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Table of Contents

Acknowledgement viiExecutive Summary viii

Chapter 01: Introduction of the organization “HSBC”

1.0 HSC !rou" #orld wide 011.1 HSC !rou" business area 011.$ anks under t%e HSC !rou" 011.& HSC 'ision Statement 0$1.( )b*ectives of HSC 0&1.+ HSC,s -nternational etwork 0&1./ Country Classifications 0&1. -nternational rand 0(

1. Cor"orate C%aracter 0(1.2 asic 3rives 0(1.10 4roducts and Services 0(1.11 4rivate anking 0(1.1$ Commercial anking 0(1.1& Cor"orate and -nstitutional anking 0(1.1( 4ayments and Cas% 5anagement 0+1.1+ -nvestment anking 0+1.1/ !rou" usiness 4rinci"les and 'alue 0+

$.0 HSC anglades% 0/

$.1 Sco"e of business in anglades% 0/$.$ 6ey information HSC anglades% 0$.& ranc%es 0$.( 5anagement of HSC anglades% 0

$.(.1 )rgani7ational Hierarc%y 0$.(.$ C%ief Executive Committee 0$.(.& 8unctional 3e"artments of HSC 02

$.+ 3ifferent Activities of HSC in anglades% 02$.+.1 4ersonal anking Services 02$.+.$ Cor"orate anking Services 10$.+.& 8inancial -nstitutions 10

$.+.( AT5 Centre 10$.+.+ AT centre 10$.+./ 4ayments and Cas% 5anagement 11$.+. HE9A!) 11$.+. Amana% :-slamic anking; 1&$.+.2 -nformation Tec%nology :-T; 1&$.+.10 HSC

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&.+ =emittance 3e"artment 1/&./ Easy 4ay 3e"artment 1/&. Treasury 3e"artment 1/&. 5-S 3e"artment 1

(.0 S#)T Analysis 1

+.0 S#)T 5atrix 1

CHAPTER Introduction to the pro!ect

1.0 )rigin of t%e re"ort 12$.0 )b*ectives 12

$.1 road ob*ectives 12$.$ S"ecific ob*ectives 12

&.0 =ational of t%e study $0(.0 5et%odology $0+.0 Sco"e $0/.0 >imitation $0

CHAPTER " #$!ecti%e &i'e di'cu''ion'1.0 4ayment and Cas% 5anagement $$

1.1 !eneral discussion $$1.$ 4C5 usiness Scenario $&1.& 4ayments and Cas% 5anagement "roducts $&

1.&.1 Account management solutions $&1.&.$ Transaction 5anagement Solutions $&

1.( Collection 5anagement $(1.+ 4ayments 5anagement $+1./ Country #ide Collection $+

$.0 =emittance $+  $.1 )utward =emittance $+  $.1.1 4rivate =emittance $/  $.1.$ )fficial ? usiness Travel $  $.$ -nward =emittance $

$.$.1 -nward =emittance $$.$.$ 8orms $$.$.& !eneral 4rinci"les and 4recautions for "urc%asing

-nstruments $2$.$.( 8oreign Currency :ank; otes $2$.$.+ Travelers, C%e@ues $2

$.$./ 8oreign 3rafts and C%e@ues $2  $.$. Telegra"%ic Transfer :T.T; $2&.0 Clearing &0

  &.1 C%e@ues &0  &.1.1 egotiability and Endorsement &0  &.1.$ Crossed C%e@ues &0  &.1.& C%e@ue 3e"osited to Accounts wit% AS4 Areas &0  &.1.( C%e@ue alterations &0  &.1.+ C%e@ue as initial de"osits to new accounts &0  &.1./ C%e@ues in favor of limited com"any &0  &.1. C%ecking of C%e@ue &1

  &.1. Cancellation of signature &1  &.1.2 =outine "recautions &1

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  &.$ >imits of aut%ority &1  &.& EC risk evaluation &$  &.( Certified C%e@ues &$  &.+ Cas% wit%drawal from accounts wit% C%e@ues &$  &./ Sto""ed C%e@ues &$

  &. C%e@ues returned un"aid &&  &. -nstruction of en cas%ing offices &&  &.2 Currency of drawings &&  &.10 Commission and C%arges &&  &.11 Time constraints &&  &.1$ >etters of undertaking  &(  &.1& C%e@ue return &(

  &.1&.1 5inor Tec%nical error &(  &.1&.$ C%e@ues =eturned records  &(  &.1&.& C%e@ues =eturned in Error &(  &.1&.( Action to e taken  &+

  &.1( Same 3ay Clearing &+  &.1+ ormal 3ay Clearing &+  &.1/ =eturn 5-S in A 5ont% &+

CHAPTER ( Ana)*'e' on +enera) Pa*,ent Procedure'

1.0 SC Activity volume in year of $00 &/$.0 SC Transaction volume in year of $00 &&.0 4ayment and Cas% 5anagement &(.0 =emittance &2+.0 Clearing (0

CHAPTER - Reco,,endation'

1.0 4ayment and Cas% 5anagement ($$.0 =emittance ($&.0 Clearing (&

CHAPTER . Conc)u'ion'

Conclusion ((

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I/TR#CTI#/ #2 THE #R+A/I3ATI#/ “HSBC

140 HSBC +R#P 5#R6 5IE 141 HSBC +roup Bu'ine'' AreaT%e HSC !rou" is named after its founding memberB T%e Hongkong and S%ang%ai ankingCor"oration >imitedB w%ic% was establis%ed in 1/( in Hong 6ong and S%ang%ai to finance t%e

growing trade between C%ina and Euro"e. T%omas Sut%erlandB a Hong 6ong Su"erintendent oft%e 4eninsular and )riental Steam avigation Com"any %el"ed to establis% t%is bank in 5arc%1/(. T%roug%out t%e late nineteent% and t%e early twentiet% centuriesB t%e bank establis%ed anetwork of agencies and branc%es based mainly in C%ina and Sout% East Asia but also wit%re"resentation in t%e -ndian subcontinentB Da"anB Euro"e and ort% America.T%e "ostwar "olitical and economic c%anges in t%e world forced t%e bank to analy7e its strategyfor continued growt% in t%e 12(0s. T%e bank diversified bot% its business and its geogra"%icals"read t%roug% ac@uisitions and alliances.HSC Holdings "lcB t%e "arent com"any of t%e HSC !rou"B was establis%ed in 1221 wit% itss%ares @uoted on bot% t%e >ondon and Hong 6ong stock exc%anges. T%e HSC !rou" nowcom"rises a uni@ue range of banks and financial service "roviders around t%e globe.

14 Ban7' under the HSBC +roup

5any of t%e members %ave c%anged t%eir name into HSCB T%e Hongkong and S%ang%aianking Cor"oration >imited to introduce t%e w%ole grou" under one brand name.5idland ankB one of t%e "rinci"al ondonB t%e bank %as a "ersonal customer base of five and a %alf millionB

 business customers of over %alf a millionB and a network of almost 1B00 branc%es in t%e ondon and !eneva.HSC anco =oberts was ac@uired in 122. ased in uenos AiresB it is one of Argentina,slargest "rivately owned banksB wit% /0 branc%es t%roug%out t%e country.Hongkong ank of Australia %as 1/ branc%es across Australia. -t is t%e flags%i" of t%e HSC!rou",s businesses t%ereB o"erating under t%e name HSC AustraliaB and "roviding a com"leterange of financial services.T%e Saudi ritis% ankB a (0 owned member of t%e HSC !rou"B %as /& branc%es t%roug%outSaudi Arabia and a branc% in >ondon.)t%er associated !rou" banks are ritis% Arab Commercial ankB T%e Cy"rus 4o"ular ank and

Egy"tian ritis% ank. #ells 8argo HSC Trade ank is a San 8ranciscobased *oint venture between HSC and #ells 8argo ankB "roviding trade finance and international banking services

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in t%e

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1410 Product' and Ser%ice'4ersonalB commercialB cor"orateB investment and "rivate bankingN trade servicesN cas%managementN treasury and ca"ital markets servicesN insuranceN "ersonal and business financeN

 "ension and investment fund managementN trustee servicesN and securities and custody services.

