Structured Funds User Manual
Contents
1. 3 27 4 SCREEN GLOSSARY ssscssscscsssssssvssesssonsetsoseesecesssanscossuesovessenissocseecesesesosssonsessesnsscesuds csescasesssesnsessosssoassessitessesse 4 1 4 1 FUNCTION ID 4 1 i ORACLE 1 1 Introduction 1 About this Manual This manual is designed to help acquaint you with the Structured Funds module of Oracle FLEXCUBE This manual provides answers to specific features and procedures that you need to be aware of for the module to function successfully Besides this User Manual you can invoke the context sensitive help available for each field This help encapsulates the purpose of each field within a screen Placing the cursor on the relevant field and striking the F1 key on the keyboard can obtain information specific to a particular field 1 1 1 Audience This manual is intended for the following User User Roles Role Function Back office clerk Input functions for contracts Back office managers officers Authorization functions Product Managers Product definition and authorization End of Day operators Processing during End of Day Beginning of Day 1 1 2 Organization This manual covers the following topics e Setting up a Structured Deposit Product e Processing Structured Deposit Contracts 1 1 3 Related documents e Generic Interface e Core Entities e The Procedures User Manual e The Products User Manual e The Interest User Ma2. both authorized and unauthorized subscriptions upon booking a particular subscription against the contract an override message Maximum Launch Amount has been breached is displayed indicating the same E ORACLE 3 4 e Updates the Subscription Till Date e Validates the subscription amount against the minimum subscription amount and amount subscribed per unit An error message is displayed if there is any error e Validates the subscription account and liquidation account as per the deposit type validations e Validates the TD Account Number format based on the TD Account Number mask e Validates for duplicate account numbers When doing this validation the system considers account numbers created using both Subscription and Customer Account modules e Generates the TD account automatically if the option Auto Generate in the Branch Parameters screen is selected On saving a subscription the system checks if there is sufficient balance in the customer savings account Incase of insufficient balance the system will not allow the subscription Tracking the Status The system will internally track the status of the structured deposits It marks the status of the SD in its lifecycle The various statuses that a SD contract can have are depicted in the table below SD Status Details Active Status when the SD has been created and is open for subscriptions Reversal Initiated Status w
3. Gain Loss Total in Gain Loss ntr TD1 20005 100 03 33 98 66 05 20 01 30 69 10 68 20 01 33 98 53 99 TD2 79995 399 98 135 88 264 10 80 00 122 73 42 73 80 00 135 88 215 88 Total 100000 500 01 169 86 330 15 100 01 153 42 53 41 m 169 86 269 87 Sequence of events January e Feed from External System received before January 31 IC EOD e For TD1 Gain Loss is provided by External System and Interest is computed e For TD2 Gain Loss is provided by External System and Interest is computed Sequence of events February e Feed from External System received before February 28 IC EOD e For TD1 Gain Loss is provided by External System and Interest is computed e For TD2 Gain Loss is provided by External System and Interest is computed Sequence of events March e Feed from External System received before March 31 IC EOD e For TD1 Gain Loss is provided by External System and Interest is computed e For TD2 Gain Loss is provided by External System and Interest is computed 2 4 ORACLE 2 2 Maintaining Structured Deposit Product You first need to set up Structured Deposit SD products to start the fund raising activity to launch a Structured Deposit scheme Subsequently you can capture details of every SD fund raising activity You can initiate several fund raising activities using a single product You need to maintain Structured Deposit Products in the SD Product Definition sc
4. Minimum Launch mount Maximum Launch Amount Product Type Description User Reference Outstanding Amount Deposit Preferences Allow Redemption Account Class Others Remarks Subscription Input By Authorized By Contract Status L Authorized Date Time Date Time The status of the deposit will be Launched The Structured Deposit Definition screen facilitates to enter the effective date for pre closure of a Structured Deposit SD after launch before the maturity date is provided This enables the system to process pre closure of the TD under that SD during the BOD of the effective Date The criteria for pre closure date are as follows e The pre closure date should be greater than the launch date and should be before the maturity date The pre closure date should be later than the current transaction date also e The system should process this date and pre redeem all the Term Deposits TD under this SD during the BOD on this pre closure date e The SD is auto closed on the maturity date if the pre closure date is not provided e An override message is provided whenever the pre closure date is newly given or when modified the existing pre closure date The system internally tracks the following SD Reference Status SD Status Details Redemption initiated User enters a pre closure date which is after launch before maturity pes ORACLE 3 8 3 9 SD S
