ACCOUNT

Day 2 – Session 1 & 2

Business Design Courses

ACCOUNTS – An introduction
 Session Objective

 At the end of the session you will be able to understand

• Product features of Accounts in T24

• How Accounts are linked to other T24 applications

• Different types of Accounts available in T24

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Product Features of Accounts

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 Account – product overview
Fixed
Interest
Customer Floating
Accounts Charges

Account
Group level
level

Account Account
closure

Statements

Passbook
Internal
Accounts

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 Product Features of Accounts

 Account module is a core module in T24 and it is linked to all

T24 applications
 Multi types of accounts intended for customers can be
opened like savings A/c, current A/c, in local as well as in
foreign currency
 Joint account refers to opening of a single account with more
than one customer.
 Non Customer Accounts can also be opened in T24 called
as Internal Accounts

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 Product Features of Accounts

 Internal accounts are those owned by banks for managing

its own assets and liabilities such as
• Cash Accounts
• Accrued Profits
• Suspense Accounts
• No counterparty
• No interest or charges are applied on internal accounts.

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 Account – Static tables


CATEGORY
CODE

CURRENCY
CUSTOMER
ACCOUNT

RELATION
TABLE FOR DEPT.ACCT.
JOINT OFFICER
ACCOUNT
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 Savings account – Local currency - USD

Customer
ID

Category
code

Dept Acct
Currency -
Officer
USD

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 Savings Account – Foreign currency with
Joint account holder

Currency
- GBP

Joint account Relationship

Holder’s customer of joint
ID account
holder with
the account
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 Current Account

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 Internal account

Internal account is
created by bank
tomanage its own
assets and liabilities

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 Account opening – Mandatory details

 Account ID
• Unique and can be autogenerated or manually created.
• 2 to 16 numeric characters
Customer ID
Currency
• Valid currency ISO code
• Cannot be amended after authorisation
Product code – Category code
• Savings, Current account etc.
• Can be amended after authorisation

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 Account opening – Optional details

 Account Mnemonic
• Alternate method of referencing the account number.
 Account Name
• Customer, currency and product name can be indicated
 Short Name
 Account officer
• Defaulted from underlying customer record
 Joint Account Holder
• It is possible to indicate more than one joint account holder

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 Product Features of Accounts

 Possible to create groups as per the requirement of the bank

• Example – Students residing in US
• Doctors residing in India
 Possible to apply interest rates and charges for those groups
• Capability of the Accounts Module is enhanced by the wide
range of Interest and Charges

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 Nostro Account

 Nostro account refers to our banks’s account with another bank.

 It is the mirror account of our nostroaccount with another bank.
 Only a bank can open “Nostro account”
 Product code will be 5001 – bank
• 5002 – central banks
 Currency – Nostro account currency
 After opening a nostro account, the account details can be added
to the agency record. If agency record doesnt exists, then t24
automatically creates a agency record for the notsro account
created.

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 Nostro Account

To reconcile the differnce

between the mirror
account and the actual
account number. If yes,
then the tolerance amount
can be specified.

Our bank has opened a

nostro account
(AIF235689)with Credit
suisse bank. To reflect
the same, we are
opening the nostro
This is the actual account number account 41262
opened in Cresit suisse
bank(Correspondent bank) There is
no validation against this and held
for information purpose only

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 Accounts Service conditions

 Preferential Service Conditions

• Interest

• Charges

• Statements

 Group Specific

 Account Specific

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 Account service conditions

 Interest Types and Rates

• Interest application or capitalisation
• Debit and credit interest
• Fixed/Floating rates
• Balance on which it is applicable such as Average, daily, minimum etc
 Service conditions may be set at either a group level or at a specific
account level with respect to interest, charges, capitalisation or issuing
statements. Indivdual account level conditions takes precedence over
group level conditions.
 For eg, statement generation charge can be set at $3 for the group
account opened by all students residing in US. It can be set at $2 for all
indivdual accounts.

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 Account service conditions

Types of Charges
 Calculation of charges relating to the maintenance and servicing of
accounts
 There are two types of account related charges in T24
• Interest Related Charges
– Charges imposed with debit interest during capitalization
• Ledger Fee Charges
– Charges collected for maintenance of Accounts
Statement Frequency can also be set up for a group of
accounts or an indivdual account.

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 Account service conditions

 Group specific conditions

 Rules for interest and charges can be set up for all group
accounts
 When a new account is opened t24 locates the group in to
which the account falls. For eg, Thesys employees salary
account is a group account, when a new employee joins,
T24 locates the salary group account and will place him in
the existing group account.
 Conditions set for the group will be applied to the account.

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 Account service conditions

 Possible to set account level conditions

 Account maintainance is used for
 Changing account statement frequency
 Setting debit and credit interest conditions for an account
 Setting frequency for account capitalisation

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 Account service conditions

 Capitalization refers to the process of adding interest to the

principal.
 Possible to set rules for Capitalization of interest and interest
related charges
• Example – For Current accounts of Private individuals residing
in UK, to debit interest every month on the last date while for
credit balances in those accounts, pay interest every quarter
 Special capitalization at any interval on request of Customer
 On request from the Customer, interim capitalization is
possible

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 Account service conditions

 Possible to apply flat percentage charge on the highest

Debit balance recorded in an Account during the
capitalization period
 Allows levying a fee for production of a Debit Interest
Statement
 Allows the bank to collect charges on overdraft balances on
behalf of the Government

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 Capitalisation Frequency – Account
Maintainanace

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 Capitalisation Frequency – Account
Maintainanace

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 Product Features of Accounts

 In Account application, we have an option either to choose

Passbook or Account Statement
 Production of Account statement as per the frequency
required by customer/Bank
•A Customer cannot hold both Passbook and Account Statement
 Frequencies available are - Daily, Monthly, Quarterly, Six-
monthly and Yearly
 Applying charges for additional Account Statement

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 Product features - Amend Account

 Accounts in authorized status can be amended

 To amend an Account, click on the sub-menu
• Account>Amend Account
 A selection criteria box titled “Amend Account” appears as
shown in next slide

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 Product features - Amend Account

 Enter Account no. of the Account that is to be amended in

selection criteria box
(or)
 Click “Find” to list the Accounts that can be amended

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 Product features - Amend Account

 Account record is opened for amendment as shown

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 Product Features - Authorize/Delete
Account
 Newly opened Accounts can be authorized/deleted
 Click Account>Authorize/Delete Account

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 Product Features - Authorize details of
Account

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 Product Features - Delete details of
Account

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 Account closure

 Account closure could be done online or during COB

 Closure date if not specified defaults to system date
 If not closed online, future date can be specified and the
account gets closed during COB
 Settlement account to be specified mandatorily to credit the
proceeds, if the account that is to be closed has credit
balance.
 Charges can be collected for account closure
 Interest will be capitalised till the closure date

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 Quiz

 What is an internal account?

 What is a nostro account?
 What is interest capitalisation?
 What is a joint account?

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 Summary

 At the end of this session the participants have learnt about

• The features of Account application

• Different types of Accounts
• Opening of Accounts

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 All product names and other company names used herein are for identification purposes only and may be
trademarks or registered trademarks of their respective owners. Errors and omissions excepted,
all specifications are subject to change without notice.

© 2009 Thesys Technologies Incorporated. All rights reserved.

FOR MORE INFORMATION

Visit : www.thesys.co.in
email : [email protected]