Finacle slt

FINACLE

Student Guide

©IFBI 2/36

Trademark Acknowledgements

All products are registered trademarks of their respective organizations. All software is used for educational purposes only.

IFBI/DGV Finacle/Version 1.0 Copyright ©IFBI. All rights reserved.

No part of this publication may be reproduced, stored in retrieval

system or transmitted in any form, or by any means, electronic,

mechanical, photocopying, recording or otherwise, without the

prior written permission of the publisher.

©IFBI 3/36

Lessons:

1) Overview of Finacle, Creation of Customer ID and Opening of Savings Account

2) Modifications and Joint Accounts

3) Inventory Management – Movement, Issue of Cheque Book and Cheque Book

Inquiries

4) Introduction to Transactions, Cash Accounts, Cash transactions – Receipt and

Payment

5) Transfer Transactions, Transaction inquiries, Account Balance Inquiries

6) Opening of Term Deposit Account

7) Issue of DD and PO, Payment of DD, DDSM, DD Cancellation, DD Duplicate issue

and Inquiries

8) Interest Table Maintenance, Stop Payment, Account Lien Maintenance, Account

Freeze

9) Clearing Operations

10) Standing Instructions recording

11) Cash Closing, Scroll Generation, Audit File Inquiry, Financial Transaction Inquiry

©IFBI 4/36

1. Overview of Finacle, Customer ID Creation and SB Account Opening

Unique features of Finacle software

Finacle, a banking solution by M/s. Infosys, has enabled many banks to achieve competitive advantage by enabling rapid roll out of new products, faster customer service and reduction in time to market those products. It is highly flexible and scalable banking software. Finacle has been deployed for the core banking activities including retail, corporate and branch banking solutions.

Platform

Finacle runs on UNIX operating system as UNIX is the most common platform across the centralised, mission-critical applications. Finacle uses Oracle as the backend RDBMS (Relational Database Management System) engine.

Customer Centric

It is a customer centric software and not account centric, that gives complete profile of customers. At any point of time the bank can have a single unified view of all the accounts of a customer. Every customer has a unique Customer Identification Number, which allows the bank to have a snapshot of information of all the accounts of the customer across the bank.

Multi-lingual Support

It provides multi-lingual support. In addition, it provides the workflow engine that can be used by the bank to write workflow scripts to map their business processes

Tools and Utilities

Finacle provides various tools and utilities, such as content sensitive help, information on inventory status, memo pad (kind of post-it), letter generator (similar to mail-merge feature of Microsoft Word), and audit trial.

Global Package Finacle is a global package that provides maintenance of accounts and transactions in multi-currency.

Multi-level security

It provides multi-level security, i.e., security at operation system level, database level, and application level.

Some Common Terms:

Part Tran Part of a transaction

SOL and SOL ID Service Outlet and Service Outlet ID

UPM User Profile Maintenance

Work Class Used for posting and verification of records and defined in varying numbers. Three digit number used for controlling menu access

Scheme Types Defined under Finacle, which are hard coded. There are (SBA, CAA, TDA, CCA, ODA, LAA, FBA, PCA, BIA, OAB, OAP, OSP, DDA).

Scheme Codes

Various Scheme Codes can be defined under Scheme Types. These are product codes. For Example, and SB101 is a Scheme Code that may be defined under the scheme type SBA by individual banks.

©IFBI 5/36

Some important Keys

Function Keys Purpose

F1 Help

F2 Provides a list of items for selection.

Esc Quit/Exit

F4 Accept Key and also takes the user to the mandatory fields after validation.

F5 Background Menu ( including print option)

F6 Next page, retaining the values entered/ modified while adding or modifying

records.

F9 Signature display for verification.

F10 Commit or save a record

F11 Takes the user to next field after validating the previous mandatory fields

F12 Previous page

Ctrl + D Page down within a list

Ctrl + U Page up within a list

Ctrl + E Explode details

Ctrl + X Default values related to the field is populated. For eg Max amount in amount

column and Current Date in the date field.

Down Arrow Takes the user to the next record or item

Up Arrow Takes the user to the previous record or item

Ctrl + F Clear field

Ctrl + F9 Memo pad look up

Ctrl + T Who am I

Shift + F4 Selection of an item from the list displayed by pressing F 2

Shift + F11 Transmit

Enter, Tab Keys are used to move to the next field without validation Important : Under Web Mode navigation is through function keys.

Customer Master Creation The customer master created through CUMM Menu Option has many uses:

It captures various information about the customer such as customer type, status, group and occupation through which various MIS reports are generated.

Captures different addresses of the customer Stores free codes for selection of other MIS details Captures customer balance sheet details Provides TDS details of the customer including last submission and if exempted the

exempted reference. Stores additional information such as details of minor, trade finance and NRE

customers. Under One customer ID a customer can have many number of accounts across the Bank. Hence a customer becomes customer of the Bank.

©IFBI 6/36

Searching for an existing customer ID

Before creating a Customer ID, we have to ascertain whether the person who wants to open an account is already an existing customer of the Bank or not.

For searching whether a customer has accounts with the Bank the menu option to be used is CUS.

Which Displays Screen containing various Fields which are used as Filters

Customer records are displayed based on the Filters provided

For Example, Enter values in Cust. Short Name Field

Click on SUBMIT

List of all the customers with the specified ‘Cust.ShortName’ is displayed

Creating Customer Master

Type CUMM in the Menu Option, Press Enter Key Type A – ADD in the Function Text Box Press F4 Various Mandatory Details required are

General Details

Currency Details

General Details

Field Description and Action

Customer Name

Has two fields

First Field is Known as ‘Title’

Select the appropriate Title using F2

Type the Customer Name in Full in the 2nd

Field

Short Name First 4 or 5 letters in the Customer Name

Staff Check if the customer is a staff of the Bank

Minor Check is the customer is a Minor

Date of Birth Enter Date of Birth

Non Resident Check if the customer is a Non Resident

Address Type

Select from the drop down list

C – Communication Address

P – Permanent Address

E – Employer Address

It is desirable to select C so that the address is printed in the

communications like statement of account, advice, etc.,

Address Enter the address of the customer

City Select/Enter

State Select/Enter

Postal Code Enter

Country Select/Enter

Introducer Details Enter either the Customer ID or the Name of the introducer

Tax Slab For Individuals Enter/Select TDS02

For Firms and corporate Enter/Select TDS03

©IFBI 7/36

After entering General Details Press F4. Now the cursor is in Option Text Box. Type ‘E’ and press F4. Now enter the Currency Details.

