1.~ Bank defined 5D as Cooling Period. What is the implication?

Ans: if customer decides to fully redeem the deposit within 5 days from deposit
creation date, any interest accrued will not be paid to customer

2.~ A Bank wants to apply an interest rate picked from PERIODIC.lNTEREST on its
Corporate Deposits with a spread of 0.25 percent. Further, it wants to indicate a
Floor and Cap in the form of Minimum and Maximum rates as 5% and 7%. Can all these
be defined in the Interest product condition?
A No. A spread cannot be specified as it is applicable only if BASIC.lNTEREST is
used
B All these can be defined at the arrangement level, not in Interest product
condition
C While a spread cannot be defined, Floor and Cap rates can be specified
D Yes. All these conditions can be defined
E While a spread can be defined, Floor and Cap rates cannot be specified

3.~ A Deposit Arrangement is input with VALUE.DATE as 1 Oct 2011 and MATURITY.DATE
as 31 Oct 2011. The deposit had a CANCEL.PERIOD as 10 days and it was not fully
funded till 1 Oct and system had triggered a CANCEL arrangement on this deposit.
What would be the interest start and end date on its MINTEREST.ACCRUALS file?
ANS: 01 Oct 2011 and 01 Oct 2011

4.~ When a NEW Deposit arrangment is created, what kind of bill is created for the
Principal amount?
ANS: EXP bill

5.~ A Deposit Arrangement is input with VALUE.DATE as 1 Mar 2011 and MATURITY.DATE
as 31 Mar 2011 with no payouts in the interim. The deposit is funded on 15th Mar
2011. What would be INTEREST period start and end dates indicated on its
MINTEREST.ACCRUALS file?
ANS: B 01 Mar 2011 and 31 Mar 2011

6.~ In AA what does the Change Product functionality allow you to do?
ANS: Change the Product for an existing Arrangement

7.~ A Bank has defined 5 days as the period within which the full committed deposit
amount is to be paid by the customer. A customer has remitted only 50,000 against
the committed amount of 75,000. What happens on the expiry of 5 days?
ANS: 50,000 is reverted and credited to UNC

8.~ For the upcoming deposit rollover, the customer wants to have 20% of the
accrued deposit interest paid out to him and remaining 80% of the accrued deposit
interest to be capitalised. What can the Bank do ?
ANS: Yes, we can use the PERCENTAGE field in Payment Schedule condition

9.~ Customer has a USD 300,000 deposit. He has given instructions to the Bank to
reduce his deposit principal by 50,000 during rollover. What should the user do to
effect this instruction in the system?
ANS: Update the deposit schedule arrangement condition. Indicate SPECIAL as the
payment type, MAINTAIN as the payment method, 250,000 as the actual amount,
R_RENEWAL as the start date and 'expected' as the bill type

10.~ A customer is issued with a scheduled PAY interest bill effective 30 jun for a
Deposit Arrangement setto mature on 31 Oct. What happens when a new PAY bill is
issued for 31 Jul (next schedule)?
ANS: 30 jun bill remains and a new pay bill is created for 31 Jul
11.~ How do you extend the term of a Deposit after the creation of Arrangement has
been authorised?
ANS Run the DEPOSITS-CHANGE.TERM-COMMITMENT Activity for the Arrangement

12.~ A deposit exists with a bank and the customer wants to withdraw a part of
funds from the deposited amount. Can this be achieved?
ANS Yes - by configuring the PAYOUT.RULES property

13.~ The AA Deposit arrangement has been pledged as collateral in T24 Collateral
application. Which of the following deposit balance will be used for calculating
the collateral amount?
A CURACCOUNT
B CURACCOUNT plus ACCDEPOSITINT
C Depends on the parameterisation in the Collateral application
D CURCOMMITMENT

14.~ A "Product.Only" Activity Charge property is configured to collect a

fixed charge of 100, when a new arrangement is taken out. What happens when the new
arrangement is input?
ANS: Charge of 100 is billed

15.~ A cooling period of 7D has been defined for this deposit arrangement. On the
10th day, the customer decides to fully redeem this arrangement. How much accrued
interest will be paid to customer?
ANS: Interest accrued for the 10 days (subjected to accrual rules definition)

16.~ A Bank has defined 5 days as the period within which the full committed
deposit amount is to be paid by the customer. A customer has remitted only 25,000
against the committed amount of 50,000. What happens on the expiry of 5 days?
ANS: 25,000 is reverted and credited to UNC

17.~ A Bank wants to change the primary owner of a Deposit from Customer A to
Customer B. Is it possible to achieve this in Arrangement?
ANS: Yes, it is possible to change the primary owner of a deposit by triggering the
activity Change Primary Customer.