1411 Pri%ate Ban7ing

-t includes investmentB fund managementB asset management and "rotectionB financial adviceB taxand trust. 4rivate anking is "art of t%e -nvestment anking division of t%e HSC !rou" andservices offered will vary from country to country.

141 Co,,ercia) Ban7ing-t includes financeB "ayments and cas% managementB electronic bankingB merc%ant servicesB tradeservicesB custodyB leasingB and factoring. Commercial banking services offered will vary fromcountry to country.

141" Corporate and In'titutiona) Ban7ingAs one of t%e worldJs largest banking and financial organi7ations wit% an extensive globalca"abilityB t%e HSC !rou" is a ma*or "layer in t%e Cor"orate and -nstitutional banking market.HSC,s clients are t%e ma*or multinationals. To meet t%eir needs HSC created !lobal=elations%i" 5anagement teams across 2 countries and territories.

141( Pa*,ent' and Ca'h =anage,entEffective cas% management is more t%an a sim"le "roduct or service it is about im"lementing astrategy for managing customers, cas% flow t%at is focused on t%eir longterm goalsB yet flexibleenoug% to ada"t to c%ange.T%roug% t%e "rocess of listening to individuals needs and t%en acting in "artners%i" to deliver t%erig%t solutionsB HSC,s is committed to %el"ing t%e clients make t%e most of t%eir financialassets.HSC o"erate on a global basisB but also work on a local level to ensure t%e crossborderdifferences are identified and any related benefits ex"loited. HSC teams of s"ecialists ensuret%at w%et%er you need solutions across t%e worldB regionally or locallyB t%ey %ave t%e skillsB

ex"ertise and resources to deliver t%em. T%ey automate as many functions as "ossibleB w%ilstensuring clients to retain control.

141- In%e't,ent Ban7ing-nvestment anking and 5arkets brings toget%er t%e advisoryB financingB e@uity securitiesB assetmanagementB "rivate banking and trusteeB "rivate e@uity and treasury and debt ca"ital marketsactivities of t%e HSC !rou". =esourced by over 10B000 staff around t%e worldB -nvestmentanking and 5arkets o"erates t%roug% dedicated offices and via t%e !rou"Js commercial banksJnetwork in 1 countries and territories. -t offers a full s"ectrum of services for t%e !rou"Jscor"orateB institutional and retail clients. y drawing on local commercial market knowledge andinternational "roduct ex"ertiseB t%e -nvestment anking and 5arkets business is able to "rovidean excellent combination of global coverage and local market "enetration.

141. +roup Bu'ine'' Princip)e' and 8a)ue

T%e HSC !rou" is committed to 8ive Core usiness 4rinci"lesK )utstanding customer serviceN

Effective and efficient o"erationsN

Strong ca"ital and li@uidityN

Conservative lending "olicyN

Strict ex"ense disci"lineNHSC )"erates According to Certain 6ey usiness 'aluesK

T%e %ig%est "ersonal standards of integrity at all levels

Commitment to trut% and fair dealing

Handon management at all levels

)"enly esteemed commitment to @uality and com"etence

A minimum of bureaucracy 8ast decisions and im"lementation

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4utting t%e !rou",s interests a%ead of t%e individual,s

T%e a""ro"riate delegation of aut%ority wit% accountability

8air and ob*ective em"loyer 

A merit a""roac% to recruitmentLselectionL"romotion

A commitment to com"lying wit% t%e s"irit and letter of all laws and

regulations w%erever we conduct our business.HSC,s re"utation is founded on devotion to t%ese "rinci"les and values. All actions taken bya member of HSC or staff member on be%alf of a !rou" com"any s%ould conform to t%em.

$.0 HSBC BA/+6AESH 

41 Scope of $u'ine'' in HSBC Bang)ade'hT%e HSC Asia 4acific grou" re"resents HSC in anglades%. HSC o"ened it,s first branc% in3%akaT%e Hongkong and S%ang%ai anking Cor"oration anglades% >td. "rimarily limited itso"erations to %el" garments industry and to commercial banking. >atterB it is extended to

 "%armaceuticalsB *ute and consumer "roducts. )t%er services include cas% managementB treasuryBsecuritiesB and custodial service. =eali7ing t%e %uge "otential and growt% in "ersonal bankingindustry in anglades%B HSC extended it,s  o"eration to t%e "ersonal banking sector inanglades% and wit%in a very s%ort s"an of time it was able to build u" a %uge client base.At t%is time HSC anglades% is "roviding a wide range of services to bot% individual andcor"orate level customers. HSC in anglades% also s"eciali7es in selfservice banking t%roug%

 "roviding 1(%our AT5 services. Currently HSC anglades% is offering five offsite AT5 boot%s and five ranc%esB along wit% AT5 boot%sB for better satisfying t%ose geogra"%icsegmentsB located at various geogra"%ical areas of 3%aka ? C%ittagong.

4 >e* infor,ation of HSBC Bang)ade'h/a,e of the #rganization: T%e Hong 6ong S%ang%ai anking Cor"orationanglades% >T3

?ear of E'ta$)i'h,ent: 122/Head #ffice: Anc%or TowerB 1L1 Sonargaon =oad

3%aka 110(B anglades%/ature of the organization: 5ultinational Com"any wit% subsidiary grou" in

anglades%.Shareho)der': HSC grou" s%are%olders/u,$er of #ffice': 10/u,$er of AT=9': $1/u,$er of e,p)o*ee': 1000 :A""rox.;

Product': Savings ? de"osit services>oan "roductsCor"orate and -nstitutional services4ayments and Cas% 5anagement 4roductsTrade servicesHexagon3ay ? ig%t ankingAmana% :-slamic anking;

Techno)og*: )ffers full online banking from branc% to branc%and also from 3%aka to C%ittagong and Syl%et

Ser%ice Co%erage @ Cu'to,er': Serves individual and cor"orate customerswit%in 3%akaB C%ittagong and Syl%et

4" Branche'1. 3%aka 5ain )ffice 3A6

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$. !uls%an )ffice 3!<&. 5oti*%eel )ffice 35)(. C%ittagong office CH!+. C%ittagong E4O )ffice :!EC;

/. Syl%et )ffice SFO

.