5. 3 2 2 Specifying the Interest Calculation Parameters eese een enne 3 13 3 2 3 Viewing the Subscription Details eese eene enne nennen trennen nennen ens 3 14 3 3 CAPTURING SUBSCRIPTIONS FOR STRUCTURED DEPOSITS ccccccccccecccececececececeseceseessceseeceecesseesssesseeneess 3 15 3 3 1 Viewing Subscription SUFRPATY iioii ci SEIS EARS DURER ETE Y IER UMEN HE DRE EE IER RI AE 3 18 3 3 2 Saving the Structured Deposit Subscriptions eese enne 3 18 3 4 TRACKING THE STATUS cese cos tocucoes AEEA fet tee e pe pope Se Pee se Pues 3 19 3 5 INITIATING THE STRUCTURED DEPOSIT LAUNCH cccccccccececesecesecececeseccsecesecesseceseeseceseseseseseeeseeeseseeseeeass 3 20 3 6 LAUNCHING OF STRUCTURED DEPOSITS ccccccccscececececececececececesecesecesesesecesseesscssecesesesecssesesseesseesesseseeeess 3 21 3 7 REDEEMING STRUCTURED DEPOSITS cccccccccecececececesecesecesececeeesesccecesecessceseeesscssscesesesesesessseeesesesseseseeeass 3 22 3 7 1 Cancelling Structured aeea ie etre enne tne teen teen trennen rennen 3 24 3 8 CLOSING STRUCTURED DEPOSITS eeeeeeeee e e ene enenenenen nennen nsns ese e ese ese ese ese ese enenatis esee eset esee 3 25 3 9 HANDLING EXCEPTIONS FOR STRUCTURED DEPOSITS ccccccccccecececesccececesecesecessceseeeseseseseseeseesessseeseeeess 3 25 3 10 FEEDING THE NET ASSET
6. Remarks You can enter information about the product intended for the internal reference of your bank The remarks are displayed when the details of the SD are displayed or printed However this information will not be printed on any correspondence with the customer Product Group Each product is classified under a specific group The different groups are defined in the Product Group Definition table Start Date A SD product can be set up for use over a specific period by defining a start and an end date The start and end dates of a product come in handy when you are defining a product for a scheme which is open for a specific period End Date A SD product can be set up for use over a specific period by defining a start and an end date Enter the date till which the product should be available in the system After the product is set up you can associate SD contracts with the SD products This is discussed in the next chapter of this manual Product Type The product type identifies the basic nature of a product An SD product that you create in Oracle FLEXCUBE can be of the following types Normal Deposit e Dual Currency Deposit If you indicate the product type as Normal Deposit the liquidation account currency of the subscription should be same as the currency of the Structured Deposit If you indicate the product type as Dual Currency Deposit the liquidation account currency can differ from the currency of the Structu
7. after taking into account the unauthorized subscriptions also NAV This is applicable only after the contracts for the SD is launched After the SD is launched you can feed the Net Asset Value for the contracts in the NAV Input screen Consequently the system picks up the NAV and displays here Refer to the section Feeding the Net Asset Values in this chapter for details Launch till Date This is the amount equal to the total subscription amount on the date of launch Outstanding Amount The system updates this amount during TD redemptions You can partially redeem subscriptions For example let us assume that the bank decides on the launch amount as USD 10000 and is offering 10 subscriptions of 1000 USD each A customer can redeem USD 500 Consequently the outstanding amount will be USD 9500 Dates As part of recording each fund raising activity you need to capture the dates of each subscription Start Date This indicates the start date of the contract s ORACLE End Date This is the end date of the contract If the bank raises the funds successfully this end date will be the maturity date of the term deposits The system defaults the end date to the end date of the associated product The system validates the end date with the holidays maintained for your branch If the end date falls on a branch holiday the system displays an override message The system validates the end date against branch holidays eve
8. and interest rate change UDE Dates You need to indicate the date from which the system should start calculating the interest on the automatically generated term deposits For more details on defining UDE Dates and UDE Values refer to the section Defining Special Condition in the chapter Applying Interest Product on Account of the Interest and Charges User Manual Viewing the Subscription Details You need to enter the subscription details for the SD contracts in the Structured Deposit Subscription screen This is discussed in the next section of this chapter You can enter the subscription details after saving the SD contracts At the time of defining a SD contract you can click Subscription button to view if there are any subscriptions for the contract At the time of creating a new contract you will not be able to view the subscriptions as you would not have recorded any subscriptions before saving the contract The system will display the subscription details after you enter subscriptions against the contracts You can view the following fields in this screen e Subscription Reference Number e Customer Account Number e Date e Amount e Subscription Branch e Currency e Subscription Status e TD Account Number e TD Branch P ORACLE 3 3 Refer to next section Capturing Subscriptions for Structured Deposits for detailed explanation Capturing Subscriptions for Structured Deposits After saving
