Centralization Process of Commercial Bank

8/13/2019 Centralization Process of Commercial Bank

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Centralization Process of Commercial Bank

The centralization of operational functions reduce the workload at the branches to

enable them to concentrate on sales and service of the customers and eliminate risks

associated in day to day branch banking .The department ensuring the services as the

SL and mitigating the risk by following the local and group guidelines.

Centralization of system maintenance! statement delivery! dormant accounts

maintenance! routing customer credit.


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1) CSO/CO receivesdocuments fromcustomer/source,attach check list andcheck as per AMLpolicy and internalguideline

!) a) "f okay, CSO/COcreates C"# andopens the account$) "f not okay, returnthe document tocustomer/ source%1&!'(, 11* %CA),!1* %SA)

+) CSO/CO passes theAccount Opening#orm to $OM fornecessary approval

() a) $OM checks andapproves the AO#and account ) "f notokay, returns toCSO/CO

*) A CSO/CO rectifiesthe error and re sendfor approval$ $OM approves the

AO# and Account

opening process

after rectification

&) CSO scans thecustomer%s)signature and sendfor approval to $OM%*'1, *'*, *'&, *')

-) $OM checks andapproves thescanned signature

) CSO/CO .ill send the

AO# to $SO 0eptof O .ith couriertracker

2) Officer $SOreceives AO#

1') Checks thedocument andupdate dataase

11) "f okay,0ocumentation

3eam passes theAO# to the SystemMaintenance 3eam

1!) "f not okay,

documentation teamsends the documentto respective $ranch

1+) System Maintenanceteam updates andmaintain theinformation in SilverLake System %!&+!,!&+!(, 1&1'*)

1() Officer $SOre4uests Che4ue$ook and 0eit cardfor the account %ifapplied y theaccount holder)

1*) Officer $SO putseal and sign andreturns the AO# tothe respectiveranch .ithfor.arding

1&) $ranch Archives theAO#

1-) CSO/CO print daily

1 CSO/CO

! CSO/CO

+ CSO/CO

( $OM

* CSO/CO

& CSO/CO

- $OM

CSO/CO

2 CSO/CO

1' Officer,$SO

11 Officer,$SO

1! Officer,

$SO

1+ Officer,

$SO

1( Officer,

$SO

1* Officer,

$SO

1& CSO/CO

1- CSO/CO

1CSO/CO

"

#. CS$%C$ receives andchecks documents

". a& 'f okay!create C'( and

open the account

". b& 'f notokay! return

to the source

). Pass B$* for

checking and

approval

+. a& 'f found okay

then approves the

account

,. CS$%C$scanning the

Signature

-. B$* checks and

approves scanned the

signature

. Send the $( toBS/$

0. 1eceive the$(

#). 2pdates and

maintains customer3sinfo in B4S

#+. Passes the $(

+. b& 'f not found

okay then

returns to

CS$%C$

##. 'f okay! passes

to System*aintenance Team

#". 'f not okay!

then returns to the

respective branch

#6. Check andupdate database

#. rchiving the

report


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Process7 $pen current %savings %call accounts8 'ndividual

Procedure-

$fficer receives the account opening form 9of& and documentationfrom the branches. $fficer verifies the documents with the checklist

94ocumentation re5uired for ccounts opening page8:& and ensures

that all documents have been obtained and the account opening have

been duly filled in and approved. ;e%she also checks that all copies of

related documents have been attested by CS$%1* and introducer3s

signature in the account opening form and on the reverse of the

photographs have verified.

'f it is a new customer! officer opens%


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uthority8

CS$ are authorised to open accounts on B4S and! scan signature on sigcap for

opening current %savings%call accounts. 9'n branch&

$fficer are authorised to approve account opening with missing %incomplete

documentation provide the e@ception has been approved by ;$$%;$C.

$fficer are authorised to approved and check amendments to standing data

$fficer are authorised to confirm signatures recorded sigcap.

Process : Open current /call accounts-Company/Partnership/Proprietorship

A


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Procedure8

$fficer receives the account opening form 9$(& and documentation from the

branches. $fficer verifies the documents with the checklist 94ocumentation re5uiredfor ccounts opening page8:& and ensures that all documents have been obtained.

This check is very important in the case of corporate accounts as the account opening

documentation may consist of several documents e.g. rticles%*emorandum of

association !Broad resolution ! copy of valid trade licence! partnership agreement etc.

$fficer checks to see that the Branch manager of the concern branch has authorised

the opening of the account.

