:
Total Principal outstanding is 2200 .
Principal write-off amount 800
Provisioning done in the loan account – 250.
Provisioning amount utilized 100
Suspended Premium 55. Written off – 15 – Write-off amount 20
Suspended Legal Fees 29 – Write-off amount 12.
Suspended Outgoing 16 – Write-off amount 8
186
Loans
Suspended Interest 30 – Write-off amount 14

Suspended Service Charges 10 – Write-off amount 5

Head Cr t
g INR INR ption
01/01/ 01/01/ Account Bad Dr 100 100 LN.

05 05 Branch debt Write-
Reser off
v e GL Prov.
Debit
01/01/ 01/01/ Account Write- Dr 759 759 LN.

05 05 Branch off Write-
Expen off
se GL Expen
se
Debit
01/01/ 01/01/ Account Loan Cr 800 800 LN.

05 05 Branch Suspe Princip
nded al
Asset Write-
GL off
01/01/ 01/01/ Account Suspe Cr 20 20 LN.

05 05 Branch nded Susp.
Premi Premiu
um m
Recei Write-
v able off
GL
01/01/ 01/01/ Account Suspe Cr 12 12 LN.
05 05 Branch nded Legal
Legal Fees
Fees Write-
GL off
01/01/ 01/01/ Account Susp Cr 8 8 LN.

05 05 Branch e Outgoi
nded ngs
Outg Write-
oi ng off
receiv
able
01/01/ 01/01/ Account Susp
GL Cr 14 14 LN.
05 05 Branch e Interes
nded t
Intere Write-
st off
Recei
v able
GL 187
Loans
01/01/ 01/01/ Account Susp Cr 5 5 LN.

05 05 Branch e Susp.
nded Fees
SC/F Write-
e es off
Recei
v able
Post Write-off Processing
The user will be required to reschedule the account after Partial Write-off. The account will be reclassified
based on the outstanding arrears and other rules affecting classification unless the CRR movement for the
account has been marked as ‘Manual’.
Loan Restructuring
In restructuring of loan all the due arrears including catch-up interest are capitalized. Assume that:
 The loan account is a suspended loan account.
 Total Principal outstanding is 2200.
Following are the suspended arrears totaling to 140:
Suspended Interest 30
Suspended Service Charges10
Suspended Premium 55
Suspended Legal Fees 29
Suspended Outgoing 16
Catch up Interest (interest accrued/charged till the date of restructuring) 11

Head Cr t
g INR INR ption
01/01/ 01/01/ Accou Loan Dr 2200 2200 NPA.

Branch GL GL.
Move
ment
01/01/ 01/01/ Accou Loan Cr 2200 2200 NPA.

Branch nded GL.
Asset Move
GL ment
188
Loans
01/01/ 01/01/ Accou Loan Dr 151 151 LN.

05 05 nt Asset Arrear
Branch GL s
Capital
ization

Branch able GL t
Arrear
s Cap.
01/01/ 01/01/ Accou Suspe Cr 30 30 LN.

Branch Interes t t
Receiv Arrear
able GL s Cap.
01/01/ 01/01/ Accou Suspe Dr 30 30 LN.

Branch Interes t
t Incom Arrear
e GL s Cap.

Branch e GL t
Arrear
s Cap.
01/01/ 01/01/ Accou Interes t Cr 30 30 LN.

Branch able GL t
Arrear
s Cap.
01/01/ 01/01/ Accou SC/Fe Dr 10 10 LN.

05 05 nt es SC.
able GL ization
01/01/ 01/01/ Accou Suspe Cr 10 10 LN.

05 05 nt nded SC.
Branch SC/Fe Capital
es ization
Receiv
able
189
Loans
01/01/ 01/01/ Accou Suspe Dr 10 10 LN.

05 05 nt nded SC.
Branch SC/Fe Capital
es ization
01/01/ 01/01/ Accou SC/Fe Cr 10 10 LN.

05 05 nt e SC.
Branch Incom Capital
e GL ization
190
Loans

Head Cr t
g INR INR ption
01/01/ 01/01/ Accou SC/Fe Cr 10 10 LN.

05 05 nt es SC.
able GL ization
01/01/ 01/01/ Accou Premiu Cr 55 55 Susp

05 05 nt m Premiu
Branch Receiv m
able GL Arrear
Capital
ization
01/01/ 01/01/ Accou Suspe Dr 55 55 Susp

05 05 nt nded Premiu
Branch Premiu m
m Arrear
Receiv Capital
able GL ization
01/01/ 01/01/ Accou Premiu Cr 55 55 Susp

05 05 nt m Premiu
Branch Receiv m
able GL Arrear
Capital
ization
01/01/ 01/01/ Accou Legal Dr 29 29 Susp

05 05 nt Fees Legal
able GL Capital
ization
01/01/ 01/01/ Accou Suspe Cr 29 29 Susp

05 05 nt nded Legal
Branch Legal Arrear
Fees Capital
GL ization
01/01/ 01/01/ Accou Legal Cr 29 29 Susp

05 05 nt Fees Legal
able GL Capital
ization
191
Loans

Head Cr t
g INR INR ption
01/01/ 01/01/ Accou Outgoi Dr 16 16 Susp

05 05 nt ng Outgoi
Branch receiv ngs
able Arrear
GL Capital
ization
01/01/ 01/01/ Accou Suspe Cr 16 16 Susp

05 05 nt nded Outgoi
Branch Outgoi ngs
ng Arrear
receiv Capital
able ization
GL
01/01/ 01/01/ Accou Outgoi Cr 16 16 Susp

05 05 nt ng Outgoi
Branch receiv ngs
able Arrear
GL Capital
ization
01/01/ 01/01/ Accou Suspe Dr 11 11 LN.

05 05 nt nded Catch
Branch Interes Up
t Accrue Suspe
d nded
Interes
t
Accrua
l
01/01/ 01/01/ Accou Suspe Cr 11 11 LN.

05 05 nt nded Catch
Branch Interes Up
t Incom Suspe
e nded
Interes
t
Accrua
l
01/01/ 01/01/ Accou Suspe Dr 11 11 LN.

05 05 nt nded Susp.
Branch Interes t Interes
Receiv t
able Charg.
192
Loans

Head Cr t
g INR INR ption
01/01/ 01/01/ Accou Suspe Cr 11 11 LN.

05 05 nt nded Susp.
t Accrue t
d Charg.

Branch able GL t
Arrear
s Cap.
01/01/ 01/01/ Accou Suspe Cr 11 11 LN.

Branch Interes t t
Receiv Arrear
able GL s Cap.
01/01/ 01/01/ Accou Suspe Dr 11 11 LN.

Branch Interes t
t Incom Arrear
e GL s Cap.

Branch e GL t
Arrear
s Cap.
01/01/ 01/01/ Accou Interes t Cr 11 11 LN.

Branch able GL t
Arrear
s Cap.
193
Loans
Account Write-Off
Off balance sheet entries

Head Cr t
g INR INR ption
01/01/ 01/01/ Accou Contin Dr 1000 1000 LN.

08 08 nt gent Princip
Branch asset al
define Writeof
d at f
the
loan/
CASA
bank
param
eter
level.
01/01/ 01/01/ Accou Contin Cr 1000 1000 LN.

08 08 nt gent Princip
Branch liability al
define Writeof
d at the f
loan/
CASA
bank
param
eter
level.
194
Loans
Event Based Entries
At the time of Limit Sanction:

Head Cr t
g INR INR ption
01/01/ 01/01/ Accou Contin Dr 1000 1000 Dr.

08 08 nt gent Produc
Branch Liabilit t
y Contin
gent
Asset
01/01/ 01/01/ Accou Contin Cr 1000 1000 Cr.

Branch Asset t
Contin
gent
Liabilit
y
FREQUENCY BASED ENTRIES
Reversal of the existing balance in the contingent GL:

Head Cr t
g INR INR ption

Branch Liabilit t
y GL Contin
gent
Asset

Branch Asset t
GL Contin
gent
Liabilit
y
195
Loans
Sanctioned Amount Adjustment
When sanctioned amount is adjusted upwards. The entries are passed for the difference amount after
adjustment
Example: Original Sanctioned amount-100,000 Adjusted sanctioned amount-150,000

Head Cr t
g INR INR ption
01/01/ 01/01/ Accou Contin Cr 50,000 50,000 Sancti

05 05 nt gent oned
Branch Liabilit amoun
y t
contin
gent
entries
01/01/ 01/01/ Accou Contin Dr 50,000 50,000 Sancti

05 05 nt gent oned
Branch Asset amoun
t
contin
gent
entries
When sanctioned amount is adjusted down wards but is still above disbursed value Example: Original
Sanctioned amount-1,00,000
Amount disbursed is 80,000 Adjusted sanctioned amount-90,000

Head Cr t
g INR INR ption

05 05 nt gent oned
Branch Liabilit amoun
y t
contin
gent
entries

05 05 nt gent oned
Branch Asset amoun
t
contin
gent
entries
When sanctioned amount is adjusted down wards but is below the disbursed value Example: Original
Sanctioned amount-1,00,000
196
Loans
Amount disbursed is 80,000 Adjusted sanctioned amount-70,000

Head Cr t
g INR INR ption

05 05 nt gent oned
Branch Liabilit y amoun
t
contin
gent
entries

05 05 nt gent oned
Branch Asset amoun
t
contin
gent
entries
197
Loans
Account Closure
Example: Original Sanctioned amount-1,00,000 Amount disbursed is 80,000

Then account is closed

Head Cr t
g INR INR ption

Branch Liabilit t
y Contin
gent
Liabilit
y

Branch Asset t
Contin
gent
Asset
Note: Same entries are passed for LIMIT EXPIRY or LIMIT DELETION or
FULL WRITE OFF.
198
Loans
1.74. Loan Insurance linkage as Insurance

1. Charging of Insurance Premium receivable
Cr
(INR) (INR)
31-05-2016 31-05-2016 Loan Outgoing Dr 2000 2000 As maintained in
Account Receivable Loan Product
Branch GL Master (LNM11)
31-05-2016 31-05-2016 Loan Outgoing Cr 2000 2000 As maintained in
Account Payable GL Loan Product
Branch Master (LNM11)
2. Realization of Insurance Premium receivable from the customer

Cr
(INR) (INR)
31-05-2016 31-05-2016 CASA CASA Dr 2000 2000
Account Asset/
Branch Liability GL
31-05-2016 31-05-2016 CASA Inter-branch Cr 2000 2000
Account GL
Branch
31-05-2016 31-05-2016 Loan Inter-branch Dr 2000 2000
Account GL
Branch
3. Accrual status changing from Normal to Suspended

Cr
(INR) (INR)
31-05-2016 31-05-2016 Loan Suspended Dr 2000 2000 As maintained in
Account Outgoing Loan Product
Branch Receivable Master (LNM11
GL
4. Accrual status changing from Suspended to Normal

Cr
199
Loans

(INR) (INR)
31-05-2016 31-05-2016 Loan Outgoing Dr 2000 2000 As maintained in
Branch GL Master (LNM11
31-05-2016 31-05-2016 Loan Suspended Cr 2000 2000 As maintained in
Branch Receivable Master (LNM11)
GL
5. Partial / Full write off of Insurance Premium receivables

