AAD - AA Despoits Question and Answers
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| Question: For their Deposit products, a bank wants to compound interest two times a month. What value should a user specify in the COMPOUND.TYPE field in Interest Product Condition? |
| Answer: TWMTH |
| Question: Which of the following statements is not true with respect to TAX product condition? |
| Answer: Tax can be scheduled as an independent property |
| Question: A Bank has defined 'Special Deposit product' with Closure product condition as follows: CLOSURE.TYPE field as BALANCE; CLOSURE.PERIOD field as 10D; CLOSURE.METHOD as AUTOMATIC. A Deposit arrangement under this product has all balances as zero on 31st July 2010. When will the closure activity be scheduled? |
| Answer: 10 calendar days from 31st July 2010 |
| Question: A Primary owner (12345) with a term deposit arrangement of USD 500,000, maturing in another 6 months, is deceased. His son is another owner (54321) in the arrangement. The bank wants to amend the Deposit name by changing the Primary Owner from 12345 to 54321. Please advice the Bank suitably. |
| Answer: Keep the primary Owner field as 'Negotiable' at the product level and modify the field at Arrangement using CHANGE.PRIMARY activity for this case. |
| Question: A Bank has input 'MAINTAIN' in PAYMENT.METHOD Field of Payment Schedule product condition. What does this indicate? |
| Answer: Specifies the actual amount to be maintained for rollover purpose |
| Question: A Bank desires to define Periodic Charges and wants it to be collected at yearly frequency. Where would you set the Yearly frequency? |
| Answer: Can be set in Payment Schedule condition |
| Question: A Bank wants to apply an interest rate picked from PERIODIC.INTEREST on its Corporate Deposits with a spread of 0.25 percent. Further, it wants to indicate a Floor and Cap in the form of Minimum and Maximum rates as 5% and 7%. Can all these be defined in the Interest product condition? |
| Answer: Yes. All these conditions can be defined |
| Question: A Bank opts for Negative rates in Deposits in AA, what will be the effect? |
| Answer: The Bank will receive interest if there is credit balance in deposit account |
| Question: A Bank would like to define that if the full commitment amount of deposit is not paid by the Customer within 5 days, the deposit arrangement should stand cancelled. How can this be set? |
| Answer: CANCEL.PERIOD field in Term Amount product condition can be set suitably |
| Question: A Bank has defined 5 days as the period within which the full committed deposit amount is to be paid by the customer. A customer has remitted only 25,000 against the committed amount of 50,000. What happens on the expiry of 5 days? |
| Answer: 25,000 is reverted and credited to UNC |
| Question: A bank wishes to restrict the changing of Primary Owner to one of the other Owners of an arrangement. How can this be achieved? |
| Answer: This cannot be restricted using existing system functionality. Primary owner can be changed with any other T24 Customer |
| Question: A bank wants to produce- a) an Override for arrangements breaking a Posting Restriction on 'Credits' b) an Error for breaking Posting Restrictions on 'Debits' or 'All' transactions. How can this be set in the Account condition ? |
| Answer: For b, it is not possible to simply define the posting restriction code within the Account condition because Posting Restrictions can only produce Overrides. Further steps need to be taken in other T24 applications |
| Question: A user would like to create a new Property for use in a product. Where should the user first add this Property? |
| Answer: Product Group |
| Question: What are Periodic Rules? |
| Answer: Rules placed on attributes that have a time element |
| Question: The bank would like to create a number of products which are very similar but differ only in a few aspects. What should you advise? |
| Answer: Create a single parent product and multiple child products. Properties with unique conditions should be input into the child products |
| Question: The Arrangement Overview displays the full Payment Schedule for an Arrangement. In which table is the data for this stored? |
| Answer: It is not stored, it is calculated when required using a NOFILE enquiry |
| Question: A bank would like to restrict Deposit payments to be permitted only in multiples of 100. Can this be configured? |
| Answer: This can be achieved by linking periodic rules to ACTIVITY.RESTRICTION product condition |
| Question: A Bank desires to define DEPADMINFEE charge property as a Deferred Charge to be made due later and collected as part of regular quarterly charges. Where can this be set? |
| Answer: The property may be defined as part of PERIODIC.CHARGES condition and linked as a quarterly schedule through payment schedule condition |
| Question: Interest condition in a product is set to "NON.TRACKING" and the interest rate is changed to 20% at Arrangement level with the product level condition set to 10%. AA.PRODUCT.DESIGNER is configured to switch to a new product which carries 12.5%. Assuming all conditions have DEFAULT.ATTR.OPTION set to "RESETTING" what will be the rate after the 3 months? |
| Answer: Interest rate resets to 12.5% |
| Question: What happens as a result of a Primary Officer being added to an Arrangement? |
| Answer: The officer's ID also gets copied onto the underlying account record |
| Question: Which of the following varieties of Payment Type requires multiple Properties to be specified for that payment type in the Payment Schedule? |
| Answer: Constant |
| Question: A Bank desires that for deposit renewal activities, product conditions should have the option of values remaining unchanged at the arrangement level or values to be reset according to the prevailing product conditions. How can this be built in the product design? |
| Answer: Field DEFAULT.ATTR.OPTION for respective product conditions should be set as 'RESETTING' or 'NON-RESETTING' |