9. assume that the launch amount is USD 10 000 If a customer subscribes for ten subscriptions the amount subscribed per unit will be USD 1000 Minimum Subscription Amount The bank can specify that the customers cannot subscribe less than a specific amount to enter into a SD contract You need to enter this as the minimum subscription amount DM ORACLE 3 2 1 1 Minimum Launch Amount The bank can launch the SD scheme after it receives a certain amount of funds This refers to the minimum launch amount Maximum Launch Amount This is the maximum amount that the bank needs to float the SD scheme The funds required to start the SD scheme should be within the Minimum Launch Amount and Maximum Launch Amount range Deposit As part of entering the contract details you need to specify the account class which will be used to create the term deposits on successful launching of the SD scheme Account Class During the launch of a SD scheme the system releases the amount blocks from the participating savings accounts and converts them to term deposits Therefore you need to associate the account class Deposit with the SD contracts You need to capture the Account class before the launch Consequently the system will automatically generate the term deposits during the launching of the SD scheme Additionally the subscription details will also be updated with the term deposit account details accordingly Premature Redemption Select
10. mask d ORACLE 3 3 1 Viewing Subscription Summary You can search for the subscription details in the Subscription Summary screen You can invoke this screen by typing SFSCSSUB in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Summary Authorization Status Record Status Subscription Reference laz SD Reference Customer Account E Subscription Status User Reference I M Search Advanced Search Reset Records per page 15 15 pren Of 1 FramE Subscription Status B AmountBlocked R Amount Block Reversed T Account Created P Partially Redeemed Account Cancel Account Matured U Amount Unblocked C TD Account Closed E Error Authorization Status A Authorized U Unauthorized Dd Ott lanad 0 een In this screen you can filter the search based on the following criteria e Authorization Status e Subscription Reference Number e Customer Account e Subscription Status e Record Status e SD Reference Number e Currency e User Reference Number 3 3 2 Saving the Structured Deposit Subscriptions After you enter all the subscription details you need to save the subscription details Click save icon to save the contract Upon saving the subscription the system e Validates the SD maximum launch amount If the maximum launch amount is reached inclusive of all subscriptions done till that point of time
11. product The deposit details of the TD accounts created by the system during SD batch process will be as follows e Principal liquidation branch account will be the customer branch account of the subscription if the SD product type is Normal If the SD product is of Dual Currency Deposit type the Principal will be liquidated to the liquidation account number specified during subscription e Calculation of interest from the launch date The tenor for interest calculation purpose will be from the launch date to the SD End date The last date of the SD is set as the maturity date for the SD scheme e Customer branch account of the subscription will be the offset branch account e The SD will be closed on the maturity date e pay in option will be TD pay in by Savings e Customer branch account of the subscription will be the offset branch account e Currency will be the currency of the SD contract e Auto Rollover will not be done e For all term deposits created through SD s the system will not allow modification of interest and deposit parameters in the TD maintenance screen e The exchange rate will be used as the standard rate for currency conversion in case of Dual Currency Deposit types e status against the SD Reference Number will be set to Launched and subscription will be marked as processed successfully The Structured Deposit will be launched partially under the following circumstances e the amount block canno
12. selected mS ORACLE Subscription Date You need to enter the date on which the system should block the amount from the account This date should effectively be within the Subscription Start and End Date for the selected contract The system defaults the application date The subscription date cannot be greater than the application date If you are recording the subscription on the last specified for subscriptions the System checks for the corresponding SD contract s subscription cut off time Currency The currency of the account is displayed Product Type The SD product type is displayed Amount Enter the subscription amount The subscription that you enter should be greater than or equal to the minimum subscription amount for the contract This amount will be blocked in the customer account that you specify next Subscription Details Customer Account You need to enter the account number of the customer who is subscribing for the Structured Deposit The system displays all the savings accounts maintained for the branch that you are logged into Select the appropriate customer account number for which the system needs to block the subscription amount The currency code of the customer account and the Structured Deposit contract should be the same Customer ID The CIF number of the subscribing customer is displayed Currency The currency of the customer account is displayed Branch The branch of the subscrib
