MIS/SCSS Issues
(i) Whether Reason Code for closure is mandatory to select in all type of closures?
Yes, Reason for closure is critical and mandatory . Hence the selection of reason code to be selected for all types of closures.(ii) Before actual closure, is it mandatory to do a trial closure?
Yes, if account closure is done after date of maturity and when closure sanction is to be issued to any SO or BO, Trial Closure of TD type accounts is mandatory. This will also be helpful for placing request for issue of Postmaster cheque.(iii) How to do a Trial Closure of MIS/TD/SCSS
Menu HCAACTD can be used to perform trial closure on MIS/TD/SCSS/Matured NSC&KVP accounts. As displayed in the screen shots below , the interest amounts can be viewed at the result page:(a) Invoke HCAACTD, choose function as L-Trial Closure and provide Account Id. Click anywhere and wait for the name of depositor to be displayed. Once name is displayed, tally name with the name mentioned in Passbook so as to confirm that correct account number is entered. The closure value date and withdrawal amount will be auto populated by the system.
(b) On clicking GO, the account information tab will display the account details
(c) The closure details such as Close Mode and Repayment A/C ID have to be provided in the closure tab
(d) The Closure Reason Code (and Closure remarks) have to be provided in Closure Exception Tab. This is mandatory to enter to get correct closure value.
(e) Once all the details are entered correctly, sclik on ubmit
(f) On Submit , the result page is displayed that will contain all the required information on the account as well as the interest transactions on the account
(g) Go to menu HPR to see the report wherein net amount to be paid to the customer will be shown
(h) Bonus if any for MIS accounts, will not be shown in the closure details screen, but will appear in the report generated in HPR during trial closure.
MIS
(i) Error “The Mode of Operator for A MINOR can be either 018 or 019” during Account Modification.Solution:-
For Minor accounts, mode of operation should be either
018 – Minor A/c Operated by Self
019 – Minor A/c Operated by Guardian
SCSS
Error thrown while modifying 15H in SCSS modification(i) “If main holder is Male, spouse should be Female in the CIF ID and vice versa” while updating 15H form in SCSS modification
CIF for all the existing accounts are generated during migration. Date of birth is defaulted as “01/07/1960” and Gender as “OTHERS” as these two data are not maintained in Sanchay Post. Post migration, operators to modify the date of birth and also the gender by invoking the menu CMRC before modifying 15H in SCS Modification.
(ii) While closing SCSS Accounts prematurely, Penal fee is not getting deducted.
a) Check whether correct Closure Reason Code is selected. If “death closure” is selected under “Closure Exceptions” tab, Penal fee will not be deducted.b) “Collect Penal Int” field is to be selected.
(iii) How to handle SCSS Death Closure within lock up period?
SCSS death closure can be done only at HO. When death is reported, first of all, date of death is to be entered in CIF Modification menu and verified by the Supervisor. After sanction of death claim case, account closure form alongwith Passbook is to be sent to HO (if account stands at SO). . Only Supervisor of HPO can close the account by following the process given below and Postmaster of HPO has to verify the transaction:-a). First Supervisor has to invoke HINTTM menu and give the SCSS account number and choose SBRATE and give start date as Date of death and Verifier can verify the same record.
This is done to ensure until date of death, SCSS rate is given to customer and from date of death till date only SB rate will be given to customer.
b) After HINTTM verification, user can invoke HCAACTD and system will automatically change the closure value date and user has to apply mind and change the reason code as "DEATH" to ensure no penalty is applied to this account.
(iv) How to Refund TDS when wrongly deducted
As and when it is found that TDS is wrongly deducted, following process should be followed to refund TDS:-Write an error in the Error Book showing detail of account number and amount of TDS wrongly deducted. Go to HRFTDS menu and enter the SCSS account ID in the field” From A/c ID & To A/c ID” and select trantype as Transfer. Cash option should not be used in trantype. On clicking GO, the TDS amount deducted will be shown. In the “Refund A/c ID” field, enter the customer's SB a/c if customer has savings account in any CBS post office or if customer wants cash to be paid, enter office account 0340 and pay cash. In the evening, show this amount as TDS Refund in the daily account or cash book.
Note 1:- Refund has to be made only before submission of tax returns by respective HOs. No TDS refund should be made after remitting TDS to IT Department. Customers can get reimbursement only from IT department after filing returns.
Note 2:- that wherever From A/c ID & To A/c ID fields are shown in Finacle, it refers to a range of accounts (eg. from 1 to 100) and not transfer-from and transfer-to account ID.
