2.1.3 EAR Marking Maintenance

This topic provides systematic instructions about Earmarking Maintenance.

Earmarking is the process by which a specific portion of a facility is tentatively reserved for a planned or anticipated transaction. This helps banks to,
  • Pre-Reserve Funds: Ensure limits will be available when the anticipated transaction is processed, reducing the risk of over-commitment when multiple requests are pending.
  • Enhance Planning: Provide better visibility to relationship managers and credit officers about potential future obligations and limit usage.
  • Operational Flexibility: Earmarked amounts can be adjusted or released if transactions do not materialize, keeping facility management agile.

Note:

The fields, which are marked with an asterisk, are mandatory.
  1. On Home screen, select Limits and Collaterals. Under Limits and Collaterals, select Maintenances.
  2. Under Maintenances, Select Earmarking. Under Earmarking, select Earmarking Maintenance.
    The EAR Marking Maintenance screen is displayed.

    Figure 2-52 EAR Marking Maintenance


    Description of Figure 2-52 follows
    Description of "Figure 2-52 EAR Marking Maintenance"

  3. On EAR Marking Maintenance screen, specify the fields.
    For more information on fields, refer to the field description table.

    Table 2-54 EAR Marking Maintenance - Field Description

    Fields Description
    Account Block Number Specify the unique number which is to be assigned for every block that has been created.
    Branch Click the Search icon and select the branch from the list. This is the branch from where Earmarking transaction will be processed.
    Customer Number Click the Search icon and select the customer number from the list.
    Liability Code Click the Search icon and select the liability code from the list. All liabilities (default and non-default) to which a customer is linked are displayed.
    Line Code Click the Search icon and select the line code from the list. System will display all line codes based on the liability code selected.
    Serial Number The system displays the serial number for the line chosen in the Line Code field.
    Default liability Switch to Onto enable this parameter. When a customer number is selected from drop-down list, default liability toggler is enabled by default and Liability No column shows the liability to which this customer is linked as default.

    Switch to Off to disable this parameter. If a customer is linked to multiple liabilities and utilization transaction needs to consider the entitybelonging to a liability which is not default, then default liability needs to be disabled and liability number can be selected from drop- down list against this field. This gets disabled automatically when you select the non-default liability of the customer.

    Block Currency Click the Search icon and select the currency based on which the Block amount for the facility has to be considered. Once authorized, this entry is non-amendable.
    Block Amount Specify the amount to be blocked for ear marking. The block amount cannot be a negative value.
    Effective Date Specify the date from when this block amount for that facility becomes effective.

    Note:

    Effective date cannot be backdated.
    Expiry Date Specify the date till when this block amount for that facility is applicable.
    Remarks Specify the remarks.
    Auto Block

    Switch to On to indicate that the system should automatically create block for the specified amount for the specified facility.

    Switch to Off to indicate that the block on the facility is manual.

  4. Click Save and Close to save the added record. Click Next to navigate to the next screen.
  • View Earmarking
    This topic describes the systematic instructions to view the earmarking.

Parent topic: Maintenances