Type/Select ‘INR’ in CCY Text Box. Type CTRL + E. Type 0 in Customer Preferential Interest rates both credit and debit

Press F4 Press F10. Customer ID is generated note the same in the Account Opening Form. This has to be verified by an officer.

Opening of Savings Account

Type OAAC in the Menu Option, Press Enter Key Enter customer ID in Cust.ID Field and press F4. Press F2 in the Scheme Code

Field. Scheme List window opens. Enter SBA in Scheme Type Field and press F4. Mark the appropriate scheme code using navigational keys. Press SHIFT + F4 to

populate the selected value to Scheme Code Field General Account Details screen appears. Enter/Select details


Location Code Enter/Select

Used for Minimum Balance Limit

Mode of Operation Enter/Select

Statement/Pass Book Select or Enter appropriate details

Int. Cr. A/c Flag Select ‘S’ – Original Account

Int. Dr. A/c Flag Select ‘S’ – Original Account

Scheme Details

(IF you enter ‘Y’ in Availing Nomination Facility Flag then Nomination Details tab has to be entered) Press F10 Temporary Account ID is generated. Should be noted in the Account Opening Form.

System will Generate permanent Account ID on verification, using the menu option OAACAU and the function is ‘V’.

©IFBI 8/36

2. Modifications – Customer ID and Account, Joint Accounts

Modifications in Customer Details.

Suppose customer submits Form 15H to get TDS exemption and requests the branch to make suitable modifications

Type CUMM in the Menu Option, Press Enter Key

Type M – MODIFY in the Function text box and press F4

Type Customer-ID in CUST-ID Field

press F4

General Details Enter Current Financial year end date in the TDS Exempt. End Date Field

Enter Form 15H submission date in the TDS Exempt. Submission Date

Enter Form 15H submitted in the TDS Remarks Field

Press F10

The modification has to be verified by an officer using CUMM menu option under the Function ‘V’.

Modifications in Accounts Details.

Suppose customer wants to avail Nomination facility for the SB account. He has not availed the same at the time of opening.

Type ACM in the Menu Option, Press Enter Key

Select M – MODIFY from the Function

Type Account Number in A/c ID Field

Press F4

Type ‘S’ in option text box and press F4.

Enter ‘Y’ in Availing Nomination Facility Flag and press F4

Type ‘N’ in option text box and press F4.

Enter Nomination Details


Nominee’s Name Enter the name of the nominee

Registration Number Registration number maintained by the Branch

Relationship Enter/Select

Address Enter

City Enter/Select

State Enter/Select

Postal Code Enter

Country Enter/Select

If Nominee is a minor, Guardian Details have to be entered

Press F4 and F10

The modification has to be verified by an officer using ACM menu option under the Function ‘V’.

©IFBI 9/36

Joint Accounts.

Suppose two individuals want to open a SB joint account. The steps involved in the process are:

Create Customer IDs using CUMM menu option for all the individuals

The first person in the account is known as the primary account holder and the 2nd

person is known as joint holder.

Open SB account using the menu option OAAC using the primary account holder

customer ID

In addition to entering General Details, and Scheme Details, Related Party Details

has to be entered

Related Party Details

It will contain the record of the Main account holder.

Press Down arrow for the next record

Select/Enter the Relation Type (example Joint Holder)

Select/Enter the Relation Code

Enter the Customer ID of the 2nd person in the Cust.ID Field

Press F4

Press F10

Customer IDs and Account Number Generated in the above process have to be noted down in the Account opening form and handed over to the officer for verification.

©IFBI 10/36

3. Inventory Management – Movement, Issue of Cheque Book and Cheque Book Inquiries

Inventories are controlled through various Finacle options. Branch on receipt of inventory from Central Team, should verify physical count and ensure that it agrees with delivery challan. Then these inventories are entered in Finacle for movement, control and maintenance of such inventories.

The types of Inventories used in branches are as follows:

SB Cheque Books (CHQ)

CA Cheque Books (CHQ)

Demand Draft (DD)

Deposit Receipt (TDR)

Traveler’s Cheques (TC)

The inventories received in bulk will be stored under double lock safe, and under the joint custody of two officials.

Any inventory received at a branch or from other branches, needs to be entered in Finacle at a location called Location Class ZZ with a Location code EXT. From here, it needs to be moved to branch location class DL with a location code DL. From this location, it is moved to an Employee location for their day-to-day usage. This will be under the employee’s custody of individual lock and key. If the inventory is torn or misprinted, then these inventories are moved to DL/DL (Destroyed Inventory).

All these movements need to be authorised by at least two employees (double check), and for movement to employee’s location it requires employees’ acceptance and in the system, the employee is required to confirm his acceptance by entering his password.

Inventory like Cheque Book (SB, CA), DD, TDR are issued to respective CTOs for issuing to the customers. Entries are made in the inventory movement register and signed by two custodians and the concerned CTO. The same activity is done in Finacle using the menu option IMC.

Let us see how to acknowledge the inventory by a CTO.

Type IMC in the Menu Option text box

Type V in the Function text box

Enter Inventory Tran No, and press F4

Press F4

Enter your password against your user ID

Press F10

©IFBI 11/36

The inventory (Cheque Books) are received physically in the form of books, whereas in Finacle it is received as number of leaves. Now leaves have to be converted into books.

Type ISIA in the menu option

Type S in the Function text box and Press F4

Select/Enter Inventory Class/Type and press F4

List of inventory available in your location is shown

Select the inventory to be split using SHIFT + F4

Type No.of leaves in each book in Items per Unit

Type No.of books in No.of Units and Press F10

Issue of Cheque book

Suppose a customer request a cheque book. The process of issuing a cheque book.

Type ICHB in Menu Option

Type I in Function, Press F4

Type Account-ID in A/c Id, Press F4

Type ‘Y’ in Cheque Book Ack.Obtained, Press F4

Press F2 and select the type of cheque in Chq.Type and Press F4

System displays the list of available cheque books in the employee Location

Select Cheque book to be issued by pressing Shift+F4

Press F10

This has to be verified by another Officer using the menu option ICHBAU or ICHB

Cheque books are issued to a customer using ICHB Menu Option. Further activities involving the cheques of a customer are carried out through CHBM Menu Option.

