ACCOUNT
ACCOUNTS – 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
Product Features of
Accounts
Account – product
overview Interest
Fixed
Customer Floating
Accounts Charges
Group Account
level level
Account Account
closure
Statements
Passbook
Internal
Accounts
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
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.
Account – Static tables
CATEGOR
Y CODE
CURRENCY
CUSTOMER
ACCOUNT
RELATION
TABLE FOR DEPT.ACCT.
JOINT OFFICER
ACCOUNT
Savings account -Local currency- USD
CATEGOR
Y CODE
CURRENCY
CUSTOMER
ACCOUNT
RELATION
TABLE FOR DEPT.ACCT.
JOINT OFFICER
ACCOUNT
Savings Account
• Foreign currency with Joint account holder
Currency
- GBP
Relationship
of joint
Joint account account
Holder’s customer holder with
ID the account
holder
Current Account
Internal account
Internal account is
created by bank
tomanage its own
assets and liabilities
Account opening – Mandatory details
• Account ID
• Unique and can be auto-generated or manually created.
• 2 to 16 numeric characters
Customer ID
Currency
• Valid
curren
cy ISO
code
• Canno
t be
amen
ded
after
authori
zation
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
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
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 doesn't exists, then t24 automatically creates a
agency record for the notsro account created.
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
Accounts Service conditions
• Preferential Service Conditions
• Interest
• Charges
• Statements
• Group Specific
• Account Specific
Account service conditions
Interest Types and Rates
• Interest application or capitalization
• 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, capitalization or issuing statements. Individual account level
conditions takes precedence over group level conditions.
For e.g., 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 individual accounts.
Types of Charges
Account service conditions
• 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 individual
account.
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 e.g., ABC 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.
Account service conditions
• Possible to set account level conditions
• Account maintenance is used for
• Changing account statement frequency
• Setting debit and credit interest conditions for an account
• Setting frequency for account capitalization
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
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
Capitalization Frequency
• Account Maintenance
Capitalization Frequency
• Account Maintenance
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
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
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
Product features - Amend Account
• Account record is opened for amendment as shown
Product Features
Authorize/Delete Account
• Newly opened Accounts can be authorized/deleted
• Click Account>Authorize/Delete Account
Product Features
Authorize details of Account
Product Features
• Delete details of Account
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 capitalized till the closure date
Quiz
• What is an internal account?
• What is a nostro account?
• What is interest capitalization?
• What is a joint account?
Summary
• At the end of this session the participants have learnt about
• The features of Account application
• Different types of Accounts
• Opening of Accounts
THANK YOU
