Account Maintenance – Account Lien, Freezing of Account and Stop Payment
Account Maintenance – Account Lien, Freezing of Account and Stop Payment.
Dec 21, 2015
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Account Maintenance – Account Lien, Freezing of Account and Stop Payment
Lien _ Freeze _ Stop Payment (LIENFREEZESP)
Table of ContentsIntroduction
Slide 2
Introduction
Business Scenario
Finacle Process Overview
Key Terminologies
Step by Step Process
Demonstration
Summary
Lien _ Freeze _ Stop Payment (LIENFREEZESP) Slide 3
Introduction
Lesson Objective
Duration
Intended Audience
To understand the process of marking and revoking Lien of an account, freezing and unfreezing an account, and accepting and revoking of stop payment of a cheque
1 Hour
Customer Service
Lien _ Freeze _ Stop Payment (LIENFREEZESP) Slide 4
Business Scenario
Business Scenario 1
Loan has been sanctioned to a customer against aDeposit account Balance for a short period. He adjusts the loan after the specified time. How will you mark and revoke the lien in the customer’s account.
Lien _ Freeze _ Stop Payment (LIENFREEZESP) Slide 5
Business Scenario
Business Scenario 2
An Income Tax attachment has been served in one of your customers’ Saving Account. However, the attachment has been lifted after some time. How will you freeze and unfreeze the customer’s account.
Lien _ Freeze _ Stop Payment (LIENFREEZESP) Slide 6
Business Scenario
Business Scenario 3
One of the customers has lost a cheque and has requested for stop payment. He soon traces the cheques. How will you stop and revoke payment of the customer’s cheque.
Lien _ Freeze _ Stop Payment (LIENFREEZESP) Slide 7
Finacle Process Overview
The approach for Account Lien, Account Freeze and Stop Payment of Cheques in Finacle:
Lien _ Freeze _ Stop Payment (LIENFREEZESP) Slide 8
Key Terminologies
TERMS DESCRIPTION
1 LienLien is referred to an earmarking or blocking a certain amount in an account for a defined or a pre-defined period.
2 FreezeFreezing is referred to the restriction on an account, where Finacle restricts transactions in an account. It could be a debit freeze or a credit freeze. When it is a total freeze then the account can neither be credited nor be debited.
3 Stop PaymentStop payment of a cheque referred to when the cheque is lost or damaged. This is a precautionary step to stop cheque being realized by the person not entitled to it.
Lien _ Freeze _ Stop Payment (LIENFREEZESP) Slide 9
Step by Step Process – Account Lien
Given below is the step involved in Lien Marking in an Account in Finacle:
Invoke the menu option HALM for lien marking an account.
You need to verify the lien marking using the same menu option HALM.
When the lien is marked manually, then the module type will be User Defined. Lien could also be marked by system – System Lien.
You can also state the lien effective period and expiry period.
Enter the Lien amount and Reason code for marking lien.
You can revoke a lien by modifying the lien amount to zero using the same menu option.
Lien _ Freeze _ Stop Payment (LIENFREEZESP) Slide 10
Step by Step Process – Account Freeze
Given below is the step involved in Freezing an Account in Finacle:
Invoke the menu option HAFSM for freezing an account.
This requires verification using the same menu option HAFSM.
Freezing can be for Debits Only, Credits Only or Total Freeze (both).
Freezing can be done for a CIF or an Account.
Invoke the same menu option HAFSM for unfreezing an account.
Before advancing a loan against NSC and KVP, the Post Office branch has to freeze the account.
This needs to be modified. The modified text should be as follows:-When customer applies for loan against NSC or KVP in a Bank, that bank applies for pledging of NSC/KVP. While entering pledge in the record, post office has to freeze the account.
Lien _ Freeze _ Stop Payment (LIENFREEZESP) Slide 11
Step by Step Process – Stop Payment
Given below is the step involved in Stop Payment of a cheque in Finacle:
Invoke the menu option HSPP for stop payment of the cheque .
This requires verification using the menu option HSPPAU.
Stop payment can be done for a single leaf or more than one leaf.
Revocation of Stop Payment can be done using the menu option HSPP and verified using the menu option HSPPAU.
Charges for stop payment and revocation of stop payment can be viewed/modified before verification by clicking FEE Tab.
Lien _ Freeze _ Stop Payment (LIENFREEZESP) Slide 12
Demonstration
Lien _ Freeze _ Stop Payment (LIENFREEZESP) Slide 13
Congratulations!! You have successfully completed the lesson on Account Maintenance – Account Lien, Freezing of Account and Stop Payment in Finacle. Following are the summary of important points discussed in this lesson:
The menu option for lien marking and revoking is HALM.You can mark a lien on the entire or partial amount.the menu option for freezing and unfreezing an account is HAFSM.NSC’s and KVP’s have to be frozen by Post office branches before
advancing a loan against these instruments.Account can be frozen for Debit Only, Credit Only or Both.Stop payment of a cheque and revocation of such request can be
done by invoking the menu option HSPP.Stop Payment can be for a single or multiple leaves.The request and revocation of a stop payment requires verification
using the menu option HSPPAU.
Summary
Lien _ Freeze _ Stop Payment (LIENFREEZESP) Slide 14
Any Questions?
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