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99 Now we need to make the Set-up of Security Register Maintenance (SRM) for linking to Cash Credit Account. The availability of funds in CC Account is depending upon the Drawing Power.
The Drawing Power calculation can be derived from Security linked to that account.
Application
SRM is used for maintenance of security and drawing power allocation in respect of all advance accounts where drawing power is derived from securities.
Functions
The Security Register Maintenance (SRM) has two important functions –
(a) Maintenance of particulars of the securities submitted by a client and (b) Allocation of drawing power to an account
(c) Other utilities include: -
1. Stipulation of maximum drawings allowable against security to the relative account.
2. Classification of the security as Primary / Collateral.
3. Maintenance of the Market Value, Repurchase Value, Face Value with options to specify which is to be used, Margin to be retained, whether additional details like Insurance, Charges, Income and Expenses are required or not.
4. The system provides linkage to Interest Computation for computing additional interest for non-submission of Stock.
5. If the security is a Deposit Account, a lien is marked on the account for the value of the Advance Amount / Limit Sanctioned and the component of available balance is updated appropriately.
Security Register Maintenance
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100 FLOW CHART - SRM
In the ensuing paragraphs, steps involved are explained in detail.
1(start) 2 3
6 5 4
7 8 (END)
For Set-up of Security Register Maintenance
Menu Option SRM
Go to Menu option and enter option SRM.
Function: A (Add) and Linkage Type ‘A’ – Linked to Account (If there is Limit Node for this account so, choose ‘N’ if so, put Node ID). For A you have to enter Account No.
and Press F4.
Select appropriate Code for: Security code, Security Group, Security Class.
Enter Ceiling Limit of Security
Enter Margin Percentage as per sanction letter
Nature of Charge:
Pledge – If Securities are Shares, NSC, Car, Bank’s Term Deposit etc.
Hypothecation - If Securities are Stock, Book Debts etc.
Mortgage – If Securities are Building, Plot, Flat etc.
Assignment - If Security is Insurance Policy Type SRM in
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101
Enter Received Date i.e. Stock Statement Date (If Security is Stock, Book Debts etc.) and enter Due Date of the same.
Frequency: This frequency is pertains to Stock Statement Frequency, which submits by the borrower in future.
Unit Value is for the Securities like Shares, Term Deposit Receipts, NSC etc.
If you have entered Unit Value, so enter No. of Unit also.
Security Value: In case of securities like Stock, Book Debts, Car, House put the total value in the filed
Primary / Collateral: Enter ‘P’ for Primary Security and ‘C’ for Collateral Security.
Important aspect is drawing power is only derived from Primary Security.
After completion of the information Press F4 for accepting Security Details.
In Option filed enter ‘C’ and Press F4 for filling Details of Charge on Security.
Again in Charge Details enter ‘A’ (Add) in Option and Press F4 then following screen will appear:
Fill all the Charge Details appropriately and Press F4 for accepting Charge Details.
In Enter Option put ‘S’ and Press F4 for go back in Security Screen.
In Option filed enter ‘N’ and Press F4 for filling Details of Insurance
Again in Insurance Details enter ‘A’ (Add) in Option and Press F4 then following screen will appear:
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102
Fill all the Insurance Details appropriately and Press F4 for accepting Insurance Details.
In Enter Option put ‘S’ and Press F4 for go back in Security Screen.
In Option filed enter ‘P’ and Press F4 for filling Details of Inspection.
Again in Inspection Details enter ‘A’ (Add) in Option and Press F4 then following screen will appear:
Fill all the Inspection Details appropriately and Press F4 for accepting Inspection Details.
In Enter Option put ‘S’ and Press F4 for go back in Security Screen.
Press F10 for commit.
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103 For Verification of Set-up of Security Register Maintenance
Menu Option SRM
Function: V (Verify) and Press F4
Then Verify all the above screen i.e. Security, Charge, Insurance and Inspection one-by-one as per the procedure of above only instead of ‘A’ – Add in option at every screen input for ‘I’ – Inquiry.
After completion of all Press F10 for commit.
Note: The SRM activity is to be done after every account opening of Cash Credit, Loan against FDR / Shares/ NSC/ LIC etc., Housing Loan, Two / Four Wheeler Loan or any other loan against security.
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104 For Every Type of Account Opening
Menu Option OAAC
Go to Menu option and enter option OAAC. The following screen will appear:
Enter Customer ID & Press F11 for validating Customer’s Name
Enter appropriate Scheme Code & GL Sub-head Code Press F4. Then following screen will appear
For every account opening of Loans the General, Scheme, Limit Details, Interest, MIS and Repayment Schedule Details are mandatory.