'f it is a new customer! officer opens%


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CS$ are authorised to open accounts on B4S and! scan signature on sigcap for

opening current %savings%call accounts. 9'n branch&

$fficer are authorised to approve account opening with missing %incomplete

documentation provide the e@ception has been approved by ;$$%;$C.

$fficer are authorised to approved and check amendments to standing data

$fficer are authorised to confirm signatures recorded sigcap.

Process:Close current /Savings/Call Accounts

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Procedure8

CS$ forward all re5uests for closing accounts to central operation department.

$fficer checks account closing form or customer letter to check if it is complete

and duly authorised by B*.

hen re5uests are received where debit card has not been surrender by customer

or reported lost! officer change the card status.

$fficer check on B4S if there are any standing orders and deletes them.

$fficer checks and ensure s that the balance in the account and accrued interest

fields are nil.

here the balance needs to be transfer to another account with us or P$ to be

issued officer prepares the vouchers and P$ and passes to officer! account

services for checking and approval. fter approval officer gives the vouchers to

clearing department.

ll closed account files are filed with the $(. 1etention period from date of

closure is #A years.

Process: Conversion of staff Accounts

Procedure:


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hen staff leaves the employ of the bank! their accounts are converted to normal

customer accounts. 1e5uests for conversions%amendments are received from

*anager! ;uman resources

2pon receipt of instructions! officer en5uires on the B4S for all the accounts inthe name of the particular staff member. ;e changes the segment code and 1*

code in C'( and master.

Change the all charges as a normal customer

uthority8

$peration is authorised to accept instructions from *anager! ;uman resources to

convert staff account to normal accounts

Process: Dormant Accounts

Procedure8

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ccounts not transacted for a period of time are designated as dormant account!

on following basis7

Savings ccount " years from the date last transaction.

Call ccount " years from the date last transaction.

Current ccount # year from the date last transaction.

B4S automatically flags such accounts as dormant. The effect of this flagging is

that B4S does not permit entries to be posted to such accounts without the use of

a force flag.

$n a periodic basis! daily basis 'T department provide dormant list.

$n the basis of re5uest from customer through branches central operation

department will change the dormant status of customer account e.g. re8activation

of dormant account by removing the reect status.

'f an account is in dormant and a che5ue is presented for withdrawal of cash or a

cash deposit or a clearing che5ue is received! the teller after en5uiring from the

B4S obtain B*%B$* approval! using a force transaction is carried out

$fficer are authorised to change account status from B4S of change in account

status from dormant

*anager central operation is authorised to approve transfer to P/L% unclaimed as

per management guide line

B*%B$* are authorised to approve transaction to dormant accounts and the

change of status to active on B4S

Process: nclaimed !alances

Procedure8

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ccounts with dormant status are manually transferred to unclaimed balances as

follows7

Savings ccount + year from date of transfer to dormant i.e, years from the date of last transaction.

Current ccount A year from date of transfer to dormant i.e

, years from the date of last transaction.

Call ccount + year from date of transfer to dormant i.e

, years from the date of last transaction.

Balance in any dormant account which has not been transacted to as above by thecustomer is transferred to unclaimed balances periodically 9preferably at least half

yearly&. Process for transfer7

$fficer reviews report and highlight accounts to be transferred to unclaimed

balances and obtains approval from *anager! central operation.

$fficer call account documentation from branch

$fficer debits individual accounts with force flag and credits unclaimed

balance account individually carefully with complete narration e.g. account

number! name! amount etc.

$fficer enters details on database program%register8account number! last

transaction date! amount! name address etc.

$fficer delete signature on account

$fficer cancel 4ebit card

$fficer close accounts on B4S

$fficer stamps the account documentation as account transferred to

2nclaimed balances o : 9date

'f the customer approaches the branch for reactivating an account which has been

transferred to unclaimed balance! CS$ obtains details of the customer3s account and

identification in the form of a copy of the photo '4. There after the B* approves re8activation of the account. The customer is re5uested to complete a new account

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opening form and CS$ forwards the account opening form to central operation for

opening a new account. The account opening form is marked Dre8activation of

account no866"66"+666,"-#- transferred from unclaimed.

$n receipt of the new account opening form! the officer opens the account in

accordance with normal procedure. ;e then obtains authority from the managercentral operation for debiting unclaimed balances and crediting to the new account

$nce a year! a list to be prepared for accounts which has not been operated #6 years

and above and transfer the balance to Bangladesh bank with the list as per format.