18.~ A Deposit arrangement is input on 15 Jan 2010 having TERM - 6M in Term Amount,
Interest PAYMENT.FREQ - Every Month in Payment Schedule and DATE.CONVENTION set to
"FORWARD" and DATE.ADJUSTMENT set to "PERIOD" in Account property. With 15th Feb,
16th Feb and 15th Mar as the only holidays, what will be the first 3 Interest
payment dates?
ANS 1 7 Feb 201 0, 17M ar 201 0, 17 Apr 201

19.~ A customer has redeemed a deposit effective 30 jun 2012 which is set to mature
on 31 Aug 2012. What happens when a new redemption is attempted effective 31 Jul
2012?
ANS: Another redemption on 31 -Jul would not be allowed

20.~ A bank wants to setup interest condition as follows - COMPOUND.TYPE Field-M06,

RATE.TIER.TYPE Field- BAND, with the banded rates as 1 % for 10000,2% for 20000,3%
for rest, assuming the interest period as 01 Jan 201 and 31 Jan 201 with "N basis
and a Principal of 1 5000. Which of the following is a true reflection of the above
issue?
ANS: Compounding would not be supported for bands. So, this definition cannot be
accommodated in interest condition

21.~ A bank wants to configure a Charge Product Condition with CURRENCY set to USD,
TIER.TYPE setto LEVEL, CALC.TYPE setto FLAT and CHG.AMOUNT set to 100. The Bank
wants to also set a minimum charge of USD 50 and a maximum charge of USD 150 for
this tier (i.e. using the fields TIER. M IN.CHARGE and TIER. MAX.CHARGE
respectively) . Is this possible?
ANS This is not possible if CALC.TYPE specified as FLAT

22.~ The Bank wants deposits to mature only on working days. If there is a non
working day, the maturity date will need to fall on the next working day even if
this means a slight increase in the deposit duration. What can they do ?
ANS: Define holiday convention as 'FORWARD'. System will automatically move the
maturity date to the next working day

23.~ How do you extend the term of a Deposit before the creation of the Arrangement
has been authorised?
ANS: Edit the MAAR.TERM.AMOUNT record, enter the new term in the TERM field and
leave the Maturity Date unchanged

24.~ Deposit has not been funded. A bill with BILL.TYPE as "EXPECTED" is
made due on 24 Dec 2011 and set to age to GRA after 3 days. On 31 Dec 2011, Bonus
is scheduled to be paid. A rule is defined in Activity Restriction condition where
the rule value is 5 and is based on maximum aging days of the Expected bill. If the
rule is broken, bonus will be 'waived'. On system date (31 Dec 2011 ), a full
funding is made with value date 28 Dec 2011 . What happens to the Bonus now?
ANS The Bonus would be either paid or capitalised based on Payment Method and not
waived as the number of overdue days is 5 and it is within the rule definition

25.~ When a Term deposit is created with effective date as TODAY with Term amount
populated for 10000, what balance would be created atthe end ofthe NEW arrangement
activity(assuming Settlement instruction is set and active. Assume the settlement
account has enough funds to fund this deposit and the account property on the
arrangement is ACCOUNT)
ANS CURACCOUNTfor 10000

26.~ What is the activity name within the Activity Class DEPOSITS-AGE-OVERDUE for
the Bill Type EXPECTED and overdue status GRA
ANS: DEPOSITS-AGE-OVERDUE*GRA*EXPECTED

