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: RFR- Preference - Payment Delay - Issue With Interest Calculation And Liquidation (Doc ID 2816842.1)

Last updated on NOVEMBER 01, 2021

Applies to:

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


On : version, Implementation Support

RFR- Preference - Payment Delay - Issue with Interest Calculation and Liquidation

Interest rate pick up is not in order and further, system missed interest liquidation.

In this case, the principal basis for the weekend was picked up correctly. However, system has considered rate pick up date as 24-Mar-2020 for the calculation dates 24th to 27th March. Hence system has applied 14% interest for this period.

The job FCEOD_BATCH_CALL was running for all the days during EOD.

Value Date: 23-Mar-2020
Weekly Interest schedule 30-Mar-2020
Interest Liquidation Due Date: 01-Apr-2020 (Delay provided is 2 days)

In this case, payment delay of 2 days was given, which means the interest liquidation should have happened on 01-Apr-2020. 

System results for interest accrual is same for preferences Lockout, Plain and Payment Delay. However, the interest accrual calculation is fine only for RFR-Preference: Lockout.

The issue can be reproduced at will with the following steps:
1. Maintain RFR rule as required.
2. Create MM contract and execute few EOD's
3. Verify if interest calc, accr, liquidation are happening as per the selected RFR preference.

The issue has the following business impact:
Due to this issue, RFR interest liquidation is not happening as per the selected preference.




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