Welcome to the T24 Account Introduction Course

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In this course, we will cover a Product Overview of Account and its
Dependencies

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These are the learning objectives of this course. You will learn the Core
Tables and the Business Features of Account. The Importance of Account
Application to other T24 Applications and how to Open different types of
Account and Preferential Conditions.

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In this course, we will cover a Product Overview of Account and its
Dependencies

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The ACCOUNT application caters to creation and maintenance of all types of accounts handled
by T24. In T24, Accounts can be classified as two types, namely Customer account and Internal
type of account. Customer accounts are opened for and owned by external customers.
Internal accounts are maintained by the bank for its own purpose, like cash account, suspense
account, etc.
This module provides for calculation, accrual and application of interest on customers' accounts.
Interest rate could be either Fixed or Floating. Further it can be level or banded. In addition, it is
used for calculation of charges relating to maintenance and servicing of accounts. Rules for
interest and charges can be set for an individual account or for a group of accounts.
The Account application stores only static information. The financial data is updated in
[Link]. ECB has the fields to display the updated account balance field, Date
moved fields and Exposure management fields.
It is used for account statements and issue of passbook for certain class of customer accounts.
It is possible to handle cheque book management in T24, like issuing, controlling stock, recording
payment, noting and effecting stop payment instructions.
Signature of account holders can be captured by another module called image management.
The [Link] application is used for closing accounts.
Sweeping of balances between accounts can also be handled. A separate course is available for
Account sweep and cash pooling.
Remember:
All the transactional balances and data are held on the [Link] record for the
account.
Account holds financial information in T24 releases before R12. During upgrades of such
releases, we have an option of retaining account balances in account table as well along with
ECB.

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We will now cover the Dependencies

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We need to have Customer records to refer counter party in the case of
customer type of accounts. Customer details such as name, nationality,
residence etc., are not entered in individual account record. These are held
in the customer base record.

Accounting entries are raised for accrual and capitalisation of interest and
charges. When transactions are input through other applications, the
appropriate account balances are updated on real time basis.

Delivery system is used to produce account statements, interest statements

Limit is core to T24.

FX contracts require settlement accounts and other contracts like LD, MM,
etc require drawdown account and liquidation accounts.

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Category codes are used to classify financial products based on the type of
business operation or product. The first two digits of the Category code
represent the highest level classification and the next three digits represent
a sub-classification.
Although it is possible to have Customer type accounts defined in the
Category range of 1000 to 9999, suggested range of sub categories for
different types of accounts are also mentioned.
If there is need for defining additional sub-classifications, care is to be taken
to ensure sufficient details do not already exist to provide required
breakdown. For example, we need not define separate CATEGORY codes for
resident and non-resident customers or for local and foreign currency
transactions. The category codes together with other CUSTOMER
characteristics like segment or industry or residence enables Banks to
produce profit & loss statements , balance sheet and returns reflecting
coordinated and structured view of the operations.

Internal account types fall under the Category range of 10000 to 19999.
Interest and charges cannot be accrued in Internal Accounts. For example
sub category range for cash accounts is suggested in the range of 10000 to
10999, while suspense accounts, fixed assets account and capital accounts
are suggested in the range of 11000 to 19999.

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Floating interest rate types are defined in [Link]
Table and the actual rates applicable are updated in [Link] Table. In
[Link] table, rate change is indicated with the effective date for such a
change, the underlying Accounts derive the new rate from this table.
It is possible to set negative rate of interest in [Link]. It is used only in
MM, SW and DX applications.
Though negative spread can be specified over basic interest rate for all types of
accounts, yet it is possible to set negative interest rates only for accounts in
credit balance. To do this, the [Link] Field on [Link] or
[Link] must be set to Yes or [Link].
If set to YES, this would enable collecting interest from accounts with credit
balances. Negative interest in an account could result due to a negative spread
being higher than the underlying floating rate. For example, a negative spread of
2% (Minus 2%) on LIBOR which is 1.5%. In this case as the interest being
capitalised is negative, it will be debited from the customer account instead of
making the interest as zero. If set to no, then the rate would be considered as
Zero. If set to [Link], negative effect will not be allowed because of
margin. Negative margin can not make the rate more negative or a positive rate
to negative. For Example, If base rate is -7, ( Minus 7%) margin is -2 ( Minus 2%)
then net effect will be -7 ( Minus 7%).If margin is +2 ( Plus 2) then the effective
rate become -5 ( Minus 5).If base rate is +5 ( plus 5%) and margin is -7 ( Minus
7%) then effective rate will be zero not negative.