Cr
(INR) (INR)
31-05-2016 31-05-2016 Loan Bad Debts Dr 2000 2000 As maintained in
Account and Loan Product
Branch Reserves Master (LNM11
GL
31-05-2016 31-05-2016 Loan Suspended Cr 2000 2000 As maintained in
Branch Receivable Master (LNM11)
GL
200
Clearing and Payments
6. Clearing and Payments
Notes
All dates in DD/MM/YYYY

If the transaction branch and the account branch are the same, no Inter branch entries will be passed.
Setups of GLs
1 End Point GL End Point Master
2 CFC GL End Point Master & Settlement

Bank Parameters
3 CASA Asset/Liability GL * CASA Product Master
4 Cash GL Bank Parameters
5 Cheque Purchase GL Settlement Bank Parameters
6 Post Dated Chq. Purchase PDC Discounting Parameters

GL Maintenance
7 Secure Margin GL PDC Discounting Parameters
Maintenance
8 Adv. Int. Received GL PDC Discounting Parameters

Maintenance
9 Interest Income GL PDC Discounting Parameters
Maintenance
10 Interbranch GL Bank Master
11 Suspense GL Settlement Bank Parameters
12 Issuer GL Settlement Bank Parameters
13 Contingent Debit GL Correspondent Bank Master

Maintenance
14 Contingent Credit GL Correspondent Bank Master
Maintenance
15 Corr. Bank OCC GL Correspondent Bank Master
Maintenance
16 Corr. Bank ICC GL Correspondent Bank Master
Maintenance
17 SC Income GL SC Code Maintenance
18 Regular Deposit GL Term Deposit Product Master
19 TD Payment GL Term Deposit Product Master
201
20 TD Interest Payable GL Term Deposit Product Master
21 Redemption Payable GL Term Deposit Product Master
22 Repayment Pending Loans Product Master

Appropriation (RPA) GL
23 TC Payable GL Issuer Maintenance
24 Selected GL GL Code as entered on the screen
25 Utility Company GL Company Master Maintenance
Note: The entries can be passed to the Suspended Asset / Suspended Liability
based on the status of the account at the time of posting.
202
1.75. Cheque Deposit (Fast Path 6501)

No accounting entry gets passed on cheque deposit related to the cheque transaction. Only the SC gets
passed.
Cr
(INR) (INR)
01-07-2016 01-07-2016 Account CASA Dr 1000 1000
Branch Asset/ Liability
GL
01-07-2016 01-07-2016 Accou nt Inter branch Cr 1000 1000

Branch GL
01-07-2016 01-07-2016 Transa Inter branch Dr 1000 1000
ction GL
Branch
01-07-2016 01-07-2016 Transa SC Cr 1000 1000
ction Income
Branch
Consolidated Cheque Deposit
No accounting entry gets passed on consolidated cheque deposit.
Consolidated Cheque Batch Data Entry
No accounting entry gets passed on consolidated cheque batch data entry.
Batch Data Entry Outward Clearing
No accounting entry gets passed on Outward Clearing Batch Data Entry.
Postdated Cheque Deposit
No accounting entry gets passed on Post dated Cheque Deposit.
Postdated Cheque Cancellation
No accounting entry gets passed on Post dated Cheque Deposit.
TD Payin
No accounting entry gets passed on TD Payin
203
Cheque Deposited To GL
No accounting entry gets passed on Cheque Deposited to GL.
Post Dated Cheque Maintenance
No accounting entry gets passed on Post Dated Cheque Maintenance.
Late Clearing Maintenance
(This option is a branch maintenance option and used for marking late clearing at the branch) No
accounting entry gets passed on Late Clearing Maintenance.
Late Clearing Marking Maintenance
(This option is a host maintenance and used for marking late clearing for other branches and is invoked
from the Host)
No accounting entry gets passed on Late Clearing Marking Maintenance.
Outward Clearing
Customer Cheques
Cheque amount of INR 1000 is credited into a INR account on 01/07/16. Customer float is 2 days.

Cr
(INR) (INR)
01-07-2016 01-07-2016 Clearing Outward Dr 1000 1000 As maintained in
Branch Settlement GL End Point Master
Maintenance
(BAM29)
01-07-2016 01-07-2016 Clearing Inter-Branch Cr 1000 1000
Branch GL

Branch GL
01-07-2016 01-07-2016 Account CFC GL Cr 1000 1000 As maintained in

Branch End Point Master
Maintenance
(BAM29)
204
1.76. Cheques deposited to GL (Fast Path : 6520)

Cheque amount of INR 1000 is credited into a GL Account on 01/07/16. Customer float is 2 days.

Cr
(INR) (INR)
Maintenance
(BAM29)
Branch GL

Branch GL

Maintenance
(BAM29)
205
1.77. Cheques for Bill Payment - Fast Path: 6575

Cheque amount of INR 1200 is credited into a INR Company Account on 01/07/16. Customer float is 2
days.

Cr
(INR) (INR)
Maintenance
(BAM29)
Branch GL

Branch GL

Maintenance
(BAM29)
206
1.78. TD Quick Payin By Cheque – Fast Path: 6505

Cheque amount of INR 10000 is credited into a INR TD account on 01/07/16. Customer float is 2 days.
Cr
(INR) (INR)
Maintenance
(BAM29)
Branch GL

Branch GL

Maintenance
(BAM29)
207
1.79. Loans Repayment – Fast Path: 1065

Cheque amount of INR 10000 is credited into a INR Loan account on 01/07/16. Customer float is 2 days.

Cr
(INR) (INR)
01-07-2016 01-07-2016 Clearing Outward Dr 10000 10000 As
Branch Settlement GL maintained in
End Point
Master
Maintenance
01-07-2016 01-07-2016 Clearing Inter-Branch Cr 10000 10000 (BAM29)
Branch GL

Branch GL
01-07-2016 01-07-2016 Account CFC GL Cr 10000 10000 As

Branch maintained in
End Point
Master
Maintenance
(BAM29)
208
1.80. Loans Advance Payment – Fast Path: 1068

Cheque amount of INR 10000 is credited into a INR Loan account on 01/07/16. Customer float is 2 days.

Cr
(INR) (INR)
Maintenance
(BAM29)
Branch GL

Branch GL

Maintenance
(BAM29)
209
1.81. Loans Partial Pay off – Fast Path: 1066

Loans Partial Pay off - Cheque amount of INR 10000 is credited into a INR Loan account on 01/07/16.
Customer float is 2 days.

Cr
(INR) (INR)
01-07-2016 01-07-2016 Clearing Outward Dr 10000 10000 As
Branch Settlement GL maintained
in End
Point
Master
Maintenanc
e (BAM29)

Branch GL

Branch GL
01-07-2016 01-07-2016 Account CFC GL Cr 10000 10000 As

Branch maintained
in End
Point
Master
Maintenanc
e (BAM29)
210
1.82. Immediate Credit – Fast Path: ST060

Cheque of value INR 1000 deposited on CASA Account on 01/07/2016. Float Days = 2. Immediate credit
of the cheque is done on 01/01/2016.

Cr
(INR) (INR)
Maintenance
(BAM29)
Branch GL

Branch GL

Maintenance
(BAM29)
01-07-2016 01-07-2016 Account CFC GL Dr 1000 1000 As maintained in
Maintenance
(BAM29)
01-07-2016 01-07-2016 Account CASA Assets / Cr 1000 1000
Branch Liability GL
211
1.83. Cheque Purchase – Fast Path: ST070

(Includes all entries from lodgement of cheque, purchase and realization of the cheque purchased)
Cheque of value INR 10000 is deposited on CASA Account on 01/07/2016. Float Days = 2. Cheque
purchase of INR 3000 is done against this cheque on the account on 01/07/2016. An Interest amount of
INR 150 to be levied as cheque purchase interest.
(The entries passed for cheque purchase of outstation cheque is the same as the entries passed for
cheque purchase of normal local cheque)

Cr
(INR) (INR)
Branch Settlement GL End Point
Master
Maintenance
(BAM29)

Branch GL

Branch GL

Branch End Point
Master
Maintenance
(BAM29)
01-07-2016 01-07-2016 Account Cheque Dr 3000 3000

Branch Purchase GL
01-07-2016 01-07-2016 Account Interest Cr 150 150

Branch Income on
Cheque
Purchase GL
Branch Liability GL
03-07-2016 03-07-2016 Account CFC GL Dr 10000 10000 On Value Date

Branch
03-07-2016 03-07-2016 Account Cheque Cr 3000 3000 On Value Date
Branch Purchase GL
03-07-2016 03-07-2016 Account CASA Assets / Cr 7000 7000 On Value Date

Branch Liability GL
212
Remittances
Cheque Purchase Return
(Includes all entries from lodgement of cheque, purchase and return of the cheque purchased)
Cheque of value INR 10000 is deposited on CASA Account on 01/07/2016. Float Days = 2. Cheque purchase of
INR 3000 is done against this cheque on the account on 01/07/2016. An Interest amount of INR 150 to be levied
as cheque purchase interest.
This cheque was returned on 03/01/05. If the return is being processed through the inward clearing route, the
Inward clearing will pass the GL entries. For online cheque return, the End of Day will pass the entries.
Cr
(INR) (INR)
Maintenance
(BAM29)
Branch GL

Branch GL

Maintenance
(BAM29)
01-07-2016 01-07-2016 Account Cheque Dr 3000 3000
Branch Purchase GL
01-07-2016 01-07-2016 Account Interest Cr 150 150

Branch Income on
Cheque
Purchase GL
Branch Liability GL
03-07-2016 03-07-2016 Account Cheque Cr 3000 3000 On Cheque Return

Branch Purchase GL
03-07-2016 03-07-2016 Account CASA Assets / Dr 3000 3000 On Cheque Return

Branch Liability GL
03-07-2016 03-07-2016 Account CFC GL Dr 10000 10000 On Cheque Return
Branch
03-07-2016 03-07-2016 Account Inter-Branch Cr 10000 10000 On Cheque Return
Branch GL
03-07-2016 03-07-2016 Clearing Inter-Branch Dr 10000 10000 On Cheque Return

Branch GL
03-07-2016 03-07-2016 Clearing Outward Cr 10000 10000 On Cheque Return

Branch Return GL
213
Remittances
Reverse Authorized Batches
No accounting entry gets passed on Reverse Authorized Batches.
Float Extension
No accounting entry gets passed on Float Extension.
Cheque Status Inquiry
No accounting entry gets passed on Cheque Status Inquiry.
Global Float Extension
No accounting entry gets passed on Global Float Extension.
214
Remittances
1.84. Value Date Clearing Process –

Cheques deposited on CASA account
Cheque amount of INR 2000 is credited into a CASA account. Customer float is 2 days.

Cr
(INR) (INR)
Maintenance
(BAM29)
Branch Liability GL
Cheques deposited to GL
Cheque amount of INR 2000 is credited into a INR GL account.