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4- ifferent Acti%itie' of HSBC in Bang)ade'hAs one of t%e largest international banks in anglades%B HSC %as a longterm commitment to itscustomers and "rovides a com"re%ensive range of financial servicesK "ersonalB commercial andcor"orate bankingN trade servicesN cas% managementN treasuryN consumer ? business financeN andsecurities and custody services.2.#.1 $eronal "an%ing !ervice

T%e Hongkong and S%ang%ai anking Cor"oration >imited offers a full range of "ersonal banking "roducts and services designed to take care of its customers, growing needs andre@uirements. HSC in anglades% %as launc%ed a number of unsecured loan and service

 "roducts. T%ese are mentioned briefly as under K=* 6oan :

Car loanB Home loanB Travel >oanB >ifestyle >oanB 4rofessional >oanB 5otorbike >oanStudent >oanB 8urnitue >oanB #edding >oanB C! Conversion >oan=* 2uture :

C%ildren Savings 4lanB Education Savings 4lanB Holiday Savings 4lanB 4eace of 5ind Savings4lanB =etirement Savings 4lan.Per'ona) 2inancia) Ser%ice' :

Travellers C%e@ueB Savings 4lusB Current AccountB Savings AccountB 3aily 5oney 5anagementB4%one bankingB AT5 CardsB anglades% -nternationalB a 3e"osit "roduct for non residentanglades%isB Cor"orate Em"loyees Sc%emeB 4ower 'antageB 4ersonal Secured >oanB 4ersonal

Secured CreditB Credit Card.Sa%ing' @ In%e't,ent'5ont%ly interest bearing time de"ositB Term de"ositsB -nvestment #atc%.2.#.2 Corporate "an%ing !ervice

T%e Hongkong and S%ang%ai anking Cor"oration >imited offers a wide range of cas% financingBworking ca"italB s%ort and mediumterm loans and guarantee facilities from its Head )ffice andC%ittagong branc%. T%e )ffs%ore anking

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servicing of all t%e AT5s. Currently a total 11 AT5s are in o"eration. T%e AT5 center alsodeals wit% issuanceB termination and servicing of t%e AT5 cards. )n a w%oleB t%e AT5 center ist%e de"artment t%at is solely res"onsible for all t%e activities related to AT5 and is t%e facilitatingde"artment t%at enables customers 1( %our banking su""ort.2.#.# '(" centre

AT refers to Automated Tele anking. T%is de"artment deals wit% t%e back office servicing oft%e HSC "%one banking services "rovided to customers. T%is de"artment is basicallyres"onsible for t%e activation of ATB AT "in generationB and AT security managementB AT

 blocking and troubles%ooting of all AT "roblems. T%is de"artment is fairly new and wasconstructed on Danuary,1001. Currently t%is de"artment is staffed wit% one executive and oneofficer.2.#.* $ayment an+ Cah )anagement

HSC anglades% %as introduced a number of 4ayments and Cas% 5anagement 4roducts T%eseAreK

Accounts 5anagement Service

4ayments ? Collection

Hexagon C%e@ue #riter 

Electronic ankingHSC was t%e "ioneer in introducing electronic cas% management solutions in anglades%B byintroducing its stateoft%eart "ro"rietary softwareB HexagonB back in 122. T%is was initiallymade available to cor"orate clients only but %as since been ex"anded to include banks and retailclients.#it% HexagonB t%e ank,s "ro"rietary cas% management systemB cor"orate customers can access

 banking services from anyw%ere in t%e world to view account balances and statementsB maketransfers and international "aymentsB and to o"en documentary creditsB by using only a 4CB amodem and a tele"%one line.2.#., HE-'O/ 

HSBC9' E)ectronic Ban7ing P)atfor,

HSC maintains one of t%e world,s largest "rivate datacommunications networks and one of t%eir most successful customerservice driven tec%nological innovations is  Hexagon. Hexagon

 "rovides cor"orate and institutional customers wit% 4C access tocas% management servicesB trade servicesB securities services and ot%er information t%roug% asingle"latform using a fully integrated "ro"rietary system. T%ere are about /0B000 Hexagonusers worldwideB wit% more t%an 1$0 cor"orate customers in anglades%.Hexagon "rovides "owerful tools to t%e customers to monitor t%eir accounts from anyw%ereB atany time of t%e day or nig%tK alance and transaction information is available 1( %ours dayB $/(days a year. alances can be reviewed and re"orted in a variety of ways P by accountB bankBcurrency and location.Tran'action Capa$i)itie' of Heagon:

Pa*,ent': 8ull "ayment ca"abilities :t%ird "artyLintercom"any; in over (0 currencies globally.

4a"erbased and electronic "ayments may be generated.

Automatic routing via t%e most effective means using HSC, s links to all its branc%es.

=e"etitive "aymentLtransfer instructions can be stored in secure tem"lates.

4ayments can be initiated in offline mode and stored for later amendment andLoraut%ori7ation.

4ayment instructions can be im"orted from t%e customer,s back office system.

Hexagon can su""ort future value dated transactions u" to (( days.Ti,e epo'it':

Hexagon may also be used to make Time 3e"osits in a variety of currencies and

maturities. 3e"osit details may be sorted in different categories to sim"lify "ortfolio management.

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-nstructions may also be given for t%e settlement of de"osits on maturity.Heagon Cheue 5riter :

Hexagon C%e@ue #riter   "roduct is t%e latest addition in t%e 4ayments and Cas% 5anagement ofHSC. -t is a c%e@uewriter "roduct builtin module of Hexagon t%at will facilitate t%e customersto "re"areB "rint and u"date t%e 4C ledger :ledger maintained in C%e@ue #riter;. T%e c%e@ues

 "rinted t%roug% Hexagon C%e@ue #riter will continue to u"date t%e 4C >edger and t%us %el" t%ereconciliation of t%e c%e@ue "resented wit% t%e account statement.S*'te, Securit* of Heagon :

HSC %as full contingency arrangements for all o"erating systems and maintains a Qmirror,com"uter site in Hong 6ongB w%ic% will "rovide back u" in t%e rare event of a central systemfailure. T%is site su""orts t%e entire Asia 4acific. S"ecific recovery "lans are also in "lace inanglades%.-n summaryB Hexagon can meet customer,s all "ayment needsB streamlining administrationBim"roving "roductivity and offering a single "latform from w%ic% to initiate all "ayment ty"esBincluding "ayrollB local o"erating ex"enses and t%ird "arty invoices.T%e HSC !rou" %andles over 100 transactions every secondB 1( %ours a dayB $/( days a year.-n 1222L00B t%ey s"ent more t%an

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Di Credit Ad,ini'tration

Credit Administration de"artment basically deals wit% all t%e documentationB "rocessingBadministration and disbursement of t%e im"ortex"ort services "rovided to cor"orate clients. T%isde"artment is known to be t%e %eart of HSC trade services t%at administers and manages all t%etrade tools and facilities "rovided by HSC Cor"orate anking. Some im"ortant as"ects of t%isde"artment are >C advisingB documentationB )3 facilitiesB guaranteesB etc.

Dii 2oreign Echange i%i'ion

T%e 8orex division of trade services is solely concerned wit% t%e management of 8oreignexc%ange inflow and outflow. T%e 8orex division of trade service in relation wit% SC and 8C3manages t%e foreign currency traffic of HSC t%at originates from Cor"orate anking and tradeservices.

"40 /ET5#R>  SER8ICE CE/TRE D/SC"41 Acti%itie' of /SC

 etwork Service Centre :SC; can be described as t%e Q4ower House, of HSC anglades%. -tdoes t%e back office *ob for t%e bank. T%e main *obs t%at are "erformed by SC are s%own as

under K Clearing

Scanning of signature cards

-ssuing c%eckbooks

Sending ? receiving =emittances

4ayment ? Cas% 5anagement :4C5;

Easy 4ay

Treasury

5-S

-nstitutional anking6ocation:

 etwork Service Centre :SC; of HSCB anglades% is situated on a corner of a busy road at5oti*%eel Commercial Area. -t is very near to anglades% ank and as suc% it %as t%econvenience to do all anglades% ank related *obs. -t serves a wide geogra"%ical area consistingof 5oti*%eelB 4altanB )ld 3%akaB 8akira"oolB S%a%*a%an"urB 6%ilgaonB S%antinagar and ot%erad*oining areas.#ffice Ti,ing :

T%e Centre o"ens for t%e individual customers from 2K00 am to $K00 "m and for t%e cor"orateclient from 2.00 am to (.00 "m Sunday t%roug% T%ursday. -n etwork service centre we %ave aAT5 mac%ine for t%e customers w%ic% allowing customers to %ave access to t%eir accounts 1(%ours a day.

