Final Urban Banks BPR PPT

8/2/2019 Final Urban Banks BPR PPT

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FinCORE..StateoftheArt,ComprehensiveNewGenerationCoreBanking.


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IndianEnterprisesshouldcarryoutBusinessProcessRe-engineeringtomoveuptheservicesvalue-chain

Competitivepressurefromothercompaniesinthesamefieldhasincreased,thereisaneedtodelivervalueatlessincrementalcostsandmanpowerWillhelpIndianorganizationsextractbetterperformancefromitsexistingsystemsandsetupandintroducesignificantimprovements.

WhyBPR??


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RoleoftechnologyinBPRTechnologyhasbecomemoreacommodity.intheenterpriseandthereisnotmuchdifferentiationbetweencompetitorsBPRismainlyabusiness-driveninitiativeTheadvantageliesinthewaythetechnologyisusedTechsavvyenterprisesthatareabletoleveragetechnologyforbetteringtheirbusinessprocessescanbenefitfromBPRfaster


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WhichindustryderivebenefitofBPR

TheconceptofBPRisindustry-neutralMediumandlargecompaniesinanysectorwillbenefitfromBPREnterprisesthathavebusinessunitsspreadacrossseveralgloballocations


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StepsofbeginBPR

AnorganizationshouldtakefivestepsinordertoconductBPR

Thefirststepistoidentifythekeybusinessprocessinthevaluechainthathavesomepainpoints.andneedtobestreamlinedThesecondstepwillbetore-engineertheprocessesandsetmeasurablegoals.Thegoalsmaybetoincreasecase-loadproductivityby15percent,decreaseloanprocessingtimeby20percent.Theseprocessescanbeperformedbyaninternalteamorwithconsultancyteamwhichprovidesbroadindustryperspective


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Thethirdstepwillbetomapthenewprocessesagainsttheexistingapplicationsandidentifynewareasofsystemsintegrationandfunctionality.Thefourthstepwillbetodeviseachangemanagementplan,andanITplantoimplementthechangesThefinalstepwillbetoexecutetheplansandmeasureachievementagainstthegoals


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EssentialingredientsofsuccessfulBPRstrategyStrongexecutivesponsorshipClearvisionofthedesiredend-stateAbilitytoexecutechangemanagementEfficiencyofhandlingITinfrastructuredeploymentsGoodskillsintechnologyintegrationwithnewbusinessprocesses


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KeyAreasIdentifiedforRe-engineering

AccountOpeningCommission/Charges&InterestApplicationChequebookmaintenance&issueDemandDraftsClearingfunctionsOutwardClearingInwardClearingHomeClearingNationalClearingHighValueClearingOutstation/Upcountry/OBCclearing

ServiceBranchCollectionServices


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StandingInstructionsChequePurchaseTaxDeductedatSourceOtherProcessesStopPayment&RevocationAccountholds/restrictions&RevocationsAccounttransfers

Loans&AdvancesPresanctionPostSanction

DocumentationManagement



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AccountingGeneralLedgerManagementInformationSystems



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Accountopeningade-centralisedfunctionDataCaptureinadequateandinconsistentacrossbranchesCustomeridentifiedasthecustomeroftheBranchandnotofTheBank.Customerre-directednumberoftimesforaccountopeningDuplicationofeffortsDetailsofaccountopeningwrittenintheaccountopeningregister

AccountOpeningCurrentState


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Options:

AccountopeningtobeacentralizedfunctionAccountopeningtobeadecentralisedI.e.accountstobeopenedbythebranchitself

Centralisedfunction:

CustomerwillbeidentifieduniquelyacrossthebankBrancheswillbegroupedlogicallyunderonecentrallocationBranchestoensurethatallmandatory/necessarydataisfilledinbythecustomerontheaccountopeningform.Branchestoentertheminimal/mandatoryinformationrequiredforaccountopeningBranchestoensurethatallnecessarydocumentationlinkedtotheparticularaccounthasbeencollectedfromthecustomerbeforesendingtheformstothecentrallocationforaccountopeningAnyexceptionstobeaccompaniedbyacoveringletterdulyauthorizedbytheconcernedauthorityAccountopeningformscollectedbythebranchestobesenttotheparticular

centrallocationthroughlocalbranchcourier.Initialdepositforaccountopeningtobeacceptedincash,transferorcheques

AccountOpeningFutureState


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Systemtocheckforminimumbalancerequirementsas

parameterisedfortheparticulartypeofaccount,product/scheme

Allotherdetailedaccountinformationaswellasdocumentationdetailstobe

fedbytheconcerneddataentryoperatorsandauthorizedbytheofficers

atthecentrallocation.

