The starting point of all the banking operations is General Banking. It is an important department for all banks because it provides services to the customers day-to-day. Front Desk is the important for general banking. Customers give their deposits and meet their demand for cash by honoring Cheques. The customer opens new accounts, remit funds, issues bank drafts and pay orders etc. There are various sections in this department, which are as follows: –
- Cash Section
- Accounts Opening Section
- Remittance Section
- Cheque Clearing Section
The most vital and important section of the branch is Cash Department. It deals with all kinds of cash transactions. This department starts the day with cash in vault. Each day some cash that is opening cash balance are transferred to the cash officers from the cash vault. Opening cash balance is added by cash receipts and payments. The figure is called closing balance. This balance is then added to the vault. This is the final cash balance figure for the bank at the end of any particular day.
Books Maintained By This Section
Vault Register : It keeps account of cash balance in vault in the bank.
Cash Receipt Register : Cash receipt in whole of the day is recorded here.
Cash Payment Register : Cash payments are made in a day are entered here.
Rough Vault Register : Cash calculation for final entry in vault register is done here as any error and correction here is not acceptable. ,
Cash Balance Book : Balance here is compared with vault register. If no difference is found, indicates no error.
Functions of Cash Department
1. Cash payment is made only against Cheque
2. This is the unique function of the banking system, which is known as “payment on demand”
3. It makes payment only against its printed valid Cheque.
1. It receives deposits in form of cash
2. It collects money only its receipts forms.
Cheque Cancellation or Cash Payment Process:
Step 1 1. Receiving Cheque by the employee in the cash counter
2. Verification of the followings by the cash Officer in the computer section
Step 2 1. Date of the Cheque(present within 6 months from issue date)
2. Issued from this branch
3. Amounts in figure and sentence written does not differ
4. Signature of the drawer does not differ
5. Cheque is not torn or mutilated
Step 3 Gives pay cash seal and sends to the payment counter
Step 4 Payment officers make payment
ACCOUNT OPENING SECTION
Account bank. Selection of customer is another important factor. Bank’s success and failure on largely depends opening section is an important factor for banks because customer is problems by their account with bank and thus destroy goodwill of banks. Therefore, the main source of their customers. If customer is not good then may create fraud and other bank must be conscious in selecting its customer. For this reason Social Islami Bank Ltd. keep key information system.
Accounts Opening Process
- Receiving filled up application in bank’s prescribed form mentioning what type of account is desired to be opened.
- The form is filled up by the applicant himself/ herself
- Two copies of passport & one copy stamp size photographs from individual are taken, in case of firms
- photographs of all partners are taken
- Officer are taken information from customer by key information system
- Applications must submit required documents
- Applications must sign specimen signature sheet and give mandate
- Introducer’s signature and accounts number-verified by legal officer
- Filling & signing up KYC or Know Your Customer Form
- Filling & signing up Owner Information Form
Step 4 Authorized Officer accepts the application
Step 5 Minimum balance is deposited-only cash is accepted
Step 6 Account is opened and a cherub book and pay-in-slip book is given
INFORMATION COLLECTED TO OPEN ACCOUNT
- Present and Permanent Address
- Date of birth and age
- Tax information number (TIN- if available )
- Passport or certificate provided by the employer
- Photograph of the account holder
- One photograph of the nominee duly attested by the account holder.
- nominee declaration form
- money laundering leaflet
B. Partnership Firm
- Information Mentioned in -A
- Copy of Partnership Dead
- Mandate from the partners is essential – indicating who will operate the account
C. Limited Company
- Information Mentioned in -A
- Certificate of Incorporation
- Copy of Memorandum and Article of Association
- Certificate of Commencement
- Copy of Resolution of the Board of Directors
If any account is inoperative for more than one year is called dormant account. To operate these accounts manager permission is necessary.