| Question: A bank wishes to create a 'what-if' view for a customer by extending the term of an existing Deposit, and showing the customer the potential payment schedule. How can this be effected? |
| Answer: The user creates a Simulation Capture, runs the simulation, and views the simulated Arrangement Overview |
| Question: How do you extend the term of a Deposit before the creation of the Arrangement has been authorised? |
| Answer: Edit the New Arrangement Activity, leave the Maturity Date blank and enter the new term in TERM field |
| Question: How do you extend the term of a Deposit after the creation of Arrangement has been authorised? |
| Answer: Run the DEPOSITS-CHANGE.TERM-COMMITMENT Activity for the Arrangement |
| Question: A "Product.Only" Activity Charge property is configured to collect a fixed charge of 100, when a new arrangement is taken out. What happens when the new arrangement is input? |
| Answer: Charge of 100 is billed |
| Question: Which of the following balance types would not be supported in AA Deposits, where ANNUALFEE is charge property, DEPOSITINT is interest property and ACCOUNT is Account property? |
| Answer: EXPANNUALFEE |
| Question: In AA what does the Change Product functionality allow you to do? |
| Answer: Change the Product for an existing Arrangement |
| Question: A Deposit arrangement is input on 15 Jan 2010 having TERM - 6M in Term Amount, Interest PAYMENT.FREQ - Every Month in Payment Schedule and DATE.CONVENTION set to "FORWARD" and DATE.ADJUSTMENT set to "PERIOD" in Account property. With 15th Feb, 16th Feb and 15th Mar as the only holidays, what will be the first 3 Interest payment dates? |
| Answer: 17 Feb 2010, 16 Mar 2010, 15 Apr 2010 |
| Question: When system does accruals, what is the effect on AA.ACTIVITY.HISTORY? |
| Answer: Accrual activity is not recorded in AA.ACTIVITY.HISTORY |
| Question: A customer is issued with a payout balance(scheduled) effective 30 Jun 2010 for a Deposit Arrangement set to mature on 31 Dec 2010. What happens when the next schedule happens and the next payout bill is produced for 31 Jul 2010? |
| Answer: 30 Jun 2010 bill is not disturbed and a new payout bill is created for 31 Jul 2010 |
| Question: A bank wants to setup interest condition as follows - COMPOUND.TYPE Field-M06, RATE.TIER.TYPE Field- BAND, with the banded rates as 1% for 10000, 2% for 20000, 3% for rest, assuming the interest period as 01 Jan 2010 and 31 Jan 2010 with "A" basis and a Principal of 15000. Which of the following is a true reflection of the above issue? |
| Answer: Compounding would not be supported for bands. So, this definition cannot be accommodated in interest condition |
| Question: A Bank has defined an Activity charge of USD 100 when customer takes the funds out (assuming it is a payout activity through FT) of deposits before maturity date. For a privileged customer, the Bank wants to reduce this charge to USD 50. Where can this be set? |
| Answer: Charges configured to be collected during FT cannot be modified / waived. However, it is possible to update the charge amount in the charge condition first before performing the pre-closure |
| Question: For the setup - CHANGE.PERIOD - 3M in CHANGE.PRODUCT, AMORTISATION.TERM - 25Y in PAYMENT.SCHEDULE, TERM - 5Y in TERM.AMOUNT what will be the value of PERIODIC.PERIOD in Interest property? |
| Answer: 3M |
| Question: When a Term deposit is created with effective date as TODAY with Term amount populated for 10000, what balance would be created at the end of the NEW arrangement activity(assuming Settlement instruction is set and active. Assume the settlement account has enough funds to fund this deposit and the account property on the arrangement is ACCOUNT) |
| Answer: CURACCOUNT for 10000 |
| Question: What is true about DEPOSITS-ACCRUE-DEPOSITINT activity, assuming accruals are set to run daily? |
| Answer: Reuses a unique id for accruals created on AAA |
| Question: The bank uses Charge Override condition for a product, a Bank has defined charge property as DEPADMINFEE, Charge amount is computed as 500 and Charge actual amount is negotiated as 0. How much would the customer be charged? |
| Answer: The customer would be charged 0 for this instance |
| Question: A bank wants to collect a fixed charge of 10USD when a deposit is rolled over, how can this be achieved efficiently |
| Answer: Options 1, 3 may be used |
| Question: In a Deposit Arrangement Tax is calculated on Interest payable. If the interest amount calculated is 100USD and Tax is 10USD, when the payment date is reached how much will be available in PAY Interest balance and how much would be available in DUE tax balance |
| Answer: 90 USD and there would be no DUE tax balance. |
| Question: In a Deposit Arrangement, Tax is calculated on Interest payable. Which Activity Class does Tax pay processing belong to ? |
| Answer: DEPOSITS-MAKEDUE-PAYMENT.SCHEDULE |
| Question: A Deposit Arrangement has a charge which is deferred and scheduled to be made due in a few days. Now the Deposit Arrangement is fully redeemed, what happens to the deferred charge |
| Answer: Made due |
| Question: A Deposit Arrangement is input with VALUE.DATE as 1 Jan 2011 and MATURITY.DATE as 31 Jan 2011. On 15th Jan 2011 it is fully redeemed, What would be INTEREST period start and end dates recorded in AA.INTEREST.ACCRUALS ? |
| Answer: 01 Jan 2011 and 15 Jan 2011 |
| Question: A Bank wants to send prenotification advice for cancellation of deposit in case of partial funding or non funding of Deposit. Is it possible to send this advice in AA ? |
| Answer: Yes, it is possible to send prenotification advice in case of partial funding or non funding of deposits through appropriate input in Activity Messaging condition |
| Question: A Bank would like to collect charge while doing a partial withdrawal. Is it possible to collect charges during partial withdrawal ? |
| Answer: Yes, it is possible to collect charge during partial withdrawal by linking the appropriate activity to Activity charges property and allocating a charge property to it. |
