This module will not be further enhanced. Support is limited to defect fixing only.

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.

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.

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.

TD Primary Account

Banks in Hong Kong offer time deposits under an umbrella structure to their customers wherein a virtual account known as the TD (Term Deposit) Primary account is opened that encompasses all the individual deposit arrangements opened by the customer. The individual deposit arrangements are opened and linked to this virtual account. The communication between the bank and the customers will happen based on this virtual account number only.

From a customer perspective, this structure is beneficial because the customer will only be required to remember the primary account number rather than having to remember the individual deposit contract number. The customer could open as many deposits as one may require.

The individual deposit contract will have the primary account number with a sequence number added to it. The individual deposit contract will be alternatively identified with the primary account and a running sequence number.

This functionality enables banks to create, manage and close the virtual primary accounts for a customer and, the opening of the individual deposit arrangements that are linked to the virtual account, TD Primary account.

The functionality allows bank users to input the TD primary account while creating a new deposit contract. This ensures that the owner of the TD primary account is defaulted as the primary owner of the deposit contract. Further, there are system restrictions in changing the primary owner of the deposit contract.

The following items have been introduced as part of this functionality:

• New fields have been added to the CMBASE.ALTERNATE.ID.PARAM application for defining the primary account structure, using the CMBASE.ALTERNATE.ID.PARAM,HKDEPO.INPUT version.

• New fields have been added to the ESBASE.ID.PARAM application for defining the check digit calculation logic, using the ESBASE.ID.PARAM,HKDEPO.INPUT version.

• The HKDEPO.PRIM.ACCOUNT application has been introduced as part of this functionality to create, manage and close the virtual primary accounts for a customer. The Arrangement Deposits field has been added to the HKDEPO.PRIM.ACCOUNT application to enable bank users to view the arrangements and their status for the deposit arrangements updated in the HKDEPO.PRIM.ACCOUNT.

• The HKDEPO.PRIM.ACCOUNT.OPEN.PROCESS enquiry has been released as part of this functionality to list customer details based on the enquiry selection.

• The drill down version, HKDEPO.PRIM.ACCOUNT,OPEN, has been attached to the HKDEPO.PRIM.ACCOUNT.OPEN.PROCESS enquiry, to create and amend the primary account number.

• The HKDEPO.PRIM.ACCOUNT.CLOSURE enquiry has been introduced as part of this functionality to enable bank users to close TD Primary accounts based on customer request.

• The drill down version, HKDEPO.PRIM.ACCOUNT,INITIATE.CLOSURE, has been attached to the HKDEPO.PRIM.ACCOUNT.CLOSURE enquiry, to close TD Primary accounts based on customer request.

Pleasure Savings

Banks in Hong Kong offer monthly deposit savings plan products that allow customers to save small amounts of money regularly. These products enable customers to choose the required currency for the product, amount, frequency of contribution, etc. These products also have a minimum contribution amount, and the customers can further choose the contribution amount in multiples of a specified amount. Customers could also choose to execute a standing instruction or a direct debit instruction for contributing the monthly sum automatically. By nature, these products are recurring in nature wherein a customer funds the deposit on a pre defined frequency for a specific period. The deposited sum along with the interest is repaid to the customer at the maturity.

This functionality allows for managing the life cycle of the Pleasure Savings product beginning with opening, maintenance, and closure of the Pleasure Savings product. Also, this functionality enables banks to perform redemptions of deposits and premature withdrawals using the Redeem/Withdraw Deposits enquiry available under the RETAIL.OPS.DEPOSITS.HK menu for Deposits.

The following items have been introduced as part of this functionality.

• A new product group and product for the Pleasure Savings product under the AA product catalogue have been introduced as part of this functionality.
• New configuration records have been released to support the life cycle management of the Pleasure Savings product.
• The HKDEPO.PRIM.ACCOUNT.DETAILS enquiry has been released as part of this functionality to view the primary account details.
• The HKDEPO.REDEEM.WITHDRAW.PLEASURE.DEPOSIT enquiry has been released as part of this functionality to perform redemptions of deposits and premature withdrawals.

Maturity Instructions for Deposits

While creating a deposit contract for a customer, banks in Hong Kong allow customers to create deposits with different types of maturity instructions. The maturity instruction could be payout at maturity, rollover of deposits, rollover with incremental principal, partial redemption at maturity, and so on.

This functionality enables banks to capture and manage the maturity instructions for a deposit, provided depending on the customer's preference.

The maturity instructions will be updated for a deposit so that the necessary action is performed on the maturity or renewal date. Further, the bank has to collect the necessary information available to follow up with the customers to fulfil the provided maturity instructions.

The following item have been introduced as part of this functionality:

• The Maturity Instruction field has been added to the AA.PRD.DES.TERM.AMOUNT application, to capture the maturity instruction.
• The Call Deposit field has been added to the HKDEPO.PARAMETER application, to configure the call deposit products. For a deposit with No Maturity instruction, this product will be validated for the Change product activity.
• The HKDEPO.MATURITY.RENEWAL enquiry has been introduced as part of this functionality to list out the deposits that are maturing on a specific date or are due for renewal on a specific date.
• A new deposit product group and a new parent product for term deposits have been introduced under the AA product catalogue as part of this functionality.