Cr
(INR) (INR)
Maintenance
(BAM29)
03-07-2016 03-07-2016 Account Specified GL Cr 2000 2000
Branch A/c
Cheques deposited for Bill Payment
Cheque amount of INR 1000 is credited into a Utility Bill Payment CASA account.
Cr
(INR) (INR)
Maintenance
(BAM29)
215
Remittances
03-07-2016 03-07-2016 Account CASA Assets / Cr 1000 1000 (depending on the

Branch Liability GL Company master
set up)
TD Pay in by cheque
Cheque Amount of INR 10000 into a TD account

Cr
(INR) (INR)
Maintenance
(BAM29)
03-07-2016 03-07-2016 Account TD Payment Cr 10000 10000 As per TD product
Branch GL Master (TDM01)
setup
03-07-2016 03-07-2016 Account TD Payment Dr 10000 10000 As per TD product

Branch GL Master (TDM01)
setup
03-07-2016 03-07-2016 Account Regular Cr 10000 10000 As per TD product

Branch Deposit GL Master (TDM01)
setup
Loan Repayment by cheque
Loans Repayment – Cheque Amount –Cheque Amount of INR 10000 into a loan account.

Cr
(INR) (INR)
Maintenance
(BAM29)
03-07-2016 03-07-2016 Account Reserve Cr 10000 10000 As per Loan
Branch Pending product Master
Appropriation (LNM11) setup
GL
216
Remittances
Loans Advance Payment by cheque
Loans Advance Payment - Cheque Amount of INR 10000 into a loan account

Cr
(INR) (INR)
Maintenance
(BAM29)
GL
Loans Partial Pay off by cheque
Loans Partial Pay off - Cheque Amount of INR 10000 into a loan account

Cr
(INR) (INR)
Maintenance
(BAM29)
GL
217
Remittances
1.85. Online Cheque Return Inquiry – Fast Path 6560

Customer Cheques: Value Date is 03/07/2016.
1. Cheque is returned before value date on 02/07/2016

Cr
(INR) (INR)
Maintenance
(BAM29)
Branch GL
02-07-2016 02-07-2016 Clearing Inter-Branch Dr 2000 2000

Branch GL
02-07-2016 02-07-2016 Clearing Outward Cr 2000 2000 As maintained in

Branch Return GL End Point Master
Maintenance
(BAM29)
2. Cheque is returned after value date –on 04/07/2016.

Cr
(INR) (INR)
04-07-2016 04-07-2016 Account CASA Dr 2000 2000
Branch Asset/ Liability
GL

Branch GL

Branch GL

Maintenance
(BAM29)
Cheques to GL
3. Cheque is returned before value date on 02/07/2016
218
Remittances

Cr
(INR) (INR)
Maintenance
(BAM29)
Branch GL

Branch GL

Maintenance
(BAM29)
4. Cheque is returned after value date on 04/07/2016.

Cr
(INR) (INR)
04-07-2016 04-07-2016 Account Specified GL Dr 2000 2000
Branch

Branch GL

Branch GL

Maintenance
(BAM29)
Cheques for Bill Payment
TD Payin
Loan Installment Repayment
Loans Advance Payment
Loans Partial Pay off
219
Remittances
For the above transactions, system will pass the accounting entry as below.
Cheque is returned before value date on 02/07/2016

Cr
(INR) (INR)
02-07-2016 02-07-2016 Account CFC GL Dr 2000 2000 As
End Point
Master
Maintenance
(BAM29)
Branch GL

Branch GL
02-07-2016 02-07-2016 Clearing Outward Cr 2000 2000 As

Branch Return GL maintained in
End Point
Master
Maintenance
(BAM29)
Value Date Clearing Inquiry
No accounting entry gets passed on Value Date Clearing Inquiry.
Late Clearing Inquiry
No accounting entry gets passed on Late Clearing Inquiry.
Batch Inward - Clearing Cheque Data Entry
No accounting entry gets passed on Inward Clearing Batch Data Entry.
Authorize Inward Clearing Batches
No accounting entry gets passed on Authorisation of Inward Clearing Batches.
Load Central Bank File
No accounting entry gets passed on loading the Central Bank file.
MICR Header Entry
No accounting entry gets passed on MICR Header Entry.
Load Inward MICR File
No accounting entry gets passed on loading of Inward MICR file.
220
Remittances
Reconcile Outward MICR File
No accounting entry gets passed on Reconciling of Outward MICR file.
221
Remittances
1.86. Inward Clearing Process

Customer Cheques
Cheque of INR 3000 is getting debited from CASA account.

Cr
(INR) (INR)
Branch Laibility GL

Branch GL

Branch GL
02-07-2016 02-07-2016 Clearing Inward Cr 3000 3000 As

in End Point
Master
Maintenance
(BAM29)
Banker’s Cheques
Banker’s Cheque is presented in the inward clearing.

Cr
(INR) (INR)
02-07-2016 02-07-2016 Account Issuer GL Dr 3000 3000 As
Branch Or maintained
Banker’s in Issuer
Cheque Paid Master
GL (BAM09) or
Settlement
02-07-2016 02-07-2016 Account Inter-Branch Cr 3000 3000 Bank
Branch GL Parameters
(STM59)
Branch GL

in End
Point
Master
Maintenanc
222 e (BAM29)
Remittances
Demand Drafts
Demand Draft of INR 3000 is presented in the clearing

Cr
(INR) (INR)
02-07-2016 02-07-2016 Account Issuer GL Dr 3000 3000 As
Branch Or maintained in
Demand Draft Issuer Master
Paid GL (BAM09) or
Settlement
Bank
02-07-2016 02-07-2016 Account Inter-Branch Cr 3000 3000 Parameters
Branch GL (STM59)

Branch GL

Branch Settlement GL maintained in
End Point
Master
Maintenance
(BAM29)
223
Remittances
1.87. Outward Returns

A cheque of INR 3000 is returned as Outward Return in the clearing.

Cr
(INR) (INR)
03-07-2016 03-07-2016 Account CFC GL Dr 2000 2000 As
End Point
Master
Maintenance
(BAM29)
Branch GL

Branch GL
03-07-2016 03-07-2016 Clearing Outward Cr 2000 2000 As

Branch Return GL maintained in
End Point
Master
Maintenance
(BAM29)
224
Remittances
1.88. Inward Returns

Inward Returns (includes inward clearing entries passed during Inward Clearing process and cheque return
accounting entries passed during Outward clearing)
Scenario I: Inward return of instrument from Scan Reject
Cr
(INR) (INR)
03-07-2016 03-07-2016 Account Suspense GL Dr 2000 2000 As
Branch maintained
in
Settlement
Bank
Parameters
03-07-2016 03-07-2016 Account Inter-Branch Cr 2000 2000 (STM59)
Branch GL

Branch GL

in End Point
Master
Maintenanc
e (BAM29)
03-07-2016 03-07-2016 Clearing Inward Return Dr 2000 2000 As

Branch GL maintained
in End Point
Master
Maintenanc
03-07-2016 03-07-2016 Clearing Inter-Branch Cr 2000 2000 e (BAM29)
Branch GL

Branch GL
03-07-2016 03-07-2016 Account Suspense GL Cr 2000 2000 As

Branch maintained
in
Settlement
Bank
Parameters
(STM59)
Scenario II: Inward return of instrument from Scan Pass i.e. cheque was earlier passed but later rejected on the
same date of inward clearing.

Cr
225
Remittances

(INR) (INR)
Branch Liability GL

Branch GL

Branch GL

in End
Point
Master
Maintenanc
e (BAM29)
03-07-2016 03-07-2016 Clearing Inward Return Dr 2000 2000 As
Branch GL maintained
in End
Point
Master
Maintenanc
03-07-2016 03-07-2016 Clearing Inter-Branch Cr 2000 2000 e (BAM29)
Branch GL

Branch GL

Branch Liability GL
Scanning Rejected Instrument
No accounting entry gets passed on Scanning Rejected Instruments
Scanning of Passed Instrument
No accounting entry gets passed on Scanning of Passed Instruments
Unchecked Instruments Inquiry
No accounting entry gets passed on Unchecked Instruments Inquiry.
Clearing Account X-Reference Inquiry
No accounting entry gets passed on Clearing Account X-reference Inquiry.
Check Inward Clearing Instruments
No accounting entry gets passed on checking of Inward Clearing Instruments.
226
Remittances
OCC - ICC Operations
227
Remittances
1.89. OCC Batch Data Entry (Fast Path: 6566)

No accounting entry gets passed on OCC Batch Data Entry transaction.
228
Remittances
1.90. ICC Data Entry (Fast Path: 6565)

No accounting entry gets passed on ICC Batch Data Entry transaction.
229
Remittances
1.91. Cheque Collection Processing (Fast Path: 6806)
Note : Outstation collection processing can be applicable to Cheques drawn on Correspondent

Bank location or on the banks own branch locations. Entries related to Correspondent Bank
instruments have been explained under Realize OCC Correspondent Bank Items option.
For banks own branch location only OCC Batch Data entry is done for which no accounting entries will be
generated.
The physical instruments will be sent to the destination branch for collection for which also no accounting entries
will be passed.
The destination branch on receipt of the physical instuments will mark the collection item to confirm receipt of the
instruments for which no accounting entries will be generated.
The destination branch will present the instruments in its local clearing. The rest of the process in terms of the
accounting entries post running Outward Clearing and Value date clearing will be the same as explained in the
accounting entries for Outward clearing cheques.
Dispatch Schedule
When the Cheques are sent to the Correspondent Bank, following entries are passed in the dispatch branch.
(Fast Path: 6806 - Outstation Cheque Collection Processing)

Cr
(INR) (INR)
01-07-2016 01-07-2016 Dispatch Contingent Dr 2000 2000
Branch Debit GL
01-07-2016 01-07-2016 Dispatch Contingent Cr 2000 2000

Branch Credit GL
Mark Collection Items
No accounting entry gets passed on Mark Collection Items
230
Remittances
Realize OCC Correspondent Bank Items
Stage – I - Receipt of proceeds from Correspondent Bank
The proceeds of INR1950 (OCC amount is INR2000 less charges of correspondent bank INR 50) are transferred
by the Correspondent bank i.e. HDFC Bank, Delhi, vide Demand Draft. The Demand Draft is presented in Local
Clearing by Syndicate Bank, Mumbai using option Cheque Deposit to GL.

