Finacle Training Lesson 16 [Account Closures]

FINACLE TRAINING LESSON 16

Important Note: We at PO Updates are working very hard for preparing these lessons. It is taking 2-3 days for preparation of each lesson. Unfortunately we have been ordered to give hands on training to 15 offices in our division which are almost 100 Km away from our homes. So it will become extremely difficult for us to post lessons every day. From now on we will post lessons as and when a lesson is completely written by us. We are in a helpless situation and hope you will understand and stay with us till the end of this training series. Thanks in advance for your patience.

Recap:

In the previous lesson we have learned in detail about HTM transactions and its uses. In today’s lesson we will start learning about how to close accounts.

Closure of accounts

Closure of accounts is probably easier than doing transactions. Even in account closures one account gets debited and one account gets credit. Obviously the account which is getting closed will be debited and customer’s SB account should be credited.

It will be extremely useful to have an SB account for every customer. So encourage customers to open SB accounts. If SB account is not available one of the office accounts will be credited.

This office account is called as Repayment account {0340}. We commonly call this account as post master account. We transfer the closure amount to 0340 and we will give RBI cheque to the customer.

Technically closure amount is called as “closure proceeds” in Finacle. So we should say closure proceeds of TD account 323XXXYYYZ are transferred to SB account or closure proceeds credited to an SB account.

So let’s see closures one by one.

MIS/TD/SCSS account closures.

The menu to close MIS, TD, and SCSS is same. Invoke the menu HCAACTD. Since we are closing the account choose function as Z-Close. Z here is used only as a key board shortcut. Instead of using the mouse, just press Z on the keyboard.

(We should pronounce Z as zee not as zed)

Now enter A/c id and press tab. After pressing tab button we see that Closure value date and principle amount are automatically fetched from server.

See the image

Click on GO.

After clicking GO, Finacle will alert us to pay any pending Interest amount available in Sundry accounts. Please check the corresponding sundry accounts for any pending interest amounts and make the payments.

Note: Many times counter staff forget to make payments of interest amounts pending in sundry account. This can be a serious issue if any customer gives complaint. If account is linked with SB account interest will be automatically credited to SB account. So again I’m telling you to encourage customers to open SB accounts.

SO, now after clicking GO the following screen will appear.

In the image I have identified some sections in square boxes. Lets discuss about them first.

On the top there is a section we can see 4 items

1. Error Details
2. A/c Information
3. Closure Details
4. Closure Exceptions

All these are called as TABS. In each TAB we have to enter some information to close the account. Don’t worry we have to make only 2 entries.

Error Details: In this tab we will see If there is any missing entry in the closure process. Also system will show us any important messages. In the above image system is telling us that it is a premature closure. Read those messages and if you don’t understand anything ask your doubts by commenting below.

A/c Information Tab contains all the basic details of the account. It will show you the account holder’s name, scheme of the account, date of opening of account, principle amount, maturity value etc.

Make sure you check all these details in the account information tab. Since the account numbers are 10 digit numbers, chances of customers writing wrong account numbers are very high. So it is essential that you check all these things.

Also while migration to finacle from Sanchay post which was done in hurry many accounts are transferred with wrong account details. Even though we cannot do anything for that, atleast make an error entry while transacting with those accounts.

If you have checked a/c information tab and all information is found correct, click on CLOSURE DETAILS TAB.

Closure Details tab will look as shown in the image below. See the image below.

In this tab we have to enter Close Mode details only. Close mode means we are telling finacle where we want to transfer the closure proceeds.

If the amount is below 20000 and want to pay the closure amount by cash choose Close Mode as C- Cash Only

If you want to transfer the closure proceeds to SB choose Close Mode as S – SB Account

If you want to pay the closure proceeds by RBI cheque choose Close Mode as R – Repayment A/c only

I don’t know why the option N – Customer Instruction is available :-P (sworry)

(Actually customer can give option for automatic closure of account at the time of account opening itself. May be customer instruction is available for automatic closure of account. But I’m not sure)

Some times after selecting SB account option we have to enter Cash CCY Code. Enter INR as Cash CCY code in such cases.

That’s it no other fields are required to be entered in this screen.

Now click on Closure Exceptions TAB. It will be as shown in the below image.

In the third screen we have to enter closure reason code. What is closure reason code? As you can see in the image there are some reasons displayed while closing the account. For example we will choose closure reason as NORMAL CLOSURE for closing of all general accounts. If the closure is done due death of any customer we will choose closure reason as DEATH CLAIM. Similarly there are other closure reasons available.

Choose appropriate closure reason in this screen. For most of the closures this closure reason will be NORMAL CLOSURE only.

After entering closure reason code click on SUBMIT button.

That’s it your closure is over.

Very simple, isn’t it?

After clicking on Submit button you will see the closure details.

You should be aware of the fact that in closure details it will clearly show that which account is debited and which account is getting credited. So there will be 2 entries again for each amount shown after closure. Don’t get confused with double entries.

So this is how we close MIS/TD/SCSS accounts.

Same procedure may be applied even for premature closures also.

For verification of closures no separate transaction ID will be generated. Account closure can be verified by using account number only.

To verify the closure invoke HCAACVTD menu. Choose function as Verify and enter account number. Click on GO. Same screen with all the tabs will be displayed. View details in all tabs and click on submit. Your verification will be over.

While verification or closing some exceptions might come. For example CIF ID MISMATCH HAS OCCURRED, CUSTOMER ID IS DIFFERENT, PREMATURE CLOSURE HAS OCCURRED etc.

While migrating from Sanchay to Finacle every account will get its own CIF id. Even though the customer is same different accounts will have different CIF ids. Finacle identifies the customer based on CIF id only. But if you are sure you are transferring the closure proceeds to correct SB account you can ignore this exception.

Even while transferring closure proceeds to Repayment account {0340} this error will come. It’s obvious isn’t it? Repayment account will not have any cif id and hence that exception will come.

Premature closure exception will come to warn us so that we do not close account on a wrong date. While migration to finacle many accounts are transferred with wrong account opening dates. So be a little careful when this exception comes. If you are sure the closure is premature closure then you can ignore the exception.