Part 10 — System Blueprint

State Machines

State machines are contractual. A state is not a screen label; it defines who can act, what events are legal, which timestamps are regulatory evidence, and which downstream modules receive updates. Every transition must be generated by a named event, actor, guard and audit record. Direct database edits to state columns are prohibited.

Application state machine from lead to booking, rejection, withdrawal or expiry

Application Machine

The application machine is owned by LOS workflow until loan_booked. The KYC, document, BRE, credit, documentation and disbursement services publish events; LOS decides whether the event is legal in the current state.

Application States

State	Meaning	Owner queue	Entry action	Exit allowed to
`lead_created`	Lead exists with source and consent attempt	Sales/CRM	Create application shell if login is requested	`prescreen_pending`, `withdrawn`, `expired`
`prescreen_pending`	Dedupe, product, geography, negative-list and consent checks running	Sales ops/BRE	Lock source and run pre-screen rules	`prescreen_passed`, `rejected`, `returned_for_rework`, `expired`
`prescreen_passed`	Basic eligibility passed or referred and accepted	Sales ops	Create full application checklist	`kyc_pending`, `docs_pending`, `withdrawn`
`kyc_pending`	Required parties are not fully KYC-verified	KYC ops/AML	Create CDD, BO and screening tasks	`docs_pending`, `on_hold`, `rejected`, `returned_for_rework`
`docs_pending`	Application documents are incomplete or unverified	Sales ops/loan ops	Generate document requirements	`data_pending`, `returned_for_rework`, `withdrawn`
`data_pending`	Bureau, banking, GST, ITR, financials or alternate data pack is incomplete	Credit ops/integrations	Request data using active consent	`credit_in_review`, `on_hold`, `returned_for_rework`
`credit_in_review`	Analyst/CAM/PD/RCU/legal/valuation review is active	Credit	Freeze underwriting data version	`deviation_pending`, `approved`, `sanctioned`, `rejected`, `returned_for_rework`, `on_hold`
`deviation_pending`	One or more deviations require approval	Credit/authority	Resolve required DoA level	`credit_in_review`, `approved`, `rejected`
`approved`	Credit approval exists but sanction letter/KFS is not accepted	Credit ops	Generate sanction and KFS	`sanctioned`, `expired`, `rejected`
`sanctioned`	Sanction letter and KFS are issued	Sales/borrower	Notify borrower; start validity clock	`sanction_accepted`, `expired`, `withdrawn`, `returned_for_rework`
`sanction_accepted`	Borrower accepted terms and KFS	Loan ops	Generate documentation and CP checklist	`documentation_pending`, `expired`
`documentation_pending`	Loan/security documents, stamping, signatures, CPs or charge tasks are incomplete	Loan ops/legal	Create execution package	`disbursement_pending`, `returned_for_rework`, `on_hold`
`disbursement_pending`	CPs, mandate, bank account and payment instruction are awaiting checker approval	Disbursement ops/treasury	Create disbursement request	`loan_booked`, `on_hold`, `returned_for_rework`
`loan_booked`	LMS account exists and booking event is accepted	LMS	Close LOS workflow and publish account details	None
`returned_for_rework`	File is sent back to previous team with reason	Prior owner	Create rework task	Any non-terminal state allowed by rework target
`on_hold`	External dependency, compliance hit, fraud review or court/legal issue blocks processing	Holding owner	Suspend SLA clock with reason	Prior active state, `rejected`, `withdrawn`
`rejected`	Lender declined application	Credit/sales ops	Send adverse/reject communication as policy requires	None
`withdrawn`	Borrower or source withdrew before booking	Sales ops	Close active tasks and preserve evidence	None
`expired`	Lead, data, sanction or documentation validity lapsed	System owner	Close or route to refresh	`returned_for_rework` only when policy permits refresh