13. the SD contracts you can record the subscriptions against the SD contracts in the Structured Deposit Subscription screen You can invoke this screen by typing SFDCSSUB in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Structure Deposit Subscription 1 New Subscription Reference SD Reference SD User Reference Currency Description Product Type Subscription Date Amount SD User Reference E Branch Customer Account Account Name Customer Id Currency Liquidation Details Branch Liquidation Account Currency Customer Account Mask TD Account Number Customer Account Mask Input By Authorized By Modification Date Time Date Time Number Authorized Open In this screen you can enter the subscriptions for the SD contracts SD Reference Number Select the contract for which you are entering the subscription The system displays the corresponding contract description SD User Reference Number and the product type Subscription Ref Number The system sequentially generates and displays the reference number for each subscription that you enter SD User Reference The system displays the SD User Reference maintained at Structured Deposit Definition screen for the SD Reference Number you selected Description The system defaults a brief description of the SD maintained at Structured Deposit Definition screen for the SD Reference Number you
14. the option Allow Premature Redemption to allow cancellation of SD after launch premature closing individual TDs and individual TD partial liquidation Other Remarks Specify any additional information about the SD A note on Investment Type In Oracle FLEXCUBE the returns from structured deposits will include term deposit interest as well as performance gain or loss All structured deposits can have two kinds of returns e Term Deposit returns e Performance based returns Term Deposit returns is assured returns The term deposit interest will be given to the participating savings accounts by means of setting up TD and corresponding IC products The system will propagate the basic interest rate of return given during the SD fund raising activity to the term deposit accounts Performance based returns or performance gain or loss is booked by means of an external System to the associated customer account The external system will feed the total income for each of the underlying term deposits Subsequently Oracle FLEXCUBE calculates the performance based return as net of the interest computed for the term deposit and distributes amongst the term deposits e ORACLE Remarks Specify any additional information about the SD you can enter it here 3 2 2 Specifying the Interest Calculation Parameters You need to specify the method for calculation of interest on the term deposits In Oracle FLEXCUBE interest is calculated using th
15. this screen by typing SFDNAVIN in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button SD Reference User Reference Date NAV NAV Currency In this screen you need to enter e The SD contract reference for which you want to enter the NAV e The date on which you are feeding the NAV e currency of the NAV e NAV iud ORACLE 4 Screen Glossary 41 Function ID List The following table lists the function id and the function description of the screens covered as part of this User Manual Function ID Function Description SFDCONON Structured Deposit Definition SFDCSSUB Structured Deposit Subscription SFDNAVIN SDNAV Input SFDPRMNT SD Product Definition SFDREPRO Structured Deposit Reprocess SFSCONON Structured Deposit Definition SFSCSSUB Subscription Summary SFSPRMNT SD Product Summary 4 1 ORACLE ORACLE Structured Funds May 2012 Version 12 0 Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores CA 94065 U S A Worldwide Inquiries Phone 1 650 506 7000 Fax 1 650 506 7200 www oracle com financial_services Copyright 2012 Oracle Financial Services Software Limited All rights reserved No part of this work may be reproduced stored in a retrieval system adopted or transmitted in any form or by any m
16. Structured Funds Oracle FLEXCUBE Universal Banking Release 12 0 May 2012 Oracle Part Number E51527 01 ORACLE FINANCIAL SERVICES ORACLE Structured Funds Table of Contents 1 ABOUT THIS MANUAL E P ESTRO Ee 1 2 1 1 INTRODUC ON A A E IRE 1 2 1 1 1 V UITAE EROR EET 1 2 1 1 2 Organization ree Gen rdi vis GS vite ie Pep Geeta wl Eee Yi t Eb ra ice Gites 1 2 1 1 3 Related CO CUINE isses eerte IL cc dns aa ea he ams DM MEI 1 2 1 1 4 Glossary Of ICONS E 1 2 2 CREATING STRUCTURED DEPOSIT PRODUCTS e eere ee eee eee enne etta sese teta esee eene esee ense eren a 2 3 2 1 IswutTe pM GN MSIE OR m 2 3 2 2 MAINTAINING A STRUCTURED DEPOSIT PRODUCT ccccccccccecececececececeeececesceeceeesececeeseeesseesseeeseesseeseseneeeess 2 5 2 3 VIEWING SD PRODUCT SUMMARY eese me ememememenen emen esese ese ese ese ese se ese ases e ese ese se sese s etes e esas e ses es ee 2 7 3 PROCESSING STRUCTURED DEPOSIT 3 8 3 1 INTRODUCTION se Er E EEEE r 3 8 3 2 CAPTURING THE FUND RAISING ACTIVITY DETAILS eeeeee eene eren nn nsns nsns nsns nsns nnus 3 8 3 2 1 Specifying the Structured Deposit Details eese nennen nennen 3 8
17. X X X X X X X X Partially Cancelled X X X X X X X X X X X Launch X X X X X y V x X X X initiated Launched X X X X Xx X X X Partially Launched X X X X X X X X Redemption X X X X X X X X y X initiated Redeemed X X X X X X y X Partially Redeemed X X X X X X X X X X X Closed X X X X X X X X X X X Initiating the Structured Deposit Launch You can launch a structured deposit contract after you receive sufficient subscriptions to raise the necessary fund The Structured Deposit contract can be launched from the branch where the contract was created PM ORACLE 3 6 You can launch SD scheme from the Structured Deposit Definition screen You can invoke this screen by typing SFSCONON in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Invoke the contract that you wish to launch from this Screen Product Code SD Reference la User Reference Contract Status v Authorization Status Launch Date Search Advanced Search Reset LBL auth status Authorized U Unauthorized Contract Status A Active Cancellation Initiated Launch Initiated G Launched Partially Z Cancelled Partially Q Launched K Cancelled Closed M Cancelled Partially N Redeemed D Redeem Initiated Redemption The status of the deposit will be Active and t