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[Link] table is used to indicate predefined commission to be
collected. For example the charges could be for closing an account or cash
withdrawal charges. The charges could be defined currency wise at a flat
charge for all transaction amounts. Alternatively, charge can be defined as a
percentage of the transaction amount. It is also possible to set the charges
either on level or band basis. It is possible to set charges and commissions
for maintenance of accounts by linking the required [Link]
record to [Link]. It is also possible to set a Minimum or
Maximum charge either in absolute amount or in percentage of transaction
amount.

[Link] is used as an interbank facility for requesting or

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[Link] table allows to define a charge for a Transaction
defined in TRANSACTION Table. The charges can be defined in absolute
amount or in percentage with control over minimum and maximum amount
charge amount. Alternatively, a charge defined in [Link]
can also be linked in [Link] Table.

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[Link] is used as an interbank facility for requesting or
advising many types of charges from other financial institutions.
[Link] records is linked to [Link] for such
purposes. System defaults charge amount as per definition of the linked
[Link] Record. User can specify different amount. Status of
charges is also maintained.

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There are the currency related static tables used for ACCOUNT application.
COUNTRY table is used to record static information of individual Country.
The details include Country Name, Currency Code, etc.
[Link] table contains the basic details of every individual
Currency. The basic details include the Numeric Currency Code, Currency
Name, Number of Decimal Places and the Interest day Basis to ensure that
the same details are used on the different currency files in a multi company
environment.
The Markets defined on [Link] table are used to identify the
correct exchange and revaluation rates to be applied for a Currency. For
example: Different market exchange rate are applicable for Currency Notes
and Travelers Cheques. CURRENCY table holds currency wise details of
number of decimals, exchange rates like buying, selling, middle and
revaluation rates for different currency markets. These details can be
maintained manually or through interface. .
Currency Market is one of the Mandatory Key for Consolidation of Assets
and Liabilities in T24.
Interest day basis will be defaulted as per the currency used. It is possible
to change at the group level or account level.

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Different interest day basis for calculation of interest is possible depending
on the method followed for calculating number of days in interest period
and days in a year. In the [Link] table, different basis applicable in
T24 are available as A, B,C,D,E,F and None . Here, the number on the left
(Days) (Numerator) represents the basis for number of days in the interest
period whilst number on the right (Denominator) is the number of days
taken in the year.
For example: If Interest Basis B (366/360) is selected, then the interest
calculation would look as follows:-
Principal Amt x Rate x 366 / 360
For A 360/360 , 30 days in each month and 360 days in an year.
For D 360/366 , 30 days in each month and 366 days in an year.
When Interest day Basis NONE is chosen for group of accounts/an account ,
no interest is applied.
Interest day Basis GENERAL and G are used while setting Account specific
interest conditions using [Link] and [Link]
tables. When the account specific conditions are meant only for a specific
period and after which we would like the Group specific conditions to be
automatically applied, we can use the GENERAL basis. No interest rate
would be allowed to be indicated under this method as the interest
conditions set in the Group level would be automatically applied from the
date indicated in the Ids of these records.

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1: It is possible to accrue interest and charges for customer accounts and
not possible for internal accounts. Counterparty is mandatory for customer
accounts and not allowed for internal accounts

2: No. Negative interest is possible for only credit balances.

3: Using [Link] Application.

4: 29 days

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