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Correspondent Bank
The system displays the correspondent bank.
Correspondent Branch
The system displays the correspondent branch.
Transaction Reference Number
The System will generate transaction reference number for each cheque deposited in Oracle
FLEXCUBE.
The following validations need to be done:
If collection cheque is deposited to a current account, then the system will verify if cheque amount
can be covered by active cheque limits linked to the account. If cheque amount is completely
covered by limits, then the system will mark the collection as a negotiated type of collection else
non-negotiated.
For balance updation and utilization of cheque limits:

If a cheque collection is of negotiated type, then irrespective of bank or customer level
floating days, the system will increase available balance and utilization of cheque limits
and this is done only after processing is successful.

If a cheque collection is of non-negotiated type, then the system will credit transaction
account GL maintained at product level. During confirmation of cheque, the system will
debit transaction account GL and credit beneficiary account.
For re-instating utilization of cheque limits for current accounts:

Whenever a cheque collection is rejected, the system will decrease the utilization of
cheque limit for negotiated type of cheque.

Whenever a cheque collection is rejected, the system will reverse accounting entries
using outward return product maintained for the bank, clearing type, document type and
various payment indicator combination.

Whenever a cheque collection is not confirmed within floating days of the clearing bank
from the date of transaction initiation, the system will automatically mark the cheque as
‘Lost’ and utilization of cheque limits will be reduced.
For saving type of accounts, cheque collection will always be of type non-negotiated since there
will be no cheque limit available to cover collection cheques.
If an account does not have sufficient fund to pay commission/charges/tax, the system will
forcefully debit the account.
3.2.2 Commission Waiver
The following points need to consider while calculating commission:

The calculation of commissions must consider the commission waiver of the customer

The commissions, postages and telex could be partially or fully waived

When cheques are returned waivers are not applicable and bank recovers the full
commission that was due at the time of deposit.

The waiver of commissions, postage and telex has an expiration date.
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