Specify Additional Bank Limits

This page allows you to specify the Letter of Credit details, Trust Receipt Credit Limit Details and Discounting Limit Details for each Bank Code of the bank account. You can also specify the category for which the Bank Limit of the LC will be validated.

Select the “Specify Additional Bank Limits” link under the Create /Edit Bank Cash Details activity of the “Bank Cash Definition” business component.

The “Specify Additional Bank Limits” page appears.

The system displays the following:

Bank Reference	The number identifying the bank reference
Currency	The transaction currency of the bank account
Status	The status of the bank account.
Bank Account No.	The number identifying the bank account.

Select the following:

LC Limit Validation

Use the drop-down list box to select the category for which the Bank Limit Validation for the LC should happen. You can select from “Overall Limit”, “Category Specific Limit”, “Usance LC Limit” and “Sight LC Limit”. The system displays ‘Overall Limit’ by default on launch of the page.

Note: Based on the value selected in the LC Limit validation combo, the multiline columns in the LC Limit Details Section would be displayed.

Bank Code, Description and Finance Book columns would be displayed for all the values selected in the LC Limit Validation combo.

If the LC Limit Validation is selected as “Overall” then along with the above three columns, Sanctioned Limit – Total, Limit on Hold – Total and Drawable Limit – Total columns would be displayed in the LC Limit Details multiline.

If the LC Limit Validation is selected as “Category specific” then along with the above three columns, Sanctioned Limit – Sight, Limit on Hold – Sight, Drawable Limit – Sight, Sanctioned Limit – Usance, Limit on Hold – Usance and Drawable Limit – Usance columns would be displayed in the LC Limit Details multiline.

If the LC Limit Validation is selected as “Sight” then along with the above three columns, Sanctioned Limit – Total, Limit on Hold – Total, Drawable Limit – Total, Sanctioned Limit – Sight, Limit on Hold – Sight and Drawable Limit – Sight columns would be displayed in the LC Limit Details multiline.

If the LC Limit Validation is selected as “Usance” then along with the above three columns, , Sanctioned Limit – Total, Limit on Hold – Total, Drawable Limit – Total, Sanctioned Limit – Usance, Limit on Hold – Usance and Drawable Limit – Usance columns would be displayed in the LC Limit Details multiline.

Select the following:

Non Fund Based Limit Validation

Use the drop-down list box to select the option for Non Fund Based Limit Validation. You can select from ‘”General’” “Specific” and “LC and Trust Receipts”. The system displays ‘Specific’ by default on launch of the page.

Note: If the Option is selected as Specific, the available Limit check would be done for each limit separately. (Letter of Credit, Trust Receipts and Discounting Limits)

If the Option is selected as General, the available Limit check would be done first with each limit separately (Letter of Credit, Trust Receipts and Discounting Limits) then with the Overall Available Limit. i.e Overall Limit + Over Draft Limit – Overall Utilized Limit. The transaction would be allowed if the available limit check in both the places passes.

If the Option is selected as LC and Trust Receipts, For Bill discounting, the validation would continue to remain as if the Validation is set to ‘Specific’ For Letter of Credit and Trust Receipts, available Limit check would be done first with each limit separately (Letter of Credit, Trust Receipts) then with the Overall Available Limit. i.e Overall Limit + Over Draft Limit – Overall Utilized Limit. The transaction would be allowed if the available limit check in both the places passes.

Overall Limit	The overall Limit for which Letter of Credit can be raised / Payment can be made through Trust Receipt / Instruments can be discounted for the bank account number.
Overdraft Limit	The Limit for Over and above the overall limit for which Letter of Credit can be raised / Payment can be made through Trust Receipt / Instruments can be discounted for the bank account number.

Note : Non Fund Based Limit Validation, Overall Limit and Overdraft Limit would be displayed only when the Trust Receipt Applicability is set to Yes in IPS.

The system displays the following in the LC Limit Details Multiline.

Bank Code	The code identifying the bank.
Bank Description	The description of the bank code
Finance Book	The code identifying the finance book in which the bank code has been mapped.

Enter the following fields in ‘LC Limit Details” to specify the LC details.

Sanctioned Limit – Total	The total limit sanctioned by the bank for LC.
Limit On Hold – Total	The limit held by the bank.
Drawable Limit – Total	The total limit for which LC can be raised.
Sanctioned Limit – Sight LC	The limit sanctioned by the bank for Sight LC.
Limit On Hold – Sight LC	The limit held by the bank for Sight LC.
Drawable Limit - Sight LC	The total limit for which LC can be raised for Sight LC.
Sanctioned Limit – Usance LC	The limit sanctioned by the bank for Usance LC.
Limit On Hold – Usance LC	The limit held by the bank for Usance LC.
Drawable Limit - Usance LC	The total limit for which LC can be raised for Usance LC.

Note : Trust Receipt Credit Limit Details Multiline would be displayed only when the Trust Receipt Applicability is set to Yes in IPS.

The system displays the following in the Trust Receipt Credit Limit Details Multiline.

Bank Code	The code identifying the bank.
Bank Description	The description of the bank code
Finance Book	The code identifying the finance book in which the bank code has been mapped.

Enter the following fields in ‘Trust Receipt Credit Limit Details” to specify the Trust Receipt Credit Limit details.

Sanctioned Limit	The total Trust Receipt Credit limit sanctioned by the bank.
Limit On Hold	The limit held by the bank.
Drawable Limit	The total limit for which payment through Trust Receipt can be made.

The system displays the following in the Check Discounting Limit Details Multiline.

Bank Code	The code identifying the bank.
Bank Description	The description of the bank code
Finance Book	The code identifying the finance book in which the bank code has been mapped.

Enter the following fields in ‘Check Discounting Limit Details” to specify the Discounting Limit details.

Sanctioned Limit	The total discounting limit sanctioned by the bank.
Limit On Hold	The limit held by the bank.
Drawable Limit	The total limit for which Instruments can be discounted.
Party Limit	The total limit upto which Instruments can be discounted for a specific party.
Tenure	The number of days up to which the post dated instruments can be discounted.

Click on the “Save Details” pushbutton to save the LC / Trust Receipt Credit Limit / Discounting Limit details.
Click on the “View Additional Bank Limits” link to view the Additional Bank Limits specified for the bank code.
Click on the “Record Trust Receipt Loan Interest Rates” link to specify the rate of interest for the Trust Receipt Loan Liability for the bank code.

Note : This link would be visible only when the Trust Receipt Applicability is set to Yes in IPS

Click on the “Record Instruments Discounting Rates” link to specify the rate for interest / Commission during Instrument Discounting for the bank code.