2T;$1'TE7

Branch manager %*anager central operation must approved balances from unclaimed

balances for reactivating unclaimed accounts up to their individual authority.

Process: Refer/Re"ect #nstructions

Procedure8

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1efer entry markers are placed on an account .'f transactions to the account need to be

monitored. here refer markers are placed! the entry can be posted by the officer

normally! but the entry is reported in the sundry refers report! which is reviewed by

branch manager%;$CB every day.

1eect entry markers> on the other hand! reect any posted to the account! unless aforce flag is used. 1eect entry markers are used if no transaction are to be allowed to

the account for reasons such as central bank freezes! overdrawn account!

unsatisfactory conduct of account! account opened with missing documents! account

held under lien etc. Transaction posted using force flag are also reported in the sundry

refers report.

1e5uests for placing refer or reect entry markers on accounts should be in writing

stating the reasons! and must be approved by B*%*anager central operation or other

unit.

$n receipt of such re5uests! the officer inserts a marker on the account! initials there5uest and forwards the re5uest with the report for approval on the system.

Sr. officer%manager approves the insertion

1eect%refer flags may also be placed on corporate accounts. These are placed and

removed by corporate banking division.

2T;$1'TE8

$fficer are authorised to change the refer%reect entry markers on accounts! upon

receiving a re5uest in writing from the Branch manager%;$CB%*anager credit

operation%*anager credit consumer banking.

B*s are authorised to approve transactions to be posted to account with a force flag.

Process: Open $i%ed Deposit Account

Procedure8

#)


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$fficer received the account opening form! documentation from the CS$ .$fficer

verifies the checklist and ensures that all documents 94ocumentation re5uired for

ccounts opening page:.& has been obtained. 'f the account is for non individual! i.e

Corporate etc! upon receipt of the original documentation and $(s! the accounts are

opened.

'f it is a new customer! $fficer opens a new master account o B4S. $fficer Pay3s

particular attention to7

*ailing address

1* code

Telephone number

$fficer opens a subsidiary fi@ed deposit account in B4S on the basis of details

appearing on the account opening form! paying special attention to the following7

Short name'nterest rate

*aturity date

$fficer also raises vouchers when accounts are to be opened by transferring fund from

another account. 'f the account from where funds are to be transferred is in separate

master! debit authority must be taken and should be verified Senior $fficer%


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Procedure8

$fficer receives the account opening form 9$(& and documentation from the

branches. $fficer verifies the documents with the checklist 94ocumentation re5uired

for ccounts opening page8:& and ensures that all documents including DCustomer4eclarationF as per (


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$n receipt of instructions from the branch! the officer encashes the deposit as

re5uested by the customer.

(or premature encashment! memo from chief e@ecutive provide guidelines onpayment of interest as follow7

here the deposit has stayed for less than ) months saving interest rate

here the deposit has stayed for more than ) months given rate

'f the customer wishes to encashment his deposit and wants to transfer the

proceeds to his%her account ! officer prepares vouchers for principle amountincluding interest 9'f any& and credits the proceeds after deducting the D


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B4S prints a reports ' due date order. Branches contact their customer prior to

maturity and obtain 1oll8over%maturity instructions. B* send the customers

instructions where received! and the report with roll8over instructions where

customer instructions are either not received or not held on records.

here deposit are to be roll8over! the interest rate and tenor are also mentioned.

By default! the rate applied is as per standard rate sheet and the tenor is the

e@isting tenor.

$fficer prepares vouchers for deduction of e@cise duty where applicable.

*anager central operation reviews e@ception reports to ensure that deposits

matured but not rolled8over are closely monitored and followed up. ;e also

checks deposits accounts with zero balance to follow8up with the balances for

resolution.

uthority8

$fficer are authorised to roll8over deposits! as per customer%B*%1* instructions

or in the absence of customer instructions! for similar period at prevailing interest

rate.

Process: Central operation- 'iscellaneous Re(uests

rocedure8

#


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$n receipt of standard Dccount services form or customer re5uest letter attached

with the above form approved by B*%1*%B$* the central operation does the

following7

Signature change%add8logs on to sigcap! makes necessary changes%additions.

ddress%Telephone number change8logs on to B4S and respective C'( account

and changes the same.

Statement fre5uency % other re5uest8 logs on B4S and changes as appropriate.

$fficer then files the letter % form respective customer3s mandate file.

=ote8

number

ddress % telephone number changes should not be done if the address of the

applicant % telephone no seems to be incomplete or suspicious or ambiguous or

confusing. Such cases should be referred to Branch.

uthority8

$fficer are authorised to changes address % telephone number %signature at the

re5uest of customer which is duly approved by CS$%B*%1*.