EachdataentryoperatortoworkonquotabasisCustomerIDwillbegeneratedbythecorebankingsystemfornewaccounts.GenerationofcustomerIDisapre-requisitetoanyaccountopening.ExistingcustomerIDtobeusedintheeventthecustomeralreadyhasanaccountwiththeBankEnteredinformationtobecheckedagainstthelistofblacklistedcustomerscirculatedbyRBI,other3rdpartyagencies,internal(accountsmarkedbytheBank)for:AccountholderIntroducer

Jointaccountholders

Accountholdersaswellasjointaccountholderssignatureand(or)photographtobecapturedatthetimeofaccountopeningChequebook,credit/debitcard,ATMcard,PINGeneration,etc.tobeissuedcentrallyandcourieredtothecustomeralongwiththecustomerIDandaccountnumber.



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Internetbanking,phonebankingaccessrequesttobeforwardedtotheconcernedauthority/departmentLetterofthankstobegeneratedbythesystemfortheintroducerandtobecourieredtotheintroducerspostaladdress.Turnaroundtimefortheentireprocesstobeapproximately4workingdaysAccountlevelparametersforaddoncharges,exemptionsetc.tobefixedatthebranchlevelwithappropriateauthority.Intheeventofnon-availabilitytomandatoryfields,orrequireddocumentationtheaccountopeningformstobere-senttothedesignatedbranches

De-Centralisedfunction:

AccountstobeopenedbythebranchitselfAlldataentrytobedoneatthebranchitself,ChequebookstobeissuedbythebranchitselfRequestfordebit,creditcard,internetbanking,phonebanking,PINgenerationetc.tobeforwardedtotherespectivedepartmentsOtherprocessestobethesameasmentionedaboveinthecentralisedfunction



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AccountOpeningFutureStateAccountopeningProcess

CurrentStateFutureState

De-centralisedfunctionDatacaptureinconsistentandinadequateCustomerredirectednumberoftimesDuplicationofefforts

Accountopeningtobe:Acentralisedfunction(regionwise)Ade-centralisedfunction(branchfunction)

CustomertobeidentifieduniquelyacrosstheBankAllrequisitedataasdesiredbytheBanktobecapturedinthesystemforvariousproducts/schemesofferedbytheBankDatacapturetobeuniformacrosstheBankwiththehelpoffielddefinitionsintheCoreBankingsystemAllaccountopeningformalitiestobecompletedbytherelationshipofficerattheAccountopeningcounter

Chequebooks,debitcard,ATMcardetc.tobecourieredtothecustomerRequestforinternetbanking,phonebankingetc.tobeforwardedtotherespectiveauthority/departmentforactionTrackcollectionofrequireddocumentationlinkedtoaparticularaccount,product/schemeandmovementofthesame

PeopleRequirementShiftbankstafftocentrallocationHiredataentryoperatorsatlowcostCentralisationwouldresultinstaffre-deployment

ManagementDecisionOptionselection:centralisationv/sde-centralisationPlaceforcentralisedlocation(branch,R.O.,newpremisesetc.)Hiringofdataentryoperators/shiftingbankstafftocentralisedlocation.Maximumturnaroundtime(notgreaterthan4workingdays)Dataentryandpaymentlinkedtoquotabasis

Supportforbothcentralised/decentralisedfunctioningAccountnumberandcustomerIDuserdefinedcombinationsDefinefieldsrequiredfordatacaptureforaparticularaccount,product,schemeMovementofcollectedinitialaccountopeningdepositbythebranch