TRANSFER OF ACCOUNT
When account is transferred, following steps are considered:
A) Application in written to the Manager of the account maintaining branch
B) Manager sends a request to the manager of the desired branch of depositors
C) Sends original Account opening application and specimen signature sheet with the balance remained in the account at he sent Manager’s request
D) New account is opened at desired branch
LOCAL REMITTANCE SECTION
When money is sending from one place to another place for the customer is another important service of banks. In addition, this service is an important part of country’s payment system. For this service, people, especially businesspersons can transfer funds from one place to another place very quickly. There are five kinds of techniques for remitting money from one place to another place. These are:
1) Demand Draft
2) Telegraphic Transfer
3) Telephone Transfer
4) Pay Order
Pay order gives the payee the right to claim payment from the issuing bank. It is payment from issuing branch only. Within the clearinghouse area of issuing branch. Payment is made through clearing.
1) Examine genuinely the pay order
2) Enter into PO register and give contra entry
3) Debit if fund OK for payment.
Charges of pay order are shown in bellow by a chart:
|Amount of P.O.||Commission||VAT||Total|
This is an instrument through which customer’s money is remitted to another person/ firm/organization in outstation (Outside the clearing house area) from a branch of one bank to an outstation branch of the same bank or to a branch of another bank (with prior arrangement between that bank with the issuing branch).
Demand Draft Payment is made through the following process:
1) Confirm that the DD is not forged one.
2) Confirm with sent advice.
3) Check the “Test Code”
4) Make payment
This is a mode of transfer / remittance of customer’s money from a branch of one bank to another branch of the sane bank or to a branch of another bank (with prior arrangement between those banks with the TT issuing branch) through telephonic message. The issuing branch used to send the message of such remittance /transfer to the drawer/payee branch through telephone adding certain code number or test number on the basis of text key apparatus developed by the concerned bank for its different branches.
Payment process of TT is:
1. Confirm issuing branch
2. Confirm payee A/C
3. Confirm amount
4. Make payment
VARIOUS TYPES OF DEPOSIT ACCOUNT
SIBL Bank offers following types of deposit account:
1. Mudaraba Savings Deposit Account (MSD)
2. Mudaraba Current Deposit Account (CD)
3. Mudaraba Term Deposit Receipt Account (MTDR)
4. Short Notice Deposit Account (SND)
5. Installment Term Deposit (ITD)
6. Mudaraba Hazz Account
7. Mudaraba Pension Scheme
8. Mudaraba Lakhpoti Scheme
9. Mudaraba milliner Scheme
10. Mudaraba Kotipoti Scheme
11. Mudaraba Double Deposit Scheme.
12. SME Banking
13. Mudaraba Shabuj Shayanno (For Senior Citizens)
14. Mudaraba Shubarno Rekha (For Women)
15. Mudaraba Shanchita (Special Deposit Scheme)
BRIEF DESCRIPTION OF DIFFERENT ACCOUNTS
1. Current Account:
Current account facilitates the account holder to draw money at any times but no profit is given to the current account deposited money. Current accounts can be opened by any individual or joint or any name of proprietorship business, private limited company or public limited company, association, clubs, societies, trusts etc. Generally, current account is opened for businessman and traders for easy transaction. By taking this liability, SOCIAL ISLAMI Bank takes service charge 100/- for six months.
2. Mudaraba Term Deposit Receipt Account (MTDR):
It’s a certain period deposited system, which is not repayable before the maturity date of a fixed period. SOCIAL ISLAMI Bank offers higher rates of profit on such deposits. Usually customers are allowed to open this account for a certain period and the rate of profit in accordance with the terms of the deposit. The features of MTDR as follows:
Minimum balance: TK 10000.00
3. Savings Account:
To maintain smooth and certain life in future Savings account is very suitable for middle class groups. The attributes of Savings Account are:
• 500/- is the minimum amount of initial deposit.
• Client cannot withdraw money more than twice a week,
• The profit rate is 4% against MD account
For opening of this type of accounts following requirements are necessary:
a) The introducer must be attested photograph.
b) The introducer must be account holder of MD of SOCIAL ISLAMI Bank Bangladesh Ltd.