Application Transitions

From	Event	To	Guard	Actor/system	Side effects
`lead_created`	`lead_submitted_for_prescreen`	`prescreen_pending`	Active consent for contact and product identifiers present	Sales/partner API	Create application id and source lock.
`lead_created`	`lead_withdrawn`	`withdrawn`	No active application tasks	Borrower/sales	Close lead with reason.
`lead_created`	`lead_ttl_elapsed`	`expired`	No contact or login within channel TTL	System	Suppress stale follow-up.
`prescreen_pending`	`pre_screen_passed`	`prescreen_passed`	Dedupe not hard-negative; policy gates pass or refer accepted	BRE	Store rule tree and eligibility snapshot.
`prescreen_pending`	`hard_reject_triggered`	`rejected`	Rule failure is non-waivable or negative-list hit confirmed	BRE/credit policy	Store reject reason and block duplicate retry window.
`prescreen_pending`	`data_or_identifier_deficient`	`returned_for_rework`	Required identifier missing or inconsistent	Sales ops	Create rework task.
`prescreen_passed`	`kyc_required_parties_created`	`kyc_pending`	Application parties include borrower and required obligors	LOS	Create KYC tasks.
`prescreen_passed`	`docs_collection_started`	`docs_pending`	KYC already verified for repeat borrower and no BO gap	LOS	Generate checklist.
`kyc_pending`	`kyc_verified`	`docs_pending`	All required KYC profiles verified; BO and screening hits closed	KYC service	Publish `kyc_verified`.
`kyc_pending`	`sanctions_or_aml_hold`	`on_hold`	Open true-positive or unresolved AML/sanctions hit	AML/compliance	Suspend workflow and notify compliance.
`kyc_pending`	`kyc_rejected`	`rejected`	KYC defect cannot be cured or prohibited party found	KYC checker	Close application with KYC reason.
`docs_pending`	`document_pack_locked`	`data_pending`	Mandatory documents verified or approved waivers recorded	Document service	Freeze document version.
`docs_pending`	`deficiency_raised`	`returned_for_rework`	One or more mandatory document deficiencies remain	Operations	Assign deficiency to sales/customer.
`data_pending`	`data_pack_finalized`	`credit_in_review`	Bureau, banking/GST/financial data requirements met or waivers approved	Credit ops	Freeze underwriting data version.
`data_pending`	`provider_retry_exhausted`	`on_hold`	External API failure prevents required data	Integration gateway	Open dependency ticket.
`credit_in_review`	`deviation_raised`	`deviation_pending`	BRE/CAM found waivable rule breach	Credit analyst	Resolve required authority.
`credit_in_review`	`credit_approved_without_deviation`	`approved`	CAM submitted; no open deviations; authority has approved	Credit authority	Create approval event.
`credit_in_review`	`sanction_direct_generated`	`sanctioned`	Program permits straight-through sanction and KFS generation	Credit/BRE	Create sanction and KFS.
`credit_in_review`	`credit_rejected`	`rejected`	Authority rejects or non-waivable credit fail	Credit authority	Store reject code.
`deviation_pending`	`all_deviations_approved`	`approved`	Each deviation approved at required DoA level	Approval service	Lock deviation approvals.
`deviation_pending`	`deviation_rejected`	`credit_in_review`	Rework permitted	Approval authority	Return CAM with comments.
`deviation_pending`	`deviation_rejected_final`	`rejected`	Authority rejects and no lower structure accepted	Approval authority	Store final rejection.
`approved`	`sanction_letter_generated`	`sanctioned`	KFS/APR computed where required; sanction validity set	LOS/KFS service	Send sanction pack.
`sanctioned`	`borrower_acceptance_recorded`	`sanction_accepted`	Valid sanction; acceptance by authorised signatory/borrower; KFS accepted where required	Borrower/ops	Start documentation workflow.
`sanctioned`	`sanction_expired`	`expired`	`valid_until` elapsed without acceptance	System	Close sanction; allow refresh only by policy.
`sanctioned`	`borrower_negotiation_rework`	`returned_for_rework`	Requested change is material	Sales/credit	Route to credit for revised sanction.
`sanction_accepted`	`documentation_started`	`documentation_pending`	Accepted sanction has active checklist	Operations	Generate execution pack.
`documentation_pending`	`documents_executed_and_cps_cleared`	`disbursement_pending`	Documents executed; CPs cleared or approved exceptions; mandate policy met	Ops checker	Create disbursement request.
`documentation_pending`	`document_exception_hold`	`on_hold`	Legal/security/stamping issue blocks execution	Legal/ops	Create exception task.
`disbursement_pending`	`loan_booked`	`loan_booked`	Payment posted or limit opened; LMS account created; GL event accepted	LMS/disbursement service	Publish account number, schedule and first due date.
`disbursement_pending`	`booking_failed`	`returned_for_rework`	LMS/payment failure is correctable	LMS/ops	Cancel payment instruction if needed.
Any non-terminal	`borrower_withdrawn`	`withdrawn`	No disbursement posted; withdrawal reason captured	Borrower/sales ops	Close tasks, preserve evidence.
Any non-terminal	`fraud_confirmed`	`rejected`	RCU/FCU true-positive approved by authority	RCU/compliance	Block party/source as applicable.