The following activities are done through CHBM Menu Option.

1. Inquire about the status of Cheque/s of an account

2. Record acknowledgement of receipt of a cheque book by the customer in an

account

3. Mark “Caution” for cheque/s of an account

4. Mark “Destroy” for cheque/s of an account at the time closure

5. Undo Caution for cheque/s of an account marked “Caution”

6. Activities 2 to 5 require verification.

7. Verification of the activities are done through CHBMAU Menu Option

Note : If the Chquebook Ack. Obtained? Filed value is N, the system will throw an exception when a cheque from that Cheque Book is processed. The acknowlegement can be recorded in the system through CHBM Menu Option.

©IFBI 12/36

To enquire list of cheque books issued to an account:

Type CHBM in Menu Option, Press ENTER key

Type I-INQUIRE in Function Press F4

Type Account ID in A/c ID Press F4

System displays the list of Cheque Books issued to the account along with status

Type CTRL + E to explode

System displays status of individual cheque leaves

To enquire Account Number for a Cheque

1. Type INQACHQ in Menu Option, Press ENTER key

2. Type Cheque No in Chq.No , Press ENTER key

3. Type Sol.Id in SOL.ID , Press F4

4. System displays the list of accounts to whom Cheques bearing the particular no. have

been issued

©IFBI 13/36

Practice Questions 1:

1. To fill BOD the short cut key is

a. CTRL + E

b. CTRL + D

c. SHIFT + F4

d. CTRL + X

2. The menu option used for searching of a customer details who wants open a new

account is

a. CUMM

b. OAAC

c. CUS

d. ACM

3. Modification in a SB account can be carried out using

a. CUMM

b. OAAC

c. ACM

d. CUS

4. Cash Teller accounts are

a. Personal accounts of the tellers

b. Created for tellers for handling Cash transactions

c. Amount can be transferred from account to these accounts using TM menu

option with subtype T/CI

d. These accounts are assigned to customers

5. The menu option for inquiring an account using cheque no is

a. ICHB

b. CHBM

c. INQACHQ

d. None

©IFBI 14/36

4. Transactions, Cash Accounts, Cash transactions – Receipt and Payment Transactions in banking can be broadly classified into three types i.e. Cash, Clearing and Transfer. Transactions in Finacle can be normally in any one of the following statuses:

E - Entered P - Posted V - Verified

Entered Status:

Account balance is not updated Transaction can be modified or deleted Fields other than Account ID can be modified

Posted Status:

Account balance gets updated In case of credit transaction, funds are available to the customer Transaction can not be modified or deleted Transaction wrongly posted can only be reversed

Verified Status:

Account balance gets updated if not already updated Transaction can not be modified or deleted Transaction wrongly posted can only be reversed

All the transactions should be verified before EOD

Part Tran

A transaction should have Debit and Credit parts A Debit or a Credit part of a transaction is known as part tran

Balanced Transaction:

Sum total of all debits tallies with sum total of all credits The transaction is known as balanced transaction

Unbalanced Transaction:

Sum total of all debits does not tally with sum total of all credits The transaction is known as unbalanced transaction

All transactions should be balanced before EOD

©IFBI 15/36

Maker – Checker in a transaction In any transaction two persons are involved

Enterer - Maker Verifier - Checker Entered person cannot verify the transaction entered by him/her Verification means ascertaining correctness of the transaction entered and recording

the same in the system

Case 1

One person creates a transaction in ENTERED status. Another person POSTS the transaction The transaction is VERFIED in the system

Case 2

One person creates a transaction in POSTED status Another person VERIFIES the transaction The transaction is VERIFIED in the system

A transaction can be entered by any person. A transaction can be directly posted by a person if the transaction is within his/her passing powers. In a transaction, if the debit part tran is not posted, the system will not allow the user to post the credit part tran.

Cash Opening and Cash Transactions

Cash is taken out from the vault, in the morning and distributed to the Cashiers/Tellers. Again, in the evening the cash is tallied and kept in the vault. In doing such transactions, there are some prescribed procedures in Finacle and the flow of such transactions is as follows:

Open cash transactions Transfer of cash from Vault to Head Cashier at the beginning of day Transfer of cash from Head Cashier to Tellers during day Receive cash during day’s transactions Make cash payments during day’s transactions Transfer of cash from Tellers to Head Cashier at the end of day Transfer of cash from Head Cashier to Vault at the end of day

Some of the important points related to activities at the branch in Finacle are:

The balance in the account ID <CASH IN HAND> A/c reflects the Cash balance of the branch

Head Cashiers are assigned the cash account IDs <CASH MAIN A/C> Tellers are assigned the cash account IDs such as TELLER 01 onwards

©IFBI 16/36

Cash Movement from Vault to Head Cashier before start of business hours

Type TM in Menu Option and press Enter Key Type A in Function and press F4 Type C in Type and CT in Subtype and press F4

Enter/Select ‘Cash Main A/c’ in the A/c ID Field Type the amount of cash taken out in Amount Field Type D in the Type of Part Transaction Fill in the particulars Field Press F4

A next part tran screen is enabled

Enter CASH IN HAND A/c in the A/c ID Field Type the amount of cash taken out in Amount Field Type C in the Type of Part Transaction Fill in the particulars Field Press F4 Press F10

Tran ID is created. The transaction has to be verified by the other custodian using the TM menu option under the function ‘V’. Cash Movement from Head Cashier to Teller

The process for movement of cash from Head Cashier to a Teller is same as that of cash movement from Vault to Head Cashier. The account IDs used are CASH MAIN A/c (Head Cashier) and TELLER<NO> A/c

Cash Receipts

Creation by CTO (Upto Rs. Passing Powers)

Type TM in Menu Option and press Enter Key Type A in Function and Press F4 Type C in Type and NR in Subtype and press F4

Type Account ID in the A/c ID and press F4 Type amount of cash received in Amount and press F4 C is displayed in the Type of Part Transaction Debit Part Tran (Cash Part Tran) is automatically created by the system Remove E from Specify Option Type P in Specify Option Press F4 Press Down arrow to go to the 2nd part tran Press F4 and F10

Transaction ID is generated

Note down the transaction ID

©IFBI 17/36

This has to be verified by another officer Creation by CTO (Above Passing Power)

Type TM in Menu Option and press Enter Key

Type A in Function and Press F4

Type C in Type and NR in Subtype and press F4

Type Account ID in the A/c ID and press F4

Type amount of cash received in Amount and press F4

C is displayed in the Type of Part Transaction

Debit Part Tran (Cash Part Tran) is automatically created by the system

Press down arrow to go to the 2nd part tran

Remove E from Specify Option

Type P in Specify Option

Press F4 and F10

Transaction ID is generated Note down the transaction ID This has to be verified by another officer Cash Payments

The Menu option to be used is TM.