Process: De)it card process

Procedure8

5eceive deit card re4uest from customer y AO# or y deit

card application form

CSO/CO .ill check the signature application form

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$fficer receives back the acknowledgement copy of che5ue book re5uisition form

branches and files the same date order. 'f acknowledgement is not received from

the branches by two working days! the officer follow8up with the branches for

resolution

Courier controls must be followed.

uthorised8

$fficer are authorised to place order with printer for printing che5ue books.

Process: Courier controls

Procedure8

4ue to centralised operation in 4haka! there is a substantial flow of document s%

correspondence%che5ues%cards etc! between the branches and central operation. 'tis e@tremely important that all mail despatch and receipt is done with proper

controls.

(or despatch to central operations! all branch staff must use the special envelopes

and provide a mail from branch. Contents of envelope must be clearly stated on

the control sheet.

The control sheets are in three ply and pre printed. consecutive serial number is

to be used. Two copies should be sent to central operation along with the contents.

2pon receipt of envelope at central operation! contents will be checked against thecontrol sheet and if found correct! one copy will be signed and back to the

respective branch. ny discrepancy is to be immediately followed up and

resolved.

2pon receipt of the acknowledgement copy back from central operation! branch

staff must Dmark8offF their copy.

t central operation any missing receipts must be followed up immediately with

the respective branches.

t the branches! any missing acknowledgements must be followed immediately

upon receipt of the subse5uent serial number.

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(or despatches by account services to the branches! staffs use D*ail from ccount

ServicesF. The same procedures stated above apply e@cept that the despatch is

originated by account services and the acknowledgements are sent by the

branches.

ll mail received at account services and at branches must be time and date

stamped

Control sheets and acknowledgements must be kept on file for at least )6 days.

uthority8

$fficer are authorised to receive and despatch mail and to sign the control sheets

and acknowledgements.

Process:Documentation re(uired for accounts opening

Procedure8

Current ccount 9local currency&7

Completed personal account opening form9$(&

Photo 'dentity and photograph dully attested by introducer

=ote8 (oreign nationals are not entitled to open savings account

Current ccount 9local currency&7

Complete personal account opening 9$(&


(i@ed deposits 9local currency8for new customer&

Complete personal account opening 9$(&


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ssociations%Clubs%Charities%Societies etc7

Complete account opening form

Copy of constitution % By8laws% trust deed %memorandum and articles of

association.Copy of certificate of registration of the association % club% society% charity

9*inistry of social welfare or registrar of co8operative&

List of members of governing body % e@ecutive committee of the association % club

% society% charity etc.


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1esolution or e@tract of resolution for opening the account authorisation for its

operation should be certified as state in the articles of association or by the

chairperson.

Certified true copy constitution % By8laws% trust deed % memorandum and articles

of association.

Certificate of registration from ministry of social welfare.

Certificate of registration from =.H.$ bureau 9in case of =H$s funded by

overseas donor agencies&.

List of members of the governing body or e@ecutive committee with their address

Certified copy of form 9if registered with 1.I.S.C&

Photographs of signatories duly attested.

uthority8

CS$%B$* are not authorised to waive standard documentation re5uired for

account opening.

;ead of business%head of consumer banking is authorised to open account with

pending documents. 'n such cases CS$%B* prepares a list of documents

missing%discrepancies> a copy of which will be retained by the branch for

following up with the customer and regularisation.

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Problems identified8

#. Central operation process is doing their ob with the help of worldwide

standard softwares! which is very costly. 'n addition! the maintenance costs

like upgrading and customizing them are 5uite high.

". 't is often observed that the software does not function properly.

). Central operation department does not communicate with the customers

directly. ;ence it becomes 5uite difficult and time consuming! sometimes! to

solve even the simplest of problems.

+. Central operation department collects and sends various documents! debit

cards! pins! vouchers etc through their courier service. Sometimes the courier

service does not provide their service properly and timely.

1ecommendations8

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#. 'T department team needs to be develop so that they can upgrade the

softwares and other technical issues all by themselves! otherwise it might cost

a fortune to upgrade it from the software service provider.

". Central operation department should directly communicate with their

customers over phone or e8mail which will make the process more efficient.

). Central operation department should collect and send varies documents!

vouchers through mail 9scan copy& instead courier service which will be safe!

5uick and cost effective.

Documents

Centralization Process of Commercial Bank