"4 =anage,entT%e ranc% 5anager %eads all t%e de"artments and is t%e to"most aut%ority of t%e branc%. T%e5anager generally monitors smoot% functioning of all t%e de"artments and ensures t%at all t%ede"artments are o"erating according to rules and regulations. He is assisted by two Assistant5anagers and ot%er officers. An )rganogram is "resented belowK

 

NSC Manager

Assistant ManagerAssistant Manager

Easy Pay

Department

MIS

Department

Treasury

Department

Clearing

Department

Remittance

Department

PCM

Department

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"4" C)earing epart,entT%is Clearing 3e"artment of SC looks after t%e clearing "rocess of HSC and makes necessarycontact wit% t%e central bank for maintaining account flows. All branc%es of HSC in 3%aka Citysend c%e@ues ? ot%er instruments to SC for clearing. -n t%is Clearing 3e"artment receives t%osec%e@uesB attends Clearing House at anglades% ank and ensures recei"t of "ayment againstt%ose c%e@ues. SimilarlyB w%ile attending Clearing HouseB it receives c%e@ues and ot%erinstruments from ot%er banks and ensures t%eir "ayment.

"4( Pa*,ent and Ca'h =anage,ent epart,ent DPC=:4ayments and Cas% 5anagement is a core business for t%e HSC grou". T%e ob*ective of4ayments ? Cas% 5anagement is to be t%e "remier "ayments ? cas% management service

 "rovider in anglades% by delivering res"onsive and integrated solutions to customers.HSCJs 4ayments and Cas% 5anagement services are designed to %el" its clients to o"erateefficientlyB "rofitably and wit% com"re%ensive su""ort. T%e aim is to "rovide a service t%at takesfull account of t%e customersJ local needs using t%e ex"ertise and t%e unrivalled resources of t%eHSC. T%roug% t%e "rocess of listening t%e customerJs needsB HSC t%en acts in "artners%i" to

deliver t%e rig%t solutions.HSC o"erates on a global basisB but also works on a local level to ensure t%e crossborderdifferences are identified and any related benefits ex"loited. T%e bankJs teams of s"ecialistsensure t%at w%et%er customer needs solutions across t%e worldB regionally or locallyB t%ey %avet%e skillsB ex"ertise and resources to deliver t%em.4ayments ? Cas% 5anagement 3e"artment :4C5; at SC delivers t%e following "roducts tot%eir customersK

Accounts 5anagement Services

4ayments ? Collection

Hexagon C%e@ue #riter 

Electronic anking

"4- Re,ittance epart,ent=emittance, is a banking termB w%ic% means QTransfer of funds t%roug% banks,. #%en a bankremits on be%alf of its customersB it is termed as outward remittance. )n t%e ot%er %andB w%en t%e

 bank receives t%e remittance on be%alf of t%e customerB it is inward remittance. T%e following aret%e met%ods t%at SC use to remit money for customersK Telegra"%ic Transfer :TT;B 3emand3raft :33; ? Cas%ier,s )rder.T%ere are two ty"es of =emittanceK :1; -nland =emittance :wit%in t%e country; and :1; 8oreign=emittance :To and from foreign countries;.T%e =emittance 3e"artment of SC "erforms t%e following *obs K

-nland =emittance

8oreign remittance

=eceives information on 8oreign =emittance from all HSC branc%es.

Com"iles data on t%e basis of information received.

Submits =eturns to anglades% ank.

"4. Ea'* Pa* epart,entEasy 4ayI is a "roduct innovated by HSC anglades% "roviding service to t%eir customers formaking "ayment of t%eir

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funds at a lowest "ossible rate of interestB t%roug% maintaining effective relations%i" wit% ot%er banks and following t%e !overnment rules and foreign exc%ange regulations

"4; =IS epart,entT%is 3e"artment at SC maintains and u"grades 3atabase and "rovides 5-S u"dates on differentissues to 5anagement L ranc%es L Sales Teams on a routine basis. T%e 3e"artment also

generates different 5anagement -nformation re"orts regarding business develo"mentBdelin@uenciesB income ? costB recovery ? fundingB "rofit ? loss etc. T%us t%is 3e"artment "laysan im"ortant role in maintaining efficiency of HSC anglades%.

(40 S5#T A/A6?SIS 

At t%e cor"orate levelB t%e strategic management of an organi7ation involves in environmentsscanning for "erformance evaluation. T%e management examines bot% t%e external environmentfor o""ortunities and t%reats and t%e internal environment for strengt%s and weaknesses. -nternalfactors t%at affect t%e activitiesB influencing t%e way an organi7ation develo"s are known asstrengt%s as well as weaknesses of t%at organi7ation. )n t%e contrary t%e external factors w%ic%%ave an im"act on organi7ational activities are t%e o""ortunities and t%reats towards it. T%e

factors are referred to as strategic factors and will be summari7ed over %ere acronym S#)Tstanding for SStrengt%sB ##eaknessB ))""ortunityB TT%reats. )nce t%ese strategic factorsare identified from bottom to to"level managementB t%ey will evaluate t%e factors and determinet%e cor"orate mission. 8inally t%eir "erformance is evaluated and information is initiated in to t%esystem and a "rogram so t%at ade@uate control of organi7ational activities is re@uired.A S#)T matrix was develo"ed for HSC,s anglades% on t%e basis of t%e general "ayment

 "rocedures due to effective management system and t%e weakness it is going t%roug% due to itsinternal limitations. T%e S#)T matrix was develo"ed by relating t%e o""ortunities and t%reatsHSC is foreseeing at t%e "resent time t%e management of HSC can scrutini7e bot% t%e externalenvironment for o""ortunities and t%reats and t%e internal environment for strengt%s andweaknesses. -nternal factors t%at affect t%e activitiesB influencing t%e way HSC develo"s are

considered as strengt%s as well as weakness of t%at organi7ation. T%e first ste" in t%e strategyformulation is t%e cor"orate mission t%at leads to t%e determination of cor"orate ob*ectivesBstrategies and "olicies w%ic% can be im"lemented t%roug% "rogramsB budgets and "rocedures.8inally t%eir "erformance is evaluated and information is clarified into t%e system and a "rogramso t%at ade@uate control of organi7ational activities is re@uired.

-40 S5#T =ATRI Strength': DS

• HSC %as t%e largest network

 banking around t%e world. T%ereforeBit can come u" wit% its successfulCas% 5anagement "roducts inanglades%.

• Strong global brand image.

• HSC %as t%e global electronic banking system Hexagon w%ic%woks globally.

5ea7ne'': D5

• HSC %as limited number of cas%

management clients.• Hig% cost of fund.

• Hig%er tariff c%arges t%an local banks.

• T%ey don,t %ave many ty"es of Cas%5anagement 4roducts.

• >ess re"utation and recognitionamong t%e cor"orate clients.

#pportunitie': D#

• HSC can come u" wit% newCas% 5anagement "roducts like #ebankB "ayments "lus.

• Sco"e of new 4C5 "roducts int%e market.

Threat': DT

• 5ultinational banks may merge wit%local banks to "rovide good services.

•

T%e local banks may "rovide t%isCas% 5anagement service wit% freeof cost.

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• To ex"lain t%e meaning and conce"t of Cas% 5anagement System of 8oreign ank.

• To be aware of t%e need and ob*ective of Cas% 5anagement

• To see t%e "ayment "rocess wit% outward remittance

• To learn t%e "ayment "rocess t%roug% inward remittance

• To be familiar wit% t%e "ayment "rocess t%roug% outward ? inward clearing

• To recogni7e t%e same day clearing.

