Dual Currency Return (DCR) – European Knock-In (EKI)

Forex investment solutions with smaller alternative risks

Competitive Returns

Returns are higher than conventional deposits

Short Term

The period starts from 1 week

Lighter Risk

The value of KI can minimize the risk of conversion

Other Advantages

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Extensive Network

Wide range access to ATM in Indonesia, Malaysia, and Singapore

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Easy Transaction

Transactions can be done at any time

    Terms and Condition

    Interest and Fee

    Other Information

    Disclaimer

Terms and Condition
  1. For 1st DCR EKI transaction, customer must receive, understand and submit the following documents:
     • Call Report (of the meeting between customer and RM)
     • Risk Profile Questionnaire
     • Term and Condition of DCR Product
     • Product Highlight Sheet DCR
     
  2. The customer must submit a copy of his identity card and proof of asset ownership in the form of cash, saving account, current account and/or time deposits
     
  3. The customer must wait for a cooling off period of 3 working days after the customer receives and completes the document before making a DCR EKI transaction for the first time. For subsequent placements, the customer will receive an indicative term sheet and only need to complete the Structured Product Placement Form (DCR EKI Section) and proof of asset ownership
     
  4. Currency of DCR EKI placement can only be done according to the currency available at Bank OCBC NISP
     
  5. IDR currency is not allowed for DCR EKI placement
     
  6. Minimum placements:
     • Nominal transaction starts from USD 10.000 or equivalent (bookbuilding USD 50,000)
     
  7. Individual customer must have liquid assets of IDR 5 billion or equivalent in the form of cash, saving account, current account and/or time deposits
Interest:
The return rate is fixed in accordance with the term and condition stated in the contract for DCR EKI transaction

Fee:

1. There is no fee for DCR EKI placement.

2. Costs due to Early Termination if it occurs. Basically, DCR EKI disbursement before maturity is not allowed. If DCR EKI disbursement before maturity upon Customer's request cannot be avoided, the Customer is obliged to provide compensation to the Bank for any losses, costs, bills and or expenses that may occur as a result of the accelerated disbursement, including funding costs and losses or costs incurred as as a result of termination and remaking of related trading positions in full and will pay administrative fees and other claims that may be charged to the Bank (all hereinafter referred to as "Termination Fees Before Time")


Other Information
 
I. Product Description
 
Dual Currency Return - European Knock In (DCR - EKI) is a combination of deposit placements combined with foreign exchange option instruments
 
DCR EKI is a short-term investment developed from regular DCR where in DCR EKI the risk of converting base currency to alternative currencies can be minimized due to the value of KI.

DCR EKI has the main function to provide yield enhancements for customers with the risk of converting a base currency to an alternative currency smaller than a regular DCR.

II. Product Simulation

Example of DCR Transaction:

Scenario 1:
 
 On Fixing date and time, if AUD / USD level is at 0.7735, customer will receive the principal and interest in base currency:
 
 = AUD 100,000 + (AUD 100,000 x 4.5% x 14/356x 80%)
 
 = AUD 100,138.08 (nett)
 
 
 On Fixing date and time, if AUD / USD level is at 0.7800, customer will receive the principal and interest in base currency:
 
 = AUD 100,000 + (AUD 100,000 x 4.5% x 14/356x 80%)
 
 = AUD 100,138.08 (nett)
 
 
Scenario 2:
 
 On Fixing date and time, if AUD / USD level is at 0.7800, customer will receive the principal and interest in USD:
 
 = AUD 100,138.08 x 0.7785 = USD 77,957.50
 
 On Fixing date and time, if AUD / USD level is at 0.7835, customer will receive the principal and interest in USD:
 
 = AUD 100,138.08 x 0.7750 = USD 77,607.01

III. Risk of Product and Other Information
 
1. Market Risk
• Client's refund at maturity depends on the performance of the underlying Reference. If the Customer's funds are converted into an alternative currency and the Customer decides to re-convert the funds into a base currency, the Customer will likely experience capital loss on the principal of the Customer's fund placement in the EKI DCR product; or
 
• If the Customer's funds after converting to alternative currencies and since then the alternative currency exchange rate chosen by the Customer continues to weaken, the Customer will experience a principal loss on the placement of the DCR EKI
 
2. Liquidity Risk
DCR EKI cannot be disbursed by the customer before maturity.
 
3. Feature Risk
Customer's funds at maturity can be converted into alternative currencies, if the exchange rate of the base currency against alternative currencies on the Fixing date and time is equal to or penetrates the Knock In (KI) exchange rate mutually agreed between the Customer and the Bank
 
4. Other Risks:
 • DCR cannot be rolled over, so each placement is a new placement; and
 • DCR cannot be used as a credit guarantee

IV. Facility / Channel
 
Transactions can be done at all Bank OCBC NISP branch offices

V. Complaint Procedure
 
Customers can submit complaints related to DCR products through:
 
 1. Call OCBC NISP at 1500 – 999 (domestic call) or 021-26506300 (overseas call)
 
 2. Contact Relationship Manager (RM)
 
 3. Email to callcenter@ocbcnisp.com
 
 4. Click www.ocbcnisp.com

1. You hereby acknowledge that you have read, received explanation and understood the product and/or service as specified in this Summary of Product and/or Service Information (“Summary”) and have informed, understood and accepted any consequences of product and/or service including all inherent benefits, risks and costs.

2. This Summary is intended only as an information and does not aim to be a basis for investment decisions. Past performance is not an indication of future performance. Any proposal documents for investment related products, must be studied further. Any projections, opinions or other statistical facts displayed in this information are only an indication and are not guaranteed in any form. You must determine your own decisions in accordance with the needs and investment strategies by considering legal, tax and accounting issues. Based on good intentions and moral responsibility, Bank OCBC NISP and each of its employees are not responsible for any direct or indirect losses, or as a consequence arising from the use of and dependence on this information in an investment decision.

3. Bank OCBC NISP reserves the right to reject your product and/or service application if it does not fulfil the requirements and the application of laws and regulations.

4. You have to carefully read this Summary and contact Bank OCBC NISP if there are further queries in respect of the product and/or service contained in this Summary.

5. This Summary has been adjusted to be in accordance with the provisions of regulations including the regulations of Financial Service Authority.


This Summary is made in English and Bahasa Indonesia, and in the event of inconsistency between the version, Bahasa Indonesia shall prevail.

PT Bank OCBC NISP Tbk terdaftar dan diawasi oleh OJK dan merupakan peserta penjamin LPS

Achievements

List of OCBC NISP Awards in keeping the quality and trust for the Customer

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Berinvestasi dengan Dual Currency Return (DCR) – European Knock-In (EKI)

Popular questions about Dual Currency Return (DCR) – European Knock-In (EKI)

DCR EKI is a short-term investment in a form of combination of deposit placements that are combined with foreign exchange option instruments, with the risk of converting a base currency to an alternative currency smaller than a regular DCR due to the presence of Knock In (KI) value

A higher return rate compared to conventional deposits and a relatively short placement period with a relatively small placement nominal

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