Cr
(INR) (INR)
07-07-2016 07-07-2016 Clearing Outward Dr 1950 1950
Branch Settlement GL

Branch GL

Branch GL
07-07-2016 07-07-2016 Account CFC GL Cr 1950 1950

Branch
07-07-2016 07-07-2016 Account CFC GL Dr 1950 1950
Branch
07-07-2016 07-07-2016 Account Corr. Bank Cr 1950 1950
Branch OCC GL
Stage – II - OCC Realization

Cr
(INR) (INR)
Branch Credit GL

Branch Debit GL
08-07-2016 08-07-2016 Dispatch Corr. Bank Dr 2000 2000

Branch OCC GL
08-07-2016 08-07-2016 Dispatch Inter-Branch Cr 2000 2000

Branch GL
231
Remittances

Branch GL

Branch Liability GL
08-07-2016 08-07-2016 Account CASA Assets / Dr 50 50 Corr.Bank

Branch Liability GL SC. For
Outstation
08-07-2016 08-07-2016 Account Inter-Branch Cr 50 50 Cheques
Branch GL
08-07-2016 08-07-2016 Dispatch Inter-Branch Dr 50 50

Branch GL
08-07-2016 08-07-2016 Dispatch Corr. Bank Cr 50 50 Corr.Bank

Branch OCC GL SC. For
Outstation
08-07-2016 08-07-2016 Account CASA Assets / Dr 30 30 SC. For
Cheques
Branch Liability GL Outstation
Cheques
Branch GL

Branch GL
08-07-2016 08-07-2016 Dispatch SC Income GL Cr 30 30 SC. For

Branch Outstation
Cheques
232
Remittances
Reverse Dispatch Schedule
When the Cheques are sent to a wrong Correspondent Bank, following entries are passed in the Reverse
Dispatch Schedule. The following entries are passed to reverse the dispatch schedule at the dispatch branch.
(Fast Path: 6806 - Outstation Cheque Collection Processing)

Cr
(INR) (INR)
Branch Credit GL

Branch Debit GL
Dishonour OCC Correspondent Bank Item
All Outstation Collection Cheques booked through a correspondent bank/branch can be dishonoured on receipt
of dishonor advice using option Dishonour OCC Correspondent bank Item (Fast Path: 6806 - Outstation Cheque
Collection Processing)
Outstation cheque of value INR 2000 deposited on CASA Account in on 01/07/2016. The cheque is sent to
Correspondent Bank i.e. HDFC Bank, Delhi on 01/07/2016. HDFC Bank, Delhi dishonours the cheque on
04/07/2016. A service charge of INR 30 is to be levied on the account as OCC dishonour charges.

Cr
(INR) (INR)
Branch Credit GL

Branch Debit GL
04-07-2016 04-07-2016 Account CASA Assets / Dr 30 30 SC. For

Branch Liability GL Outstation
Cheques
04-07-2016 04-07-2016 Account Inter-Branch Cr 30 30 Return
Branch GL

Branch GL
04-07-2016 04-07-2016 Dispatch SC Income GL Cr 30 30 SC. For

Branch Outstation
Cheques
Return
233
Remittances
Reject Inquiry
No accounting entries gets passed on Reject Inquiry
Interest on OCC Delay

Cr
(INR) (INR)
04-07-2016 04-07-2016 Account OCC Delay Dr 200 200 Interest
Branch Interest GL amount
04-07-2016 04-07-2016 Account CASA Assets / Cr 200 200 Interest

Branch Liability GL amount
Inward Cheques for Collection - ICC
ICC refers to Inward Cheques for Collection. When correspondent bank cheques from a different sector are to be
cleared by us, they are sent for local outward clearing. The details of such outstation cheques received are
recorded in the system of the branch that sends it in local outward clearing. The clearing branch passes the
accounting entries with the end point. The beneficiary for ICC would be the ICC GL specified for the
correspondent bank/branch in the correspondent bank master
ICC Batch Data Entry – Fast Path 6565
No accounting entries gets passed on ICC Batch Data Entry.

Cheques are received from the Correspondent Bank/s and the details of the instruments including the
Correspondent bank/branch details from where the instruments are received are captured.
The service charges to be levied at the time of remittance is also defined in this option. Correspondent Bank ICC
GL will be determined in this option. Post this the instruments will be sent for Local clearing. Value date clearing
will credit the proceeds to the Correspondent Bank ICC GL.
Inward Cheque for Collection received for value INR 2000 from a correspondent bank i.e. HDFC Bank, Delhi on
01/07/2016. The cheque is received on 01/07/2016. The cheque is sent for local clearing by Syndicate Bank,
Mumbai on 02/07/2016. Float Days = 2. The cheque is cleared on 04/07/2016. A service charge of INR 50 is to
be levied on the account as ICC charges.

Cr
(INR) (INR)
02-07-2016 02-07-2016 Clearing Outward Dr 2000 2000
Branch Settlement GL
02-07-2016 02-07-2016 Clearing CFC GL Cr 2000 2000

Branch
04-07-2016 04-07-2016 Clearing CFC GL Dr 2000 2000
Branch
234
Remittances
04-07-2016 04-07-2016 Clearing Corr. Bank ICC Cr 2000 2000

Branch GL
04-07-2016 04-07-2016 Clearing Corr. Bank ICC Dr 50 50 SC. For ICC
Branch GL Cheques
04-07-2016 04-07-2016 Clearing SC Income GL Cr 50 50 SC. For ICC
Branch Cheques
ICC Remittance
The DD will be sent to the Correspondent Bank after deducting service charge

Cr
(INR) (INR)
05-07-2016 05-07-2016 Dispatch Corr. Bank ICC Dr 1950 1950
Branch GL
05-07-2016 05-07-2016 Dispatch DD Issue GL Cr 1950 1950

Branch
235
Remittances
1.92. RTGS and NEFT

RTGS and NEFT Outgoing Payment by debiting CASA account

Cr
(INR) (INR)
31-05-2016 31-05-2016 Account CASA Dr 50000 50000
Branch Assets /
Liability GL
31-05-2016 31-05-2016 Txn Intermediary Cr 50000 50000
Branch / GL
Designa
ted
Branch
31-05-2016 31-05-2016 Txn Intermediary Dr 50000 50000
Branch / GL
Designa
ted
Branch
31-05-2016 31-05-2016 Txn Network GL Cr 50000 50000
Branch /
Designa
ted
Branch
31-05-2016 31-05-2016 Account CASA Dr 100 100 Service Charges
Branch Assets /
Liability GL
31-05-2016 31-05-2016 Txn SC Income Cr 100 100
Branch / GL
Designa
ted
Branch
RTGS and NEFT Outgoing Payment –Branch Disbursement of Loan account

Cr
(INR) (INR)
31-05-2016 31-05-2016 Account Loan Dr 50000 50000
Branch Account

Branch / GL
Designa
ted
Branch
236
Remittances

Branch / GL
Designa
ted
Branch
31-05-2016 31-05-2016 Txn Network GL Cr 50000 50000
Branch /
Designa
ted
Branch
RTGS and NEFT Outgoing Payment by debiting GL account
Cr
(INR) (INR)
Branch

Branch / GL
Designa
ted
Branch
Branch / GL
Designa
ted
Branch
31-05-2016 31-05-2016 Txn Network GL Cr 50000 50000
Branch /
Designa
ted
Branch
31-05-2016 31-05-2016 Txn CASA Dr 100 100 Service Charges
Branch Assets /
Liability GL
31-05-2016 31-05-2016 Txn SC Income Cr 100 100
Branch / GL
Designa
ted
Branch
RTGS and NEFT Outgoing Payment rejected

Cr
(INR) (INR)
31-05-2016 31-05-2016 Account CASA Dr 50000 50000
Branch Assets /
Liability GL
Branch / GL
237
Remittances
Designa
ted
Branch
31-05-2016 31-05-2016 Account CASA Dr 100 100 Service Charges
Branch Assets /
Liability GL
31-05-2016 31-05-2016 Txn SC Income Cr 100 100
Branch / GL
Designa
ted
Branch
Branch / GL
Designa
ted
Branch
31-05-2016 31-05-2016 Account CASA Cr 50000 50000
Branch Assets /
Liability GL
31-05-2016 31-05-2016 Txn SC Income Dr 100 100
Branch / GL
Designa
ted
Branch
31-05-2016 31-05-2016 Account CASA Cr 100 100
Branch Assets /
Liability GL
RTGS and NEFT – Loan Branch Disbursement rejected during release stage
Following accounting entries will be passed during auth stage
Cr
(INR) (INR)
31-05-2016 31-05-2016 Account Loan Dr 50000 50000
Branch Account

Branch / GL
Designa
ted
Branch
Following accounting entries will be passed during reject of branch disbursement in release
stage. It should trigger reversal of branch disbursement
Cr
(INR) (INR)
238
Remittances
31-05-2016 31-05-2016 Account Loan Cr 50000 50000

Branch Account

Branch / GL
Designa
ted
Branch
RTGS and NEFT Incoming Payment – credit to CASA/ RD / Loan account

Incase of RD and Loan account, system will trigger installment payment of RD / Loans
Cr
(INR) (INR)
31-05-2016 31-05-2016 Account Network GL Dr 50000 50000
Branch

Branch / GL
Designa
ted
Branch
Branch / GL
Designa
ted
Branch
31-05-2016 31-05-2016 Account CASA Cr 50000 50000
Branch Assets /
Liability GL
or RD
Account or
Loan
Account
RTGS and NEFT Incoming Payment – Reject before crediting CASA account / RD Account/
Loan Account

Cr
(INR) (INR)
31-05-2016 31-05-2016 Txn Network GL Dr 50000 50000
Branch /
Designa
ted
Branch
239
Remittances

Branch / GL
Designa
ted
Branch
Branch / GL
Designa
ted
Branch
31-05-2016 31-05-2016 Txn Suspense Cr 50000 50000
Branch / Account GL
Designa
ted
Branch
31-05-2016 31-05-2016 Txn Suspense Dr 50000 50000 Outgoing
Branch / Account GL messaged
Designa initiated by
ted system
Branch
Branch / GL
Designa
ted
Branch
Branch / GL
Designa
ted
Branch
31-05-2016 31-05-2016 Txn Network GL Cr 50000 50000
Branch /
Designa
ted
Branch
RTGS Incoming Credit Notification

Cr
(INR) (INR)
31-05-2016 31-05-2016 Txn Network GL Dr 50000 50000
Branch /
Designa
ted
Branch
Branch / GL
Designa
ted
Branch
Branch / GL
Designa
240
Remittances
ted
Branch
31-05-2016 31-05-2016 Designa Interbank Cr 50000 50000

ted Reciept GL
Branch (As defined
in day0 set
up)
RTGS Incoming Debit Nofification

Cr
(INR) (INR)
31-05-2016 31-05-2016 Txn Interbank Dr 50000 50000
Branch / Reciept GL
Designa (As defined
ted in day0 set
Branch up)
Branch / GL
Designa
ted
Branch
Branch / GL
Designa
ted
Branch
31-05-2016 31-05-2016 Designa Network GL Cr 50000 50000
ted
Branch
241
Remittances
1.93. Adhaar Payment Bridge System (APBS)