18. e interest rules that you define You can define the interest rules to suit the peculiar requirements of your bank The rules are then associated to Interest and Charges products For further information on the Defining Interest Rules and Products refer to the following Oracle FLEXCUBE User Manuals e Interest and Charges e Products Click Interest button to specify the conditions for calculating the interest on the deposits The IC Special Conditions Maintenance screen is displayed interest Account Details Account Class Product Details WAHE oduct Product Generate UDE Change Currency UDE Effective Date UDE Effective Date Reconciled UDE Values UDE Value The features of this screen are as discussed below Account Details Account Class The system defaults the account class from the SD Contract main screen Product Details s ORACLE 3 2 3 Product Code Select the IC product based on which you want the system to calculate the interest The interest accrual and liquidation will happen based on the periodic frequency set for the IC product that you select UDE Currency Based on the IC product that you select the system displays the corresponding currency You are not allowed to modify the currency Generate UDE Change Advice Check this field to indicate advice generation in the events of interest liquidation
19. eans electronic mechanical photographic graphic optic recording or otherwise translated in any language or computer language without the prior written permission of Oracle Financial Services Software Limited Due care has been taken to make this document and accompanying software package as accurate as possible However Oracle Financial Services Software Limited makes no representation or warranties with respect to the contents hereof and shall not be responsible for any loss or damage caused to the user by the direct or indirect use of this document and the accompanying Software System Furthermore Oracle Financial Services Software Limited reserves the right to alter modify or otherwise change in any manner the content hereof without obligation of Oracle Financial Services Software Limited to notify any person of such revision or changes All company and product names are trademarks of the respective companies with which they are associated
20. ference User Reference D Launch Amount Till eposit Amount Date Outstanding Amount NAV Amount Start Date Currency Code End Date Amount Subscribed Per Subscription Start Date Unit Subscription End Date Minimum Launch Date Minimum Launch Subscription End Time Amount CutoffHour 23 Maximum Launch MM FaceValue Deposit Preferences Allow Redemption Account Class Others Remarks Subscription Input By Authorized By Contract Status W Authorized Date Time Date Time The details that need to be maintained at the time of recording each fund raising activity are discussed below Product Code Select the product from the list of products created under Structured Deposits The details of this product get defaulted from the Product screen Product Description A brief description of the SD Product is displayed in this field Product Type Description A brief description of the SD Product Type is displayed in this field Contract Description You can enter a brief description of the contract which will be associated with the contract for information retrieval purposes Structured Deposit Reference Number Specify the SD Reference Number based on the mask maintained in Account Mask Parameters screen at the Branch Parameters level However The system would generate the SD Reference Number if the field Loan Account Auto Generate is checked in Account Mask Parameters screen at t
21. from the savings account is called as Subscription The system will block the customer s savings account for the amount that the customer wants to invest in the structured deposit till the scheme is launched On the successful launch of the scheme the system will release the amount from the savings account and creates term deposits The structured deposit can have two kinds of returns such as the Assured Returns i e Term Deposit returns and the Performance Based Returns i e Performance gain or loss You can book Assured Returns interest to the participating savings accounts by setting up the TD and corresponding IC products The system propagates the basic interest rate of return given during the SD fund raising activity to the term deposit accounts You can book Performance Based Returns by means of an external feed to the associated customer account created for the corpus The performance loss or gain for each of the underlying term deposits is uploaded into the system Subsequently the performance based return is distributed by IC products The following example illustrates the calculation Example Structured Deposit 501 January 1 2007 to March 31 2007 Interest p a 2 oe ORACLE Liquidation of interest and gain loss Month end Subscription Amount TD1 20005 TD2 79995 January February March 500 01 100 01 100 01 Total TD Int Gain Loss Total TD Int
22. he Branch level The SD Reference Number is a combination of the branch code the product code the date on which the contract is booked in Julian format and a running serial number for the booking date The Reference Number consists of a three digit branch code a four character product code a five digit Julian Date and a four digit serial number ORACLE The Julian Date has the following format YYDDD Here YY stands for the last two digits of the year and DDD for the number of day s that has have elapsed in the year SD User Reference Number In addition to Contract Reference Number a unique User Reference Number also identifies a contract By default the Contract Reference Number generated by the system will be taken as the User Reference Number But you have the option to change the User Ref Number However the User Reference Number has to be unique across various modules of Oracle FLEXCUBE Oracle FLEXCUBE also provides you the facility to generate the user reference number in a specific format You can specify a format for the generation of the User Reference Number in the Sequence Generation screen available in the Application Browser Refer to the Core Services User Manual for details on maintaining a sequence format Subscription Amount Till Date Based on the number of subscriptions received the system displays the amount that the bank has raised through the subscriptions The system displays the amount