Loan Account Machine

The LMS owns this machine. LOS cannot change account state after booking.

Loan Account States

State	Meaning	Entry trigger	Exit trigger
`pending_booking`	Booking request accepted but account not fully created	`loan_booking_requested`	`loan_booked` or `booking_failed`
`active_undisbursed`	Account or facility opened with zero disbursement	`loan_booked_without_disbursement`	`first_disbursement_posted`, `cancel_account`
`partially_disbursed`	One or more tranches disbursed below sanctioned amount	`tranche_posted`	`final_tranche_posted`, `cancel_undisbursed_balance`, `recall`
`active_current`	Live account with no overdue and no freeze	`loan_booked` or `cure_completed`	`demand_overdue`, `freeze_account`, `foreclosure_posted`, `maturity_paid`
`active_overdue`	Live account with overdue amount but not NPA	`demand_overdue`	`cure_completed`, `npa_classified`, `restructure_approved`, `recall`
`frozen`	Drawdown or servicing action is blocked	`freeze_account`	`unfreeze_account`, `recall`, `close_account`
`restructured`	Terms changed due to approved restructuring	`restructure_implemented`	`performance_cured`, `default_after_restructure`, `close_account`
`recalled`	Facility accelerated/terminated by lender	`recall_notice_issued`	`settlement_implemented`, `legal_recovery_opened`, `close_account`
`preclosed`	Foreclosure amount paid before contractual maturity	`foreclosure_posted`	`no_dues_generated`, `closure_reversed`
`matured_pending_closure`	Maturity reached and dues cleared but closure tasks remain	`maturity_paid`	`no_dues_generated`
`closed`	No contractual dues; NOC and accounting closure done	`no_dues_generated`	None
`written_off`	Accounting write-off posted; recovery may continue	`writeoff_posted`	`recovery_after_writeoff_posted`
`cancelled`	Account cancelled before disbursement or booking reversed per policy	`cancel_account`	None