Type/Subtype is C/NP.

Inputs are Account ID, Amount, Cheque number

If the amount is within CTO’s passing powers (Rs.8000) then the CTO has to create

the transaction in the posted status, make the payment and hand over the transaction

to the officer for verification.

If the amount is above the CTO’s passing powers then the CTO has to create the

transaction in the Entered status and hand over the same to the officer for posting the

account part tran. The transaction will come back to him. He/she has to post the

cash part tran and make payment. Once again the transaction will be sent to the

officer for verification.

©IFBI 18/36

5. Transfer Transactions, Transaction inquiries, Account Balance Inquiries Suppose customer gives your branch cheque to be credited to his account. The transaction is created by CTO and is verified by an officer

Steps for creation of a transaction by CTO within passing power. (Upto Passing Powers)

Type TM in Menu Option and press Enter Key Type A in Function and press F4 Type T in Type and CI in Subtype and press F4

Type Account ID (to be debited) in the A/c ID and press F4 Type cheque amount in Amount and press F4 Type D in the Type of Part Transaction ‘CHQ’ is defaulted in Instr.Type Type Alpha portion of cheque in the 1st box of Instr.No Type cheque Number in the 2nd box of Instr.No Type cheque date in Instr.Date Press F4 twice Type Account ID (to be credited) in the A/c ID and press F4 Type challan amount in Amount and press F4 Type C in the Type of Part Transaction Press F4 Remove ‘E’ in the Option text box and modify it as ‘P’ Press F4 Press Up Arrow Press F4 and F10 Transaction ID is generated Note down the transaction ID

The Transaction has to be verified by another officer

Steps for creation of a transaction by CTO above passing power. (above Passing Powers)

Type TM in Menu Option and press Enter Key Type A in Function and press F4 Type T in Type and CI in Subtype and press F4

Type Account ID (to be debited) in the A/c ID and press F4 Type cheque amount in Amount and press F4 Type D in the Type of Part Transaction ‘CHQ’ is defaulted in Instr.Type Type Alpha portion of cheque in the 1st box of Instr.No Type cheque Number in the 2nd box of Instr.No Type cheque date in Instr.Date Press F4 twice Type Account ID (to be credited) in the A/c ID and press F4 Type challan amount in Amount and press F4 Type C in the Type of Part Transaction Press F4 and F10 Transaction ID is generated Note down the transaction ID

The Transaction has to be verified by another officer

©IFBI 19/36

6. Opening of Term Deposit Account

Type OAAC in the Menu Option, Press Enter Key

Enter customer ID in Cust.ID Field and press F4. Press F2 in the Scheme Code

Field. Scheme List window opens. Enter TDA in Scheme Type Field and press F4.

Mark the appropriate scheme code using navigational keys. Press SHIFT + F4 to

populate the selected value to Scheme Code Field. Press F4.

Type O in the Function text box and press F4. The General Account Details screen

opens. Press F2 to select the mode of operation from the various options available.

Similarly, select the location code from the Location Code text box. This completes

all the general details required.

Press F4. Enter S in the Enter Option text box. Press F4 again. Enter scheme

details, which are Dep./Instl.Amt, deposit period in the Deposit Period text box, and

Repayment A/c. ID in the Repayment A/c. ID text box.

Note

Repayment A/c. ID: Is the SB/CA account of the customer. The proceeds of the TD account at the time of closure is credited to this account.

Linked Operative A/c. ID: Is applicable only in case of FFD type of accounts. It is the SB/CA account of the customer. It is used in Sweep/Reverse Sweep operations.

Break in Steps Of: Is the amount in multiples of, which is swept from operative account to FFD, and vice versa.

Press F4. Type N in the Int. on TDS required? text box and press F4

Enter F in the Enter Option text box and press F4. This will take you to the Deposits Flow Details Maintenance screen. Press CTRL + E to generate flow details.

To view the rate of interest, move the Down arrow to any of the flow dates in the Flow Date field, which have IO as the Flow Code. Press CTRL + E.

Press F4 to accept the flow details and press F4. Type N in the Enter Option text box to enter the nomination details. Press F4. Enter the nominee details in the Nomination Table Maintenance screen.

Press F4 and F10 to commit. If any exception is encountered, the system will display the same. Press F4 to accept.

The Temporary A/c ID is created. The maturity details are displayed

Temporary Account ID has to be verified by an officer using OAACAU Menu Option under the Function is ‘V’. After verification the system will generate a permanent account ID. Funding Deposit

Create a transaction using TM to fund the Term Deposit account

Printing Deposit Receipt

Menu Option :DRP is used to print single receipt

©IFBI 20/36

7. Remittances – Demand Drafts and Pay Orders

Issue of a Demand Draft Cash Draft

Type TM in Menu Option text box and press Enter. Type A in Function text box and press F4. Type C/NR in Type/Subtype text box and press F4. Press F2 in the Account Field. Type DDA in Scheme Type and Press F4. Using navigational keys mark the DD

Account Populate selected account ID by pressing SHIFT + F4. Press F4. The application will contain DD amount and Commission thereof. Enter DD amount in

the amount Field. Enter other details Press F4. You are taken to Issue of DD screen where you have to enter additional

details such as drawee branch code in Drawn On Field, payee’s name, purchaser’s name or account ID. Commission amount calculated by the system is displayed. Enter L in Print option so that the DD can be printed through another Menu Option after the transaction is posted.

Press F4. You are taken to commission details screen. You can modify the commission calculated by the system if required.

Press F4 to accept the commission. You are in DD account part tran. Modify the Specify Option text box to P press F4. Press down arrow to move to commission part tran, press F4, press down arrow to move to cash part tran and press F4. Press F10 to commit.