| Question: A Bank wants to change the primary owner of a Deposit from Customer A to Customer B. Is it possible to achieve this in Arrangement ? |
| Answer: Yes, it is possible to change the primary owner of a deposit by triggering the activity Change Primary Customer. |
| Question: A Bank wants to create a new deposit product by making all the fields in all the product conditions (whose property is not set as "product only"). as inputtable. Is it possible to configure such a deposit product in Arrangement ? |
| Answer: Yes, it is possible to configure such deposit product by setting the value Yes in Default Negotiable field in all the production conditions of the product. |
| Question: A Bank would like to collect charge while doing a partial withdrawal only when the partial withdrawal amount exceeds 40% of the outstanding deposit amount. Is it possible to collect charges during partial withdrawal ? |
| Answer: Yes, it is possible to collect charge during partial withdrawal by defining an appropriate periodic attribute and activity restriction condition. |
| Question: Customer has a Savings Account in EUR currency in a Bank. However, he wants to book a deposit in USD. Is it possible to use EUR currency Savings account to fund USD Deposit account ? |
| Answer: Yes, it is possible to use the funding account in a different currency from that of deposit currency by defining the EUR currency savings account in Settlement arrangement condition. |
| Question: A Bank wants to reverse the accrued interest amount, in case the Customer precloses the deposit within a specified period from the date of booking a deposit. Is it possible to achieve this in T24 ? |
| Answer: Yes, it is possible to achieve this through appropriate set up in term amount product condition. |
| Question: A Bank for one of its deposit product wants to use a floating key with a negative spread. Assume the Floating key always returns a positive rate. However, the resultant net interest rate should not go into negative rate (Floating rate minus spread). Is it possible to achieve this in AA deposits? |
| Answer: In interest product condition, NEGATIVE.RATE field should be set as BLOCK.MARGIN |
| Question: A Bank wishes to set the negative rates for one of its deposit products. However, it would like to disregard negative margin rate if the interest is already less than 0. Is it possible to set up a interest condition like this ? |
| Answer: In Interest product condition, NEGATIVE.RATE field should be set as BLOCK MARGIN. |
| Question: A Bank would like to set up a deposit product with 5% interest for 70% of the principal amount and 6% for the remaining principal amount. Is it possible to configure this in AA ? |
| Answer: Yes, it is possible to configure this by appropriate set up in interest product condition (AA.PRD.DES.INTEREST) |
| Question: A Bank would like to set up a deposit product with 5% interest for 75,000 of principal amount and 7% for the remaining principal amount. Is it possible to configure this in AA? |
| Answer: Yes, it is possible to configure this by appropriate set up in interest product condition (AA.PRD.DES.INTEREST) |
| Question: While booking a deposit for USD 12,000 a settlement account is specified. The available balance in the settlement account is USD 8,000. In the settlement arrangement condition the field PAYIN.AC.DB.RULE (payin rule) is set as PARTIAL. Now, how much amount would have been funded in the deposit arrangement ? |
| Answer: In this case, the deposit would have funded to the extent of USD 8,000 and the balance amount of USD 4,0000 would be sitting in EXPACCOUNT. |
| Question: While booking a deposit for USD 12,000 a settlement account is specified. The available balance in the settlement account is USD 8,000. In the settlement arrangement condition the field PAYIN.AC.DB.RULE (payin rule) is set as FULL. Now, how much amount would have been funded in the deposit arrangement ? |
| Answer: In this case, the entire amount of USD 12,000 would be funded whereby the settlement account would have gone into a debit balance of USD 4,000. |
| Question: While booking a deposit for USD 12,000 a settlement account is specified. The available balance in the settlement account is USD 8,000. In the settlement arrangement condition the field PAYIN.AC.DB.RULE (payin rule) is set as NONE. Now, how much amount would have been funded in the deposit arrangement ? |
| Answer: In this case, since the deposit amount is greater than the available amount in the settlement account, NO amount would have been funded. The entire deposit amount of USD 12,000 would be sitting in EXPACCOUNT |
| Question: While booking a deposit for USD 12,000 a settlement account is specified. The available balance in the settlement account is USD 8,000. In the settlement arrangement condition the field PAYIN.AC.DB.RULE (payin rule) is set as NONE and PAYIN.SETTLEMENT (Active Y/N?) is set as NO. Now, how much amount would have been funded in the deposit arrangement ? |
| Answer: In this case, no funding would have happened. The entire deposit amount would be sitting in EXPACCOUNT. |
| Question: When a NEW Deposit arrangment is created, what kind of bill is created for the Principal amount? |
| Answer: EXP bill |
| Question: The bank wants to do the following: When the customer walks into the bank and opens a deposit for 1Y, the bank would only want to give the customer 10 days to fund all the money he committed. If he fails to fund it fully, the deposit should no longer be active. What should the consultant do to achieve this? |
| Answer: Set CANCEL.PERIOD to 10D |
| Question: The bank wants to do the following: When the customer paysin a deposit, he is given 10 days to change his mind and could get back the deposit without any penalties. The bank would not pay any interest for this period though. How can this be achieved in AA |
| Answer: Set COOLING.PERIOD to 10D |
| Question: When Cooling period is set as 10D for a 1Y term deposit arrangement and the customer withdraws the money on the 8th day after he paysin the deposit amount, what would happen in the system? |
