Difference
in MIS and SCSS interest in First installment
Difference
in MIS and SCSS interest in First installment
When any office is migrated to CBS,
while generating interest for the first quarter after migration, one day’s
interest is deducted by Finacle from the due quarterly interest. This interest
belong to the day of account opening given by Sanchay Post. This one day
interest will be paid on the day of closure by Finacle. This is happening due
to fundamental difference between Sanchay Post and Finacle. Sanchay Post
is paying interest for the day of account opening and not for the day of
closure e.g account opened on 3.4.2013 will be matured in Sanchay Post on
3.4.2018. Sanchay Post will pay interest from 3.4.2013 to 2.4.2018 and payment
will be made on 3.4.2018.In Finacle, with same example, interest will be
calculated and paid from 4.4.2013 to 3.4.2018 and payment will be made on
3.4.2018. Total interest in both the cases will be same. When account is opened
in Sanchay Post and closed in Finacle, one day’s interest will be paid extra.
Therefore, this extra interest is being deducted in Finacle during first payment
after migration
SCSS/MIS
In Sanchaya, rounding off was being
done every quarter/month to the higher side of a rupee if interest is in 50
paisa or more but Finacle adjusts rounding off every quarter/month to restrict
total interest to the actual rate of interest. Therefore, any extra interest
already paid in Sanchay Post due to higher rounding off is also deducted during
interest credit of first quarter/month after migration.
For migrated MIS Accounts, Finacle is
calculating interest on basis of number of days in a month from the date of
opening of account.
Due to this, interest is not
calculating equally for every month. This issue has been taken up with Infosys
for correction. Till it is rectified, customer should be convinced that less
interest credited/paid if any will be adjusted during next month.
Sanchay Post interest paid details can
be known by invoking menu TIPM. Unpaid interest in Sanchay Post can be viewed
in HIOT and interest calculated after migration can be viewed through HTDTRAN.
Sample
Calculation of Interest in Finacle
1) Sanchay Post
calculates interest from the date of opening till the date prior to maturity
date. Example account - 0123456789, Sanchay Post calculates
interest 30/09/2009-
29/09/2014. No interest is paid for 30/09/2014. Finacle calculates interest
from the next day of opening till the date of maturity. In
this case from 01/10/2009-30/09/2014. So, the first
interest payment of Rs.24/- is excess.
2) Sanchay Post rounds off the interest
amount during every quarter; in this case Rs.2227.5 is rounded off as Rs.2228.
Finacle does the rounding off / flooring off on such accounts on alternative
quarters. Please view the Flow tab for this account for more clarity.
3) For broken periods, Finacle
calculates interest as follows (Eg. account-0123456789):
Quarterly amount / 3 => 2227.5/3 =
742.5
(Monthly amount / number of days in the
month) * number of interest-eligible days => (742.5/31)*21 = 502.98 rounded
off to 503.
4) This amount is also visible in the
Flow tab of the account.
So,
the interest amount depends not only on the principal amount but also on the
date of opening and the number of days in the month.
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