The system will generate the Tran ID and DD Serial No. Note down the tran ID Transfer Draft

Type TM in Menu Option text box and press Enter. Type A in Function text box and press F4. Type T/CI in Type/Subtype text box and press F4. Press F2 in the Account Field. Type DDA in Scheme Type and Press F4. Using navigational keys mark the DD account.

Populate selected account ID by pressing SHIFT + F4. Press F4. The application will contain DD amount and Commission thereof. Enter DD amount in the amount Field, C in Part tran Type Field and other details and press F4.

You are taken to Issue of DD screen where you have to enter additional details. Modify Create Dr. Ptran? Field to Y. Enter other details such as drawee branch code in Drawn On Field, payee’s name, account ID. Purchaser’s Name field is populated with the name of the account holder. Commission amount calculated by the system is displayed. Enter L in Print option so that the DD can be printed through another Menu Option after the transaction is posted.

Press F4. You are taken to commission details screen. You can modify the commission calculated by the system if required.

Press F4 to accept the commission. You are in DD account part tran. Use down arrow key to reach the purchaser’s account part tran. (This Debit Part tran is automatically created by the system for the purchaser’s account. It is for the consolidated amount of both DD amount and commission amount. Modification of the Create Dr. Ptran? Filed as Y has effected the creation of this Debit Part Tran)

©IFBI 21/36

Press F10 to commit. The following screen will appear. Ensure that the DD amount is

correct. Write down tran ID along with part tran serial number pertaining to the DD account and also the DD number in the application.

Printing of Demand Draft

Menu Option : DDPRNT Input : Tran ID and Part tran Serial Number of DD amount Press F4. Inventory Type and No is automatically picked up from the user. Press F4 Note that The field Print? Is now displayed as Print OK? If printing is over and satisfactory then press F10

Payment of a Demand Draft

Menu Option : TM Cancellation of Demand Draft

Menu Option : DDC Issue of Duplicate Draft

Exercise Caution Non Payment advice from Drawee Branch After getting non payment advice from the drawee branch obtain indemnity from the

purchaser Cancel the DD using DDC Issue a fresh DD

Issue of a Pay Order

Menu Option TM Inputs : Account ID : Select by press F2 Amount Additional Details

Printing of Pay Order

Menu Option : DDPRNT Input : Tran ID and Part tran Serial Number of PO amount Press F4. Inventory Type and Number is automatically picked up from the user Press F4 Note that The field Print? Is now displayed as Print OK? If printing is over and satisfactory then press F10

©IFBI 22/36

8. Interest table, Stop Payment, Account Lien Maintenance, Account Freeze

Interest Table Maintenance

Interest rates for the products are maintained as a table in Finacle. The tables are updated periodically. They are linked to the scheme codes (Products). Finacle will pick up the rate of interest from the latest version of the respective table and calculate the interest for the account. Suppose for a staff who is senior citizen, preferential rate of interest of .5 is not specified at the time of opening. The same can be incorporated using the menu option INTTM. This requires verification.

Stop Payment Process

In the banking industry, it is customary that the customer’s requests are duly complied with, this forms a part of customer service. A customer who has been issued a cheque book or such other security forms may loose the same and requests the bank for recourse under the following circumstances:

If the instrument is a Term Deposit or a Demand Draft, the same is hot marked and a duplicate one issued to the customer.

If the instrument is a cheque the same is marked as lost in the system and thereby a caution is marked.

It is obligatory on the part of the banker to ensure that the cheques if lost by a customer have to be duly marked as lost in the system and the same revoked if the customer advices the bank of its being traced. If a cheque, which is marked for stop payment, is paid by the banker, he is liable to the customer.

Type SPP in the Menu Option text box and press Enter. Type S in the Function text box and press F4. Enter account ID. Enter the Begin Chq. No. If only one instrument is to be noted for stop payment

type 1 in No of Leaves Field, otherwise enter (in case stop payment is to be noted for entire cheque book enter no of leaves). Press F4

Enter Payee Name, Chq. Date, Chq. Amt. Select Reason code and press F4. Type C in Option text box and press F4. You are taken to charges screen Press F4 to accept the charges. Press F10 to commit.

This has to be verified by an officer.

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Marking an Account as Debit/Credit/Total Freeze

There may be instances, that

A Garnishee Order or an IT attachment Order is issued in an account

In case death of a customer

In case of insolvancy of a customer

In cas of insanity of a customer

In such cases, either debit or credit or a total Freeze of an account is done. Type AFSM (Account Freeze Status Maintenance) in the Menu Option text box and

press Enter. Type F in the function text box and press F4. Select Freeze Reason Code using F2 and Navigational Keys and press F4. In the Freeze Code (you can type T – Total Freeze or C- Credit Only or D – Debit

Only). For our example type T – Total Freeze. Enter Freeze Remarks and press F4. If all the accounts of a customer have to be frozen then enter the customer ID. If a

particular account has to be frozen enter the account ID and press F4. Note that all the accounts are selected. Press F10 to commit.

This has to be verified by an officer.

Account Lien Maintenance Suppose the branch wants to mark a Fixed deposit of a customer who stands as a guarantor for a loan account. In this case the branch may mark a lien on the FD.

Type ALM in the Menu Option text box and press Enter. Type A in the Function text box and press F4. Type the account ID in the A/c ID Field and press F4. Enter the amount and Expiry Date. Select Lien Reason from the list. Enter Lien Remarks. Press F10 to commit

This has to be verified by an officer

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Practice Questions 2

1. Term Deposit is opened using the menu option

a. OAAC b. OAACTD c. Either a or b d. OAACAU

2. The menu option for issuing a draft is

a. TM b. CDDMI c. DDC d. DDP

3. To print a Demand drat is

a. DRP b. NEWDRP c. DDPRNT d. None

4. Stop payments are recorded through the menu option

a. CHBM b. CHBMAU c. SPP d. SPPAU

5. The option for unfreezing an account under AFSM menu option is

a. R b. S c. U d. Z

©IFBI 25/36

9. Clearing Operations Outward Clearing process

Clearing of cheques is a major activity in the banking industry. All banks assemble at the clearing house at RBI and exchange cheques. In the process, one bank will deliver the cheques drawn on other banks and receive its own cheques. If a bank has 500 cheques to deliver in clearing amounting to Rs 50 Lakhss and is receiving 200 cheques amounting to Rs 30 Lakhss, it is said to be favourably placed to the tune of Rs 20 Lakhss in its payment position. Similarly if the amount of cheques received by a Bank are more than the cheques delivered to other banks, the net position will be unfavourable.