| Answer: Bank would not pay any interest for the 8 days |
| Question: When a deposit has to be paid in(deposit of funds), how is this generally achieved? |
| Answer: You need a Payment rules property which settles the expected bill |
| Question: A deposit exists with a bank and the customer wants to withdraw a part of funds from the deposited amount. Can this be achieved? |
| Answer: Yes - by configuring the PAYOUT.RULES property |
| Question: A bank wants to indicate a customer's savings account to which deposit interest is to be paid. How can this be achieved through SETTLEMENT condition in the deposit arrangement? |
| Answer: State the required details and state the Account in PAYOUT.ACCOUNT field |
| Question: A bank has stated settlement instructions for deposit interest to be credited to a specific account. The customer wants to stop the auto settlement temporarily but wants to continue with the same instruction after this period. Which is the optimal way to achieve this? |
| Answer: In the arrangement, set the PAYOUT.SETTLEMENT field in SETTLEMENT property for the deposit interest property to NO. Switch it back to YES when the customer wants auto settlement to resume |
| Question: DEPOSITS-REDEEM-ARRANGEMENT - When should this activity be used? |
| Answer: When the deposit is to be completely withdrawn before the maturity date |
| Question: A bank wants to collect tax on interest whenever interest is to be paidout to the customer. How can this be achieved? |
| Answer: Just define the TAX property for the Interest property and define the associated tax code. Tax would automatically get applied when this property is included in the product. |
| Question: Tax has been defined for deposit interest. Where can we find information regarding the tax amount ? |
| Answer: In the AA.BILL.DETAILS table |
| Question: When tax is defined on the Deposit Interest which is scheduled to pay out, will the total interest amount paid to customer be a 'net of tax' amount ? |
| Answer: Yes. The total deposit interest amount paid will a 'net of tax' amount |
| Question: A bank wants to 'pay' a nominal bonus to the customer every 6 months for depositing with the bank. Can this be defined? |
| Answer: Charges can be paid out by stating PAY in PAYMENT.METHOD field the Payment schedule and defining a charge property there in |
| Question: In the CLOSURE condition, what does it mean to state a value in CLOSURE.PERIOD for a deposit? |
| Answer: The moment that arrangement is flagged for PENDING.CLOSURE, it uses this period to derive when the status of the arrangement will become CLOSE |
| Question: Which of the following is False about PAYOUT.RULES property? |
| Answer: Payout rules are used during the funding of a deposit |
| Question: When PAY option is chosen for INTEREST on a deposit payment schedule, what does it mean? |
| Answer: It only parks the amount to PAY balance on scheduled date. Other components such as FT or Settlement are required for customer to receive the funds |
| Question: What is the purpose of SETTLEMENT property for AA Deposit ? |
| Answer: All A, B and C |
| Question: A customer is issued with a scheduled PAY bill effective 30 Jun 2011 for a Deposit Arrangement set to mature on 31 Oct 2011. What happens when a new PAY statement is issued for 31 Jul 2011? |
| Answer: 30 Jun 2011 bill remains and a new pay bill is created for 31 Jul 2011 |
| Question: A customer has redeemed a deposit effective 30 Jun 2012 for a which is set to mature on 31 Aug 2012. What happens when a new redemption is attempted effective 31 Jul 2012? |
| Answer: Another redemption on 31-Jul would not be allowed |
| Question: A Bank has defined 'Special Deposit product' with Closure product condition as follows: CLOSURE.TYPE field as BALANCE; CLOSURE.PERIOD field as 1D. CLOSURE.METHOD as AUTOMATIC. A Deposit arrangement under this product has all balances as zero on 31st July 2012. When will the closure activity be scheduled? |
| Answer: 1st August 2012 |
| Question: A Bank has defined 5 days as the period within which the full committed deposit amount is to be paid by the customer. A customer has remitted only 50,000 against the committed amount of 75,000. What happens on the expiry of 5 days? |
| Answer: 50,000 is reverted and credited to UNC |
| Question: A bank wants to configure a Charge Product Condition with CURRENCY set to USD, TIER.TYPE set to LEVEL, CALC.TYPE set to FLAT and CHG.AMOUNT set to 100. The Bank wants to also set a minimum charge of USD 50 and a maximum charge of USD 150 for this tier (i.e. using the fields TIER.MIN.CHARGE and TIER.MAX.CHARGE respectively) . Is this possible? |
| Answer: This is not possible if CALC.TYPE specified as FLAT |
| Question: A Deposit Arrangement is input with VALUE.DATE as 1 Jan 2011 and MATURITY.DATE as 31 Jan 2011. On 15th Jan 2011 it is fully redeemed, What would be INTEREST period start and end dates indicated on its AA.INTEREST.ACCRUALS file ? |
| Answer: 01 Jan 2011 and 15 Jan 2011 |
| Question: A Deposit Arrangement is input with VALUE.DATE as 1 Mar 2011 and MATURITY.DATE as 31 Mar 2011. The deposit is funded on 15th Mar 2011. What would be INTEREST period start and end dates indicated on its AA.INTEREST.ACCRUALS file ? |
| Answer: 01 Mar 2011 and 31 Mar 2011 |
| Question: A Deposit Arrangement is input with VALUE.DATE as 1 Oct 2011 and MATURITY.DATE as 31 Oct 2011. The deposit had a CANCEL.PERIOD as 10 days and it was not fully funded till 10 Oct and system had triggered a CANCEL arrangement on this deposit. What would be the interest start and end date on its AA.INTEREST.ACCRUALS file ? |
| Answer: 01 Oct 2011 and 01 Oct 2011 |
| Question: What would be Renewal date for an Arrangement contract with VALUE.DATE 01 Jan 2011, CHANGE.PERIOD - 7M, DATE.CONVENTION - FORWARD, TERM - 5Y and 1st August 2011 and 2nd August 2011 being holidays |
| Answer: 40758 |
