Introduction to Privileged and Step-up Deposit

A new AA deposit product is created for every campaign deposit (privileged or step-up) plan. Each plan has a subscription start and end date that is defined using the standard core fields in Temenos Transact.

The product will be available for creating deposits only from subscription start date.

When subscriptions are received, you can create a deposit transaction using the standard Product Catalog screen. When the end date is reached, the subject product will be removed from the product catalog, thereby the product will not be available for creating further deposits.

Currency of deposit is defined during product set-up. If you have created a deposit in a different currency, error message will be generated as part of standard core functionality.

Further, only one currency has be defined per plan. If more than one currency is entered, system will raise an error message.

Additionally the below fields are introduced which must be entered as required based on the type of deposit plan.

Field	Type	Mandatory / Optional	Remarks
Quota	Numeric	Optional	Total volume offer for this campaign product (in same currency as the deposit plan)
Earliest Redemption Date	Date	Optional	The earliest date when the bank can initiate the redemption process.
Allow Withdrawal on Rate Adjustment Date	Y / N	Optional	Indicate whether customer can withdraw the principle and interest on the rate adjustment date without penalty. Applicable to step-up deposit.
Deposit creation date	Date	Optional	Actual effective value date of the deposit. If mentioned, it will be greater than subscription end date.

Amendment of Plan

The Quota, Subscription end date, and Allow Withdrawal on Rate Adjustment Date fields for a deposit plan can be modified by the product owner and special user group (using SMS setting) before the value date of the deposit. If any amendment is attempted after the value date, an error will be generated.

If quota is reduced, it will be checked against the current subscription total amount received and if the revised quota falls below the latter, an error will be raised.

Subscription

Deposit plan with Value Date specified at plan setup.

When a deposit is created for a plan with value date defined, the value date of the plan will be defaulted as the effective date of deposit creation. On the date of transaction creation, customer’s account will not be debited. The funds will however be locked and released before the value date of the deposit if the flag ‘Hold fund’ flag is set to 'yes' in the deposit.

Actual debit to the customer account will happen only on the value date i.e. actual deposit creation date. If the transaction fails for insufficient funds or any other reason, details of such deposits will be written to a table for reporting purposes. Details stored are as below:

• Product ID
• TD Primary Account Number
• TD Primary Account Name
• Transaction Amount
• Settlement Account Number

Deposit plan without Value Date specified at plan setup.

When a deposit is created for a plan without value date, funding of the deposit happens immediately and deposit certificate is printed.

Validation for Deposit Subscription

The below validations are triggered during deposit creation.

Validation		Error/Override details
1	If “Total Subscription Amount” is greater against the “Quota” entered at the plan setup.	Error message “Quota Exceeded. Remaining Quota USD 1000” is raised.
2	If subscription date is greater than the “Subscription End Date”.	Once the subscription end date is reached, user will not be able to create further deposits, since the product is removed from Product Catalog.

Cancel Subscription

Customers are allowed to cancel the subscription before the value date. When a deposit is canceled, funds are returned to settlement account of the customer and the Total subscription amount is updated by deducting the canceled amount.

Early Redemption

When the bank decides to terminate the plan, a termination date is entered by the user in a local table created for this purpose. However such termination is possible only after the "earliest redemption date" defined at product level for the plan. If a deposit is tried to be terminated earlier to this date an error message “Termination date cannot be less than Earliest redemption date” will be raised. The termination date has to be entered by the user taking into consideration the number of days for pre-notice advice.

Example, if the pre-notice advice days is 3 and user terminates the plan on 1-Jul-17 with actual termination date as 10-Jul-17, then the pre-notice advice will be sent to the customers on 7-Jul-17.

On the actual termination date, all the deposits created under the plan will be redeemed during the start of day process and the funds are returned to the customers.

Step-Up Deposit Withdrawal Indicator

A field is introduced to indicate if the customer is allowed to withdraw the funds on the rate adjustment date. If allowed, penalty charges are waived, else charged.

An adjustment routine is introduced to check if the redemption date is a rate adjustment date and if yes, whether the ‘Allow withdrawal’ flag is set to ‘Yes’. If both the conditions are satisfied, customer is allowed to withdraw without penalty.

If the redemption date is not a rate adjustment date, then the routine will check if the previous day was a typhoon holiday, thereby shifting the rate adjustment to today, if yes, penalty charges would not be charged.