Before the clearing cheques are delivered to other banks, there is a process of lodging the instruments in the bank and complete the data entry, tally the cheques, and deliver with necessary schedules thereon. Similarly, in respect of inward cheques, the number of cheques received should be tallied with the total schedule amounts, and the amounts should be debited to the customers' account and the difference in respect of inward cheques and outward cheques returned are adjusted in clearing operations.

The following activities are involved in an Outward Clearing Process:

Opening of outward clearing zone. Registration of instruments for the outward clearing zone. Verification of instruments registered. Suspending the zone. Release shadow balance - Posting the instruments in the accounts Return handling. Regularise shadow balance.

The following are the steps for opening the outward clearing zone for a day:

Type MCLZOH in the Menu Option text box and press Enter. Type O in the Function text box and press F4. Enter the date in the first text box and Zone Code in the second text box of the Zone

field. Press F4. The two important fields in the Maintain Clearing Zone are:

Dr. A/c. : This account is debited for the total amount of the instruments presented in outward clearing.

Clg. Sec Dp Cd: The branch which is the main member representing the bank in the clearing house in that city.

Press F10 to commit. The following are the steps for lodging the Outward Clearing Instrument:

Type OCTM in the Menu Option text box and press Enter. Type A in the Function text box and press F4. Enter Zone code in the second text box of Zone Field. Press F4. Enter the account ID in the A/c ID text box in the Part Tran block. Enter the challan amount in the Amount Field in the Part Tran block. The system generates the Set NO

©IFBI 26/36

Press F6 to move to the Instrument Block. Let us consider, there are more than one instrument. For example, there are two

instruments, one is for Rs. 30000 and the other for Rs. 15000. Perform the following steps for each of the instrument: Enter Instrument No, 9 digit sort code (Center, Bank, Branch). Select Trn code (2 digit code for Type of Instrument used by all the banks

unformly) in the Trn Cod text box and press F4. The Instrument serial number is generated by the system.

Type CTRL +F to clear the Amount Field and enter the instrument amount. Press down arrow.

Enter the details of the 2nd cheque as described above Ensure that amount in the Cr. Amount tallies with the amount in the Instr. Amount. Note the Instr. Sl No. and Set No. in the respective instruments and challans. This is

for identification of the set ID and instrument serial number incase the cheque is returned.

Press F10 to commit.

Repeat the above steps for further registration.

All the registration should be verified by an officer using the menu option OCTM under the function ‘V’.

Inquiries on Outward Clearing sets

Type IOCLS in the Menu Option text box and press Enter. Press F4. Enter Zone date in the first text box of the Zone Date/Code field. Enter Zone Code in the second text box of the Zone Date/Code field. Press F4. The screen with the details of the sets is displayed. Use down arrow or up arrow keys to mark the any set. Press CTRL + E to Explode the marked set.

You can also make use of Menu Options OPQ( Outward clearing part tran inquiry and OIQ(Outward clearing instrument inquiry) and explore additional details.

Impact of Registration in an account after registration

To see the impact in an account where you have just lodged instruments in outward clearing, you can use HACLI or HACCBAL Menu Options under ONS and ACLI or ACCBAL Menu Options under web mode

Using the Account No you can find that the amount of instruments just lodged is getting reflected in the field Float Balance

©IFBI 27/36

Suspending of Outward Clearing Zone

Type MCLZOH in the Menu Option text box and press Enter. Type S in the Function text box and press F4. Press F6 continuously to reach the Entry Statistics page. Ensure that vouchers amount total tallies with instruments amount total. Press F12 continuously to reach the main page and press F10 to commit.

After suspending a zone, the system will not allow you to lodge further entries or modify/delete an existing entry

However, if some instruments are left out and the branch wants to include them subsequently the same can be done only after revoking the suspension. Similarly, the branch can include high value instruments or instruments under exigencies.

The menu option for revoking the suspension of a zone is as follows:

Type MCLZOH in the Menu Option text box and press Enter. Type V in the

Function text box and press F4 and F10. Enter the instruments using OCTM Menu Option. To be verified by another user using OCTM Menu Option.

After completion of such entries the zone has to be suspended again.

Releasing to Shadow Balance of Outward Clearing Zone

Type MCLZOH in the Menu Option text box and press Enter. Type R in the Function text box and press F4. Press F6 continuously to reach the Entry statistics page. Ensure that vouchers amount total tallies with instruments amount total. Press F12 continuously to reach the main page and press F10.

Impact of Registration in an account after Release to Shadow Balance


Using the Account No you can find that the amount of instruments lodged is getting reflected in the field Funds in clearing

Return handling.

Outward Clearing Instruments presented to the other banks may returned due to financial or technical reasons. The amount credited to the account for such instruments have to be reversed. It is done as an inward clearing process.

©IFBI 28/36

Regularise shadow balance.

The activity left out in outward clearing is REGULARISE THE SHADOW BALANCE, so that the funds are made available to the customers. The following points have to be considered before performing this activity.

There may be instances when some banks or select branches of a bank may not

be participating in clearing, but we might have lodged some instruments and released the shadow balance to the respective accounts. Such cheques should be identified and marked as pending. At the same time we should not delay the regularisation process for other instruments. This activity is done through menu option, MARKPEND.

When the particular bank or select branch/branches of a bank resumes

participation in clearing, you have to revoke the pending marked using the menu option, REVPEND.

To mark all the instruments of a bank as pending, perform the following steps:

Type MARKPEND in MENU option text box and press Enter. Enter the zone date in the first text box of the Zone field. Enter zone code in the second text box of the Zone field. Enter bank code in the Bank Code text box. Press F4. All the cheques of the concerned bank will be displayed Mark the first instrument by pressing SHIFT + F4. Similarly you can mark other

instruments using Down Arrow and SHIFT + F4. Press F10 to commit.

Steps for Regularise Shadow balance of outward clearing Zone: Type MCLZOH in the Menu Option text box and press Enter. Type G in the Function text box and press F4 . Press F6 continuously to reach the Entry statistics page. Note that the pending

amount is displayed. Press F12 continuously to reach the main page and press F10.