| Question: A customer pays an amount of USD 75,000 against a Deposit arrangement of USD 50,000. Assume 'ACCOUNT' is the Account property. How is the excess amount handled in T24? |
| Answer: Parked in UNCACCOUNT |
| Question: A bank allows its customers to fund their deposit arrangements in full at one go rather than in multiple tranches. The consultant knows that AA.PERIODIC.ATTRIBUTE.CLASS - FULL.DEPOSIT could be used for this purpose. What value can the consultant state in PR.VALUE field, when he defines the full funding periodic rule? |
| Answer: YES |
| Question: A bank offers a deposit product with non-negotiable Activity charges and a negotiable cooling period. This product attracts initial DEPOSITFEE for document processing. If the customer wanted to withdraw within the cooling period, then the DEPOSITFEE will be waived. If the customer does not withdraw within cooling period then the DEPOSITFEE has to be applied. The activity for withdraw is DEPOSITS-APPLYPAYMENT-WITHDRAW. What should be the appropriate setup? |
| Answer: In ACTIVITY.RESTRICTION attach trigger activity as DEPOSITS-APPLYPAYMENT-WITHDRAW and rule evaluation activity as DEPOSITS-APPLYPAYMENT-WITHDRAW. Attach the periodic attribute TXN.AMT.MAX with RULE.START as COOLING-OFF and PR.VALUE as zero. Attach DEPOSITFEE charge to WITHDRAW activity. This will ensure that DEPOSITFEE is applied when WITHDRAW activity is run after cooling period |
| Question: A charge is defined in PaymentSchedule set to capitalize in a deposit type product. Activity restriction is setup for this property to waive the charge if rule is broken. What will happen on the payment date assuming the rule is broken |
| Answer: A bill will be produced for the charge amount, and OS.PROP.AMOUNT for the property would be zero, and WAIVE.PROP.AMOUNT will hold the charge amount signifying the amount is waived |
| Question: Deposit arrangement is created and awaiting for funding. A bill with BILL.TYPE as "EXPECTED" is made due on 24 Dec 2011 and ages to GRA after 3 days since funding did not arrive. On 31 Dec 2011, a charge is scheduled to be paid as a bonus amount. Based on the product rules, there is a restriction to the bonus payment. The bonus will only be paid when expected funding bill is settled on time. Funding only arrived on 31-Dec-2011. What would have been the status of this bonus? |
| Answer: The bonus would not be paid since the expected bill is overdue |
| Question: Deposit has not been funded. A bill with BILL.TYPE as "EXPECTED" is made due on 24 Dec 2011 and set to age to GRA after 3 days. On 31 Dec 2011, Bonus is scheduled to be paid. A rule is defined in Activity Restriction condition where the rule value is 5 and is based on maximum aging days of the Expected bill. If the rule is broken, bonus will be 'waived'. On system date (31 Dec 2011), a full funding is made with value date 28 Dec 2011. What happens to the Bonus now ? |
| Answer: The Bonus would be either paid or capitalised based on Payment Method and not waived as the number of overdue days is 2 and it is within the rule definition |
| Question: What is the activity name within the Activity Class DEPOSITS-AGE-OVERDUE for the Bill Type EXPECTED and overdue status GRA |
| Answer: DEPOSITS-AGE-OVERDUE*GRA*EXPECTED |
| Question: A bank wants to setup a savings plan product, where an agreed amount has to be funded by the customer on a defined frequency. On maturity date, a bonus would be paid if the scheduled funding were received within the tolerance defined. Auto settlement has been set up for all arrangements. Looking at the payment schedule, the Bank observed that the first funding only commence 1 month later. They prefer the first initial funding to commence as soon as arrangement is created. What can they do ? |
| Answer: Capture the initial amount in ACT.AMOUNT field in PAYMENT.SCHEDULE |
| Question: An arrangement under Deposits product line has TERM as 12M and AMOUNT as 0. What happens when this new arrangement is committed? |
| Answer: System will commit the activity without any override or error and simply record the activity |
| Question: An arrangement under Deposits product line has TERM as 12M, AMOUNT as 0 and CANCEL.PERIOD as 10D. Which of the following statements is true? |
| Answer: System would not schedule the cancel arrangement activity |
| Question: A bank wants to define a product where a customer could save regularly by depositing a certain amount at regular frequency, is this possible? |
| Answer: Can be defined under Deposits product line using Bill Type as EXPECTED in Payment Schedule |
| Question: What are the property classes involved in Auto Funding a deposit? |
| Answer: Settlement |
| Question: The Bank would like to send an advance notice to a customer pertaining to the cancel period set in the arrangement. Is it possible ? |
| Answer: This can be set up in ACTIVITY.MESSAGING |
| Question: Client wanted to cancel a deposit if it is not funded within 10 days of deposit creation. What do you need to do to make sure it happens? |
| Answer: All the above |
| Question: What will be the date of processing in the below case? 28th Feb 2013 is the system date, 1st & 2nd March are holidays. We have a bill scheduled on 1st March and COB runs on 28th Feb. When will the bill get generated for 1st March? |
| Answer: During AA.SOD.PROCESS of 3rd March |
| Question: Withholding tax is defined in the deposit product condition. When will this tax be calculated ? |
| Answer: Whenever interest is paid or capitalised |
| Question: What should user do to increase deposit commitment amount ? |
| Answer: No way to increase deposit commitment amount |
| Question: The Bank's requirement is that they allow customers to open the 6 months deposit with the option to fund the deposit within the first 5 days from opening date. If funding arrives on the 3rd day, the maturity date should be recalculated based on the funding date. However, the duration of the deposit needs to remain as 6 months. What can the Bank do ? |
| Answer: In Account condition, define START as the Base Date Type |
