Batch User Guide produced by CRIF - Janata Bank
Batch User Guide produced by CRIF - Janata Bank Batch User Guide produced by CRIF - Janata Bank
6.4 CREDIT REORGANIZATION (also known as RESTRUCTURING) There are cases in which an existing credit is “reorganized” or “restructured”. This can occur for a number of reasons, usually tied to an attempt to change the terms of payment in order to ensure that payment occurs. Please note that this paragraph is not going to go into the policy prescriptions of when to restructure or how to actually perform the restructuring within your institute. These indications are provided by existing Bangladesh Bank documents. Rather, the paragraph will list the technical aspects of communicating a restructuring that occured to the online system. In other words, we are going to describe three different ways in which the system can be notified when a credit reorganization has occured. You should choose the specific function that best reflects the existing practices within your institution, and follows Bangladesh Bank policy prescriptions. We will now turn to the ways in which a reorganization can be submitted to the Bureau, and use concrete examples for ease of understanding. Let‟s say, as an example, that Bank “1” has an existing Subject “Mr. A” with an ongoing Installment contract “I” with a monthly schedule of repayments. Mr.A has been a good payer in the past, but recently he has become erratic in his payments. After a talk and a review with Mr. A, Bank 1 becomes persuaded that Mr. A will not be able to meet his upcoming commitments on the contract, but is solvent in the long term. Bank 1 therefore decides to propose a credit reorganization to Mr. A that lowers his monthly payments, but increases the length of the contract. At this point, there are three possible ways to record this arrangement: 6.4.1 Credit is reorganized while maintaining the same FI Contract code The old Contract is closed, a new one is opened, but the FI contract code of the new one remains the same. Also, the new contract is labeled as a reorganized contract. If we adopt this process, it is possible to change not only the payment plan (periodicity, amount, closing date, etc), but even the type of loan. So for example this can be used if a client cannot 88 of 92
epay a non instalment loan that is due, and the bank restructures the credit as an installment repayment plan. In order for the system to register the reorganization in this function, during that particular batch contribution for that month, you will need follow the structure indicated in section 5.2.5 but paying attention to the following fields: - F.I.Contract Code = remains the same as the contract that we are closing - Contract Phase= must be set to LV (Living) - Contract Type = can be same as the contract that we are now closing, or a different one - Flag Reorganized Credit = “1” The system will interpret this information as follows. The old contract will be closed in advance. A new contract will be opened with the same FI code and with a note that indicates it is a reorganized credit. Beginning with the next month, the contribution will be back to “normal” - F.I.Contract Code = remains the same (in Body for Record Type: General information for all types of Financing, positions from 25 to 40, of the Contract Data File) - Contract Phase= must be set to LV (Living) unless the reorganized contract was also closed (in Body for Record Type: General information for all types of Financing, positions from 43 to 44, of the Contract Data File) - Contract Type = must be the same that was sent the previous month (in Body for Record Type: General information for all types of Financing, positions from 41 to 42, of the Contract Data File) - Code Reorganized Credit = “0” (note that it is back at 0!!!) (in Body for Record Type: General information for all types of Financing, spaces from 94 to 94, of the Contract Data File) 89 of 92
- Page 37 and 38: The Column “TO” provides the po
- Page 39 and 40: 84 91 Date of Last Payment The date
- Page 41 and 42: Body for Record Type: Cards contrac
- Page 43 and 44: data belong 9 24 F.I. Subject Code
- Page 45 and 46: 108 117 Error Code See table errors
- Page 47 and 48: Q T C S Y I quarterly instalments-9
- Page 49 and 50: 034 Merchandise Export Commodities
- Page 51 and 52: 113303 Bangla Academy 113304 Bangla
- Page 53 and 54: 121710 Ansar-VDP Development Bank 1
- Page 55 and 56: 909299 Others 909100 Insurance Comp
- Page 57 and 58: BU MC BC BB MS TR PH MP MT FI BS PC
- Page 59 and 60: 2102 Electric / Electronic Goods (F
- Page 61 and 62: 8412 Chemicals (except Medicine) 84
- Page 63 and 64: EL SALVADOR EQUATORIAL GUINEA ERITR
- Page 65 and 66: NORWAY OMAN PAKISTAN PALAU PALESTIN
- Page 67 and 68: AWG AZN BAM BBD BDT BGN BHD BIF BMD
- Page 69 and 70: NIO NOK NPR NZD OMR PAB PEN PGK PHP
- Page 71 and 72: Jhalokathi Jinaidaha Joypurhat Khag
- Page 73 and 74: 4 053 Multiple headers in Subject f
- Page 75 and 76: 10 157 Total financed amount = [0]
- Page 77 and 78: 10 345 Contract refers to subject i
- Page 79 and 80: Company 1: Individual 2: 79 of 92
- Page 81 and 82: Contracts file: Non instalment Cont
- Page 83 and 84: Subject information for Proprietors
- Page 85 and 86: Please note: this does not apply to
- Page 87: 31/03/2008 500,000 1,000,000 30/04/
- Page 91 and 92: - Contract Type = must be the same
epay a non instalment loan that is due, and the bank restructures the credit as an installment<br />
repayment plan.<br />
In order for the system to register the reorganization in this function, during that particular batch<br />
contribution for that month, you will need follow the structure indicated in section 5.2.5 but<br />
paying attention to the following fields:<br />
- F.I.Contract Code = remains the same as the contract that we are closing<br />
- Contract Phase= must be set to LV (Living)<br />
- Contract Type = can be same as the contract that we are now closing, or a different<br />
one<br />
- Flag Reorganized Credit = “1”<br />
The system will interpret this information as follows. The old contract will be closed in advance. A<br />
new contract will be opened with the same FI code and with a note that indicates it is a<br />
reorganized credit.<br />
Beginning with the next month, the contribution will be back to “normal”<br />
- F.I.Contract Code = remains the same (in Body for Record Type: General information<br />
for all types of Financing, positions from 25 to 40, of the Contract Data File)<br />
- Contract Phase= must be set to LV (Living) unless the reorganized contract was also<br />
closed (in Body for Record Type: General information for all types of Financing,<br />
positions from 43 to 44, of the Contract Data File)<br />
- Contract Type = must be the same that was sent the previous month (in Body for<br />
Record Type: General information for all types of Financing, positions from 41 to 42,<br />
of the Contract Data File)<br />
- Code Reorganized Credit = “0” (note that it is back at 0!!!) (in Body for Record Type:<br />
General information for all types of Financing, spaces from 94 to 94, of the Contract<br />
Data File)<br />
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