job card written off accounts

8/12/2019 Job Card Written Off Accounts

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UCO BANK

JOB CARD

Opening of A/c (Written off)

In Memorandum Ledger

GIST: With a view to strengthen Recovery in Prudentially Written-off Accounts, it is essential

that all accounts that have been written off from the Books of Accounts should be opened

under Memorandum (Shadow) Ledger for proper monitoring and ultimate recovery.

Detailed steps for opening, maintenance and closure of ‘Shadow a/cs’ under Memorandum

ledger is given as follows:

STEP I : WRITE OFF of Original A/c (Loan / Cash Credit etc.)

STEP II : OPENING of SHADOW a/c in MEMORANDUM LEDGER

STEP III : RECOVERY in WRITTEN – Off ACCOUNTS

STEP IV: ENTRY IN MEMORANDUM/SHADOW Ledger in case of RECOVERY in WRITTEN _Off A/cs

EXAMPLE: Given below is an example of a Loan a/c being written off in Finacle System. The

status of the a/c is Non-Performing Asset and after due approval from Competent Authority,

same is being written off as per sanction.

In the following screen shot, menu ‘ACM’ option ‘Y’ the main / sub classification of the asset is

given as per chronological order.

Asset Classification consists of A) System Classification B) User Classification

A) System Classification is based on Bank’s NPA policy, HO guidelines and Parameterized.

B) User Classification is done manually, and has preference over System classification.



STEP I : WRITE OFF of Original A/c (Loan / Cash Credit etc.)

MENU : TM (Transaction Maintenance)

Process of Write Off through menu option ‘TM’

In this Example , Total Outstanding in Loan a/c is Rs. 11,39,251.93 , out of which amount

recovered from the Party amounts to Rs. 8,00,000.00 and the balance amount remaining i.e.

Rs. 3,39,251.93 is to be Written off as per Bank sanction.

Transaction for amount recovered from the Party is shown below :

Transaction for Write-off of outstanding amount in Loan a/c (Original).

Example : Head Office a/c (XXXX1032015001) Dr. ( Additional details to be entered)

Original Loan a/c Cr.

Visit Screen : Will be ‘O’ Originating Debit , and details of HO sanction to be entered as as

shown in the the following screen shot:



Additional Details in HO a/c

While Debiting HO a/c in additional details (A) option the following details to be captured .

Category Code will be ‘206’(Bad Debts Written Off) and the Bank code will be ‘028’(Uco

Bank) and Branch Code will be ‘0001’ Uco Bank Head Office, User to enter all details of Write

Off i.e. advance a/c no. & date of HO sanction etc.

Original Loan a/c balance will be “Nil’ after proceeds are credited from the HO a/c during

the process of Write off. In narration box details of write off, HO sanction to be entered .



Menu option ‘ACLI’ ( Account Ledger Inquiry) for Inquiry in the original Loan a/c after the

Write off transactions are completed. Details are shown in the following screen shot:

For Reporting purposes ( Bank’s Internal, Cibil etc.)the Account Health Code / Customer

Health Code of the written off account may be modified to ‘WO’Written Off if required.

In case ‘WO’ is entered in ‘CUMM’ i.e. Customer Level, then all a/cs of the customer will

become‘WO’ in Customer Health Code as shown in ‘ACM’ (Customer Accounts

Maintenance) as shown below :



STEP II : OPENING of SHADOW a/c in MEMORANDUM LEDGER

Menu : OAAC Scheme Code : LAMSL GL Sub Head : 93100

**Customer Id : Should be the same as the Original a/c (Loan / CC) written off

In Scheme ‘LAMSL’ the default Interest Rate Code is ‘BASLN’ if the User wants to restore the

rate code of the original written off a/c , the same may be modified through menu option

‘INTTM’.



Scheme Details :

No. of Installments ( Loan Period) = ‘1’, will be one

Loan Amount usually will be the amount which has been written off in the original account as

per HO / ZO sanction

Health Code : Customer and Account Code will be ‘WO’ i.e. Written Off

Int. Demand Effective Date will also be a high date such as 31-03-2099 , shown in the

following example :-



Repayment Schedule ‘E’ option:

Flow Id by default will be ‘PRDEM’ and installment number will be ‘1’(one)

Flow Start Date will be a high date e.g. 31-03-2099.

Flow Amount ( Installment Amount) will be the entire amount of the Loan .

Interest demand Date , by default will be the last date of the month in which a/c is opened.

Sanction Details/Drawing Power(‘H’option) : Sanction Limit will be written off amount, Drawing

Power indicator may be entered as ‘E’ Equal to sanction limit and the A/c Recalled Flag may

also be entered as ‘Y’, as shown below :-



MIS DETAILS(Option V) : MIS codes in case of the Memorandum A/c will be the same as those

of the original account, details shown in the following screen shot:

Verification ( OAACAU): On verification of the above a/c opening, System will populate a

permanent a/c no. which will have the numeric ‘99’( to denote Memorandum / Shadow a/c)

as shown in the example below :



DISBURSEMENT ( Menu ‘TM’) : Disbursement in memorandum a/c may be done through ‘TM’

menu. Memorandum a/c will be ‘Debit’ and ‘Credit’ will go to Office a/c ‘Memorandum

Ledger Contra a/c’. All transaction in LAMSL will happen between Memorandum a/c and

the Memorandum Ledger Contra a/c’.

FLOW ID : Flow Id will be ‘DISB’ during disbursement process.



Memorandum Ledger Contra a/c will be ‘XXXX1094100001’where ‘XXXX’ will be the Sol Id

as shown below :-

DISBURSEMENT (Menu ‘LADISB’): Disbursement in Memorandum a/c may be done through

menu option ‘LADISB’.



STEP III : RECOVERY in WRITTEN – Off ACCOUNTS

RECOVERY in WRITTEN – Off ACCOUNTS

In case of Recovery in Written – off a/cs, proceeds may be received as follows ;

a) Cash Recovery : In case of cash recovery, cash may be directly deposited into Office a/c

Recovery in Written Off a/cs.

b) Transfer / Clearing Mode Recovery : In case of transfer from different a/c or Clearing ,

recovery proceeds may be credited to Bills Realised a/c.

Thereafter, Bills Realised A/c will be Debited and Recovery in Written Off a/c will be Credited.



STEP IV: ENTRY IN MEMORANDUM/SHADOW Ledger in case of RECOVERY in WRITTEN _Off A/cs

In case of Recovery in Written – Off a/c the following entries will be passed in Memorandum /

Shadow Ledger.

DEBIT LEG : Memorandum Ledger Contra a/c will be Debited , as shown below ;-

CREDIT LEG : Memorandum / Shadow a/c as opened in LAMSL Scheme will be credited

as shown in the following screen shot.



Ledger Entry in LAMSL, after recovery in Memorandum / Shadow a/c is given in the

following screen shot .

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job card written off accounts

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