Adhaar Payment Bridge System is a unique payment system offered by National Payments Corporation of India.
It uses Adhaar Number as a central key for electronically channelizing the Government subsidies and benefits to
the Adhaar Enabled Bank Accounts (AEBA) of the intended beneficiaries.
1. Upload of Benefit Payment File received from Benefit Provider (In Sponsor Bank)
Cr
(INR) (INR)
31-05-2016 31-05-2016 Txn Benefit Dr 500000 500000 As received in
Branch provider Payment File
Bank
Account
number
31-05-2016 31-05-2016 Txn Outward Cr 500000 500000 As maintained in
Branch settlement Payment File
GL Settlement
Parameters
(PM055)
2. Upload of Benefit Payment File received from NPCI (In Destination Bank)
Cr
(INR) (INR)
31-05-2016 31-05-2016 Txn Inward Dr 3000 3000 As maintained in
Branch Settlement Payment File
GL Settlement
Parameters
(PM055)
31-05-2016 31-05-2016 Txn Inter-branch Cr 3000 3000
Branch GL
31-05-2016 31-05-2016 Account Inter-branch Dr 3000 3000
Branch GL
31-05-2016 31-05-2016 Account CASA Cr 3000 3000
Branch Asset/
Liability GL
3. On failure to credit beneficiary , following accounting entries are passed in the destination bank
Cr
(INR) (INR)
31-05-2016 31-05-2016 Txn Inward Dr 3000 3000 As maintained in
GL Settlement
Parameters
(PM055)
242
Remittances
31-05-2016 31-05-2016 Txn Inward Cr 3000 3000

branch Return
Settlement
GL
4. Upload of Return status file from NPC (In Sponsor Bank) – For rejected records
Cr
(INR) (INR)
31-05-2016 31-05-2016 Txn Outward Dr 15000 15000 As maintained in
Return GL Settlement
Parameters
(PM055)
31-05-2016 31-05-2016 Txn Benefit Cr 15000 15000 As received in
Branch provider Payment File
Bank
Account
number
243
Remittances
1.94. Immediate Payment Service (IMPS)
1. Incoming IMPS Transaction to CASA Account / RD Account / Loan Account

Incase of RD and Loan account, incoming IMPS transaction will trigger installment payment of
RD / Loan Account
Cr
(INR) (INR)
31-05-2016 31-05-2016 Designa IMPS Inward Dr 2000 2000 As maintained in
ted Settlement Network Master
Branch GL (PM008)
31-05-2016 31-05-2016 Designa Inter-branch Cr 2000 2000
ted GL
Branch
31-05-2016 31-05-2016 CASA Inter-branch Dr 2000 2000
Account GL
Branch
31-05-2016 31-05-2016 CASA CASA Cr 2000 2000
Account Asset/
Branch Liability GL /
RD Account
/ Loan
Account
2. Outgoing IMPS Transaction

Cr
(INR) (INR)
31-05-2016 31-05-2016 CASA CASA Dr 3000 3000
Account Asset/
Branch Liability GL
Account GL
Branch
31-05-2016 31-05-2016 Designa Inter-branch Dr 3000 3000
ted GL
Branch
31-05-2016 31-05-2016 Designa IMPS Cr 3000 3000 As maintained in
ted Outward Network Master
Branch Settlement (PM008)
GL
31-05-2016 31-05-2016 CASA CASA Dr 15 15 Service Charge
Account Asset/
Branch Liability GL
244
Remittances
31-05-2016 31-05-2016 Designa SC Income Cr 15 15

ted/ Txn GL
Branch
3. Return of Outgoing IMPS Transaction

Cr
(INR) (INR)
31-05-2016 31-05-2016 Designa IMPS Dr 3000 3000 As maintained in
ted Outward Network Master
Branch Settlement (PM008)
Return GL
31-05-2016 31-05-2016 Designa Inter-branch Cr 3000 3000
ted GL
Branch
Account GL
Branch
31-05-2016 31-05-2016 CASA CASA Cr 3000 3000
Account Asset/
Branch Liability GL
245
Remittances
1.95. Unified Payments Interface (UPI)

UPI is an online payment system that allows money transfer between any two bank accounts using virtual
payment address (VPA) through a smart phone
1) API to debit/ refund debit to customer account
Following accounting entries will be posted by the API to debit/refund debit to customer account
Cr
Posting Value TCY LCY Narrative coming
(INR) (INR) as input
31-05-2017 31-05-2017 Account Customer Dr 10000 10000 Narrative coming
Branch Account as input
(coming as
Input)
31-05-2017 31-05-2017 Designated Intermediary Cr 10000 10000 Narrative coming
Branch / GL as input
Transaction
Branch
31-05-2017 31-05-2017 Designated Intermediary Dr 10000 10000 Narrative coming
Transaction
Branch
31-05-2017 31-05-2017 Designated Outward Cr 10000 10000 Narrative coming
Branch / Settlement as input
Transaction GL (From
Branch PM008)
2) API to credit/ refund credit to customer account
Following entries will be posted by the API to credit / refund credit to customer account
Cr
31-05-2017 31-05-2017 Account Customer Cr 10000 10000 Narrative coming
(coming as
Input)
Transaction
Branch
Transaction
Branch
31-05-2017 31-05-2017 Designated Inward Dr 10000 10000 Narrative coming
Branch / Settlement as input
Transaction GL (From
Branch PM008)
246
Remittances
3) API to reverse debit to customer account
Following entries will be posted by the API to reverse debit to customer account
Cr
31-05-2017 31-05-2017 Account Customer Cr 10000 10000 Narrative coming
(coming as
Input)
Transaction
Branch
Transaction
Branch
31-05-2017 31-05-2017 Designated Outward Dr 10000 10000 Narrative coming
Branch / return as input
Transaction Settlement
Branch GL (From
PM008)
247
Remittances
1.96. ACH (Automated Clearing House)

The National Payments Corporation of India (NPCI) offers to banks, financial institutions, Corporates and
Government/s a service termed as “National Automated Clearing House (NACH)” which includes both Debit and
Credit.
ACH Debit can be used by corporate for bulk collection of loan installment payment/ insurance premium/
telephone and electricity bill etc. It is two step process.
1) Mandate needs to be submitted by the customer for debiting his/her account for the above mentioned
purpose and the same needs to accepted by NPCI, service provider and Destination bank (where debit
account is present)
2) Once the mandate is accepted, ACH debit file can be sent by corporate for collection, which will be
forwarded by Sponsor Bank to NPCI and then NPCI to Destination Bank. The response file from
Destination bank flows back to NPCI, to Sponsor Bank and then to corporate/debit file provider
ACH Credit can be used by corporate for bulk payment of credits like dividend, interest, salary etc. to a large
number of beneficiaries. The steps involved are as below
1) Submission of credit mandate by the customer to corporate providing the account and bank details to be
credited. However, this is not a required step for ACH Credit
2) Corporate can prepare ACH credit file based on the information received from beneficiary and send the
ACH Credit file to NPCI through Sponsor bank. From NPCI file is sent to Destination bank. The
Destination bank credits the funds to beneficiary and prepares a return file to NPCI with success/failure
to credit. NPCI sends response file back to Sponsor bank and Sponsor bank sends it back to corporate
Input File Processing:
Following accounting entries will be passed in Sponsor bank on processing of Input GEFU file
(ACH_UTL_INP_SPON) from Service Provider. User’s account refers to service provider account.
1) For ACH Debit, no accounting entries are passed.
2) For ACH Credit, following accounting entries are passed with posting and value date as upload date

Cr
(INR) (INR)
31-05-2017 31-05-2017 Account User’s Dr 50000 50000
Branch account ( Fld Total
18 – Header Amount(
/ Provider Fld 10 –
account from Header)
PM056)
31-05-2017 31-05-2017 Designated Outward Cr 50000 50000
Branch Settlement Total
GL- Sponsor Amount(
Bank ( From Fld 10 –
PM055) Header)
Inter-branch accounting entries will need to be passed if Account branch and designated branch are different
Cr
248
Remittances

(INR) (INR)
31-05-2017 31-05-2017 Account IB GL Debit Dr 50000 50000
Branch
31-05-2017 31-05-2017 Designated IB GL Credit Cr 50000 50000
Branch
The narrative for the above accounting entry is as below.

ACH <Transaction Type > from <User no> - <User name> for file ref <User Reference>
Transaction Type – It can be Debit/Credit based whether file is ACH Debit/Credit
User No – It refers to the unique provider ID allotted to utility provider by NPCI coming
in file in field 15 – Header
User Name – It refers to the user name maintained for above User no in PM056
User Reference – It refers to user reference coming in file in field 16- Header
Inward File Processing:

Following accounting entries will be passed in destination bank on processing of inward GEFU
file (ACH_UTL_INW_DEST) from NPCI
For ACH Debit, following accounting entries will be passed with posting and value date
as upload date
Cr
(INR) (INR)
31-05-2017 31-05-2017 Account Beneficiary’s Dr 10000 10000
Branch Bank Amount
Account (Fld 11-
Number (Fld Detail)
16 – Detail)
31-05-2017 31-05-2017 Designated Outward Cr 10000 10000
Branch( Settlement Amount
From GL - (Fld 11-
BAM54) Destination Detail)
Bank ( From
PM055)
If account branch and designated branch are different, system to pass inter-branch
accounting entries as below
Cr
(INR) (INR)
31-05-2017 31-05-2017 Designated IB GL Debit Dr 10000 10000
Branch
31-05-2017 31-05-2017 Account IB GL Credit Cr 10000 10000
Branch
249
Remittances
For ACH Credit, following accounting entries will be passed on successfully crediting
the beneficiary with posting and value date as upload date
Cr
(INR) (INR)
31-05-2017 31-05-2017 Designated Inward Dr 10000 10000
Branch ( Settlement Amount
From GL - (Fld 11-
Bank ( From
PM055)
31-05-2017 31-05-2017 Account Beneficiary’s Cr 10000 10000
Branch Bank Amount
Account (Fld 11-
Number (Fld Detail)
16 – Detail)
On failure to credit beneficiary, following accounting entries are passed in destination

bank with posting and value date as upload date
Cr
(INR) (INR)
Branch ( Settlement Amount
From GL - (Fld 11-
Bank ( From
PM055)
31-05-2017 31-05-2017 Designated Inward Cr 10000 10000
Branch ( Return Amount
From Settlement (Fld 11-
BAM54) GL - Detail)
Destination
Bank ( From
PM055)
The narrative for above accounting entries (both debit and credit) is as below
ACH <Transaction Type> from <User Name> with reference no < Transaction
Reference>
Transaction Type – Debit/Credit based on whether file is for ACH Debit/Credit
User Name – Name of the utility provider available in file in Fld 9 – Detail
Transaction Reference – Unique consumer no given by Utility provider to Beneficiary
available in file in Fld 19 – Detail
250
Remittances
Response File Processing:
Following accounting entries will be passed in Sponsor Bank on processing of Response

GEFU file (ACH_UTL_RESP_SPON) from NPCI with posting and value date same as Upload
date.
For ACH Debit, following accounting entries will be passed
Cr
Posting Value TCY (INR) LCY
(INR)
Branch ( Settlement Sum of
From GL- Amount (Fld
BAM54) Sponsor 11 – Detail)
Bank ( with Flag for
From success/
PM055) return (Fld 14
– Detail) as ‘1’
31-05-2017 31-05-2017 Account User’s Cr 35000 35000
Branch account ( Sum of
Fld 18 – Amount (Fld
Header / 11 – Detail)
Provider with Flag for
account success/
from return (Fld 14
PM056) – Detail) as ‘1’
If failed to credit the user account, following accounting entries will be passed. Later on,
transferring funds to User’s account will need to be done operationally
Cr
Posting Value TCY (INR) LCY (INR)

Branch ( Settlement Sum of
From GL- Amount (Fld
BAM54) Sponsor 11 – Detail)
Bank ( with Flag for
From success/
PM055) return (Fld 14
– Detail) as
‘1’
31-05-2017 31-05-2017 Designated Suspense Cr 35000 35000
Branch ( Credit GL Sum of
From (From Amount (Fld
BAM54) BAM54) 11 – Detail)
with Flag for
success/
return (Fld 14
– Detail) as
‘1’
251
Remittances
For ACH Credit, following accounting entries will be passed with posting and value date
same as Upload date
Cr
(INR) (INR)
31-05-2017 31-05-2017 Designated Outward Dr 15000 15000
Branch ( Return Sum of
From Settlement Amount
BAM54) GL- (Fld 11 –
Sponsor Detail)
Bank ( with Flag
From for
PM055) success/
return
(Fld 14 –
Detail) as
‘0’
31-05-2017 31-05-2017 Account User’s Cr 15000 15000
Branch account ( Sum of
Fld 18 – Amount
Header / (Fld 11 –
Provider Detail)
account with Flag
from for
PM056) success/
return
(Fld 14 –
Detail) as
‘0’
If failed to credit User’s account, following accounting entries will be passed.