Impact of Registration in an account after Regularise Shadow Balance


Using the Account No you can find that the amount of instruments regularised is added to Available amount, Effective available amount fields and subtracted from the field Funds in clearing

Outward Clearing Reports:

Outward Clearing Register and Outward Clearing Schedule are two important reports which can be generated using PWO and PCLSO Menu Options.

©IFBI 29/36

Inward Clearing process The following activities are involved in an Inward Clearing Process:

Open inward clearing Zone. Enter Inward Clearing instruments irrespective of balance is available in the accounts

or not. Send it to the Branch Manager for his instructions to return/pass the instruments

where ever exceptions are encountered. Mark return of instruments in the system. Run and print the validation report Verify the inward clearing instruments entered, modified. Suspend the inward clearing zone Post the instruments to the account Close the zone

Opening of Inward Clearing Zone

Type MICZ in the Menu Option text box and press Enter. Type O in the Function text box and press F4. Enter no of instruments in Tot Instr. BAR text box Enter the amount of instruments in Tot Amt BAR text box. The fields in the Maintain Inward Clearing Zone screen are:

HO Cr. A/c: This account is credited for the amount of cheques received in inward clearing which is in turn debited to customer/office accounts.

Chq. Rej A/c: This account is debited for the amount of cheques of inward clearing, which are returned within the normal stipulated time for cheque return.

Country Rej A/c: This account is debited for the amount of cheques of inward clearing which are returned to the presenting bank across the counter after the normal stipulated time for cheque return.

Short Clain A/c.: This account is credited for the difference in amount when a bank has claimed less than the actual amount of the Instrument

Excess Claim A/c.: This account is dedited for the difference in amount when a bank has claimed more than the actual amount of the instrument.

Note : If the branch is a sub member then they have to send a credit advice for the amount of instruments received through inward clearing to their Main Branch which is represents all branches of the bank in clearing house. The advice no and the date should be entered.

Press F4. Type S in the Option text box and press F4 to view the zone statistics as

displayed Observe that the amount is debited to Excess Claim account and credited to

Clearing account. The system has not created any transaction at this stage. Once the actual debit transactions for inward clearing are entered, the amount will be moved from excess claim account to customer/office accounts.

Press F4 to come to the main screen and press F10 to commit.

©IFBI 30/36

Entering Inward Clearing Instruments

Type ICTM in Menu Option text box and press Enter. Type A in Function text box and press F4. Enter zone code in the first text box of the Zone field and press F4. Enter the appropriate values in the fields A/c. ID, Instr. No., Amount, Pay To, from

the insturments Enter instrument date in the Instr Date text box. Enter bank code (the middle 3 digits of MICR code) in the Bank Code text box. Enter the branch code (the combination of first and last three digits of MICR code)

in the Branch Code text box. Press F4. Press up arrow to view this record.

The system will automatically fill the values in Tran code and Instrument type. The Carved Flag text box has the value as Y and the Reject Flag as N.

You will observe that an amount equivalent to the cheque amount is moved to the Carved field and the available balance is arrived after deducting the carved amount from the balance.

At the time when the entry is made in inward clearing, the balance in a customer’s account may be sufficient to pass the cheque. But there is a time lag between the entry and the actual posting of inward clearing instruments. During this period there is every possibility that the customer may withdraw from his account which may result in insufficient balance leading to return of the instrument. In order to avoid such situations carving is done.

You may come across the following 3 scenarios

a. Sufficient Balance available

b. Withdrawal Against Clearing

c. Insufficient Balance in the account

In case of availability of sufficient balance in the account no action is required to

be taken. Press F10 to commit.

Returning of Inward clearing instruments Type ICTM in Menu Option text box and press Enter. Type M in Function text box and press F4. Enter zone code in the first text box of the Zone field and press F4. Enter the instrument number in the Instr. No that is to be returned. Press F4. Modify the Reject Flag to I (Inward Clearing Reject) and press F4. Press F4. The Rejection details screen is displayed. Select the Reject code. Press F4. The Cheque Returned charges screen is displayed. Press F4 to accept the charges. The Reject details screen is displayed. Press F6 to come back to Main screen . Press F10. You are taken to presenting bank detail screen. Enter the Pres Bk/Br. Code. Press F10 to commit.

©IFBI 31/36

Final Validation Run for Inward Clearing Zone

Type MICZ in the Menu Option text box and press Enter. Type V in the Function text box and press F4 . Press F4. Enter the print parameters and press F10 to generate the report

Verification of Inward Clearing Instruments

All the instruments entered have to be verified by an officer using the menu option ICTM and function V

Suspending Inward Clearing Zone

Type MICZ in the Menu Option text box and press Enter. Type S in the Function text box and press F4. Press F10 to commit.

Posting Inward Clearing instruments

Type MICZ in the Menu Option text box and press Enter. Type P in the Function text box and press F4 . Press F10 to commit. Note down the tran ID.

The system might not have posted the instruments. If the posting fails, post the

transaction using TM Menu Option.

If you view the accounts where some instruments are returned using ACLI/HACLI Menu Option, you can notice that the return charges are not debited to the account. Charges will be debited to the account only after closing the inward clearing Zone.

Closing Inward Clearing Zone

Type MICZ in the Menu Option text box and press Enter. Type Z in the Function text box and press F4. Press F10 to commit.

The system will generate reports during closing process. The report will contain the tran ID for return charges and status of the transaction. Ascertain that all the transactions are posted. Inquiry on Inward Clearing zone You can inquire the zone and ascertain that Zone status is closed, Posting status the Posted using the menu option MICZ under the function I.

©IFBI 32/36

10. Standing Instructions Recording

For better customer service, banks have the policy of extending the facility of executing Standing Instructions (SI). SI is defined as a system to execute the instructions of a customer. This menu is used for generation of any standing instructions useful to the user for a day to day transaction. Some of the examples are as follows:

A customer may request the bank to transfer Rs 100000 from his Savings Bank (SB)

account to the current account on a daily basis.

A customer may request to transfer funds from his Current Account (CA) to his Credit

Card (CC) account, in case the CC limit exceeds the required limit level.

A customer may advise to send a draft to other station if the balance in his CA

exceeds Rs 100000 at any point of time.

Type SIM in Menu Option text box and press Enter. This will display the Standing

Instruction Maintenance screen.

