senior citizen savings scheme. table of contents introduction slide 2 introduction business...

Senior Citizen Savings Scheme


Table of ContentsIntroduction

Slide 2

Introduction Business Scenario Finacle CBS Process Overview Key Terminologies Step by Step Process Demonstration Summary

Senior Citizen Savings Scheme Slide 3

Introduction

Lesson Objective

Duration

Intended Audience

To understand the account operations (opening, modification and closure)of Senior Citizen Savings Scheme (SCSS) in Finacle

1 Hour

Counter PA / Supervisor


Business Scenario

Scenario No -1 A Senior Citizen Customer wants to open in a Senior Citizen Saving Scheme deposit account for Rs. 50000/-, for a period of 60 months. As a counter assistant, how will you help the customer to open the above account? Let us see the process of opening a Senior Citizen Saving Scheme deposit account in detail.

Scenario No -2A customer wants to close his Senior Citizen Saving Scheme deposit account as he is leaving the country and wants repayment in cash. As a counter assistant, how will you help the customer to close the above account? Let us see the process of closing a Senior Citizen Saving Scheme deposit account in detail.


Finacle Process Overview

The approaches for SCSS in Finacle are as follows:

The maximum period by default will be populated as 60 months for this deposit and it is not modifiable. However extension can be done for another 3 years using HTDREN menu before 1 year of maturity.

The following are the different age slab for an opening an SCSS account defined in the system:

Senior Citizens Saving Scheme – Retired from Defence services Senior Citizens Saving Scheme – Voluntary Retirement Senior Citizens Saving Scheme Senior Citizens Saving Scheme (exception)

The minimum and maximum deposit amount by a customer is Rs1000/- and Rs. 15 lakhs is defined in Finacle.

The deposit has to be in multiples of Rs. 1000/-.

The interest type is Interest Outflow (IO) and the interest is paid every quarterly to the customer’s operative account by defining the interest repayment account in Finacle.


Finacle Process Overview (Contd…)

The account can be opened singly and jointly with spouse only and vice versa.

The lock in period of the deposit is one year, that is, the depositor cannot withdraw the deposit before one year. If the depositor tries to withdraw the amount before one year, the system displays an error for the same.

The penalty for pre-closure are defined in Finacle CBS and are as follows:

Up to 1 year - No penal rate is configured. From 1 year - 2 year - 1.5% of deposit amount will be applied as penalty. 3 year - 5 year - 1% od deposit amount will be applied as penalty.

For opening a SCSS account, PAN card is mandatory.

The customer can renew within 365 days after maturity of an SCSS account.

Renewal will be for 36 months and no auto renewal is allowed. Only manual renewals are permitted in Finacle CBS.

Transfer of Account is possible between Post Office CBS to Post Office CBS, Post Office CBS to Non CBS Post Office and Non CBS Post Office to CBS Post Office.

Validation of limit of Rs.15 lakh is missing. In SCSS, first depositor is the investor and there is no share of joint holder in investment.Deduction of TDS and taking of Form 15G or 15H is missing.


Key Terminologies

TERMS DESCRIPTION

1

Flow Code

This is associated with the financial transactions of the deposit account. This is to identify the type of transaction (Deposit credit, interest payment, interest credit to the deposit account and so on) made to the deposit account.

2 Renewal of Deposit

Extension of the deposit after the maturity date for a maximum period of 36 months for SCSS deposits. Extension has to be done before the end of the 1year, after the maturity date of the deposit.

3

Principal Inflow

This flow corresponds to crediting deposit amount to the deposit account for all types of deposits (except Recurring Deposits). This flow happens only once to the account, ideally on the account open date.

4

Principal Outflow

This flow is used for debiting (payment) of the deposit amount (principal). Normally, this is used when interest is paid periodically to the customer separately. This occurs during closure of the account for IO type of interest flows.

5

Interest Outflow

This flow is used for paying periodical interest to some other account of the customer instead of crediting to the deposit account itself. In this case, the periodical interest paid out will not earn further interest on the interest paid amount.


Step by Step Process

Given below is the step by step process to perform SCSS processes in Finacle:

Cash deposit transaction in the SCSS account has to be done using the menu option CTM and transfer transaction from the operative account using the menu option CXFER.

Before Opening of SCSS deposit, a CIF ID has to be created for the customer (Menu: CVRC).

Invoke the menu option CSCAOP/SCSSAO for opening an SCSS deposit account and HCAACTD for closure of the account.

Select the Function Codes: O- Open for opening an account and Z- Close for closing an account.

The account opening can be verified using the menu option CSCAOPV/SCSSAV and the closure process can be verified using HCAACVTD menu option.

Modification of an opened account, before verification, can be done using the menu option CSCAOPM/SCSSMBV.

Account modification – Changes to the account details like, repayment account, interest credit account, customer instructions, tax related parameters, renewal instructions, change in nomination and so on can be done using the menu option CSCAM/SCSSMAV.


Demonstration


Congratulations!! You have successfully completed the lesson Senior Citizen Savings Scheme using Finacle. Following are the summary of important points discussed in this lesson:

Invoke the menu option CSCAOP/SCSSAO for opening the account.

Invoke the menu option CSCAOPV/SCSSAV for verification of the account.

Invoke the menu option CSCAOPM/SCSSMBV for modification of the opened account before verification.

Invoke the menu option CSCAM/SCSSMAV is for Modification of the opened account after verification.

Invoke the menu option CTM and CXFER for Cash deposit and transfer transactions.

Invoke the menu option HCAACTD for closing of an account.

Invoke the menu option HCAACVTD for verifying the closed account.

Summary


Any Questions?


Assessment and Evaluation

Now that u have gone through the process of SCSS operations in Finacle let us do a hands on exercise on this module. Refer to the hands on exercise given at the end of the job aid

Invoke the menu option CSCAOP/SCSSAO for opening the account.

Invoke the menu option CSCAOPV/SCSSAV for verification of the account.

Invoke the menu option CTM and CXFER for Cash deposit and transfer transactions.

Invoke the menu option HCAACTD for closing of an account.

Invoke the menu option HCAACVTD for verifying the closed account.


THANK YOU!

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