"40 R ATI#/A6 #2 THE ST? 

To com"lete my graduation "rogram from t%e 3e"artment of usiness AdministrationBDa%angirnagar argescale researc% was not "ossible due to constraints and restrictions "osed by t%eorgani7ation.

 

-n many casesB u" to date information is not "ublis%ed.

  !etting =elevant "a"ers and documents were strictly "ro%ibited.

  5any "rocedural matters were conducted directly in t%e o"erations by t%e to"management levelB w%ic% may also %ave some sort of restrictions.

  To "rotect t%e organi7ational loss in regard of maintaining confidentialityB some "artsof t%e re"ort are not in de"t%.

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140 PA?=E/T A/ CASH =A/A+E=E/T 141 +enera) di'cu''ionHSCJs 4ayments and Cas% 5anagement services are designed to %el" its clients to o"erateefficientlyB "rofitably and wit% com"re%ensive su""ort t%e aim is to "rovide a service t%at takesfull account of t%e customersJ local needs using t%e ex"ertise and t%e unrivalled resources of t%eHSC. 4ayments and Cas% 5anagement is a core business for t%e HSC grou". T%e ob*ective of4ayments ? Cas% 5anagement is to be t%e "remier cas% management service "rovider in

anglades% by delivering res"onsive and integrated solutions to customer. T%e boardJs aim for amultinational is "ursuing effective cas% management is toK

=econcile ank Transaction

Accelerate =eceivables

5aximi7e =eturns on sur"lus fund

3ecrease internal administration

=educe exc%ange and tax risk 

5inimi7e borrowing and associated costsT%roug% t%e "rocess of listening t%e customerJs needs and t%en acting in "artners%i" to deliver t%erig%t solutionsB HSC is committed to %el"ing "eo"le make t%e most effective use of t%eirfinancial assets. HSC not only o"erates on a global basisB but also works on a local level toensure t%e crossborder differences are identified and any related benefits ex"loited. T%e bankJsteams of s"ecialists ensure t%at w%et%er customers need solutions across t%e worldB regionally orlocallyB as t%ey %ave t%e skillsB ex"ertise and resources to deliver t%em.HSC is t%e banking institution to talk to if "eo"le want t%e followingK

!lobal cas% flow coordination

En%anced risk management

-m"roved security and audit controls

5inimi7ed costs and reduced o"erating ex"enses

5aximi7ed li@uidityB returns and interest benefits4ayments and Cas% 5anagement :4C5; is a suite of "roducts and servicesB w%ic% enables atreasurer to manage cas% and li@uidity on a localB regional and global level.So t%e 4C5 de"artment gives solution t%roug% four ways and t%ey are as belowK

Account 5anagement. Transaction 5anagement.

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4ayments to Collections

>i@uidity 5anagement.

3elivery 5anagement.T%e ob*ective of "ayments and cas% management is to manage receivables and "ayables andde"loy t%e sur"lus fund t%roug% structured one sto" solution. -t wants to minimi7e cost and

maximi7e return and also ensure effective "lanningB management and monitoring of cas% and cas%e@uivalent resources.The >e* 'ucce'' factor' for PC=:

Extensive core bank network.

Efficient "rocessing set u".

=eliable courier service.

-ntegrated system.

14 PC= Bu'ine'' Scenario4C5 is "resently a "art of C- wit% two officers re"orting to t%e C- 5anager. So far HSC wasnot in a "osition to offer com"re%ensive 4C5 solution to t%e cor"orate due to lack ofcorres"ondent banking relations%i" and a structured system in "lace. T%e 4C5 "rimary focus was

on electronic bankingB remittance de"t.B w%ic% as "er t%e grou" norms a "art of 4C5 de"t. is stillunder su"ervision of customer service de"t. #it% t%e growing market demand and com"etition in4C5 it is t%e ideal time for HSC to "enetrate t%e market.

14" Pa*,ent' and Ca'h =anage,ent Product'Effective cas% management is more t%an a sim"le "roduct or service it is about im"lementing astrategy for managing customers, cas% flow t%at is focused on t%eir longterm goalsB yet flexibleenoug% to ada"t to c%ange. Solutions for t%is region HSC "rovides cor"orations and financialinstitutions wit% a com"re%ensive and "ractical analysis of t%e various cas% management andoutsourcing tec%ni@ues available in Asia. T%is includes t%e features and benefits of automatingmanual "rocesses and outsourcing RnoncoreR activitiesB suc% as account managementB "aymentsand collections management and li@uidity managementB as well as recommendations and adviceon t%e establis%ment of s%ared service centers and regional treasury centers.1.3.1 'ccount )anagement !olution6

5anaging li@uidity is a com"lex risky business. HSC "rovides a flexible range of accountmanagement solutionsB w%ic% can be structured to t%e customerJs re@uirements. HSCJs endtoend service enables customers to establis% a single banking relations%i"B o"erated t%roug% onemultic%annel global network. T%e result is lower costsB as well as streamlined communicationsand administration. To maximi7e t%e relations%i" between customers J li@uidityB investments andt%e bottom lineB t%e bank automates as many R%ousekee"ingR functions as "ossible and offers u"tot%eminute information and control over all t%eir local and foreign exc%ange "ositions.

1.3.2 (ranaction )anagement !olution6

-n !lobal Cas% 5anagement t%e basic "rinci"les still a""ly to bot% "ayments and recei"tsB but t%eway t%ese tec%ni@ues are used may differ significantly. HSC %as t%e tec%nology to "ut t%e

customer in control of t%eir collections and "ayments t%roug% transaction management solutions.T%e "ayments are done in two waysK

3omestic "ayments

Cross border "ayments.-n 3omestic "ayments t%e tasks are demand draftB telegra"%ic transferB cas%ier,s orderL"ay order.T%ese are done on t%e basis of customer re@uirements. )n t%e ot%er %andB in Cross border

 "ayments t%e issuers are also same are demand draftB telegra"%ic transfer and S#-8T. T%e mostim"ortant features of any "ayment are TimingB Guality of informationB Cost and t%e irrevocablenature of "ayment. HSC,s flexible collections management solutions enable t%e once timeconsuming and routine task of collections to be %andled automaticallyB reducing manualinterventionB im"roving cas% flow and "reserving t%e integrity of collections managementinformation. T%e customer will receive timely and accurate information facilitating t%e decision

making "rocess.14( Co))ection =anage,ent

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Cas% 5anagement Collections is t%e family of "roducts and services "rovided by t%e bank t%at%el" t%e customers manage t%eir sales collection ? account reconciliation. Smart collect meanscollection of c%e@ues and cas% de"osited at HSC branc%es t%at is being %andled verysystematically around t%e country.

T%e benefits are as followsK

8unds will be in one single account t%at is de"osited in any branc%.

Consolidated 3e"osit and credit details will be "rovided to t%e customers on a daily basis.

Collection of Cas%L Cas% E@uivalent -nstruments :C%e@ueL 4ay )rderL 3raft; de"osited atHSC ranc%es :"resently at 3%akaL C%ittagong;.

Same day credit for cas% and day 1 credit for local c%e@ues :day 0 being t%e day of de"osit;.

-ntra day information available and easy automated reconciliation t%roug% Hexagon.

-n addition to t%e branc%es Cas% may also be de"osited in "artner bank branc%es in 3%akacity at free of c%arge to t%eir central account wit% HSC.

4ricingK 8reeAdvantages of CollectionsK

3e"osit details Available on day 1 for all areas.

C%e@ue level information is available.

Centrali7e control of receivables.

Transit time is reduced.

