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FCUBS : Musharaka Partial Settlement With Reduce Tenor Has Reduced The Tenor But Increased The EMI (Doc ID 2996083.1)

Last updated on JANUARY 04, 2024

Applies to:

Oracle FLEXCUBE Universal Banking - Version 14.6.0.0.0 and later
Information in this document applies to any platform.

Symptoms

ACTUAL BEHAVIOR
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 Musharaka Partial settlement with reduce Tenor, Tenor Reduced but increased the EMI

EXPECTED BEHAVIOR
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System should reduce the tenor but EMI should not be increases and any residual should be adjusted in bullet schedule.

STEPS
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The issue can be reproduced at will with the following steps:
Musharaka finance contract is booked with CIDACCNT screen.
Prepayment initiated with Reduce tenor option using CIDPYMNT screen.
After prepayment system has reduced the tenor but increased the EMI amount as well.
before payment EMI was 4680, After prepay increased to 4943.

BUSINESS IMPACT
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The issue has the following business impact:
Due to this issue, EMI has been changed

Changes

The original EMI was built by considering the Moratorium amount. However during re-calculation, system was considering the original EMI as base and adding the Moratorium amount and derived the new EMI. This has resulted the change in EMI as well.

Cause

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In this Document
Symptoms
Changes
Cause
Solution
References


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