Cr
(INR) (INR)
31-05-2017 31-05-2017 Designated Outward Dr 15000 15000
Branch ( Return Sum of
From Settlement Amount
BAM54) GL- (Fld 11 –
Sponsor Detail)
Bank ( with Flag
From for
PM055) success/
return
(Fld 14 –
Detail) as
‘0’
31-05-2017 31-05-2017 Designated Suspense Cr 15000 15000
Branch ( Credit GL Sum of
From (From Amount
BAM54) BAM54) (Fld 11 –
Detail)
252
Remittances
with Flag
for
success/
return
(Fld 14 –
Detail) as
‘0’
For both ACH debit and Credit, if account branch is different from designated branch,
then inter-branch accounting entries will need to be passed
Cr
(INR) (INR)
31-05-2017 31-05-2017 Designated IB GL Debit Dr 15000 15000
Branch ( Sum of
From Amount
BAM54) (Fld 11 –
Detail)
with Flag
for
success/
return
(Fld 14 –
Detail) as
‘0’
31-05-2017 31-05-2017 Designated IB GL Cr 15000 15000
Branch ( Credit Sum of
From Amount
BAM54) (Fld 11 –
Detail)
with Flag
for
success/
return
(Fld 14 –
Detail) as
‘0’
The narrative for the above accounting entry is as below.

ACH <Transaction Type > response for <User no> - <User name> for file ref <User
Reference>
Transaction Type – It can be Debit/Credit based whether file is ACH Debit/Credit
User No – It refers to the unique provider ID allotted to utility provider by NPCI coming
in file in field 15 – Header
User Name – It refers to the user name maintained for above User no in PM056
User Reference – It refers to user reference coming in file in field 16- Header
253
Remittances
7. Remittances
254
Remittances
1.97. Banker's Cheque Sale - Against GL (Fast Path: 8302)

Banker’s Cheque of value INR 1000 is issued against GL on 01/08/2016.

Cr
(INR) (INR)
Branch

Branch GL
01-08-2016 01-08-2016 Payable Inter-Branch Dr 1000 1000
Branch GL
01-08-2016 01-08-2016 Payable Banker’s Cr 1000 1000
Branch Cheque Issue
GL
01-08-2016 01-08-2016 Txn Specified GL Dr 10 10 SC On Banker
Branch Cheque Issue
Branch
255
Remittances
1.98. Banker's Cheque Sale - Against Cash (Fast Path : 8301)

Banker’s Cheque of value INR 1000 is issued against cash on 01/08/2016.

Cr
(INR) (INR)
01-08-2016 01-08-2016 Txn Cash GL Dr 1000 1000
Branch

Branch GL

Branch GL

Branch Cheque Issue
GL
01-08-2016 01-08-2016 Txn Cash GL Dr 10 10 SC On
Branch Banker
Cheque
01-08-2016 01-08-2016 Txn SC Income GL Cr 10 10 Issue
Branch
256
Remittances
1.99. Banker's Cheque Sale Against Account (Fast Path : 1010)

Banker’s Cheque of value INR 1000 is issued against CASA account on 01/08/2016.

Cr
(INR) (INR)
Branch Liability GL

Branch GL

Branch GL

Branch Cheque Issue
GL
01-08-2016 01-08-2016 Account CASA Assets / Dr 10 10 SC On
Branch Liability GL Banker
Cheque
Issue
Branch GL

Branch GL
01-08-2016 01-08-2016 Payable SC Income GL Cr 10 10

Branch
257
Remittances
1.100. Close Out Balance Inquiry (Fast Path : 1320)

Account Closure of CASA account – Closeout withdrawal by issuing of Banker’s cheque.
Cr
(INR) (INR)
Branch Liability GL

Branch GL

Branch GL

Branch Cheque Issue
GL
258
Remittances
1.101. Term Deposit Interest Payout (Fast Path : 1337)

Term Deposit interest payout by issuing of Banker’s cheque.

Cr ks
(INR) (INR)
01-08-2016 01-08-2016 Account TD Interest Dr 1000 1000
Branch Payable GL
01-08-2016 01-08-2016 Account TD Payment Cr 1000 1000

Branch GL
01-08-2016 01-08-2016 Account TD Payment Dr 1000 1000

Branch GL

Branch GL

Branch GL

Branch Cheque Issue
GL
259
Remittances
1.102. Term Deposit Redemption (Fast Path : 1311)

Redemption of Term Deposit by issuing of Banker’s cheque.
Cr
(INR) (INR)
01-08-2016 01-08-2016 Account Regular Dr 10000 10000
Branch Deposit GL
01-08-2016 01-08-2016 Account Redemption Cr 10000 10000

Branch Payable GL
01-08-2016 01-08-2016 Account Redemption Dr 10000 10000

Branch Payable GL
01-08-2016 01-08-2016 Account TD Payment Cr 10000 10000

Branch GL
01-08-2016 01-08-2016 Account TD Payment Dr 10000 10000

Branch GL

Branch GL

Branch GL

Branch Cheque Issue
GL
260
Remittances
1.103. Banker’s Cheque Liquidation By Cash (Fast Path : 8307)

Liquidation of Bankers Cheque by
Cr
(INR) (INR)
01-08-2016 01-08-2016 Payable Banker’s Dr 1000 1000
Branch Cheque Paid
GL
01-08-2016 01-08-2016 Payable Inter-Branch Cr 1000 1000

Branch GL
Branch GL
01-08-2016 01-08-2016 Txn Cash GL Cr 1000 1000
Branch
261
Remittances
1.104. Banker’s Cheque Liquidation By GL (Fast Path : 8307)

Liquidation of Bankers Cheque to GL account

Cr
(INR) (INR)
Branch Cheque Paid
GL

Branch GL
Branch GL
Branch
262
Remittances
1.105. Banker’s Cheque Liquidation Against A/C (Fast Path : 8309)

Liquidation of Bankers Cheque to CASA account

Cr
(INR) (INR)
Branch Cheque Paid
GL

Branch GL
Branch GL
Branch Liability GL
Banker’s Cheque Status Inquiry
No accounting entry gets passed on BC Banker’s Cheque Status Inquiry.
Banker’s Cheque Inquiry
No accounting entry gets passed on BC Banker’s Cheque Inquiry.
Banker’s Cheque Revalidate
No accounting entry gets passed on Revalidation of BC Banker’s Cheque.
Duplicate Banker’s Cheque Print
No accounting entry gets passed on printing of Duplicate BC Banker’s Cheque.
263
Remittances
1.106. DD Sale - Against Cash (Fast Path : 8305)

Demand Draft of value INR 1000 is issued against cash.

Cr
(INR) (INR)
01-08-2016 01-08-2016 Txn Cash GL Dr 1000 1000
Branch

Branch GL
Branch GL
01-08-2016 01-08-2016 Payable DD Issue GL Cr 1000 1000
Branch
01-08-2016 01-08-2016 Txn Cash GL Dr 10 10 SC On DD

Branch Issue
Branch
264
Remittances
1.107. DD Sale - Against GL (Fast Path : 8306)

Demand Draft of value INR 1000 is issued against GL.

Cr
(INR) (INR)
Branch

Branch GL
Branch GL
Branch
01-08-2016 01-08-2016 Txn Specified GL Dr 10 10 SC On DD Issue

Branch
Branch
265
Remittances
1.108. DD Sale – Against Account (Fast Path : 1014)

Demand Draft of value INR 1000 is issued against CASA account.

Cr
(INR) (INR)
Branch Liability GL

Branch GL
Branch GL
Branch
01-08-2016 01-08-2016 Account CASA Assets / Dr 10 10 SC On DD Issue

Branch Liability GL

Branch GL

Branch GL
01-08-2016 01-08-2016 Payable SC Income GL Cr 10 10

Branch
266
Remittances
1.109. DD Liquidation By Cash (Fast Path : 8310)

Liquidation of DD by Cash

Cr
(INR) (INR)
01-08-2016 01-08-2016 Payable DD Paid GL Dr 1000 1000
Branch

Branch GL
Branch GL
01-08-2016 01-08-2016 Txn Cash GL Cr 1000 1000
Branch
267
Remittances
1.110. DD Liquidation By GL (Fast Path : 8307)

Liquidation of Demand Draft to GL account

Cr
(INR) (INR)
Branch

Branch GL
Branch GL
Branch
268
Remittances
1.111. DD Liquidation against A/C (Fast Path : 8310)

Liquidation of Demand Draft to CASA account

Cr
(INR) (INR)
Branch

Branch GL
Branch GL
Branch Liability GL
When the instrument is dormant:

Cr
(INR) (INR)
Branch
01-08-2016 01-08-2016 Payable Dormancy GL Cr 1000 1000

Branch
On instrument being paid after being revalidated from dormancy

Cr
(INR) (INR)
01-08-2016 01-08-2016 Payable Dormancy GL Dr 1000 1000
Branch

Branch GL
Branch GL
269
Remittances

Branch Liability GL
On instrument being processed as unclaimed, after the dormancy

Cr
(INR) (INR)
01-08-2016 01-08-2016 Payable Dormancy GL Dr 1000 1000
Branch
01-08-2016 01-08-2016 Payable Unclaimed GL Cr 1000 1000

Branch
DD Status Inquiry
No accounting entry gets passed on DD Status Inquiry.
Demand Draft Inquiry
No accounting entry gets passed on Demand Draft Inquiry.
DD Revalidate
No accounting entry gets passed on Revalidation of DD.
Duplicate DD Print
No accounting entry gets passed on printing of Duplicate DD.
270
Remittances
1.112. FX Purchase (Walk-in) (Fast Path : 8004 )

Bank is purchasing USD 100. Local Currency is INR
1 USD = 70 INR
1 GBP = 84 INR

Cr
(INR)
01-08-2016 01-08-2016 Txn Cash GL Dr USD 100 7000
Branch
01-08-2016 01-08-2016 Txn Cash GL Cr INR 7000 7000

