Discounted TD during redemption is deducting the interest amount paid Upfront (Doc ID 3051421.1)

Last updated on OCTOBER 11, 2024

Applies to:

Symptoms

ACTUAL BEHAVIOR
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Discounted TD with fixed tenor say 30 days
In case of preclosure/redemption
a. within 15 days - the interest paid will be reversed
b. >15<=30 Days - reverse the interest paid and interest of <>% will be paid to the CASA

1. Preclosure Case (Success)
While doing the redemption, the interest paid is reversed correctly. Also, the new interest amount <>% calculated is credited to the CASA account.

2. Close on Maturity Case (Failed)
This is the type of discounted TD that’s why the bank paid the Interest when opening the account. So we don’t need to deduct the interest from the customer’s account when the maturity.

EXPECTED BEHAVIOR
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During maturity closure system should not take the interest from the customer.

STEPS
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The issue can be reproduced at will with the following steps:
1. Book a TD and make maturity date as EOM
2. Run EOM
3. Verify the entries posted on maturity for the TD.

Cause

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