27.~ A Bank has defined 'Special Deposit product' with Closure product condition as
follows: CLOSURE.TYPE field as BALANCE; CLOSURE.PERIOD field as 1 D. CLOSURE.METHOD
as AUTO MATIC. A Deposit arrangement under this product has all balances as zero on
31 st july 201 2. When will the closure activity be scheduled?
ANS 1stAugust2012

28.~ The Bank's requirement is that they allow customers to open the 6 months
deposit with the option to fund the deposit within the first 5 days from opening
date. If funding arrives on the 3rd day, the maturity date should be recalculated
based on the funding date. However, the duration of the deposit needs to remain as
6 months. What can the Bank do?
A In Payment Schedule condition, define recalculate maturity date whenever funding
activity takes place
B Not possible to recalculate maturity date because maturity date is always
calculated from the arrangement opening date
C in Account condition, define START as the Base Date Type
D This is standard behaviour as long as Cancel Period is defined

29.~ An arrangement under Deposits product line has TERM as 12M, AMOUNT as and
CANCEL.PERIOD as 100. Which ofthe following statements is true?
ANS: System would run the cancel activity after 100 days from the value date of the
arrangement and would cancel the Arrangement
30.~ The AA Deposit arrangement has been pledged as collateral in T24 Collateral
application. Which of the following deposit balance will be used for calculating
the collateral amount?
A CURACCOUNT
B CURACCOUNT plus ACCDEPOSITINT
C Depends on the parameterisation in the Collateral application
D CURCOMMITMENT

31.~ A Bank for one of its deposit product wants to use a floating key with a
negative spread. Assume the Floating key always returns a positive rate. However,
the resultant net interest rate should not go into negative rate (Floating rate
minus spread). Is it possible to achieve this in M deposits?
ANS: in interest product condition, NEGATIVE.RATE field should be set as B LOCK.
MARGIN

32.~ The Bank has a requirement for deposits. The deposit arrangement must be
opened with an initial amount of at least USD 100,000. For subsequent rollovers,
the bank wants to set a minimum amount that needs to be rolled over. Where do they
state this rollover instruction amount?
ANS Define an Activity Restriction condition where the CURACCOUNT must not be lower
than 80,000. System can raise an error message when less USD 80,000 is input in the
rollover instructions

33.~ A customer pays an amount of USD 75,000 against a Deposit arrangement of USD
50,000. Assume 'ACCOUNT' is the Account property. How is the excess amount handled
in T24?
ANS: Parked in UNCACCOUNT

34.~ The Bank has defined 'increase amount' instructions for the upcoming rollover.
However, on the rollover date, the deposit did not rollover with a higher amount.
What could be the reason?
ANS The BILL.TYPE field in PAYMENT SCHEDULE condition was set to 'Expected'

35.~ A Bank desires to define DEPADMINFEE charge property as a Deferred Charge to

be made due later and collected as part of regular quarterly charges. Where can
this be set?
ANS: The property may be defined as part of PERIODIC.CHARGES condition and linked
as a quarterly schedule through payment schedule condition

36.~ Customer has a Savings Account in EUR currency in a Bank. However, he wants to
book a deposit in USD. Is it possible to use EUR currency Savings account to fund
USD Deposit account?
ANS Yes, it is possible to use the funding account in a different currency from
that of deposit currency by defining the EUR currency savings account in Settlement
arrangement condition.

37.~ A bank wishes to restrict the changing of Primary Owner to one of the other
Owners of an arrangement. How can this be achieved?
ANS This cannot be restricted using existing system functionality. Primary owner
can be changed with any other T24 Customer

38.~ A Bank desires to define Periodic Charges and wants it to be collected at

yearly frequency. Where would you set the Yearly frequency?
ANS Can be set in Payment Schedule condition

39.~ A new deposit arrangement has been created. However, it has not been funded
yet. What will be the Bill status of the bill which would be funded?
ANS: Expected
40.~ A charge is defined in PaymentSchedule set to capitalize in a deposit type
product. Activity restriction is setup for this property to waive the charge if
rule is broken. What will happen on the payment date assuming the rule is broken
ANS: A bill will be produced for the charge amount, and OS.PROP.AMOUNTfor the
property would be zero, and WAlVE.PROP.AMOUNTwili hold the charge amount signifying
the amount is waived