Debit Interest & Charge

Hi all,

During the capitalisation date of debit interest & charge, if there is no funds available in the respective account then what system should do?
Should it allow to overdraft from the account or wait until the account has sufficient required balance.

Dear jpb,

I need to know whether T24 is considering the current account balance before posting IC entries. What you said is correct. System is not considering the balance as of now.

I have checked with an IC.CHARGE set up for a savings account with NIL balance. After capitalization COB, an unauthorized overdraft entry is raised against the account for that charge amount. Will banks accept for this, since it’s a doubtful debt.

What you said of SUSPENSE is one alternative. But mostly for savings accounts there should be a minimum balance maintained. Thanks for your valuable inputs :)