Branch
271
Remittances
1.113. FX Sale - Walk-in (Fast Path : 8203 )

Bank is selling 100 GBP by accepting INR

Cr
(INR)
01-08-2016 01-08-2016 Txn Cash GL Dr INR 8400 8400
Branch
01-08-2016 01-08-2016 Txn Cash GL Cr GBP 100 8400

Branch
FX Sale/Purchase - Walk-in
Bank is selling USD by accepting GBP 100

Cr
(INR)
01-08-2016 01-08-2016 Txn Cash GL Dr GBP 100 8400
Branch
01-08-2016 01-08-2016 Txn Cash GL Cr USD 120 8400

Branch
272
Remittances
1.114. Cardless Cash Withdrawal

The ‘Cardless Cash Withdrawal’ (CLCW) facility allows CASA account holders to remit money to a beneficiary
who does not hold a bank account. Beneficiaries’ mobile number will act as the identification number for remitting
the money.
To withdraw cash, Beneficiary can visit any branch or ATM of the remitter’s bank and enter his (beneficiary’s)
mobile number, 4 digit verification code communicated by the remitter, 12 digit code sent by the bank to
beneficiary, and the transaction amount.
1. Issue of Cardless Cash Withdrawal (Fast Path: 8318)

Cr
(INR) (INR)
25-05-2016 25-05-2016 Txn CASA Dr 10,000 10,000
Branch Asset/
Liability GL
25-05-2016 25-05-2016 Txn CLCW Issue Cr 10,000 10,000 As maintained in
Branch GL Issuer Master
(BAM09)
2. Payment By Cash (Fast Path: 8319)

Cr
(INR) (INR)
31-05-2016 31-05-2016 Issue CLCW Dr 10,000 10,000 As maintained in
Branch Payable GL Issuer Master
(BAM09)
31-05-2016 31-05-2016 Issue Inter-branch Cr 10,000 10,000
Branch GL
Branch GL
31-05-2016 31-05-2016 Txn Cash GL Cr 10,000 10,000
Branch
273
Remittances
3. Cancellation against Account (Fast Path: 8319)

Cr
(INR) (INR)
(BAM09)
Branch GL
Branch GL
31-05-2016 31-05-2016 Txn CASA Cr 10,000 10,000 Remitter CASA
Branch Asset/ Account
Liability GL
4. Cancellation By Cash (Fast Path: 8319)

Cr
(INR) (INR)
(BAM09)
Branch GL
Branch GL
31-05-2016 31-05-2016 Txn Cash GL Cr 10,000 10,000
Branch
274
Remittances
5. Expiry Processing of CLCW

Cr
(INR) (INR)
(BAM09)
31-05-2016 31-05-2016 Issue CASA Cr 10,000 10,000 Remitter CASA
Branch Asset/ Account
Liability GL
6. When Remitter’s CASA account is in closed or blocked status

Cr
(INR) (INR)
(BAM09)
31-05-2016 31-05-2016 Issue Unclaimed Cr 10,000 10,000 As maintained in
Branch GL Issuer Master
(BAM09)
275
Remittances
8. Digital Payments
New Digital Payment products offer different features which are advantageous over traditional banking because it
involves ease of use, accessibility and convenience, flexibility, safety and control.
A customer can choose from following products according to his needs and suitability:
 Balance Holding Wallet
 Limit Based Wallet
 Virtual Account
 Prepaid Card/Gift Card
276
Remittances
1.115. Balance Holding Wallet

This wallet is backed by a CASA or GL.
1. Wallet Top Up

Cr
(INR) (INR)
31-05-2016 31-05-2016 CASA CASA Dr 5000 5000
Account Asset/
Branch Liability GL
Account GL
Branch
31-05-2016 31-05-2016 Wallet Inter-branch Dr 5000 5000
Account GL
Branch
31-05-2016 31-05-2016 Wallet CASA Cr 5000 5000 As maintained in
Branch Liability GL Digital Payments
(Wallet Product Master
backed Maintenance
CASA A/C) (DPM01)
Or
Liability GL
(Wallet
backed GL)
2. Wallet Utilization
Cr
(INR) (INR)
31-05-2016 31-05-2016 Wallet CASA Dr 2000 2000 As maintained in
backed Maintenance
CASA A/C) (DPM01)
Or
Liability GL
(Wallet
backed GL)
31-05-2016 31-05-2016 Wallet Inter-branch Cr 2000 2000
Branch GL
31-05-2016 31-05-2016 Txn Inter-branch Dr 2000 2000
Branch GL
31-05-2016 31-05-2016 Txn GL Account Cr 2000 2000 As provided in
Branch the transaction
3. Wallet Closure and Close out Withdrawal
277
Remittances

Cr
(INR) (INR)
31-05-2016 31-05-2016 Wallet CASA Dr 10000 10000 As maintained in

backed Maintenance
CASA A/C) (DPM01)
Or
Liability GL
(Wallet
backed GL)
Branch GL
Account GL
Branch
31-05-2016 31-05-2016 CASA CASA Cr 10000 10000 As provided in
Account Asset/ the transaction
Branch Liability GL
278
Remittances
1.116. Limit Based Wallet

This wallet is backed by an existing CASA.
1. Wallet Top Up
Date Branch GL Head Dr / Amount Remark

Cr s
(INR) (INR)
31-05-2016 31-05-2016 CASA CASA Dr 5000 5000

Account Asset/
Branch Liability GL
Account GL
Branch
Account GL
Branch
31-05-2016 31-05-2016 Wallet CASA Cr 5000 5000 As
Branch Liability GL maintain
(Wallet ed in
backed Digital
CASA A/C) Paymen
ts
Product
Master
Mainten
ance
(DPM01
)
Date Branch GL Head Dr / Amount Rema

Cr rks
(INR) (INR)
31-05-2016 31-05-2016 Wallet CASA Dr 2000 2000 As

Branch Liability GL maint
(Wallet ained
backed in
CASA A/C) Digital
Paym
ents
Produ
ct
279
Remittances
Maste
r
Maint
enanc
e
(DPM
01)
Branch GL
Branch GL
31-05-2016 31-05-2016 Txn GL Account Cr 2000 2000 As
Branch provid
ed in
the
transa
ction
280
Remittances
1.117. Virtual Account

Virtual Accounts are routing accounts which are used in remittance process. The customer will be allotted with a
virtual account number or a set of virtual account numbers which will be linked to the customer’s physical account
number.
1. Wallet Top Up
Cr
(INR) (INR)
31-05-2016 31-05-2016 CASA CASA Dr 5000 5000
Account Asset/
Branch Liability GL
Account GL
Branch
Account GL
Branch
31-05-2016 31-05-2016 Wallet CASA Cr 5000 5000 As
(Wallet d in
backed Digital
CASA A/C) Payment
s Product
Master
Maintena
nce
(DPM01)
Cr
(INR) (INR)
31-05-2016 31-05-2016 Wallet CASA Dr 2000 2000 As
(Wallet d in
backed Digital
CASA A/C) Payment
s Product
Master
Maintena
nce
(DPM01)
Branch GL
Branch GL
Branch provided
in the
transactio
281
Remittances
282
Remittances
1.118. Prepaid Card / Gift Card

1. Wallet Top Up
Cr
(INR) (INR)
31-05-2016 31-05-2016 CASA CASA Dr 5000 5000
Account Asset/
Branch Liability GL
Account GL
Branch
Account GL
Branch
31-05-2016 31-05-2016 Wallet Liability GL Cr 5000 5000 As
Branch maintain
ed in
Digital
Payment
s Product
Master
Maintena
nce
(DPM01)
Cr
(INR) (INR)
31-05-2016 31-05-2016 Wallet Liability GL Dr 2000 2000 As
Branch maintain
ed in
Digital
Payment
s Product
Master
Maintena
nce
(DPM01)
Branch GL
Branch GL
Branch provided
in the
transacti
on
283
Remittances
3. Expiry Processing of Card

Cr ks
(INR) (INR)
Branch maintai
ned in
Digital
Payme
nts
Product
Master
Mainten
ance
(DPM0
1)
31-08-2016 31-08-2016 Txn Expiry GL Cr 1000 1000 As
Branch Account maintai
ned in
Digital
Payme
nts
Product
Master
Mainten
ance
(DPM0
1)
4. Dormancy Processing of Card
Cr ks
(INR) (INR)
Branch maintai
ned in
Digital
Payme
nts
Product
Master
Mainten
ance
(DPM0
1)
31-10-2016 31-10-2016 Txn Dormancy Cr 1000 1000 As
Branch GL Account maintai
ned in
Digital
Payme
nts
Product
Master
284
Remittances
Mainten
ance
(DPM0
1)
5. Wallet Closure and Close out Withdrawal

Cr ks
(INR) (INR)

Branch maintai
ned in
Digital
Payme
nts
Product
Master
Mainten
ance
(DPM0
1)
Branch GL
Account GL
Branch
30-09-2016 30-09-2016 CASA CASA Cr 10000 10000 As
Account Asset/ provide
Branch Liability GL d in the
transact
ion
285
Remittances
286
Savings Scheme
287
Savings Scheme
9. Savings Scheme
288
Savings Scheme
289
Savings Scheme
1.119. Savings Scheme Account Credit By CASA - Fast Path

: 2421
Transfer funds from CASA to Savings Scheme (PPF/SSY ) Account

Cr
(INR) (INR)
21-04-2017 21-04-2017 Txn Branch CASA Dr 1000 1000 Subscription –
Asset/ Liability By CASA to
GL PPF Account –
21-04-2017 21-04-2017 Account SS Assets / Cr 1000 1000 <PPF Account
Subscription –
Branch Liability GL Number>
By CASA
21-04-2017 21-04-2017 Account SS Mirror Dr 1000 1000 Subscription –

Branch Liability GL By CASA to
PPF Account –
21-04-2017 21-04-2017 Designated RBI Payable GL Cr 1000 <PPF Account
1000 Subscription –
Branch Number>
By CASA to
PPF Account –
<PPF Account
Number>
290
Savings Scheme
1.120. Savings Scheme Account Credit By Cash - Fast Path :

2423
Cash deposit of INR 1000 made in the Savings Scheme Account (PPF/SSY).

Cr
(INR) (INR)
21-04-2017 21-04-2017 Txn Branch Cash GL Dr 1000 1000 Subscription
– By Cash to
PPF Account
21-04-2017 21-04-2017 Account SS Assets / Cr 1000 – <PPF
1000 Subscription
– By cash
Number>
21-04-2017 21-04-2017 Account SS Mirror Dr 1000 1000 Subscription
Branch Liability GL – By Cash to
PPF Account
21-04-2017 21-04-2017 Designate RBI Payable GL Cr 1000 1000 Subscription
– <PPF
d Branch –Account
By Cash to
Number>
PPF Account
– <PPF
Account
Number>
291
Savings Scheme
1.121. Savings Scheme Account Credit By GL - Fast Path:

2424
Credit transfer of INR 1000 received in to Savings Scheme Account (PPF/SSY) from a GL
Account.

Cr
(INR) (INR)
21-04-2017 21-04-2017 Txn Branch Specified GL Dr 1000 1000 Subscription –
By GL to PPF
Account –
<PPF Account
21-04-2017 21-04-2017 Account SS Assets / Cr 1000 Number> –
1000 Subscription
Branch Liability GL By GL
21-04-2017 21-04-2017 Account SS Mirror Dr 1000 1000 Subscription –

Branch Liability GL By GL to PPF
Account –
<PPF Account
21-04-2017 21-04-2017 Designated RBI Payable GL Cr 1000 1000 Subscription –
Number>
Branch By GL to PPF
Account –
<PPF Account
Number>
292
Savings Scheme
1.122. Savings Scheme Debit by CASA - Fast Path: 2431
Fund Transfer from Savings Scheme Account (PPF/SSY ) to CASA Account

Cr
(INR) (INR)
21-04-2017 21-04-2017 Transacti CASA Dr 10,000 10,000
on Asset/
Branch Liability GL
21-04-2017 21-04-2017 From SS Assets / Cr 10,000 10,000

Branch
21-04-2017 21-04-2017 To SS Mirror Dr 10,000 10,000
Branch
21-04-2017 21-04-2017 To RBI Cr 10,000 10,000
Account Receivable
Branch GL
293
Savings Scheme
1.123. Savings Scheme Debit by GL - Fast Path: 2432
Transfer funds from Savings Scheme Account (PPF/SSY) to GL Account.

