If you opt for automatic liquidation, a schedule is automatically liquidated on the day it falls due, during beginning-of-day processing (by the Automatic Contract Update function). Specify Auto liquidation if you want all the components of a loan involving this product to be liquidated automatically.

If you want some specific components to be liquidated automatically in a certain prioritized order, you can specify component liquidation. When you choose this option, you can select the components that must be liquidated automatically, and define the order in which they are liquidated automatically. In such a case, the components not selected must be liquidated manually, by entering the payment in the manual liquidation screen.

Partial payment not allowed.

During auto liquidation of a contract, the system initiates an ECA call, to validate account balance. If DDA system rejects the ECA request due to insufficient balance or any invalid status of the account, then on subsequent batch / day system re-triggers the ECA & tries to liquidate the schedule. This re-try is done up to the number days specified on this parameter. This number of days is on calendar days basis. When the CL batch is configured on both BOD and EOD, liquidation for the schedule is tried on both slots, however the number of days is considered as 1.