23. he authorization status as Authorized To launch the contract click on liquidate icon or select the option Liquidate The status of the contract will be set to Launch Initiated Launching of Structured Deposits During Beginning of Day operations the system will run the branch wise SD batch process addition to other batch processes All subscriptions captured for the structured deposit with status as Open or Launch Initiated or Launched Partially and Launch Date less than or equal to the application date and created in the current branch will be processed during the SD batch process During SD Batch processing e The amount block done during subscription will be released and new term deposits will be created in the branch of the associated SD contract e The subscription amount will be the term deposit amount e The charge booking branch and account will be through the new TD account e The interest booking branch and account will be through the customer branch and account of the subscription in case the SD product type is normal In case of DCD type deposits the interest booking branch account will be the liquidation customer branch account given during subscription e Calculation of interest and charges will start from the date of launch Interest and charges will be calculated according to the selected IC product me ORACLE 3 7 e The UDE details for the RATE will be defaulted with the basic interest rate of the SD
24. hen you initiate a reversal of the SD You can initiate a reversal only before the SD is launched Reversed Status when the reversal process results in exceptions Partially Reversed Status when the fund raising has been terminated due to minimum threshold not being met Launch Initiated Status when the launch is initiated Launched Status when the launch process results in exceptions Partially Launched Status when the SD launch has been completed i e Term Deposits have been created during the SD Batch process Cancellation Status when you initiate a closure after launch before maturity incase of Initiated deteriorating performance of the SD Cancelled Status when the cancellation process results in exceptions Partially Cancelled Status when you close a SD after launch and before maturity 3 19 ORACLE SD Status Details Closed Status when the SD runs successfully for the entire tenor and closes on the maturity date The stage wise possible status change is shown below To Status Op Canc Canc Ca Laun Laun La Rede Red Red CI From en ellati elled nc ch ched un mptio eem eem os Status on Partia ell initia Parti ch n ed ed ed initiat Ily ed ted ally ed initiat Parti ed ed ally Open X X X X X X X X Cancellation X X X X X X X X X initiated Cancelled X
25. ing customer s account is displayed Account Name The account name of the subscribing customer is displayed Liquidation Details Liquidation Account On maturity of the SD contract the system will credit the returns into the liquidation account that you specify here s ORACLE Note the following e Ifthe SD product is of type Normal the liquidation account currency should be the same as the SD currency e If the SD product is of type Dual Currency Deposit the liquidation account currency can be different from the SD currency If you do not specify the liquidation account the system will use the customer subscription account for liquidation If you specify a liquidation account which does not belong to the subscription account customer the system displays an override to indicate the same The liquidation account can be of any currency Currency The currency of the liquidation account is displayed Branch The branch of the liquidation account is displayed TD Account Details Customer Account Mask The system displays the format defined for account numbers for the branch TD Account No On successful launching of the SD the system releases the amount block from the savings account and creates a term deposit account for each subscription You need to enter the account number for the term deposit that has to be created for the subscription that you are entering The account number should be in line with the account
26. isting saving accounts Once the customers confirm the amount that they wish to invest in the structured deposit you need to record it in the system as a contract The system will block that amount in their savings account Once the bank receives the necessary amount through various subscriptions it can launch the SD scheme Consequently all the subscriptions that the bank had entered into will also be launched The system will release the amount from their savings account and creates term deposits The Structured Deposit details are maintained as Contract Details in the SD Definition screen The contract details basically will include all the properties for the SD like interest currency maturity date SD End Date After you enter and save the SD contracts your bank can accept subscriptions for the contracts Effectively subscription is the way in which the bank raises the money for any SD These details are maintained as Subscription details 3 2 1 Specifying the Structured Deposit Details The SD contracts are maintained in the Structured Deposit Definition screen You can invoke this screen by typing SFDCONON in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button The Structured Deposit Definition screen is displayed me ORACLE Structured Deposit Definition New 8 Enter Query Product Code Description Product Type Description Contract Description SD Re