Cr
(INR) (INR)
21-04-2017 21-04-2017 Transacti Specified GL Dr 10,000 10,000
on
Branch
21-04-2017 21-04-2017 From SS Assets / Cr 10,000 10,000

Branch
21-04-2017 21-04-2017 To SS Mirror Dr 10,000 10,000
Branch
21-04-2017 21-04-2017 To RBI Payable Cr 10,000 10,000
Account GL
Branch
294
Savings Scheme
1.124. Bankers Cheque - Fast Path: 2442

Account Closure of Savings Scheme Account (PPF/SSY) – Closeout withdrawal by issuing of
Demand Draft .
Account closure proceeds INR 12000 and catch up interest of INR.

Cr
(INR) (INR)
21-04-2017 21-04-2017 Account Interest Expense Dr 110 110 Credit Interest
Branch Capitalised to PPF
Account - <PPF
Account Number>
21-04-2017 21-04-2017 Account SS Assets / Cr 110 110 Credit Interest
Branch Liability GL Capitalised
21-04-2017 21-04-2017 Account SS Mirror Dr 110 110 Credit Interest

Branch Liability GL Capitalised to PPF
Account - <PPF
Account Number>
21-04-2017 21-04-2017 Account Interest Expense Cr 110 110 Credit Interest
Branch Mirror GL Capitalised to PPF
Account - <PPF
Account Number>
21-04-2017 21-04-2017 Account SS Assets / Dr 12000 12000 Close out

Branch Liability GL withdrawal - BC
Issued <serial
number>
21-04-2017 21-04-2017 Account BC Issue GL Cr 12000 12000 Close out

Branch withdrawal from
PPF Account <PPF
account no> - BC
issued <Serial
21-04-2017 21-04-2017 Centralized RBI Receivable Dr 12000 12000 Number>
Close out
Branch GL withdrawal from
PPF Account <PPF
account no> - BC
issued <Serial
21-04-2017 21-04-2017 Account PPF Mirror Cr 12000 12000 Number>
Close out <CASA
Branch Liablity GL Account>
withdrawal from
PPF Account <PPF
account no> - BC
issued <Serial
Number> <CASA
Account>
295
Savings Scheme
1.125. Demand Draft - Fast Path : 2443

Account Closure of Savings Scheme Account (PPF/SSY) – Closeout withdrawal by issuing of
Demand Draft .
Account closure proceeds INR 12000 and catch up interest of INR.

Cr
(INR) (INR)
Account - <PPF
Account Number>

Account - <PPF
Account Number>
Account - <PPF
Account Number>

Branch Liability GL withdrawal - DD
Issued <serial
number>
21-04-2017 21-04-2017 Account DD Issue GL Cr 12000 12000 Close out

Branch withdrawal from
PPF Account <PPF
account no> - DD
issued <Serial
Number>
21-04-2017 21-04-2017 Centralized RBI Receivable Dr 12000 12000 Close out
PPF Account <PPF
account no> - DD
issued <Serial
Number> <CASA
21-04-2017 21-04-2017 Account PPF Mirror Cr 12000 Account>
12000 Close out
Branch Liablity GL withdrawal from
PPF Account <PPF
account no> - DD
issued <Serial
Number> <CASA
Account>
296
Savings Scheme
1.126. Savings Scheme Account Credit By Cheque - Fast

Path: 6525
Cheque amount of INR 10000 is credited into Savings Scheme Account (PPF/SSY) on 21/04/17.
Cr
(INR) (INR)
21-04-2017 21-04-2017 Transaction CFC GL Dr 10000 10000 Subscription by
Branch cheque <Clearing
Type> to PPF
Account – <PPF
Account Number>
21-04-2017 21-04-2017 Dummy CASA Liability Cr 10000 10000 Subscription by
CASA GL cheque <Clearing
Branch Type> to PPF
21-04-2017 21-04-2017 Dummy CASA Liability Dr 10000 10000 Subscription by
Account – <PPF
CASA GL cheque <Clearing
Branch Type> to PPF
Account – <PPF
21-04-2017 21-04-2017 Account SS Assets / Cr 10000 10000 Subscription by
Branch Liability GL cheque <Clearing
Type>
21-04-2017 21-04-2017 Account PPF Mirror Dr 10000 10000 Subscription by

Branch Liability GL cheque <Clearing
Type> to PPF
Account – <PPF
21-04-2017 21-04-2017 Designated RBI Payable GL Cr 10000 10000 Subscription by
Branch cheque <Clearing
Type> to PPF
Account – <PPF
297
Savings Scheme
1.127. Savings Scheme Closeout Withdrawal CASA - Fast

Path: 2441
Transfer of Close out proceeds in INR 12000 and catch up interest of INR.110 from a Savings
Scheme Account (PPF/SSY to a CASA Account .

Cr
(INR) (INR)
Account - <PPF
Account Number>

Account - <PPF
Account Number>
Account - <PPF
Account Number>

Branch Liability GL withdrawal -
Transfer to account
<CASA account>
21-04-2017 21-04-2017 Transaction CASA Liability Cr 12000 12000 Close out

PPF Account <PPF
account no>
21-04-2017 21-04-2017 Centralized RBI Receivable Dr 12000 12000 Close out

PPF Account <PPF
account no>
Transfer to CASA
<CASA Account>
21-04-2017 21-04-2017 Account PPF Mirror Cr 12000 12000 Close out
Branch Liablity GL withdrawal from
PPF Account <PPF
account no>
Transfer to CASA
<CASA Account>
298
Savings Scheme
299

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Oracle FLEXCUBE Core

Part No. E87095-01

Oracle Financial Services Software Limited

1.49. Clubbing Interest to Principal at Maturity .................................................................. 67

1.102. Term Deposit Redemption (Fast Path : 1311) ........................................................ 260

1.1. Intended Audience

1.2. Documentation Accessibility

1.3. Access to OFSS Support

1.5. Related Information Sources

Sr GL Head Location of Setup

1 CASA Asset / Liability GL CHM01/ GL/ Liabilities balance

2 SC Income GL BAM14/ SC GL Code

3 TD Liability GL TDM01/ GL codes/ Regular

4 Interest Expense TDM01/ GL codes/ Interest

5 Inter branch GL BAM08/ GL Details/ IB GL

6 Cash GL BAM08/ GL Details/ Bank Cash

7 Future dated bridge GL BAM08/ GL Details/ Future Dated

8 SC Income GL BAM14/ SC GL code

9 Dormant Deposit Credit GL BAM19/ Dormancy Processing

10 Unclaimed Deposit Credit GL (Non BAM19/ Unclaimed Processing

11 Unclaimed Deposit Debit GL (Non Business BAM19/ Unclaimed Processing

12 Interest Payable GL CHM01/ GL Codes/ Interest

1.1. Cash Withdrawal – Fast Path: 1001

Cash withdrawal from CASA account from different branch.

25-05-2016 25-05-2016 Account CASA Dr 10,000 10,000

25-05-2016 25-05-2016 Txn Inter- Dr 10,100 10,100

1.2. Funds Transfer Request – Fast Path: 1006

Funds transfer in FCY.

25-05-2016 25-05-2016 Account SC Cr 100 100 Collected

1.3. Miscellaneous Customer Debit – Fast Path: 1008

Cheque Withdrawal – Fast Path: 1013

Date Branch GL Head Dr / Amount Remarks

1.4. Bill Payment by Cash Mode – Fast Path: 1025

01-08-2016 01-08-2016 Txn Inter-Branch Cr 2000 2000

1.5. Bill Payment by CASA transfer Mode – Fast Path:

1.6. CASA to CASA Funds transfer Request – Fast Path:

01-08-2016 01-08-2016 Txn Future Dated Cr 1000 1000

02-08-2016 02-08-2016 Txn Future Dated Dr 1000 1000

02-08-2016 02-08-2016 Txn CASA Assets / Cr 1000 1000

1.7. CASA to GL Funds transfer Request – Fast Path:

01-08-2016 01-08-2016 Txn Future Dated Cr 1000 1000

02-08-2016 02-08-2016 Txn Future Dated Dr 1000 1000

02-08-2016 02-08-2016 Txn Specified GL Cr 1000 1000

1.8. GL to CASA Funds transfer Request – Fast Path: 1093

01-08-2016 01-08-2016 Txn Future Dated Cr 1000 1000

02-08-2016 02-08-2016 Txn Future Dated Dr 1000 1000

02-08-2016 02-08-2016 Txn CASA Assets / Cr 1000 1000

1.9. CASA Close out withdrawal by Cash – Fast Path:

01-08-2016 01-08-2016 Account Inter-Branch Cr 1200 1200

01-08-2016 01-08-2016 Txn Inter-Branch Dr 1200 1200

01-08-2016 01-08-2016 Txn Cash GL Cr 1200 1200

1.10. CASA Close out withdrawal by Transfer to GL – Fast

01-08-2016 01-08-2016 Account Inter-Branch Cr 1200 1200

01-08-2016 01-08-2016 Txn Inter-Branch Dr 1200 1200

01-08-2016 01-08-2016 Txn Specified GL Cr 1200 1200

1.11. Cash Deposit – Fast Path: 1401

01-08-2016 01-08-2016 Txn CASA Assets / Cr 1000 1000

01-08-2016 01-08-2016 Account Inter-Branch Cr 1000 1000

01-08-2016 01-08-2016 Txn Inter-Branch Dr 1000 1000

01-08-2016 01-08-2016 Txn CASA Assets / Cr 1000 1000

1.12. Misc. Customer Credit – Fast Path: 1408

01-08-2016 01-08-2016 Txn CASA Assets / Cr 1000 1000

1.13. CASA Billing Transactions – Fast Path: CH050

Bill Service Charge of INR 800 to CASA Account.