Cash Management 1.ppt

7/27/2019 Cash Management 1.ppt

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Cash Management: Safe in safe out register- safe limit,

counter limit and transit limit with insurance- cash

remittance- notes-vault remittancekey register

including duplicate keys

Sk. Nazibul Islam

Faculty Member, BIBM


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Cash in hand:

The balance of cash account representsthe amount of cash held by the branch ofany given time and date. The operations of

this account relate to actual receipts andpayment of cash. The cash account isdebited with the amount of cash receivedand credited with the amount of cash paid.

The branches usually send a statement forthe cash held by them as and whenrequired by the authority.


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Cash receipt and Payment

The branch cash officer/Teller will receiveor pay cash only on the authority of a debitor a credit voucher presented to him duly

signed by two authorized officers wherenecessary. Unless such a voucher ismade and presented the cash officer/tellercan not make any payment or accept cash

for any purpose.


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Debit cash voucher:

Since debit cash vouchers are used also as receipts ofmoney, these are to be kept under proper control. Blankvoucher books are to be kept under personal custody ofthe authorized officer. Debit cash vouchers should not

only contain full name, address, the nature of depositand amount of deposit, loan ledger folio etc. of thedepositor/customer but it should also invariably containsignatures of the depositors.

The debit cash voucher will be posted first by the cash

officer/Teller in the cash transaction register andthereafter-2nd officer/officer in the cash scroll.


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Credit cash voucher:

This voucher will be used when cash is to be

paid out. When a sum of money is paid by the

branch the signature of the payee will be

obtained. Where necessary the payeessignature will be obtained on required revenue

stamp. The credit voucher is to be posted first in

the cash scroll by the 2nd officer/officer before it

is passed on to the cash officer/Teller forpayment.


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Transfer voucher:

To account for a single transfertransaction, the transfer voucher should bepassed. The space in the left hand side of

the voucher is used to indicate the accountwhich is to be debited and the space in theright hand side the account which is to becredited. The particulars of the transaction

being the same, is recorded in the body ofthe voucher. All vouchers are signed

jointly by two authorized signatories.


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Filing of voucher:

Cash vouchers, after they have been passed

and forwarded to the cash officer/teller for

payment or receipt will be kept in his custody till

such time as cash has been balanced. Afterclosure of the cash the vouchers are handed

over to the officer responsible for posting in the

clean cash book.


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Cash records:

For recording cash operations the following

books are to be maintained in the branches:

1. Cash scroll2. Daily cash transaction register3. Cash safe register


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Cash scroll:

The cash scroll will contain a record of all cash

transactions of the branch and the balance shown in this

book at any particular time or date will represent the total

cash holdings of the branch. The cash scroll will be kept

by the second officer and no credit cash voucher will bepassed on to the cash officer unless it has been posted

in this book and scroll number is given, specially in case

of deposit. Debit cash voucher will be posted in the cash

scroll after the cash officer has posted them in daily cashtransaction register.


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Daily cash transaction register:

Daily cash transaction register will contain a record of all

receipts and payments made by the cash officer during

the day. This book will contain entries for (a) cash

received from and paid to customers as well as for (b)

cash deposited in and taken out from the safe. No cashvoucher is to be made for deposits in and withdrawals of

cash from the cash safe. All cash vouchers dealt with by

the cash officer will be kept in his custody till such time

as cash has been balanced. At the end of daysbusiness, after cash has been balanced, the holdings of

cash officer will be transferred to the cash safe.


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Vault maintenance:

Cash safe register:

the cash safe register is a record indicating the contentsof cash in the safe/vault. All deposits and thewithdrawals from the cash safe should be recorded in

this register denomination wise under the signature ofthe manager and the cash officer. The balance of thisregister at the close of the days business will representthe total cash holding of the branch. The balances ofprize bonds, sanchaya Patras and other cash items must

agree with the respective balances and the relatedregisters of the different cash item stock issue register.


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Cash safe operating officials:

The officials operating the cash safe, Namely,

the manager and Cash officer will sign in full in

the cash safe register as an evidence of the fact

that cash at the close of the days business hasbeen physically counted and verified by the

operating officials.


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Custody of safe Register:

Cash safe register should be kept in a steel

almirah under lock and keys in the personal

custody of the manager, the keys of which must

be at all time remain exclusively with themanager.


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Procedure of cash handling:

The brief procedure for cash in and out from thesafe / vault will be:

Recording of denominations of the cash (Notes

& coins) received and paid through individualdebit cash & credit cash vouchers of thebranches on the back side of the respectivevoucher.