| Question: A deposit was opened for USD 100,000 early this year and the system reflects that the renewal date 10 May 2014. On 10 May 2014 at 2pm, customer called the Bank to request for an increase in the deposit amount by 25,000 for the rollover on 10 May 2014. User quickly update the deposit schedule as MAINTAIN 125,000 and the Start Date as R_RENEWAL. What will happen? |
| Answer: The increased deposit amount will only be effective on the next rollover date (not 10 May 2014) |
| Question: Customer has a USD 300,000 deposit. He has given instructions to the Bank to reduce his deposit principal by 50,000 during rollover. What should the user do to effect this instruction in the system? |
| Answer: Update the deposit schedule arrangement condition. Indicate SPECIAL as the payment type, MAINTAIN as the payment method, 250,000 as the actual amount, R_RENEWAL as the start date and 'payment' as the bill type |
| Question: Bank wants to be able to remind their customers 5 days in advance before deposits mature. Is it possible to do this? |
| Answer: In Activity Messaging condition, define pre-notification period for deposit maturity activity |
| Question: Bank offers to pay out a bonus (in lump sum) to customer in order to encourage more new deposit opening within this promotional period. However, the Bank is concerned that the big bonus payout will result in a drastic accounting entry in their P&L books. As such, the Bank would prefer to 'even out' the accounting entries. Is there anything they can do ? |
| Answer: Define amortisation period in Accounting condition for this type of bonus |
| Question: Bank wants to charge a fee upon new deposit creation. The standard fee amount is USD 100. However, on exceptional situations, user is given the authority to 'waive' the fee amount fully or partially at the very moment of deposit creation. The typical P&L used for this type of fee is 52100. However, the Bank wants to be able to book the 'waiver' portion to a different P&L. Is this possible ? |
| Answer: Yes, it is possible by defining the 'waiver' P&L category in Accounting product condition |
| Question: Deposit has been created and authorised. However, this deposit has not been funded at all even after the product's defined 5 cancellation days. What is the status of this deposit now? |
| Answer: Cancelled |
| Question: The Bank wants deposits to mature only on working days. If there is a non working day, the maturity date will need to fall on the next working day even if this means a slight increase in the deposit duration. What can they do ? |
| Answer: At the new deposit creation stage, override message will be generated if maturity date is not a working day. User to manually change the maturity date to the next working date |
| Question: The Bank wants system to automatically pick the respective interest rates for the deposit depending on the deposit duration. What should they do ? |
| Answer: In Interest product condition, define a periodic interest key |
| Question: The Bank does not want to provide customers with a choice to fund their deposit partially. If the customer agrees to a 100,000 deposit arrangement, they should not be funding 80,000 today and 20,000 tomorrow etc. Users should be given a warning message if they accidentally perform such transaction. Is this possible to achieve this by using current system functionality ? |
| Answer: We can define a periodic attribute based on FULL.DEPOSIT periodic class and attach to the ACCOUNT product condition |
| Question: A deposit was opened 3 years ago. The deposit was funded 2 days after the opening date. Every 6 months, the deposit will automatically rollover. The Bank user found values in BASE.DATE as well as RENEWAL.DATE in AA.ACCOUNT.DETAILS file. She presumed that RENEWAL.DATE represents the upcoming deposit rollover date. However, what does BASE.DATE represent ? |
| Answer: The arrangement last rollover date |
| Question: The Bank makes use of the periodic interest table to determine interest rate for their deposit arrangements. However, they do not want to be subjected to free fluctuations in the underlying periodic rate. If the underlying periodic rate becomes too high, system should automatically apply a maximum 'ceiling' rate. For example, the ceiling rate is 3%. If the underlying periodic rate reads 3.2% today, the system should only apply 3% to the deposit. Is this possible ? |
| Answer: Define an appropriate periodic attribute and rule in Interest product condition. Define CAP as the break result |
| Question: Bank defined 5D as Cooling Period. What is the implication ? |
| Answer: If customer decides to fully redeem the deposit within 5 days from deposit creation date, any interest accrued will not be paid to customer |
| Question: The AA Deposit arrangement has been pledged as collateral in T24 Collateral application. Which of the following deposit balance will be used for calculating the collateral amount ? |
| Answer: CURACCOUNT |
| Question: The deposit has tax WHT defined. Out of the 5 customers' arrangements, it has been discovered that 1 of the customer's arrangement did not have tax deducted. What could be the reason ? |
| Answer: TAX.TYPE.CONDITION for this customer group has not been defined |
| Question: The Bank wants to be able to schedule a change in the principal amount for the upcoming rollover. What are the considerations to be taken in order to select the correct 'Payment Type' on the payment schedule condition ? |
| Answer: The AA.PAYMENT.TYPE record must have a 'Manual' TYPE |
| Question: For the upcoming deposit rollover, the customer wants to have 20% of the accrued deposit interest paid out to him and remaining 80% of the accrued deposit interest to be capitalised. What can the Bank do ? |
| Answer: No, it is not available in current system |
| Question: Deposit is set to rollover and interest is payable at every rollover. Bank allows customer to increase the deposit amount for rollover without the need to create a new deposit arrangement. However, the increase amount cannot be more than 20% of the amount in the current deposit term. TEMENOS recommends a local development to achieve this. What are the values we should use in order to measure the 20% difference? |
