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## 2.4 Threshold

This topic provides the information about the Threshold method.

The funds are moved only when the account has more balance than a set limit. The child account keeps accumulating the funds till the threshold is reached and sweeps out all the balances from the child account once the threshold is attained.

1 Way Scenario

If the child account balance is equal or above the threshold balance amount, the system sweeps the entire balances from the child account. If the child account balance is below the threshold balance, the system does not execute the sweep instruction.

2 Way Scenario

If the child account balance is below the threshold balance, the system does not perform any sweeps under any circumstances even if the major account is in credit balance. If the child account balance is below zero, then the sweeps are performed from major account to minor account to bring minor account balance to zero.

If more than one child account is in negative balance, the transfer from the parent account is based on the priority set at the child account (Least numeric is given top priority) and the available balance on the major account.

The system tries to bring the child account to zero balance if it has a negative balance. If the balance in the parent account is not sufficient to cover the overdraft in the child account, either sweep is not executed or sweep is executed up to the balance available in the parent account.

If more than one child account is in negative balance, the transfer from the parent account is based on the priority set at the child account (Least numeric is given top priority) and the available balance on the major account.

When sweeping from major account to minor account, the major account balance cannot go below Zero if the unlimited OD is not selected at the account level. If it is checked, the sweeps can be executed without any limit to cover the child overdrafts till all the minor account balances are set to zero.

Parent topic: Cash Concentration Methods