Finacle Training Lesson 17 - RD Account Closure
We heard some good news and also some bad news about finacle. Good news
is that HTV is working for BO RD deposits as well. Well at least some
time will be saved. The bad news is that, recent fraudulent activities
have compelled our authorities to impose some restrictions at sub
offices. They have give us a list of steps to be followed to prevent
frauds.
Click below links to read the full details about steps to prevent frauds.
Some important points to be noted are
1. All freezing and unfreezing has to be done at HO only
2. All transfers are to be done at HO only. SOs will collect all the
required documents along with KYC documents. Then they will forward them
to HO for transfers.
3. All value dated transactions whose back value date is more than 3 days will be thoroughly checked by the auditors.
This will also ease some burden on SOs. We hope these measures will give some good results. Share your opinions by commenting.
Now lets get back to our lessons. We have stopped after learning about
how to close MIS/TD/SCSS accounts. Now let's see how RD closure is done.
RD Account Closure:
There are several cases in RD account closure. Though the closure itself
is easy, the procedure is a little different for some cases. The cases
are as follows.
1. RD Account closure on Maturity.
2. RD Account premature closure.
3. RD account closure on maturity with loan.
4. RD account premature closure with loan.
5. RD account closure when an SI exists.
Now let us see each case one by one.
1.. RD Account closure on Maturity.
This is pretty straight forward. The menu for any RD closure is CRDCAAC.
So, invoke the menu and you will see a screen as shown in the figure
below.
In the above screen, choose function code as Z-Close. Then enter the a/c
id and click on Go. Other fields are not necessary. After Clicking on
the Go button you will get the screen as shown below.
1. In this screen before doing anything, first click on the check box as shown in the above image.
2. After clicking the check box, enter closure reason code as the case
may be. For most of the closures, the closure reason code will be NORMAL
CLOSURE - NORML only. In case of claims the closure reason code will be
DTCLM - DEATH CLAIM. So choose the appropriate closure reason code.
3. Then enter repayment mode as CASH or TRANSFER as the case may be. If
you are transferring the closure proceeds to SB account of the customer,
then enter the customer SB account no in Repayment A/c ID. If you are
making payment by RBI cheque then enter the repayment account id as your
SOL ID+0340 ( Office Repayment account or postmaster account).
That's all click on Submit button. After clicking the submit button you will get a screen as shown below.
Finacle will show the full maturity value as one entry and interest as
one entry. So DO NOT ADD interest again to the first entry shown in this
screen.
Note : If you want to cancel the closure in any case, you can cancel the
closure in CPA login only. If you are cancelling the closure in
Supervisor login, system is not allowing to close the account and
problem is not yet resolved.So keep this point in mind.
2. RD Account premature closure.
Follow the same steps in RD account closure on maturity. The procedure is same but there is one point you should remember.
In the last step of closure where the closure values are shown on
screen, refund of default fee, if any, is shown as a separate entry.
This amount is not included in the closure amount, so add this amount to
the closure value.
Hope you got my point.
3. RD account closure on maturity with loan.
If a customer takes withdrawal or what we generally call as RD loan,
then before closing the RD account customer must repay the loan amount
with interest. Only after paying the loan amount system will allow the
closure of RD account.
Previously in sanchaypost, system would have shown the net value after
deducting the loan amount and interest. But in Finacle loans are
processed differently. We have to open a new loan account for giving
loan withdrawal to customer. So close the RD account with loan, we have
to close this loan account first. Hope you are following what I'm trying
to say.
Before we close the loan account, we have to make the repayment of loan using the menu HPAYOFF.
Invoke the menu HPAYOFF and you will get the screen as shown below.
1. Choose function as P- Payoff Loan amt.
2. Enter A/c id ( RD loan account number will be 11 digits {RD ac no+1 eg. 30189252731}
3. Select Transaction Type as C/Cr - Cash Receipt if customer is paying
off loan amount by cash, or Select Transaction Type as T/CI - Transfer
Customer Induced if customer is paying off loan amount by SB cheque.
Its better not to accept bank cheques for paying off loan amounts.
Because interest will change after 10th of every month. So to avoid such
confusions better not accept bank cheques.
4. Click on GO.
After clicking on GO You will get a new screen. In the screen you will see the pending loan amount and interest.
- Click on CREATE TRANSACTION button. System will show loan amount along with interest amount.
Click on Submit.
5. Verify using the same menu.
After doing the payoff transaction we have to close the loan account. To close the loan account invoke the menu CAACLA and follow the below steps.
1. Choose function as close.
2. Enter RD loan account id.
3. Click on GO
4. Click on SUBMIT.
That's it. Then verify using the same menu.
This is how we close RD loan accounts. Only after the closure of loan account, actual RD account can be closed.
After closing the loan account, you can follow the steps in RD Closure on maturity to continue closing of RD account.
Most of the times customers do not make loan amount payment, but the
request us to deduct the loan amount from closure proceeds itself.
Finacle will not deduct loan amount from actual RD account closure
proceeds.
In this situation what we have to do is, make the PAYOFF transaction by
choosing transaction type as Cash Receipt and close the loan account.
Later while closing the actual RD account, make payment either by cash
or by transferring closure proceeds to SB account only. Don't give RBI
cheque in this case. If you are making payment by cash, deduct the loan
amount along with interest and make payment. If you are transferring
closure proceeds to SB account of the customer, then don't forget to
collect withdrawal voucher for loan amount plus interest from the
customer beforehand. After transferring the closure proceeds to SB
account of the customer, make the withdrawal for loan amount from SB
account of the customer.
I hope you got my point.
4. RD account premature closure with loan.
Follow the same steps in RD account closure on maturity in this case
also. For premature closure of account with loan, system will deduct the
loan amount and shown the balance amount on screen. Also remember if
any RDF is due it should be added to the closure amount.
In case of premature closure of RD, loan withdrawal is treated as normal
SB withdrawal and hence no loan interest. Hope you got my point.
5. RD account closure when an SI exists.
If SI exists for RD finacle will not allow closure of such accounts.
What we have to do is first delete the SI. To delete the SI follow the
below steps.
1. Invoke the menu HSSIM
2. Choose the function as Delete
3. Enter SI Srl No ( if you don't know the SI no click on the searcher
beside it and enter rd account number and click on submit. You will get
SI no. Note it down and click on it.
4. Click on GO
5. Click on Submit.
Verify using the same menu.
In case if there are multiple accounts of RD in single SI, then don't
delete the SI. Modify the SI and remove the RD account which you are
closing.
After deleting or modifying the SI as the case may be, just follow the
closure steps in RD closure on maturity and close the account.
So these are the various cases in RD account closures.