| Answer: Compare the CURACCOUNT balance with the value in ACTUAL.AMT in Payment Schedule condition |
| Question: The Bank user created a deposit arrangement which has a fixed term of 18 months. In the interest condition, interest has been defined to capitalise yearly. After authorising the arrangement, the user checked the payment schedule and discovered that the schedule shows a scheduled interest capitalisation on the 2nd year, even though the deposit has only 18 months term. What should they do to make the interest pay out on the 18th month maturity ? |
| Answer: On the same row where interest has been defined as 'Capitalise' in Payment Schedule condition, define R_MATURITY as the end date |
| Question: A cooling period of 7D has been defined for this deposit arrangement. On the 10th day, the customer decides to fully redeem this arrangement. How much accrued interest will be paid to customer ? |
| Answer: Interest accrued for the 10 days (subjected to accrual rules definition) |
| Question: In order to encourage customers to continue their deposit placements with the Bank, the Bank offers to pay a bonus for each deposit rollover. The bonus is 0.2% of the total rolled over amount, which is to be automatically calculated when system performs the rollover. In this case, what should we define as the calculation source for this type of bonus ? |
| Answer: CURACCOUNT |
| Question: The Bank wants to offer notice deposit products. They clarified that for this type of deposit, customer will place them for an indefinite term. For any withdrawals (partially or fully), customer has to provide 3 days advance notice. How can we achieve this within the deposit product line ? |
| Answer: Not possible |
| Question: The Bank's range of deposit products typically commence as a fixed term deposit. If there is no further instruction received from customer, the deposit will mature. However, if the customer provides instruction to the Bank at least 1 day prior to maturity, the deposit will automatically rollover. Customers are given the choice to have the deposit in any duration. However, each deposit duration must not be lower than 1 month. What can we do to ensure this ? |
| Answer: In Term Amount condition, define a minimum negotiable rule for TERM. In addition, define a minimum negotiable rule for CHANGE.PERIOD in Change Product condition |
| Question: In case of situations where auto settlement was not set up, the Bank will perform manual operations to credit the scheduled deposit interest payment to customer. The interest payment activity is DEPOSITS-APPLYPAYMENT-PO.DEPOSIT. The Bank is using FT.TXN.TYPE.CONDITION 'ACDP' to perform the manual operation. In this FT.TXN.TYPE.CONDITION record, the Credit Transaction Code (TXN.CODE.CR) is 820 and Debit Transaction Code (TXN.CODE.DR) is 821. Within the Activity Mapping condition, which transaction code is to be mapped to the DEPOSITS-APPLYPAYMENT-PO.DEPOSIT activity ? |
| Answer: 821 |
| Question: The Bank said that whenever there is a payment into the deposit, the Activity Log on the Arrangement Overview displays "Applypayment Activity for Pr Deposit". The Bank is not happy about it as this narrative is non intuitive and not user friendly. They want simpler narratives such as "Deposit Funding" etc. Is there anything we can do about this ? |
| Answer: Yes, we can change the description of the AA.ACTIVITY |
| Question: The Bank performs automatic payouts for their deposit products. They realised that whether it is paying out scheduled interest or paying out bonus, the activity log always show "Applypayment Activity for Po Withdrawal" as the narrative. The Bank wants more intuitive narratives to appear e.g. "Pay out Interest" and "Pay out Bonus". Is this possible to achieve this ? |
| Answer: Yes, create 2 copies of activities linking to existing payout activity and provide appropriate descriptions to these activities. Then, multi-value the payout property class (PAYOUT.PPTY.CLASS) field in SETTLEMENT condition with each property class linking to the appropriate activity in payout settlement activity (PAYOUT.SETTLE.ACTIVITY) field |
| Question: With regards to the Eligibility functionality, the Bank is happy to know that system can generate an error message if the customer fails eligibility during deposit opening. However, they are not happy that the system is currently forcing them to change their customer's deposits to a default product whenever customer fails eligibility during the life of the arrangement. They only want to be aware that customer fails eligibility but system must not automatically change the deposit to a different product |
| Answer: Change the FAILURE.ACTION to IGNORE |
| Question: There are 2 deposit products in the Bank's product catalog. Today, the Bank user created an arrangement for the first product and performed a full funding immediately. Upon checking the Arrangement Overview, he was happy to see the interest amount on the payment schedule. He proceeded to create an arrangement for the second product and funded it fully at once. He was shocked to see that interest amount reflected as zero on the payment schedule. What could have happened ? |
| Answer: In Product Designer, source balance for deposit interest was defined to ACCDEPOSITINT |
| Question: Deposit interest has been scheduled to capitalise upon rollover. Customer's settlement account has been closed recently, leaving no active settlement account for this deposit. In what balance type will this interest amount be parked in so that the user can manually transfer this interest amount to customer ? |
| Answer: None of the above |
| Question: The Bank wants automated funding to take place whenever deposit is created. However, they do not want their customer's accounts to be overdrawn as a result of funding. What should they do ? |
