Introduction to Customer Deposits

In order to better manage Customer Deposits, the bank is offered the needed functionalities that are required during the contract’s opening.

Depending on the branch volume and at the discretion of head office, a branch may be provided with either:

• A Partial Fulfilment where the branch officer inputs the deposit creation contract and the branch superior authorizes it. In this way the customer account is debited immediately and the deposit is created.
• A Complete Fulfilment where the branch officer inputs the deposit creation contract. This will be in the unauthorized stage and will be sent to the back office for authorization. The back office employee, verifies and authorizes the contract.

The below functionalities and setups are included to better serve the banks in managing their Customer Deposits.

1. A setup to control the minimum and maximum tenor for deposits.
   1. If the user tries to input a tenor outside this range, an error will be displayed.
2. A setup to define the maximum and minimum amounts allowed per currency.
   1. If the deposit is greater than the maximum amount defined, an override message will be generated.
   2. If the deposit is less than the minimum amount defined, an error message will be generated.
3. An error will be raised during deposit creation in case there are posting restrictions imposed on customer, accounts, drawdown and liquidations accounts.
4. A special rate from the treasury department can be applied manually, if the deposit amount is more than the parameterized threshold value.
   1. The treasury reference number and the dealer can be made mandatory.
5. A report is available to list the deposits with special rates.
6. Provisions are provided to book back value dates deposit as start date with an override and to capture a reason during its creation.
7. During roll-over, the user has the option to capture the principal increase (if any).
8. During creation, deposits can be collateralized, and the needed details can be captured including the amount.
9. Holiday setup can be parameterized in such a way where:
   1. If the maturity date falls on a holiday, then the maturity date is moved to the next working day automatically.
   2. An override is generated stating that the maturity date is a holiday.
10. Below functionalities are applicable to the liquidation accounts:
    1. As part of the Customer Deposit cycle, the principal and interest liquidation accounts belong to the same customer.
       1. An error is generated in case otherwise.
    2. The principal and interest liquidation accounts are defaulted from the debit account (drawdown account).
    3. Both accounts can be changed, but should belong to the same client.
11. Amendment can be done such as increase principal, extend tenure, and amend the collateral details.
12. An enquiry is available for the deposits booked branch wise and region wise.
13. Report is available for the deposits that are pre-closed before maturity.
14. For the cases of Partial Withdrawals and Pre-Closures, the system allows to:
    1. Set up restrictions by placing maximum and minimum withdrawal percentage.
    2. Setup maximum time restrictions on partial withdrawal.
    3. Define Charges/Penalties to be recorded upon withdrawal.
    4. Waive the Penalty charges, if required.
15. When it comes to Staff deposits, certain privileges and restrictions can be defined, including.
    1. Applicable currencies i.e. SAR and USD.
    2. The maximum and minimum deposits allowed.
       1. An error will be generated in case the deposit created is less than the minimum deposit defined
       2. No preferential rates are allowed for surplus amounts
    3. Preferential rates of interest for their deposits
    4. The tenures allowed
       1. An error will be generated in case the tenure to be set is greater than the parameterized value
    5. Apply normal interest rates in case of pre-closure of the staff deposits
       1. Will be credited to the staff along with principal
    6. A report is generated to list all the staff deposits