T%eir re"orts will be also available t%roug% email.

14- Pa*,ent' =anage,enty using HexagonB "ayment instructions for staff salaries as well as su""lier invoices can bedelivered to t%e bank electronically. 4ayment instructions received from clients will be executedat t%ose 12 branc% locations globally. -f t%ey receive an instruction wit%in 1$K00 ".m. to creditany account in t%ose branc%es t%at will be executed on t%e same day and client will be able to seet%e debit details t%roug% Hexagon. Smart C%e@ue means customers, can %ave c%e@ue "rintingfacility at t%eir office "remises.The $enefit' are a' fo))o&':

Smart c%e@ue will save t%e time t%at mig%t be needed for manual c%e@ue writing.

-t can store t%e tem"lates of re"etitive "ayments.

 -t can "rint all t%e c%e@ues in a bulk.

3atabase of "rinted c%e@ues are available.

Guick and faster salary or ot%er disbursements can be done.

Customers will get debit confirmation t%roug% Hexagon.Ad%antage' of pa*,ent':

Credit advises available at beneficiary end.

3ebit confirmation t%roug% Hexagon.

-t reduces t%e burden for outside salary "ayments.

=educed "ayment time for all t%eir country wide "ayments.

-n addition to "ayments in "artner bank branc%es client may also instruct bank toissue draftsB w%ic% can be collected from t%e branc% or client may instruct bank tomail t%roug% courier directly.

14. Countr* 5ide Co))ectionAs receivable management is crucial to financial cycleB HSC %as develo"ed "roducts forcustomers to efficiently manage client,s re@uirements and reduce cost. T%e services and benefitsinclude suc% as Cost reduction t%roug% efficient fund managementB 3etailed 5-S on cas%collectionB resulting in better managementB centrali7ation of control of all clients, cas% andinstrumentsB @uicker cas% collection into a central accountB resulting in greater earnings.

40 R E=ITTA/CE 

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41 #ut&ard Re,ittanceT%e term )utward =emittancesR include not only remittance i.e. sale of foreign currency by TT.5TB 3raftsB Traveler,s c%e@ue but also includes "ayment against im"orts into anglades% ?>ocal currency credited to onresident Taka Accounts of 8oreign anks or Convertible TakaAccount.

Two forms are used for )utward =emittance of foreign Currency suc% asK

I=P 2or, :

All outward remittance on account of -m"orts is done by t%is formT4= 2or, :

  8or all ot%er outward remittances form T.5 is used.

2.1.1 $rivate 7emittance

14 2a,i)* re,ittance faci)it*:

  a; 8oreign ationals working in anglades% wit% a""roval of t%e !overnment may remitt%roug% an Aut%ori7ed 3ealer +0 of Salary and 100 of leave salary as also actual savings andadmissible "erson benefits. o "rior a""roval of ank is necessary for suc% remittanceB  b; =emittance of moderate amounts of foreign exc%ange for maintenance abroad of family

members :s"ouseB c%ildrenB "arents; of anglades% ationals are allowed by anglades% ank onwritten re@uest su""orted by certificate from t%e anglades% 5ission in t%e concerned country.4 Re,ittance of =e,$er'hip fee'Gregi'tration fee' etc4

Aut%ori7ed 3ealer may remit wit%out "rior a""roval of anglades% ankB members%i" fees of8oreign "rofessional and scientific institutions and fees for a""lication registrationB admissionBexamination T)E8>B SAT etc.; in connection wit% admission into foreign educational institutionson t%e basis of written a""lication su""orted by demand noticeLletter of t%e concerned institution."4 Education:

4rior "ermission of anglades% ank is not re@uired for releasing foreign exc%ange in favorLon be%alf of anglades% students studying abroad or willing to "roceeds abroad for studies.Aut%ori7ed 3ealers s%all allow exc%ange facilities for t%is "ur"ose according to t%e followingdrillKA""lication duly filled in by t%e student as "er "rescribed format of anglades% ank. )riginallatter and "%otoco"y of admission letter issued by t%e concerned institution in favor of t%estudent.T%e original and "%otoco"y of estimate relating to annual tuition feeB board and lodgingBincidental ex"enses etc. issued by t%e concerned institutionsB Attested co"ies of educationalcertificates of t%e a""licant and 'alid "ass"ort must be submitted by t%e student.(4 Re,ittance of Con'u)ar 2ee':

Consular fees collected by foreign embassies in anglades% Taka and de"osited in a TakaAccount maintained wit% an A3 solely for t%is "ur"ose may be remitted abroad wit%out "riora""roval of anglades% ank.-4 Re,ittance of e%a)uation fee:

Aut%ori7ed 3ealerJs wit%out "rior a""roval of anglades% ank may remit evaluation fee on be%alf of anglades%is desiring immigration to foreign countries for getting educationalcertificates of t%e "erson concerned evaluated by a foreign institution. A demand note of t%eforeign immigration aut%ority is re@uired for t%is "ur"ose..4 Tra%e):

4rivate travel @uota entitlement of anglades% ationals is set at

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T%e intending traveler is a customer of t%e A3 bank or is sufficiently well known to t%e A3 ankor t%e intending traveler %as "aid relevant Travel Tax. T%e intending traveler %as a valid "ass"ort.4 2oreign /ationa)':

T%e Aut%ori7ed 3ealers may issue foreign currency TCs to foreign nationals wit%out any limitand foreign currency notes u" to "roducts including furnace oil bitumenB electronic goods etc.B; t%e retention @uotais .+ of t%e re"atriated 8) value.

Ex"orters may at t%eir o"tionB retain t%e foreign currency in interest bearing renewable termde"osit accounts wit% Aut%ori7ed 3ealers in

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Two forms are "rescribed by anglades% ank are used for "urc%ase of foreign currencies suc%asK

• EP 2or,: =emittances received against ex"orts of goods from anglades% aredone by form E94.

• 2or, C: -nward remittances e@uivalent to edger to

record eac% day,s transactions.)n t%e last working day of eac% mont% t%e branc% s%all calculate t%e exc%ange gain or loss andcarry out necessary ad*ustment in t%e control ledger.8oreign currencies s%all be "urc%ased at t%e rates instructed by t%e Head )ffice.

2.2.# (raveler: Che;ue

Pa*,ent again't TC'

T%e customer tendering t%e Travelers, C%e@ues s%ould be asked to sign t%e TCs at t%e designated "laces in front of t%e concerned bank official w%o would satisfy %imself about its genuinenesswit% reference to t%e customer,s signature already a""earing on t%e TCs and %is "ass"ort. S%ouldt%ere be any doubtN "urc%ase contracts of t%e TCs may be asked for.Co))ection of Proceed' of Enca'hed TC'

Encas%ed TCs s%ould be sent to t%e relevant foreign corres"ondent for collection.

2.2.* Foreign Draft an+ Che;ue

T%e branc% s%ould exercise due care and ordinary "rudence for "urc%ase of foreign currencydenominated draftsB c%e@ues and similar kinds of instruments. T%e instrument s%ould not be

 "urc%ased unless t%e customer is well known to t%e branc% as a regular trustwort%y client. An-ndemnity ond s%ould be obtained for refund of t%e money along wit% interest in t%e event ofdis%onors of t%e instruments.

2.2., (elegraphic (ranfer (.(

Test number a""earing on t%e TT must be c%ecked and aut%enticated by t%e concerned official.

Confirmation from t%e Head )ffice s%ould be received about t%e "roceeds %aving been credited.T%e usual formalities including declaration on 8orm QC, s%ould be observed.