Loan Account Transitions

From	Event	To	Guard	Actor/system	Side effects
`pending_booking`	`loan_booked_without_disbursement`	`active_undisbursed`	Facility type permits limit opening before drawdown	LMS	Create account number and zero principal outstanding.
`pending_booking`	`loan_booked_with_first_disbursement`	`active_current`	Disbursement posted and first schedule active	LMS	Publish first due date.
`active_undisbursed`	`first_disbursement_posted`	`partially_disbursed`	Posted amount below sanctioned amount	LMS	Generate schedule or drawdown ledger.
`active_undisbursed`	`first_disbursement_posted_full`	`active_current`	Posted amount equals sanctioned amount or single-tranche booking	LMS	Generate active schedule.
`partially_disbursed`	`final_tranche_posted`	`active_current`	Total disbursed equals approved amount or undisbursed cancelled	Disbursement service	Update principal and schedule.
`active_current`	`demand_overdue`	`active_overdue`	Day-end due remains unpaid after due date	LMS batch	Recompute DPD and open delinquency snapshot.
`active_overdue`	`cure_completed`	`active_current`	Oldest unpaid dues cleared under appropriation rule	LMS	Publish DPD decrease.
`active_overdue`	`npa_classified`	`active_overdue`	More than 90 DPD or CC/OD out-of-order trigger met	LMS	Update asset classification; collections bucket may change.
`active_current`	`freeze_account`	`frozen`	Court stay, fraud hold, AML hold, deceased borrower, security issue or compliance hold	Authorized ops/compliance	Block disbursement/drawdown/service actions.
`active_overdue`	`freeze_account`	`frozen`	Same as above	Authorized ops/compliance	Preserve overdue and DPD computation.
`frozen`	`unfreeze_account`	`active_current`	No overdue and hold cleared	Authorized checker	Resume servicing.
`frozen`	`unfreeze_account_overdue`	`active_overdue`	Hold cleared but arrears remain	Authorized checker	Resume collections.
`active_current`	`restructure_implemented`	`restructured`	Approved restructure workflow and documents executed	LMS/credit	Create new schedule version and IRAC flags.
`active_overdue`	`restructure_implemented`	`restructured`	Approved restructure; asset classification impact recorded	LMS/credit	Preserve old schedule and classification history.
`restructured`	`performance_cured`	`active_current`	Satisfactory performance and regulatory cure rule met	LMS/risk	Update monitoring status.
`restructured`	`default_after_restructure`	`active_overdue`	Revised due unpaid	LMS	Open delinquency case.
`active_current`	`foreclosure_posted`	`preclosed`	Foreclosure quote paid and realized	LMS/ops	Stop future demands, create closure tasks.
`active_overdue`	`settlement_implemented`	`preclosed`	OTS amount realized and waiver approved	Collections/LMS	Post waiver/write-off split.
`preclosed`	`no_dues_generated`	`closed`	All charges, reversals, security release conditions and GL events complete	Ops checker	Generate NOC and charge release workflow.
`matured_pending_closure`	`no_dues_generated`	`closed`	Same closure checks	Ops checker	Close account.
`active_overdue`	`writeoff_posted`	`written_off`	Write-off approved under DoA and accounting posted	Finance/collections	Recovery case may remain open.
Any open state	`account_cancelled_before_disbursement`	`cancelled`	No posted disbursement or reversal approved	Ops checker	Cancel schedule and booking references.

Delinquency Machine

The delinquency machine is computed by LMS at borrower and facility levels. Collections consumes it. RBI requires objective day-end SMA/NPA classification and NPA upgradation only after arrears are cleared; manual bucket edits are forbidden.

Delinquency States

State	Trigger	Regulatory/operational meaning
`current`	No overdue amount and no CC/OD out-of-order condition	Normal servicing
`x_bucket`	Due within configured pre-due window or mandate risk detected	Pre-due reminder only
`dpd_1_30`	Oldest unpaid due is 1-30 DPD	Early delinquency; SMA-0 mapping where applicable
`dpd_31_60`	Oldest unpaid due is 31-60 DPD	SMA-1 for term-loan overdue
`dpd_61_90`	Oldest unpaid due is 61-90 DPD	SMA-2 for term-loan overdue
`npa_90_plus`	More than 90 DPD or CC/OD out-of-order NPA condition	NPA recognition and income reversal/provisioning workflow
`restructured_watch`	Restructure implemented and performance monitoring active	Watch for satisfactory performance or relapse
`written_off_recovery`	Write-off posted while recovery continues	Accounting state differs from recovery state
`closed`	Loan closed or cancelled	No delinquency action