4. Short Notice Deposit (SND):
Short Term Deposit has following attributes:
1 Profit rate 3.5%.
2 No restriction over withdrawal of money
3 5000/- is the minimum balance.
a) Installment Term Deposit (ITD)
It’s a sure investment for a steady return. It can be opened for 5, 8, 10, or 12 years for Tk.200, Tk.300, Tk.500, Tk.1000, Tk.1500 and Tk2000. The savings amount is to be deposited any day of the month. If the depositor has a separate account in the bank for which a standing instruction can be given to transfer the monthly deposit in the schemes
account. Incase of failure to make the monthly installment in the schedule time 5% on overdue installment amount will be charged. The lowest charge will be TK. 10 and this will be added with the following month’s installment. After 3 years of savings in this schemed the depositor is eligible for a loan up to 80% of his deposited amount.
b) Highlights of the Scheme
Mudaraba Lakhpoti Scheme
Mudaraba millionnier Scheme
Mudaraba Kotipoti Scheme
Mudaraba Kotipoti Scheme: These are the most popular & target oriented schemes. One can open for 3,4,5,6,7,10,12,15,18,20 years and have to pay (Monthly installment) 2,39,500/- 1,69,500/- 1,27,500/- 99,500/- 80,000/- 46,000/- 33,450/- 21,485/- 14,330/- 11,100/- respectively and will get 1corror.
Mudaraba milliner Scheme: For Mudaraba milliner Scheme 3,4,5,6,7,10,12,15,20 year’s monthly installments are 23,950/- 16,950/- 12,750/- 9,950/- 8,000/- 4,600/- 3,345/- 2,170/- 1,150/- respectively and will get 10million.
Mudaraba Lakhpoti Scheme: For Mudaraba Lakhpoti Scheme 3,5,8,10,12 year’s monthly installments are 2,375/- 1,275/- 670/- 460/- 335/-/- respectively and will get 1lak.
Conditions of the Scheme
- By filling up a form an account is opened.
- A non-transferable deposit receipt will provide to the customer after opening the account.
- If the deposit is withdrawn before a 5-year term, then saving interest rate will be applicable and paid to the depositor. However, no in profit paid if the deposit is withdrawn within 1 year of opening the account and Monthly Income paid to the customer will be adjusted from the principal amount.
- This scheme will be credited to the loan account until liquidation of the loan amount inclusive of profit. A depositor can avail loan up to 80% of the deposit amount under this scheme.
Cheques clearing section of Social Islami Bank Ltd. receives cheque, demand drafts and pay orders of their clients. Upon the receipt of the instrument the cheque clearing section examines:
1 Whether the paying bank within Dhaka city.
2 Whether the paying bank outside Dhaka city.
3 Whether the paying bank of their own branch.
The Paying Bank within DhakaCity:
The cheques clearing section of Social Islami Bank Ltd., Panthapath Branch sends Inter Branch Debit Advice (IBDA) to the head office on the receiving day of the instruments. The main branch takes those instruments to the clearinghouse on the following day. If the instruments are dishonored, Head Office of Social Islami Bank Ltd. sends IBDA to the Social Islami Bank Ltd., Panthapath branch
The Paying Bank of Their Own Branch:
The cheque clearing section of Social Islami Bank Ltd., Panthapath branch sends outward bills for collection (OBC) to the concerned paying branch to get Inter Branch Credit Advice (IBCA) from the paying branch. If the paying branch dishonors the instrument, the paying branch returns it to the Social Islami Bank Ltd., Panthapath branch describing why the instrument is dishonored.
Types of Cheque Collected By Clearing Department:
1. Transfer Cheque:
Transfer Cheques are those cheques, which are collected and paid by the same branch of Al-Arafah Islami Bank Ltd.
2. Local Bills Collection Cheques (LBC):
Local bills collection cheques are those cheques, which are collected and paid by two different branches of a bank situated in the same city.
3. Outward Bills Collection Cheque (OBC):
OBC cheques are those cheques, which are collected and paid by two different branches of same or different bank situated in the outstation.
Clearing House is an arrangement under which member banks agree to meet, through their representatives, at an appointed time and place to deliver instruments drawn on the other and in exchange, to receive instruments drawn on them. The net amount payable or receivable as the case may be, is settled through an account kept with the controlling bank.
Types of Clearing:
1. Outward Clearing
Outward clearing means when a particular branch receives instruments drawn on the other bank within the clearing zone and those instruments for collection through the clearing arrangement is considered ad outward clearing for that particular branch.
2. Inward Clearing
When a particular branch receives instruments, which drawn on them and sent by other member bank for collection are treated as inward clearing.