| Answer: Define 'None' as the settlement condition rule |
| Question: A new deposit arrangement has been created. However, it has not been funded yet. What will be the Bill status of the bill which would be funded? |
| Answer: Due |
| Question: The Bank has defined 'increase amount' instructions for the upcoming rollover. However, on the rollover date, the deposit did not rollover with a higher amount. What could be the reason ? |
| Answer: The relevant PAYMENT.TYPE in SETTLEMENT condition has not been defined |
| Question: The Bank defined interest condition where 20% is based on fixed rate and 80% is based on periodic rate. How will system calculate interest for the deposit? |
| Answer: Everyday when system updates the AA.INTEREST.ACCRUALS file, it will calculate the accrued interest based on the summation of both. That is, the result of 20% of deposit principal calculated based on the fixed rate plus the result of 80% of deposit principal calculated based on periodic rate |
| Question: The Bank was told by TEMENOS that the deposit will mature at Start of Day. Being the nation's favourite Bank, the Bank promised to pay customer interest including the interest calculated for the maturity date. Is it possible? |
| Answer: Set Accrual Rule to 'Both' |
| Question: The Bank has a requirement for deposits. The deposit arrangement must be opened with an initial amount of at least USD 100,000. For subsequent rollovers, the amount that the user inputs in the rollover instructions must not be lower than USD 80,000. What can they do ? |
| Answer: Define negotiation rule for ACTUAL.AMT in Payment Schedule condition |
| Question: For newly created deposit arrangements, the Bank wants a way to identify the number of days that the deposit has not been funded. Is it possible ? |
| Answer: Define Overdue condition where 'Expected' is the Bill Type |
| Question: The Bank has set a Cancel Period of '5D' for their deposit products. In view that the deposit has not been funded after the 5 days, the user reported to TEMENOS that the status of the deposit is now 'Pending Closure'. The Bank wants to know when will the deposit status become 'Close' |
| Answer: Depends on the Closure condition |
| Question: The standard interest rate of the deposit product is LIBOR - 0.5%. However, on exceptional cases, the Bank wants to be able to offer an additional margin rate of + 0.3%, on top of the standard LIBOR - 0.5%. The Bank wants to be able to capture the 3 interest components in separate fields so that they can design reports or advices to explicitly show that the interest applied to the deposit is LIBOR - 0.5% + 0.3% and not LIBOR - 0.2%. Is this possible ? |
| Answer: Multi value the MARGIN.TYPE field in INTEREST condition |
| Question: Deposit is for one year. Tax has been defined for deposit interest. On the payment schedule, only deposit interest has been scheduled to pay out every month. The Bank learns that on every interest payout date, a bill will be generated. What property artefacts will be recorded in this bill ? |
| Answer: DEPOSITINT and DEPOSITINT-TAX |
| Question: The Bank wishes to make use of AA Deposit module to introduce an investment type of deposit. This deposit will yield higher interest rates than standard fixed deposit. For instance, for a 1-month investment deposit products, it will use 6 month's LIBOR rate. For 3-month investment deposit, it will use 12 month's LIBOR rate. The Bank would like to store such LIBOR rates in an interest reference table. Can we design this product in AA Deposit module ? |
| Answer: Possible. Define LIBOR rates in Periodic Interest table. Bank can create the various investment products based on the duration. In their respective interest condition, define the periodic interest key. Furthermore, in the PERIODIC.PERIOD field, specify the actual duration tier that the interest rate is to be derived from the periodic interest table |
| Question: The Bank defines their LIBOR rates in the Periodic Interest table where rates are downloaded from Reuters. Reuters have term rates for 1 month, 6 month, 12 months and 18 months. Past data has shown that rates are always higher for longer duration compared to the shorter duration. The Bank's policy is such that they will always pay at the lower tiered rate if the requested deposit duration do not have an exact match with the durations mentioned on the periodic table. For example, if a customer wants a 2 months deposit, the system will need to retrieve the 1 month's rate. Is this possible to achieve this requirement in AA ? |
| Answer: Yes, we can define PREVIOUS as the PERIODIC.METHOD in Interest condition |
| Question: The Bank wants to have IBAN number generated automatically for AA deposits. How can we set this up in AA ? |
| Answer: In ACCOUNT condition, define YES for GENERATE.IBAN attribute |
| Question: The Bank informed TEMENOS that in the event that their relationship managers use the Charge Override functionality to waive fees (fully or partially) at the arrangement level, the net chargeable amount will be booked to the defined charge P&L category. This is the default setting for all fees. However, if the waiver is for a particular 'CHGINTRATE' fee, the system needs to book the original fee amount and the waiver amount to separate P&L categories. Hence, 2 separate accounting entries |
| Answer: Possible. In ACCOUNTING conditon, define 'NET' as the value for DEF.CHG.OVR.METHOD attribute. Then, define 'CHGINTRATE' as the CHG.OVR.PROPERTY with the CHG.OVR.METHOD mentioned as 'ITEMISED' |
| Question: The Bank informed TEMENOS that they allow customers to partially withdraw from a particular deposit product but customer has to pay a fee. For the first withdrawal, they charge USD 100. For the second withdrawal, they charge USD 200. For any subsequent withdrawals, they charge USD 500 each time. Is it possible to create this type of product ? |
| Answer: Yes possible. Define tier counts in charge condition and 'count' as the source type for this fee |
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