Delinquency Transitions

From	Event	To	Guard	Actor/system	Side effects
`current`	`pre_due_window_opened`	`x_bucket`	Due date within configured T-minus days; account active	LMS batch	Create reminder segment.
`x_bucket`	`due_paid_before_due_date`	`current`	Full current demand paid before due date	LMS	Close pre-due reminder.
`x_bucket`	`day_end_due_unpaid`	`dpd_1_30`	Due amount unpaid after day-end for due date	LMS batch	Open collections case if threshold met.
`current`	`day_end_due_unpaid`	`dpd_1_30`	Due amount unpaid after day-end	LMS batch	Compute oldest unpaid due date.
`dpd_1_30`	`arrears_cleared`	`current`	Oldest arrear cleared by realized receipt/approved waiver	LMS	Close or cure case.
`dpd_1_30`	`dpd_crossed_30`	`dpd_31_60`	Oldest unpaid due is greater than 30 DPD	LMS batch	Publish SMA-1 where applicable.
`dpd_31_60`	`arrears_cleared`	`current`	All overdue dues cleared	LMS	Publish cure.
`dpd_31_60`	`partial_payment_posted`	`dpd_31_60`	Oldest unpaid due remains in same band	LMS	Update cure amount, not state.
`dpd_31_60`	`dpd_crossed_60`	`dpd_61_90`	Oldest unpaid due is greater than 60 DPD	LMS batch	Publish SMA-2 and legal readiness task.
`dpd_61_90`	`arrears_cleared`	`current`	All overdue dues cleared	LMS	Publish cure.
`dpd_61_90`	`dpd_crossed_90`	`npa_90_plus`	More than 90 DPD	LMS batch	Trigger NPA accounting and income reversal.
`current`	`cc_od_out_of_order_90`	`npa_90_plus`	CC/OD continuously excess over limit/DP or insufficient credits for 90 days	LMS batch	Trigger NPA accounting.
`npa_90_plus`	`all_arrears_cleared`	`current`	Entire arrears of principal and interest across linked facilities cleared	LMS	Upgrade to standard per RBI IRACP clarification.
`npa_90_plus`	`restructure_implemented`	`restructured_watch`	Approved restructure and asset-class impact posted	LMS/risk	Start watch/performance counters.
`restructured_watch`	`satisfactory_performance_met`	`current`	Policy/regulatory performance criteria met	Risk/LMS	Remove restructured watch flag if permitted.
`restructured_watch`	`restructured_due_unpaid`	`dpd_1_30`	Revised schedule due unpaid	LMS	Reopen delinquency.
Any non-closed	`writeoff_posted`	`written_off_recovery`	Write-off approved and accounting posted	Finance/LMS	Continue recovery case.
Any non-closed	`loan_closed`	`closed`	Loan closed, cancelled or settled with closure posted	LMS	Stop delinquency computation.

Collections Case Machine

Collections cases are operational. They cannot cure DPD directly; they request payments, waivers, settlements, restructures or legal actions that LMS and approval services validate.

Collections Case States

State	Meaning	Owner
`not_open`	No active collections case	LMS/collections integration
`open_unallocated`	Case created but no agent/team assigned	Collections supervisor
`allocated_tele`	Telecalling queue owns next action	Tele collections
`allocated_field`	Field visit or agency action required	Field collections/agency
`ptp_active`	Valid Promise to Pay exists	Assigned collector
`ptp_broken`	PTP date passed without agreed payment	Collections supervisor
`escalated_hard_bucket`	Senior collections handling 31-90 DPD or high-risk early case	Hard bucket team
`legal_review`	Legal route selection in progress	Legal/recovery
`settlement_review`	OTS or waiver proposal under approval	Collections/credit/finance
`restructure_review`	Viability-based restructure under review	Credit/risk
`repossession_or_enforcement`	Collateral enforcement, repossession, SARFAESI, arbitration or DRT workflow active	Legal/recovery
`closed_cured`	Case closed because arrears cured	Collections system
`closed_settled`	Case closed by OTS/settlement implementation	Collections/LMS
`closed_written_off`	Case closed operationally after write-off or transfer	Collections/finance
`closed_uncollectable`	Recovery stopped per approved policy reason	Recovery head

