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SOP Settlement - Version 3

This document outlines the settlement process for retail asset products at a bank. It involves the following key steps: 1. Field collection team initiates a settlement request and collects documents from the borrower. 2. Settlement authorization team validates the request, checks details, and recommends the case to approvers. 3. The case is approved or rejected by approvers based on requirements. For approved cases, a settlement offer letter is issued. 4. Field collection collects the settlement payment and closes the loan once payment is applied.

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290 views2 pages

SOP Settlement - Version 3

This document outlines the settlement process for retail asset products at a bank. It involves the following key steps: 1. Field collection team initiates a settlement request and collects documents from the borrower. 2. Settlement authorization team validates the request, checks details, and recommends the case to approvers. 3. The case is approved or rejected by approvers based on requirements. For approved cases, a settlement offer letter is issued. 4. Field collection collects the settlement payment and closes the loan once payment is applied.

Uploaded by

Ruchita
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Internal document

Details :
Process Settlement of Retail Asset Product
Date 24/05/2021
Version VER 3/Settlement/ 05/21
Product All Retail, MIB and Rural Retail Banking
products serviced by Retail Asset
Collections.

Scope: Broadly define activities involved settlement like raising request for settlement,
validation of settlement with customer, approvals & issuance of settlement letter,
, receipt of payment.
Steps:
Sr. Process Steps FPR TAT *
No
1 Field Collection team to initiate settlement request Field As and when
through CAPS and exceptions if any to be initiated Collection required
through email to Settlement Authorization team (SAT) Team (YBL
after collecting settlement request letter and KYC from staff)
the borrower.
Note:

a. Request letter should consist details like Loan


number, reason for settlement, Settlement amount or
waiver amount (optional).
b. KYC document should have borrower signature
c. Borrower may also request for settlement from his
registered email ID. (in such case KYC is not needed).
d. Settlement by Third party – settlement by TP can be
done only if the actual borrower is not available. The
request letter & KYC of Third party is needed.
e. Not a settlement case – Request letter and KYC is
needed wherever waiver is involved and loan to be
closed.
SAT team to do various checks and recommend the
case to respective approver.
Checks involves:
2 a) Request letter received from borrower SAT T+2

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SOP Settlement
Internal document
b) Cross verify the total outstanding amount,
Waiver amount etc.
c) Mention if any Legal initiated etc.
d) No. of installment requested by borrower.
e) Reconfirm from borrower through
SMS/Email/call as deemed fit. (If customer not
reachable or language barrier then RCM or
above email confirmation may be considered as
an exception.)
3 SAT team to recommend to respective approver as per SAT T+3
DFA if the case meets the requirement else reject the
case by stating the reject reason.
4 For approved cases: SAT SAT T +4 ( Post
Field Collection team can take the print of settlement receipt of
offer letter and submit to the borrower. approval of
settlement)
5 Field collection team to collect the settlement amount Field Post receipt of
and raise CRM for settlement closure of the Loan once collection payments
the payment is applied in the loan. team
* T is the timeline in working days.

I.

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SOP Settlement

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