Physical movement of cash / cash items to andfrom cash safe / night safe must be done jointlyby the manager and the cash officer.


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While operating the cash safe / night safe themanager and the cash officer will use their

respective keys separately. Under no

circumstances either the cash officer or themanager shall operate both the keys singly.

No person other than the authorized holders of

keys of the cash safe / night safe shall handle

the keys.


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Cash safe:

Each branch is provided with a safe having

double locking system. There may be at any

time more than one safe in a branch, depending

on the requirements and the size of business inthe branch. In branches where there is a strong

room, the cash safe(s) will always be kept inside

the strong room. The keys of the strong room

will be held by the manager and the 2nd officer.


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Keys of safes:

The keys of the cash safewill be retained by themanager and the cash officer. In the absence of

the manager from the Head Quarters, the officer

next in the rank to the manager or senior mostauthorized officer stationed in the HQ will hold

the managers keys after making necessary

entries in the key register.


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In no case, one person be authorized to keepkeys of both the locks of the safe or of the strongroom.

The authorized persons responsible foroperating the safe will attend personally,wherever the safe is to be opened.

The keys will remain at all the times in the

personal custody of the officials concerned. Onno account will keys be delivered or passed-onto any one else.


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Duplicate keys of safe:

The duplicate keys of the safe and the strong

room are to be deposited for safe custody with

the local branch of the authorized bank. These

keys should not be withdrawn from the Bankwithout permission from the competent authority

and on a request made jointly by the manager

and the cash officer.


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In the event of a key of any one of the safes of

the branch is lost, the duplicate key may be

obtained from the authorized bank branch with

the permission of the competent authority andthe safe is to be opened.

The concerned authority should give necessary

instructions to the branch about the replacement

of the lock or providing a new safe or otherwise.


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Cash shortages:

If there is any shortage in cash at the close ofthe day, the cash officer/teller will be called uponto meet the shortage on the spot. If he is unableto do so, the shortage will be met from the cashsecurity deposited by him if available. This maybe done by debiting employees security deposit

Account and crediting cash in hand Account by acredit voucher. The manager may allow upto a

maximum of three working days within whichperiod the cash officer/teller must replenish theshortage thus caused in his cash security.


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When the amount ofshortage exceeds a sumset by the authority or the cash officer / teller isunable to meet the shortage within theprescribed time the matter is to be reported tothe next higher authority forthwith stating fulldetails along with a statement as per thespecimen of the bank.

When there is cash shortage, mentioned bemade in the cash scroll and the daily cashtransactions register under the signatures of themanager and the 2nd officer.


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Cash excess:

When there is any excess in cash, it will be credited to

the relevant sub-account under Accounts Payable

Account and debited to Cash in hand Account. This will

enable the branch to have its cash balanced.

If the excess is claimed by any person and the amount

involved does not exceed a sum set by the authority

manager is authorized to dispose of the amount under

his discretionary power, provided, he is fully convinced

that the claim made is genuine. In case of exceeding thelimit and there is a claim, the manager should refer the

matter to the next higher authority for an order.


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A statement in respect of all cash excess found

will be furnished in the prescribed form to the

next higher authority.

The unclaimed amount in respect of eachexcess will be allowed to remain outstanding for

a period over three months in the appropriate

sub-account under Accounts Payable Account

and credited to income/Sundry income at thetime of annual closing of accounts.


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Balancing of cash:

At the close of the days business, the 2nd officer , willbalance the cash scroll maintained by him and when hehas done this , he will call the cash officer to bring hisdaily cash transactions register for balancing. As soon as

he has done this, a physical check of cash by countingwill be made by the cash officer and the manager inorder to find out whether the balance of cash held at theclose of the day agrees with the balance shown in thecash scroll and the daily cash transaction register. The

manager will sign both the registers in token of hishaving checked and found correct balance of cashagrees with the balance shown in the daily cashtransaction register and the cash scroll, the same will bekept in the cash safe.


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Mutilated notes:

Mutilated notes received from the public should

not be kept in the vault for unreasonable time.

As per instruction of Bangladesh bank theconcerned branch should deposit the mutilated

notes directly to the Bangladesh bank or through

their local office. During the period of examining

the mutilated notes as per instruction of B.B, theconcerned branch/local office representative will

remain present.


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Thank You

Documents

Cash Management 1.ppt