"40 C6EARI/+ "41 Cheue'

3.1.1 /egotia

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re@uired "rovided t%at t%ere are sufficient controls in "lace to ensure t%at t%e same effects ofcrossing are a""lied a""ro"riately.

3.1.3 Che;ue Depoite+ to 'ccount 9ith '!$ 'rea

3e"artment instructions and "ractices must ensure t%at customers %ave title to c%e@ues credited tot%eir accounts. Counter staff must scrutini7e c%e@ues "aid in to ensure t%atK

•

C%e@ues are bearer • C%e@ues are drawn in favor of account %olders

• C%e@ues are endorsed to account %olders and t%at endorsement a""ear to be regular 

• T%ere are no tec%nical irregularities suc% as errors in date and amount.Any irregularities on t%e c%e@ues s%ould be broug%t to t%e attention of t%e customer before furt%er

 "rocessing.3e"artmental instructions must sti"ulate t%at executives or staff officers must a""rove t%e de"ositof c%e@ues w%ic% are not made "ayable to bearer or account %oldersB or w%ic% exceed "resettransaction limits.3.1.4 Che;ue alteration

C%e@ue alterations must always be signed in full by drawersB in order to minimi7e t%e risk offraudulent alterations.

3.1.# Che;ue a initial +epoit to ne9 accountAS4 Areas must not acce"t c%e@ues drawn in favors of t%ird "arties as initial de"osits for newaccountsB irres"ective of w%et%er or not suc% c%e@ues contain w%at a""ear to be validendorsements.

3.1.* Che;ue in favor of limite+ company

AS4 Areas must exercise caution w%enever customers Endeavour to "ay in c%e@ues drawn orendorsed by limited com"anies or firms known to be t%e em"loyers of t%e customer concerned.4articular care must be taken w%en suc% c%e@ues %ave been signed by customers on be%alf ofem"loyers.En@uiries need not be made w%en c%e@ues can reasonably be assumed to re"resent salaryBcommissionsB severanceB or ot%er similar "ayments.

3.1., Chec%ing of Che;ue)"erations 5anagers must ensure t%atB sub*ect to any @uick cas%ing services andB wit%indelegated limits of aut%orityB all inward c%e@ues above designated t%res%olds are examined toensureK

• #ords and figures agree

• C%e@ues are neit%er "ostdated nor outofdate

• Signatures %ave been verified

• Any alterations %ave been signed in full

3.1.0 Cancellation of ignature

Area 5anagersB or t%eir delegatesB must establis% s"ecific limits of aut%ority for staff wit%inw%ic% t%e signatures on customer c%e@ues must be cancelledB i.e. scored t%roug% in red ball "en

and initialed by executives or staff officersB as a""ro"riate. T%e limits must be in accordance wit%all a""licable regulatory re@uirements and common "ractices in t%e local market.-n Areas w%ere an image of t%e c%e@ue is used for clearing and "aymentB cancellation ofsignatures is not re@uired "rovided t%at t%ere are sufficient controls in "lace to ensure t%at t%esignatures %ave been verified.

3.1. 7outine precaution

Executives must ensure t%at t%e following situations are involvedK

• 3rawings against non cleared c%e@ues.

•  3e"osits w%ere t%e c%e@ues are signed by a "arty to t%e account or by a known associate.

•  3e"osits w%ere c%e@ues are re"eatedly drawn on a "articular bank in anot%er area.

•  Cas% wit%drawals or outward -Ts against non cleared c%e@ues.

•   Account "ositions w%ere t%e level of outstanding of non cleared c%e@ues remainsconstantB or is on t%e increase.

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• Accounts w%ere t%e daily turnover is out of "ro"ortion to t%e over nig%t balance.

"4 6i,it' of authorit*All JEffects ot ClearedJ :EC; drawings must be a""roved by designated executives inaccordance wit% written limits of aut%ority.

Area 5anagersB or t%eir delegatesB must ensure t%atB limits of aut%ority granted for t%e a""roval ofEC transactions are incor"orated in t%e text of letters to Credit executives detailing t%eir lendinglimits.

"4" E/C ri'7 e%a)uationExecutives must consider t%e following matters w%en evaluating t%e a""roval or re*ection of ECdrawingsK

• Accounts must be well conducted wit% no %istory of "ersistent excess drawingsB outwardreturned c%e@uesB or inward returned c%e@ues

•  T%e natureLorigin of t%e non cleared effects must be c%ecked to ensure t%at t%ey are ont%e face of it regular and in line wit% t%e customerJs normal "attern of activity

• #it%drawal c%e@ues must be regular in all res"ects

• Current o"erations of accounts must be c%ecked to ensure t%at t%ere is no indication ofkite flying.

"4( Certified cheue'T%e certification of customersJ c%e@ues as Jgood for "aymentJ involves a direct liability on t%e "artof AS4 Areas in t%at suc% c%e@ues must be "aid on due "resentation.As a general rule AS4 Areas s%ould issue cas%ierJs orders instead of certifying c%e@ues. #%eret%is is not "ossible customersJ accounts must be debited wit% t%e full amount of c%e@ues toJ becertified.

"4- Ca'h &ithdra&a) fro, account' &ith cheue'Customers w%o maintain accounts on w%ic% drawings can be made by c%e@ue mayB exce"tionallyBand sub*ect to formal identificationB be "ermitted to draw cas% at our countersB by means ofnormal cas% wit%drawal vouc%ers.

"4. Stopped Cheue'#%ere local law "ermits AS4 Areas must acce"t customersJ instructions to sto" "ayment ofc%e@ues "rovided t%at customers generate suc% instructions by t%e following meansK

• #riting letters giving c%e@ue details

• Com"leting grou" standard Jsto" "aymentJ forms

• Sending a""ro"riate aut%enticated telex or facsimile instruction

• Tele"%oning an AS4 Area and confirming tele"%one instructions immediately in writingas and w%en necessary.

AllJ Sto" C%e@ueJ maintenance must be raised immediately on recei"t of sto" noticesB and must bea""roved by an executive or a staff officer.JSto" C%e@ueJ daily u"date and weekly full re"orts must be scrutini7ed by designated executives

or officers in c%arge of customer services o"erations.Area 5anagers must obtainB and retain on fileB advice regarding local legal re@uirements for t%esto""ing of c%e@ues. A""ro"riate instructions s%ould be maintained by executives in t%eir3e"artmental -nstruction ooks.

"4 Cheue' returned unpaidAS4 areas must return customers c%e@ue normally un"aid w%enK

• T%ey contain tec%nical inaccuracies or inconsistencies :e.g. words and figures differBsignature missing;

• )ffices %ave been notified t%at t%e customer %as diedB been declared bankru"t or mentallyinca"able

•

=eceivers %ave been a""ointed :small businesses;

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•  ame of t%e "arty to w%om t%e c%e@ue was returned or returned by

•  umber 

• 3rawer 

• Amount

• =eason for return

• -nitial of t%e su"ervising executive or officer.T%e record s%ould be %eld under t%e control of an executive or a designated officer.

3.13.3 Che;ue 7eturne+ in Error

AS4 Areas must exercise t%e greatest care w%en returning t%eir customersJ c%e@ues un"aid forlack off fundsB to avoid becoming involved in legal action on t%e basis of negligence. -ncidents%ave arisen w%ere c%e@ues were returned un"aid for lack of fundsB des"ite t%e fact t%at funds %ad

 been "aid in for customersJ accountsB or de"osits %ad erroneously been credited to ot%er accounts.3.13.4 'ction to

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141 /SC Tran'action %o)u,e in *ear of 00;-n t%is gra"% t%e total successful transactions of t%e year of $00 is s%own. Here we can see t%emont% wise transaction volume of total SC of HSC anglades%.