(v) MIS and SCSS/TD interests are not getting paid from sundry even though there is proper interest outflow in HTDTRAN menu or Interest Amount not fetched in HTM.
a) Please check the accounts in HTDTRAN whether interest posting for the quarter has happened on 30/06/2014 BOD. If the interest is paid to the SB account of the customer, it will not be available in HTM.b) If Interest Posting entry is not shown, then check whether any verification is pending in these accounts in CSCAM/CMISAM menu and do the verification. Interest will get posted during the next EOD.
c) Also, check the EOD reports (in the HPR of the user who ran HSCOLD menu on 28/06/2014) and check for "Interest Application Failure Reports" which should contain the list of accounts for which interest could not be posted and the reason thereof.
This is mainly due to faulty process of interest payment from sundry account by mentioning wrong MIS or SCSS accounts in reference number column in the additional part transaction screen. Further, in the start and end amount field, no amount is to be entered in additional part transaction details screen.
After making sure of interest posting in HTDTRAN, use HFTI menu to check whether the interest amount is already paid. The filters to be filled in HFTI are:
· A/c id: SUNDRY ACCOUNT NUMBER (335/337/338)
· Reference No.: MIS account number
· From date: Interest posted date (interest due date / interest posted date as shown in HTDTRAN)
· To date: Current date
· Click on “GO”
This will list all the transactions w.r.t the account entered in Reference Number
(vi) MIS, SCSS or TD Interest not credited to MIS/SCSS/TD sundry accounts or customer’s SB Accounts
Interest not credited to Sundry or SB accounts for TDA products is mostly due to unverified audit transactions. Same can be checked in supervisor level by invoking HAFI menu. After verifying it, interest will be credited after EOD. HIOT (before migration interest) and HTDTRAN should be checked for knowing interest outflow.(vii) SCSS Interest amount differs.
It is mainly because of deduction of Tax at source. For those accounts without PAN Card 20% tax will be deducted and accounts with PAN Card and without 15G or 15H, 10% tax will be deducted. Availability of the PAN Card can be checked at CIF level. Any Modification done in the CIF level as regards Income proof has to be verified by the Supervisor.
(viii). Difference in MIS & SCSS interest in First month/quarter after migration.
This issue is being raised by many post offices.SCSS
When any office is migrated to CBS, while generating interest for the first quarter after migration, one day’s interest is deducted by Finacle from the due quarterly interest. This interest belong to the day of account opening given by Sanchay Post. This one day interest will be paid on the day of closure by Finacle. This is happening due to fundamental difference between Sanchay Post and Finacle. Sanchay Post is paying interest for the day of account opening and not for the day of closure e.g account opened on 3.4.2013 will be matured in Sanchay Post on 3.4.2018. Sanchay Post will pay interest from 3.4.2013 to 2.4.2018 and payment will be made on 3.4.2018.In Finacle, with same example, interest will be calculated and paid from 4.4.2013 to 3.4.2018 and payment will be made on 3.4.2018. Total interest in both the cases will be same. When account is opened in Sanchay Post and closed in Finacle, one day’s interest will be paid extra. Therefore, this extra interest is being deducted in Finacle during first payment after migration
SCSS/MIS
In Sanchaya, rounding off was being done every quarter/month to the higher side of a rupee if interest is in 50 paisa or more but Finacle adjusts rounding off every quarter/month to restrict total interest to the actual rate of interest. Therefore, any extra interest already paid in Sanchay Post due to higher rounding off is also deducted during interest credit of first quarter/month after migration.
For migrated MIS Accounts, Finacle is calculating interest on basis of number of days in a month from the date of opening of account.
Due to this, interest is not calculating equally for every month. This issue has been taken up with Infosys for correction. Till it is rectified, customer should be convinced that less interest credited/paid if any will be adjusted during next month.
Sanchay Post interest paid details can be known by invoking menu TIPM. Unpaid interest in Sanchay Post can be viewed in HIOT and interest calculated after migration can be viewed through HTDTRAN.
Sample Calculation of Interest in Finacle
1) Sanchay Post calculates interest from the date of opening till the date prior to maturity date. Example account - 0494076240, Sanchay Post calculates interest 30/09/2009-29/09/2014. No interest is paid for 30/09/2014. Finacle calculates interest from the next day of opening till the date of maturity. In this case from 01/10/2009-30/09/2014. So, the first interest payment of Rs.24/- is excess.2) Sanchay Post rounds off the interest amount during every quarter; in this case Rs.2227.5 is rounded off as Rs.2228. Finacle does the rounding off / flooring off on such accounts on alternative quarters. Please view the Flow tab for this account for more clarity.
