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Loan Is Getting Auto Rolled Over With Insufficient Balance In The Debit Account (Doc ID 2688585.1)

Last updated on JULY 08, 2020

Applies to:

Oracle FLEXCUBE Universal Banking - Version 14.0.0.0.0 and later
Information in this document applies to any platform.

Symptoms

On : 14.0.0.0.0 version, Production Support-SET

ACTUAL BEHAVIOR
---------------
During Auto Rollover process, system collects the outstanding amount of the Non-Rollover components from customer account in spite of having insufficient funds

EXPECTED BEHAVIOR
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Loan is not expected to skip Roll over if settlement account fund available is not sufficient to collect the outstanding of Non-Roll components, if any present.

STEPS
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The issue can be reproduced at will with the following steps:
1. Create a loan account with auto rollover enabled, Rollover Type as Custom, Roll By as Days, rollover component as PRINCIPAL and debit settlement account having insufficient balance.
2. Run EOD on maturity date of the loan. ALIQ would not have triggered due to insufficient balance but ROLL event has triggered collecting funds from customer account leaving negative balance.

BUSINESS IMPACT
-----------------------
The issue has the following business impact:
Due to this issue, settlement account ends up with negative balance.

Changes

1.  If Verify funds is enabled for a Non-Rollover component, system will check the available balance in settlement account before collecting the outstanding balance from customer as part of Auto Rollover 
2.  If the settlement account's fund is insufficient to collect the amount for Non-Roll component, system will skip the entire Rollover process for that particular account
3.  The Rollover will happen only when enough funds are available on the customer account to collect the outstanding amount
4.  However if there are no Non-roll components with outstanding amount as on the Maturity date, the funds will not be verified at all.

Cause

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In this Document
Symptoms
Changes
Cause
Solution


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