N S C T r a n s a c tio n V o lu

-

5

10

15

2 0

2 5

3 0

3 5

4 0

4 5

5 0

55

6 0

6 5

7 0

75

8 0

8 5

9 0

9 5

10 0

10 5

110

115

12 0

12 5

   A   v   g

 .   Y   T   D   0   7

   J   A   N   0   8

   F   E      0   8

   !   A   "   0   8

   A   #   "   0   8

   !   A   Y   0   8

   J   $   N   0   8

   T   %   o   u   s   a   n   &   s

! o n t

   V   o   l   u   m   e

S u p p o r t A c c o u n t S e rv ic e s Cle a r in g Ea s y Pa y IB

PCM REM s NS C CHG NS C S Y Z A TMB ! N"s CA

NSC Activit' Volume 2008

(

2)

)0

7)

*00

*2)

*)0

*7)

200

22)

2)0

27)

+00

+2)

   A  v  g .   Y   T   D   0   7

   J   A   N   0   8

   F   E      0   8

   !   A   "   0   8

   A   #   "   0   8

   !   A   Y   0   8

   J   $   N   0   8

   T   %  o  u  s  a  n   &  s

!ont%

   V  o   l  u  m

Support Account Services Clearing EasyPay IB

PCM REMs NSC CHG NSC SYZ ATMB!N"sCAR"S

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"40 R E=ITTA/CE -n t%e below gra"% t%e activity and transactions of =emittance de"artment in year $00 ares%owing in mont% wise and t%e "ercentage c%ange in activity and transaction from "reviousmont% and t%e increased "ercentage based on average activity volume and transaction of year$00.

-n t%e below gra"% t%e total activity volume and transaction volume of =emittance de"artment inyear $00 are s%owing in mont%ly basis.

(40 C6EARI/+ -n t%e below gra"% t%e activity volume trend of Clearing de"artment in year $00 are s%owing inmont% wise and t%e "ercentage c%ange in activity and transaction from "revious mont% and t%eincreased "ercentage based on average activity volume and transaction of year $00.

(-4

+%---

,-4

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-n t%e below t%e gra"%s are s%owing t%e total activity volume and transaction volume of Clearingde"artment in t%e year of $00 on mont%ly basis.

All t%e above gra"%s are s%owing t%e "ayment "rocedures t%roug% activity volume andtransaction in HSC anglades%. -n t%e general anking "ayment "rocedures t%e above &de"artment is t%e back bone of HSC.

140 PA?=E/T A/ CASH =A/A+E=E/T • At "resent to o"en an account at 4ayment ? Cas% 5anagement de"artmentB t%e rules and

regulations are rigid. T%e official "rocedure s%ould be flexible to o"en an account. T%e

minimum balance to o"en an account s%ould be reduced.

$-%---

'$%(*&

*(%---

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• At "resent due to inade@uate and inefficient man"owerB "ayments and collections aredelaying. Sometimes t%ey delays in transfer "ayment of salary of ot%er organi7ation. -ft%ey want to get t%e customers, satisfactionB t%ey need to recruit man"owerB train t%em u"and turn t%em into efficient and effective man"ower.

• 4C5 s%ould increase t%e total number of "roducts t%ey %ave. T%ey need to introduce

more innovative "roducts like "ayment "lusB web bank etc.• T%ey s%ould avoid ne"otism and favoritism.

40 R E=ITTA/CE • HSC s%ould widen t%eir client,s base to invite more out ward remittance transaction in

ot%er currencies.

• T%e =emittance 3e"artment of HSC becomes very busy in Danuary as muc% moreoutward remittance transactions takes "lace in t%is mont%. SoB HSC 5anagements%ould arrange more man"ower for =emittance 3e"artment in t%is mont%. )ne of t%emeans of arranging t%is additional man"ower mig%t be to acce"t more internees in t%ismont%.

•

HSC s%ould intensify "ersonal banking in order to attract travelers and students inmaking outward remittance t%roug% HSC.

• HSC s%ould undertake "romotional activities in ovember ? 3ecember for "roviding "ersonal banking services to travelers and students.

• HSC s%ould undertake "romotional activities in ovember ? 3ecember for "roviding "ersonal banking services to travelers.

• HSC s%ould undertake "romotional activities in ovember ? 3ecember for "roviding "ersonal banking services to students.

• HSC s%ould ex"lore t%e "ossibility of widening its "ersonal banking network in ot%ercountries to ta" t%e inward remittance coming from t%ose countries es"ecially in 5iddleEast countries w%erefrom inward remittances come to anglades% in "lenty.

• HSC s%ould intensify "ersonal banking in order to attract foreign wage earners making

inward remittance t%roug% HSC.

• T%e number of %uman resources in t%e =emittance 3e"artment is really insufficient togive services to %uge volume of work. SoB number of staff s%ould be increased in t%isde"artment.

• Human resource is anot%er sector for t%e =emittance de"artment to be develo"edurgently. Human resourcesB in t%e de"artmentB need to be e@ui""ed wit% ade@uatecom"uter knowledge so t%at t%ey can work faster and efficiency can be o"timi7ed. ankcan arrange training "rogram for t%em.

"40 C6EARI/+ • C%e@ues are coming from different branc%es to CS :5oti*%eel branc%;. After

 "rocessingB c%e@ues are going to anglades% ank for clearing. As a resultB it takes more

time for clearing t%e c%e@ues. T%e customers aren,t getting @uicker service ? t%ey areunsatisfied. -f t%e c%e@ues are "rocess in t%e individual branc% and directly go toanglades% ankB t%en t%e clearing "rocesses are @uicker t%an "resent time ? t%ey s%ouldim"rove good relations%i" wit% anglades% ank.

• T%e trans"ortation system %as to be develo" more and sending mailLcurrier s%ould faster.

• HSC must look over t%e time of "ayment to t%e customer regarding of normal clearingc%e@ues.

• HSC %ave to develo" t%eir collection "rocess faster for t%e collection c%e@ues.

• -f HSC cut t%e return c%arges as low as "ossible t%an may be t%e "ersonnel account%older will be motivate more and mig%t gain lots of customers.

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C#/C6SI#/ Consumer banking industry %as been treated as a "ros"ective financial sector in anglades%.

5ore and more banks and nonbank financial com"anies are entering t%e industry. T%e industry became so attractive t%at multinational bank like HSC %as entered t%e market and wants to leadt%e market. HoweverB t%e entrance of banks like HSC %as broug%t revolutionary c%anges in

 banking services. 4eo"le get better service t%an ever before. -t becomes lot easier for "eo"le to getloans and investing money into diversified "ortfolios. So"%isticated services like AT5B 4%one

 bankingB )nline transaction etc. %as been broug%t by t%is new generation banking.

As t%e services im"roved workflow of t%e banks %as been c%anged dynamically as well. anksuse more so"%isticated ways to assess "ayments. Guick assessment "rocess "ressuri7es t%eClearing officers to use so"%isticated ways of "ayment assessment. T%oug% HSC use its owninvestigation along wit% t%ird "arty investigation for "ayment assessment t%e w%ole "roceduremay be develo"ed furt%ermore. Central bank may become more %el"ful by "roviding %el"s like

%osting database :about customers; on t%e net.

T%us by "roviding t%ese various services t%roug% different de"artment in t%e HSC is "laying avital role in t%e banking system as well as t%e economy of anglades%. T%is study may at least beable to be recogni7ed as a significant oneB t%e study %ave been able to figure out t%e customersknowledge about "ayment "rocedures of HSC. T%is re"ort may give a bit of enlig%tenment tot%e readers about t%e scenario of !eneral 4ayment 4rocedures in anglades%.