Introduction to Deposits

Term Deposit (TD) is a product offered by the banks that provide interest rate in exchange for customers agreeing to leave a lump-sum of money with the bank for a fixed period or term. The bank requires to the ability to provide Term Deposit servicing functionalities for customers.

The interest received by the customer is reduced by break cost fee if early withdrawal happens on term deposit.

This module allows the banks to charge Break Cost Fee in case of early withdrawal / redemption of Term Deposits. The Break Cost Fee is the system calculated difference between the original rate (for full term) and the actual rate due to early withdrawals and adjust the same from the accrued interest balance.

The following items have been released as part of this module:

• The AUDEPO.PARAMETER application has been released as part of this module to define the business rules and to store the applicable reduction of original rate based on the time elapsed in case of early partial and full withdrawal.
• The AUDEPO.PARAMETER,INPUT and AUDEPO.PARAMETER.NAU versions have been released as part of this module to configure and authorise the performed configurations in the AUDEPO.PARAMETER application.
• The AUDEPO.BREAK.DETAILS application has been released as part of this module to store the break details like, break amount, break reason (if any), effective interest rate, reduced rate percentage, effective applicable rate, etc. This application will be updated after the online break request is completed on the same day, and for notice withdrawal requests, it will be updated after the withdrawal is complete on the effective day of withdrawal.
• The AUDEPO.BREAK.DETAILS.LIST enquiry has been released as part of this module to list the break details.
• The Withdrawal Reason field has been added to the AA.ARRANGEMENT.ACTIVITY application to capture the reason for early withdrawal of deposit. The withdrawal reason will be inputted by the user at the time of early withdrawal, and this will be required for parameter validation. The validation of the withdrawal reason is required to levy or not to levy the break cost fee in case of early partial withdrawal.