2.2 Transactions

This topic provides information about transactions.

Oracle Banking Enterprise Limits Management (OBLM) is an enterprise level application which facilitates in monitoring overall exposure for an entity considering that the borrower might have taken different types of facilities which are crated as contracts in different product processors.

For example, Customer is sanctioned Funded limit of 10 MN and non-funded limit of 5 MN which are maintained in enterprise limits management system as two limits/facilities. By utilizing the funded limit, borrower can avail short term/long term loans as well as working capital related running accounts. Likewise, borrower can utilize non funded limit for Letter of credit and Guarantee type of contracts.

Transactions in Enterprise Limits Management are basically initiated from other product processors as part of operations at their end pertaining to customer contracts depending on requirement as under.
  • Block transactions to reserve a facility for specific contract disbursements
  • Utilization transactions to utilize at facility level to the extent of contract disbursements.
Together, these transaction types help both banks and customers stay informed about how much credit is available, what is used, and what is reserved, leading to better financial management and risk control.

Table 2-65 Transactions

Customer's Credit Facility(e.g., $100,000)
Utilizations Block

Loan Drawdown

$30,000

Bank Guarantee

$20,000
Funds already used Funds reserved/blocked

Available Facility

$50,000 - Available for New Transactions

Available Facility

$50,000 - Available for New Transactions

Parent topic: Limits