Type A in Function text box and press F4.

Type C (Customer Induced) in the SI Class text box.

Enter customer ID in the Cust ID text box.

Enter the appropriate values in the SI Frequency text boxes. For example, for the

registration of SI that has to be executed monthly on every 30th. , you need to enter M

in the first text box, 30 in the fourth text box and N (Holiday action – Next day) in the

last text box.

Press F4.The cursor is moved to the Exec Time text box.

The Exec Time text box can take four valid values:

A – After Business Hours: When the branch runs program called ABH after the

close of business hours and completion of all transactions, the standing

instruction gets executed.

B – Day Beginning: When BOD program is run by Data Center, the standing

instruction gets executed.

D – Any time: Any one time - BOD, Execution by the branch, ABH - the standing

instruction gets executed only once.

E – Every Time: All the times – BOD, Execution by the branch, ABH – the

standing

instruction gets executed as many times.

Enter the next execution date and end date in the Next Exec Date and End Date text

box.

Enter Y in Auto Post? text box.

Enter N in Delete Tran text box.if not posted? text box.

Enter Y in Carry Forward? text box. The carry forward occurs when the SI execution

fails.

©IFBI 33/36

You can specify a value in Max.times Field and the SI, if failed is carried forward that

many times. For example if you specified 3 in Max.times Field, in case of failure of

execution of SI the system will carry forward for only 3 times. If the value in

Max.times Field is 0 (ZERO) then it is carried forward indefinitely.

Press F4. The Sub Instruction Serial no 1 screen appears.

Type E in the Option text box to enter SI conditions. The cursor is moved to the

Amount Ind text box.

The Amount Ind field can take one of the following values:

F – Fixed: Transaction amount is fixed

C – Contra Balancing: If this has to counter balance the other part

V – Variable: System computes the transaction on a given condition

T – Table Code: If the transaction is to collect charges

Type F in Amount Ind text box.

Enter D for Debit in Part Tran Type text box.

Enter N in Create Memo Pad Entry? text box.

Enter INR in CCY text box.

Enter the relevant value in the Fixed Amount text box.

Press F4. You are taken to the respective part of the tran details screen.

Enter the account ID and amount.

Press F4. You are taken back to sub instruction serial no 1 screen. Now you have to

enter the credit part of the Standing Instruction.

Press F4. The next serial number screen opens.

Type C in Amount Ind text box, because this is contra balancing the other sub

instruction.

Type C (for Debit) in the Part Tran Type text box.

Type N in the Create Memo Pad Entry? text box.

Type INR in the CCY text box, as shown in the following figure.

The system will not ask you to enter Fixed Amount text box, because it is contra

balancing the other sub instruction.

Press F4 to enter the part tran details.

Enter account ID and amount in the relevant text boxes.

Press F4.

Modify the Option text box to L to list the part tran details.

Press F3 to come back to the sub instruction screen and press F10. The SI Serial No

is generated.

The detail entered in the SI registration process has to be verified by another officer.

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11. Cash Closing, Cash Scroll Generation and Inquiries

All the CTOs handling cash transactions before the end of day have to tally physical cash they are having with that of balance available in their Teller Account

After tallying they have to surrender the entire cash to Head Cashier both physically

and through the system. For the above purpose Finacle provides for two menu options

Generate cash scroll using the menu option SCWRPT/SCWRPTA

Type SCWRPT in the Menu option text box


Print Tran. Payment/Receipts Details

P – Payment Details R – Receipts Details

B – Both details Enter ‘B’

You are taken to Print parameter Screen


Fore/Background F- Fore Ground , B – Background Enter ‘B’

Print Required? ‘Y’ for Printing ‘N’ for no print

Press F10

Report is generated. This contains all receipts and payments transactions created by the teller. It also has the closing balance.

To know the cash balance of CTO at any point of time

Menu option : TCPIA Enter Your employee ID Press F4 Cash balance of the teller account for that CTO is displayed Cash balance printed in the report generated using SCWRPT, Cash balance in the

teller account using TCPIA and physical balance the CTO has all should tally with each other.

After tallying cash CTO has to transfer the entire cash to Head Cashier using

The menu option TM Type/Subtype C/CT Account ID to be Debited : Head Cashier’s Teller Account Account ID to be Credited: CTO’s Teller Account Amount: Closing cash balance available with the CTO

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Financial Transaction Inquiry:

Finacle provides for Inquiring all Financial transactions with any status. This is a very useful menu option. All users have to frequently use this menu option to know whether any transaction entered by a user is pending – they can ascertain why it is pending, whether the transaction is duplicated. This is very important for smooth day end process

Type FTI in the menu option text box

A screen with lot of filters is displayed You can inquire about transactions with in a specified range of amount You can inquire transactions entered by a user and in Entered status You can inquire about all the transactions entered for the day for an account

Enter appropriate values at the required Filters and press F4 All transactions satisfying the selection criteria are displayed Using CTRL+E you can Explode the transaction further

Audit File Inquiry:

All Non financial transactions like modifications in an account, customer, etc., can be inquired through the menu option AFI. All users have to frequently use this menu options to inquire whether addition/modification done a user is pending for authorization. This is also important for smooth day end process

Type FTI in the menu option text box

A screen with lot of filters is displayed

Suppose we want to inquire about the modifications done by a user pending for

authorisation


Entered By Enter the user ID

Authorized Flag N – Pending for authorisation

Press F4

List of items pending for verification is displayed. The above inquiries can be generated in the form of reposts. For the financial

transaction inquiry report the menu option is FTR and non financial transaction inquiry report the menu option is AFP

You can make inquiries about any account using the menu options ACLI, ACCBAL.

©IFBI 36/36

Practice questions 3 1. The menu option used for opening the outward clearing zone is

a. OCTM b. MCLZOH c. MICZ d. ICTM

2. The function of suspending inward clearing zone is

a. R b. A c. S d. M

3. Inward clearing cheques are posted using the menu option

a. ICTM b. MICZ c. OCTM d. MCLZOH

4. SCWRPT menu option is used

a. To generate all the transactions created by a user b. To generate cash transaction only c. To generate reports for any user d. Only cash payment scroll can be generated

5. The menu option for generating a report for modification pending for authorization in an

account is

a. FTR b. AFR c. AFI d. AFP

Finacle slt

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