27. nnot be marked as closed Under such circumstances the status of the contract will be updated to Closed Partially Handling Exceptions for Structured Deposits During SD batch process the system might encounter errors while processing certain structured deposits For example the system might not be able release the amount block during the launch of a SD The system will handle such circumstances as Exception Handling In Oracle FLEXCUBE you can reprocess the structured deposit contracts that failed earlier This is done in the Structured Deposit Reprocess screen You can invoke this screen by typing SFDREPRO in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Pm ORACLE Select the option Reprocess under Structured Deposits menu item in the Application Browser Reprocess SD Reference Contract Description SD Reference Number Status You can reprocess the SD s with the following statuses e Launched Partially e Reversed Partially e Cancelled Partially Select the SD contract that you wish to reprocess and click Reprocess button im ORACLE 3 10 Feeding Net Asset Values As mentioned earlier you need to maintain the Net Asset Values NAV after the SD contracts are launched You need to enter the NAV for the SD contracts that you have launched in Oracle FLEXCUBE The NAV s are captured in the SD NAV Input screen You can invoke
28. nual 1 1 4 Glossary of Icons Exit ORACLE Delete row Option List 2 Creating Structured Deposit Products 2 1 Introduction Structured Deposits enable customers to invest in instruments linked to difference asset classes such as interest rates equities commodities foreign exchange and credit without directly investing in the underlying assets Structured Deposits gives an opportunity to the customers to earn higher returns than in a regular savings account The returns from structured deposits are potentially higher than a plain vanilla deposit However the returns are not assured as it depends on the performance of the underlying assets Oracle FLEXCUBE facilitates the processing of structured deposits Your bank can raise funds and offer structured deposits for a specific period with a pre determined amount The bank will decide on the fund raising amount for launching a structured deposit scheme and invites customers to invest in the scheme The system will allow you to offer the facility of investing in structured deposit scheme for a certain period of time After the end date if the bank successfully receives the fund raising amount required to offer the structured deposit scheme it can launch the scheme Consequently the system creates term deposits for each contribution The bank can raise funds from any of the savings account held in the fund raising currency The process of raising funds by utilizing the amount
29. of the contract will be set to Cancellation Initiated You have to unlock and enter the pre closure date from the Structured Deposit Definition screen to redeem the SD after launch before maturity and the REVERSE operation in the toolbar is disabled The SD BOD Batch will pre redeem all the TD s under the SD s for the current branch which are in the status as Redemption initiated or Redeemed Partially on the pre closure date During SD batch processing for all deposits with the status Redemption Initiated or Redeemed Partially the amount block done during the subscription on the customer account will be released Incase of any exceptions the SD contract will be reversed partially P ORACLE 3 7 1 Cancelling Structured Deposits You can cancel structured deposit contracts that have been launched but to mature You can cancel a structured deposit contract through the Structured Deposit Definition screen Invoke the contract that you wish to cancel The Structured Deposit Definition screen is given below Structured Deposit Definition New 3 Enter Query Product Code Contract Description Deposit Amount NAV Contract Dates Start Date End Date Subscription Start Date Subscription End Date Launch Date Subscription End Time CutoffHour 23 MM Description SD Reference Launch Amount Till Date Amount Currency Code Amount Subscribed Per Unit Minimum Subscription mount
30. red Deposit s ORACLE 23 Viewing SD Product Summary You can search for the SD Products in the SD Product Summary screen You can invoke this screen by typing SFSPRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Summary Authorization Status 2 Record Status Product Code Product Group e SD Start Date Description Product Type SD End Date earn Avance searen Reset pu ttm Authorization Status Record Status Product Coc cription Product Group Product 50 Start Date SD End Date Authorization Status A Authorized U Unauthorized Record Status C Closed O Open In this screen you can filter the search based on the following criteria e Authorization Status e Product Code e Product Group e Start Date e Record Status e Description e Product Type e End Date In case you do not specify the End Date the system considers the product you filter as open ended d ORACLE 3 Processing Structured Deposit Contracts 3 1 Introduction Once you have set up Structured Deposits SD products you will be able to capture the details pertaining to every fund raising activity These are maintained as SD contracts in Oracle FLEXCUBE 3 2 Capturing the Fund Raising Activity Details As mentioned earlier for every fund raising activity your bank can accept funds from ex
