Introduction to Deposit Insurance Corporation (CDIC)

The CDIC (Canada Deposit Insurance Corporation) is established mainly to protect the deposits placed by the customers of Canada in banks and other financial institutions. If a bank or any financial institutions is registered as the member of CDIC, on the event of financial failure, customers don’t lose their deposits to an extent of CAD 100,000. However, not all products of banks or financial institutions are covered by the insurance offered by CDIC for example: mutual fund, stocks, treasury bills, etc. are not covered.

The registered members are termed as member institutions of CDIC and they have to adhere to the pre-defined process of CDIC. CDIC requires the bank to send the details of the deposits or investments placed by their customers in a standard format. To achieve, a tool named GIT has been used to map the details from Temenos Transact to the specified CDIC format.

Based on the information of the depositors, CDIC need to return the payments to the depositors of banks or financial institutions on the event of their failure. For the same, banks or financial institutions will be instructed to place the hold on the deposits and the hold will not be reversed until CDIC instructs.

The Temenos Transact solution is essentially based on the following flow:

• Hold processing.
• Statement file processing.
• Foreign branch processing.
• ATM deposit hold.
• Channel hold and retainable access.