3) For broken periods, Finacle calculates interest as follows (Eg. account-0494079867):
Quarterly amount / 3 => 2227.5/3 = 742.5
(Monthly amount / number of days in the month) * number of interest-eligible days => (742.5/31)*21 = 502.98 rounded off to 503.
4) This amount is also visible in the Flow tab of the account.
So, the interest amount depends not only on the principal amount but also on the date of opening and the number of days in the month.
(x) How to handle Withdrawal of Excess amount from MIS Account in case of death of one of joint holder where amount invested is more than the prescribed limit for single holder.?
In case of Joint MIS Account where one of the joint holder dies and the investment in the account(s) is more than the MIS investment limit fixed for single holder, following process has to be followed:-The user needs to withdraw the excess amount by selecting part closure in the menu HCAACTD.
Once HCAACTD is invoked the user needs to enter the date of death of the holder in closure value date and excess amount to be withdrawn in the withdrawn amount field.
Once the user goes into the closure details page of the menu HCAACTD, Collect penal flag has to be chosen as ‘No’ and in closure exceptions tab, closure reason code has to be selected as ‘DTCLM’. E.g. Date of closure when legal heir asks for removal of name of joint holder due to death = 10-10-2013. Date of death - 7-7-2013. So in the closure value date, the user will enter date as 7-7-2013.In the above scenario, conversion has to be done at account level from joint to single as well.
For this the following steps need to be followed once part closure is done at HCAACTD:-
If the deceased share holder is not the main holder of the account then in the menu CMISAM, the deceased share holder has to be marked as deleted.
If the deceased share holder is main holder of the account, then user needs to invoke menu HCCA and change the CIf id of the main holder to that of remaining holder, who would be the main holder in the account. e.g. CIF A, B and C are joint holder. CIF A dies and remaining holder want to make CIF B as main holder. Then the user will invoke menu HCCA and change the CIF id from CIF A to CIF B. (In Finacle, First Holder is the main Holder)
(xi) When Account Holder of MIS/SCSS/TD scheme approaches CBS Post Office, where account stands for transfer of accounts before maturity to another CBS Post Office.
The Counter PA or Supervisor or Postmaster should politely request the Account holder that since CBS has been implemented in the office, where he wants to transfer Accounts, there is no need for transfer of Accounts as he/she, on maturity, can take payment from any CBS Post Office after giving fresh KYC documents. Whenever any account is closed at the office other than the office where account was opened, payment should not be made by cash in any case and payment should either be made by crossed cheque or credit to savings account (where required KYC documents have been taken). Monthly/quarterly or Yearly interest can also be withdrawn at any CBS Post Office.(xii) When Account Holder of MIS/SCSS/TD scheme approaches any CBS Post Office for taking interest or closing accounts.
The Counter PA should first go to HACLI and see that Account(s) are genuine and stand in Finacle. He/She will verify signatures of the holder(s) on the withdrawal Form or Account Closure Form with that available in Finacle. Once, it is confirmed from the signatures that holder is genuine, payment of interest should be made to the account holder as per process being followed for normal withdrawal. If account closure is requested, take SB10(b) form, fresh ID as well as Address Proof. After proper verification of KYC documents, Accounts(s) first to be transferred IN by using HACXFSOL. Whenever any account is closed at the office other than the office where account was opened, in any case, payment should not be made by cash and payment should either be made by crossed cheque or credit to savings account (where required KYC documents have been taken) only. If holder wants re-investment, closing proceeds should be transferred to Re-investment office account (0387) and credit re-invested amount into newly opened account/certificate. Remaining amount can either be credited to savings account or paid back by cheque.SB10(b) and KYC documents should be sent to CPC of the office where payment is being made. CPC will scan the document and attach the same with CIF.
(xiii) When any claimant presents documents for preferring claim in respect of any MIS/SCSS/TD/RD/PPF account(s) stand at another CBS Office alongwith claim application form for payment or transfer of account (RD/TD/SCSS) in the name of claimant.
Date should be noted in the relevant field in CIF of deceased depositor. Follow the procedure laid down for settlement of deceased claim case. After sanction of claim, follow the procedure mentioned in scenario 5 above. If claimant wants to transfer RD/TD/SCSS account in his/her name, open new CIF (based on new Account Opening Form (AOF)} in his/her name (if not already exists) and attach the existing Accounts with new CIF. Name of holder can be changed through menu HAALM.Claim Application Form and KYC documents of claimant or Account Opening Form (AOF) should be sent to CPC of the office where payment is being made or claim is sanctioned. CPC will scan the document and attach the same with CIF.
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