31. reen You can invoke this screen by typing SFDPRMNT in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button Main Screen ProductCode Product Group Description Product Group Description Slogan f SD Start Date Remarks SD End Date 22 Product Type Normal Deposits v Input By Authorized By Modification Date Time Date Time Number Authorized Open For any product you create in FLEXCUBE you can define the generic attributes Consequently the contracts associated with the product will inherit the attributes defined for the product Product Code The code you assign to a product will identify the product throughout the module The code should contain four alohanumeric characters You can follow your own convention for devising the code Since the code that you define is used to identify the product it should be unique across the modules of FLEXCUBE For instance if you have assigned the code 5001 to a particular product in this module you cannot use it as a code in any other module Product Description You can enter a brief description of the product which will be associated with the product for information retrieval purposes Slogan You can specify a marketing punch line to be associated with the product This slogan will be printed on all the advices that are sent to the customer for an SD involving this product ORACLE
32. ry time you modify the end date of the contract Subscription Start Date This is the date from which the bank starts the fund raising activity to float the structured deposit scheme The customers can start subscribing for the SD scheme from this date The subscription start date should necessarily be within the SD Start and End date Subscription End Date This is the date by which the bank has to raise the money for floating the SD scheme The customers can subscribe till this date Launch Date The bank will launch the structured deposit scheme on the launch date The bank can also launch the contracts manually if the necessary funds are raised through various subscriptions On launching the contract manually the launch Date will be the Next Working Date of the Branch On the day of launching the system will convert all amount blocks into term deposits If you do not specify the launch date the system will default the launch date as the next working date after the subscription end date Subscription End Time In addition to the end date for subscription the bank can also specify the cut off time for the last day of the subscription till subscriptions are accepted for the SD scheme Amount You need to specify the following amount details for the contract Currency Code You need to indicate the currency of the SD contract Amount Subscribed Per Unit You need to enter the amount for each subscription unit For example let us
33. t be released e the term deposit account cannot be created Redeeming Structured Deposits If the bank is not successful in raising the necessary funds for starting the SD scheme the bank can reverse redeem the SD contract after it is launched In other words if the total subscription amount is lesser than the minimum threshold amount and the date is greater than the subscription date you will need to reverse the SD contract You can reverse a structured deposit contract through the Structured Deposit Definition screen Invoke the contract that you wish to reverse 5 ORACLE Structured Deposit Definition New 19 Enter Query IET Product Code Description Product Type Description Contract Description SD Reference User Reference Launch Amount Till Deposit Amount Date Outstanding Amount NAV Amount Start Date Currency Code End Date Amount Subscribed Per Subscription Start Date Unit Subscription End Date Minimum Subscription Amount Launch Date Minimum Launch Subscription End Time Amount CutoffHour 23 Maximum Launch MM FaceValue Ne Deposit Preferences Allow Redemption Account Class Others Remarks Subscription Input By Authorized By Contract Status Wi Authorized Date Time Date Time The status of the deposit will be Active and the authorization status as Authorized To reverse the contract click reverse icon or select the option Reverse The status
34. tatus Details Redeemed Partially In case the reversal process in the BOD results in exception Redeemed When the SD has been closed after launch before maturity e The pre closure date cannot be entered if the SD contract is open e The pre closure date should be allowed to be amended if the SD contract is launched e status changes to Redemption initiated after entering pre closure date if the user has authorized the transaction e pre closure date can be amended by the user till one day before the pre closure The new pre closure date should always be greater than the application date On cancellation during the EOD operations the premature redemption of the term deposits will occur The principal liquidation branch account of the TD will be used in case of normal deposits In case of dual currency deposits the principal will be liquidated into the liquidation account The status of the contract will be set to Cancelled Incase of exceptions where in the term deposits cannot be closed the status will be set to Cancelled Partially Closing Structured Deposits If all the term deposits are closed after the tenor of the structured deposit the status of the SD contract will be updated to Closed during EOD operations The status will be updated to closed for the SD contracts whose application date is greater than or equal to the SD end date If the term deposits have not matured the SD ca
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