Collections Transitions

From	Event	To	Guard	Actor/system	Side effects
`not_open`	`delinquency_snapshot_received`	`open_unallocated`	DPD or pre-due risk meets case threshold	Collections system	Create case with loan, borrower and cure amount.
`open_unallocated`	`auto_allocate_tele`	`allocated_tele`	Bucket and exposure fit tele strategy	Strategy engine	Assign campaign and call rules.
`open_unallocated`	`auto_allocate_field`	`allocated_field`	Exposure, bucket, risk or skip signal requires visit	Strategy engine	Assign field agent/agency.
`allocated_tele`	`ptp_recorded`	`ptp_active`	PTP has amount, date, payer, mode and collector id	Collector	Pause excessive calling until PTP date unless high-risk.
`allocated_field`	`ptp_recorded`	`ptp_active`	Same valid PTP guard	Field agent	Capture visit evidence.
`ptp_active`	`payment_received_matching_ptp`	`closed_cured`	LMS confirms arrears cleared	LMS/collections	Close case and store cure event.
`ptp_active`	`partial_payment_received`	`allocated_tele`	PTP partly kept but arrears remain and bucket is early	LMS/collector	Update cure amount.
`ptp_active`	`ptp_due_missed`	`ptp_broken`	PTP date/time passed and LMS did not post expected payment	Collections system	Increase broken PTP count.
`ptp_broken`	`reallocate_tele`	`allocated_tele`	Broken count below field threshold	Supervisor	Resume calls.
`ptp_broken`	`escalate_field`	`allocated_field`	Broken count or exposure requires field	Supervisor	Create field task.
`allocated_tele`	`dpd_crossed_30_or_high_risk`	`escalated_hard_bucket`	Bucket/risk threshold met	Strategy engine	Assign senior collector.
`allocated_field`	`negative_visit_or_skip`	`escalated_hard_bucket`	Business closed, borrower skip, refusal or collateral concern	Field supervisor	Trigger legal/RCU review if required.
`escalated_hard_bucket`	`legal_route_requested`	`legal_review`	60+ DPD, fraud, skip, secured exposure, cheque bounce or recovery strategy	Collections manager	Legal case draft opened.
`escalated_hard_bucket`	`settlement_offer_received`	`settlement_review`	Borrower offer includes amount, dates and source of funds	Collector	Generate OTS note.
`escalated_hard_bucket`	`restructure_request_received`	`restructure_review`	Borrower financial difficulty and viability evidence present	Credit/collections	Open restructure workflow.
`legal_review`	`enforcement_approved`	`repossession_or_enforcement`	Legal authority approves route and notices	Legal/recovery	Issue notices and update case.
`legal_review`	`legal_hold_or_defect`	`escalated_hard_bucket`	Legal defect requires more collection or documentation	Legal	Create rework task.
`settlement_review`	`ots_approved`	`settlement_review`	DoA approves waiver and settlement terms	Approval authority	Issue OTS letter; remain until funds realized.
`settlement_review`	`ots_funds_realized`	`closed_settled`	LMS posts settlement receipt and waiver/write-off	LMS/finance	Close case and start security release if applicable.
`settlement_review`	`ots_rejected`	`escalated_hard_bucket`	Authority rejects or borrower fails token condition	Approval authority	Resume normal recovery.
`restructure_review`	`restructure_implemented`	`closed_cured`	LMS posts new schedule and collections case closed by policy	Credit/LMS	Open monitoring case if needed.
`repossession_or_enforcement`	`recovery_completed`	`closed_cured`	Sale/payment clears arrears or account	Legal/LMS	Close enforcement tasks.
Any open state	`arrears_cleared`	`closed_cured`	LMS confirms cure	LMS	Close case and stop agency allocation.
Any open state	`writeoff_posted`	`closed_written_off`	Write-off posted and active recovery ended or transferred	Finance/recovery	Preserve recovery-after-write-off ledger.
Any open state	`approved_uncollectable_closure`	`closed_uncollectable`	Recovery head approval and reason code	Recovery head	Stop activity with audit reason.