diff --git a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanAccountDomainServiceJpa.java b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanAccountDomainServiceJpa.java
index 48a13bed630..f54f5186d7a 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanAccountDomainServiceJpa.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/portfolio/loanaccount/domain/LoanAccountDomainServiceJpa.java
@@ -688,6 +688,10 @@ private void updateLoanTransaction(final Long loanTransactionId, final LoanTrans
     @Override
     public LoanTransaction creditBalanceRefund(final Loan loan, final LocalDate transactionDate, final BigDecimal transactionAmount,
             final String noteText, final ExternalId externalId, PaymentDetail paymentDetail) {
+        if (transactionDate.isAfter(DateUtils.getBusinessLocalDate())) {
+            throw new GeneralPlatformDomainRuleException("error.msg.transaction.date.cannot.be.in.the.future",
+                    "Loan: " + loan.getId() + ", Credit Balance Refund transaction cannot be created for the future.", loan.getId());
+        }
         if (loan.isChargedOff() && DateUtils.isBefore(transactionDate, loan.getChargedOffOnDate())) {
             throw new GeneralPlatformDomainRuleException("error.msg.transaction.date.cannot.be.earlier.than.charge.off.date", "Loan: "
                     + loan.getId()
diff --git a/integration-tests/src/test/java/org/apache/fineract/integrationtests/BaseLoanIntegrationTest.java b/integration-tests/src/test/java/org/apache/fineract/integrationtests/BaseLoanIntegrationTest.java
index 64d8ca86d52..486737f9139 100644
--- a/integration-tests/src/test/java/org/apache/fineract/integrationtests/BaseLoanIntegrationTest.java
+++ b/integration-tests/src/test/java/org/apache/fineract/integrationtests/BaseLoanIntegrationTest.java
@@ -271,7 +271,7 @@ protected void disburseLoan(Long loanId, BigDecimal amount, String date) {
                 .transactionAmount(amount).locale("en"));
     }
 
-    protected void verifyJournalEntries(Long loanId, JournalEntry... entries) {
+    protected void verifyJournalEntries(Long loanId, Journal... entries) {
         GetJournalEntriesTransactionIdResponse journalEntriesForLoan = journalEntryHelper.getJournalEntriesForLoan(loanId);
         Assertions.assertEquals(entries.length, journalEntriesForLoan.getPageItems().size());
         Arrays.stream(entries).forEach(journalEntry -> {
@@ -405,8 +405,8 @@ protected void updateBusinessDate(String date) {
                 new BusinessDateRequest().type(BUSINESS_DATE.getName()).date(date).dateFormat(DATETIME_PATTERN).locale("en"));
     }
 
-    protected JournalEntry journalEntry(double principalAmount, Account account, String type) {
-        return new JournalEntry(principalAmount, account, type);
+    protected Journal journalEntry(double principalAmount, Account account, String type) {
+        return new Journal(principalAmount, account, type);
     }
 
     protected Transaction transaction(double principalAmount, String type, String date) {
@@ -454,7 +454,7 @@ public static class TransactionExt {
 
     @ToString
     @AllArgsConstructor
-    public static class JournalEntry {
+    public static class Journal {
 
         Double amount;
         Account account;
diff --git a/integration-tests/src/test/java/org/apache/fineract/integrationtests/ClientLoanCreditBalanceRefundandRepaymentTypeIntegrationTest.java b/integration-tests/src/test/java/org/apache/fineract/integrationtests/ClientLoanCreditBalanceRefundandRepaymentTypeIntegrationTest.java
index c43cdf2ce24..9a61b658ca7 100644
--- a/integration-tests/src/test/java/org/apache/fineract/integrationtests/ClientLoanCreditBalanceRefundandRepaymentTypeIntegrationTest.java
+++ b/integration-tests/src/test/java/org/apache/fineract/integrationtests/ClientLoanCreditBalanceRefundandRepaymentTypeIntegrationTest.java
@@ -62,7 +62,7 @@
 @SuppressWarnings({ "rawtypes", "unchecked" })
 @ExtendWith(LoanTestLifecycleExtension.class)
 @Slf4j
-public class ClientLoanCreditBalanceRefundandRepaymentTypeIntegrationTest {
+public class ClientLoanCreditBalanceRefundandRepaymentTypeIntegrationTest extends BaseLoanIntegrationTest {
 
     private ResponseSpecification responseSpec;
     private ResponseSpecification responseSpec403;
@@ -251,7 +251,56 @@ public void fullRefundChangesStatusToClosedObligationMetTest(LoanProductTestBuil
             totalOverpaidAtEnd = floatZero;
         }
         assertEquals(totalOverpaidAtEnd, floatZero);
+    }
+
+    @ParameterizedTest
+    @MethodSource("loanProductFactory")
+    public void refundAcceptedOnTheCurrentBusinessDate(LoanProductTestBuilder loanProductTestBuilder) {
+        runAt("09 January 2022", () -> {
+            disburseLoanOfAccountingRule(ACCRUAL_PERIODIC, loanProductTestBuilder);
+            HashMap loanStatusHashMap = makeRepayment("06 January 2022", 20000.00f); // overpayment
+            LoanStatusChecker.verifyLoanAccountIsOverPaid(loanStatusHashMap);
+
+            final Float totalOverpaid = (Float) this.loanTransactionHelper.getLoanDetail(this.requestSpec, this.responseSpec,
+                    disbursedLoanID, "totalOverpaid");
+
+            final String creditBalanceRefundDate = "09 January 2022";
+            final String externalId = null;
+            loanTransactionHelper.creditBalanceRefund(creditBalanceRefundDate, totalOverpaid, externalId, disbursedLoanID, null);
+            loanStatusHashMap = (HashMap) this.loanTransactionHelper.getLoanDetail(this.requestSpec, this.responseSpec, disbursedLoanID,
+                    "status");
+            LoanStatusChecker.verifyLoanAccountIsClosed(loanStatusHashMap);
+
+            final Float floatZero = 0.0f;
+            Float totalOverpaidAtEnd = (Float) this.loanTransactionHelper.getLoanDetail(this.requestSpec, this.responseSpec,
+                    disbursedLoanID, "totalOverpaid");
+            if (totalOverpaidAtEnd == null) {
+                totalOverpaidAtEnd = floatZero;
+            }
+            assertEquals(totalOverpaidAtEnd, floatZero);
+        });
+    }
+
+    @ParameterizedTest
+    @MethodSource("loanProductFactory")
+    public void refundCannotBeDuneForFutureDate(LoanProductTestBuilder loanProductTestBuilder) {
+        runAt("06 January 2022", () -> {
+            disburseLoanOfAccountingRule(ACCRUAL_PERIODIC, loanProductTestBuilder);
+            HashMap loanStatusHashMap = makeRepayment("06 January 2022", 20000.00f); // overpayment
+            LoanStatusChecker.verifyLoanAccountIsOverPaid(loanStatusHashMap);
+
+            final Float totalOverpaid = (Float) this.loanTransactionHelper.getLoanDetail(this.requestSpec, this.responseSpec,
+                    disbursedLoanID, "totalOverpaid");
+
+            final String creditBalanceRefundDate = "09 January 2022";
+            final String externalId = null;
+
+            ArrayList<HashMap> cbrErrors = (ArrayList<HashMap>) loanTransactionHelperValidationError.creditBalanceRefund(
+                    creditBalanceRefundDate, totalOverpaid, externalId, disbursedLoanID, CommonConstants.RESPONSE_ERROR);
 
+            assertEquals("error.msg.transaction.date.cannot.be.in.the.future",
+                    cbrErrors.get(0).get(CommonConstants.RESPONSE_ERROR_MESSAGE_CODE));
+        });
     }
 
     @ParameterizedTest