VendorQuestions


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Manycommission/chargestoberecoveredfromthecustomersnotsupportedNocentralisedmodulefordefiningthemethodsofcalculationsofcommission,chargesandinterestsSystempromptstheusertoenterchargesandacceptswhateverisenteredMayleadtoleakageofincomeMayleadtoincorrectapplicationofcharges/commissionleadingtocustomerdissatisfactionInvolvesmanualeffortProfit&lossaccountheadsopenforposting;whichmaybeaconcern.Interestapplicationprogramrunmanuallyontheduedateforvariousproducts/schemesInterestamountscanbealteredinthesystem

Commission/Charges&InterestApplicationCurrentState


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Commission,charges,andinterestrates/tablestobedefinedgloballyforallproductsandschemesinthecorebankingsolutionAllincomerelatedfields(Commission,chargesandinterest)tobegloballyparameterised.Methodofcalculation(I.e.tier,slab,flatamount/rate,combinationetc.)tobedefinedandattachedtoeachtypeofcommission,charge.Methodofcalculationforinterest(I.e.simple,compounding,EMIbased,combinations,etc.)tobedefinedandattachedtoeachproduct/schemeofferedbytheBank.Corebankingsystemtohavetheoptionofspecifyingaddon(+/-)charges,commission/interestamounts/percentagesandwaivers(ifany)withappropriateauthoritySystemwillcheckforaccountlevelcommission,chargeandinterestparametersatthetimeofapplication,and,accountlevelparameterswillprecedeglobalparameters.Interestratestobelinkedtobenchmarks(I.e.PLR,LIBOR,MIBOR,notlinkedetc.)andbeautomaticallyupdatedwiththechangesinthebenchmarkratesDirectentriestotheP&Laccountheadstobehighlyrestrictedbaseduponaccessprivilegesdefinedinthecorebankingsolution.

Commission/Charges&InterestApplication

FutureState


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Systemtoautomaticallypickupandapplythecommission,chargesandinterestratesasdefinedintheglobalparameterfile.Usersatthebranchleveltohavenorightstomodifythecommission,chargesamountsandinterestratespickupbythesystem.Interesttobeappliedtotheaccountsaspertheduedatesautomaticallybasedupondefinedrules.Nettingofbalancesindefinedaccountsforaparticularcustomer,groupofcustomers,groupID.stobeconsideredforinterestcalculationAbilitytodefinecommissionamountsasapartoftotalamounttobechargestothecustomerandinternallybifurcatetheaccountbasedontheactualamountandthecommissionamountwithoutitbeingtransparenttothecustomerI.e.exchangerateforUSDisRs.47.80thisratealsoincludessomeamountsofcommission/chargessothesystemshouldhavetheoptionofspecifyingthecommissionamountse.g..80whichformsapartofthetotalexchangerateandaccountforitseparately,sothecustomerwillbedebited/credited@47.80butthesystemwillinternallybifurcatetheentriesintoexchangerate47.00and.80ascommissionearned/charges

Commission/Charges&InterestApplicationFutureState


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Commission/Charges&InterestApplicationProcess

CurrentStateFutureStateManycommission/chargestoberecoveredfromthecustomersnotsupportedNocentralisedmodulefordefiningthemethodsofcalculationsofcommission,chargesandinterestsSystempromptstheusertoenterchargesandacceptswhateverisenteredInterestapplicationprogramrunmanuallyontheduedateforvariousproducts/schemesInterestamountscanbealteredinthesystem

Allcommission/charges,interestrates,tablestobemaintainedcentrallyintheCoreBankingsolutionMethodofcalculationforcommission,chargesandinteresttobedefinedandattachedtoeachtypeofproduct/scheme.Branchestohavetheoptionofspecifyingaddon(+/-)charges,commission/interestamounts/percentagesandwaivers(ifany)withappropriateauthoritySystemwillcheckforaccountlevelcommission,chargeandinterestparametersatthetimeofapplication,and,accountlevelparameterswillprecedeglobalparameters.Interestratestobelinkedtobenchmarks(I.e.PLR,LIBOR,MIBOR,notlinkedetc.)andbeautomaticallyupdatedwiththechangesinthebenchmarkratesDirectentriestotheP&Laccountheadstobehighlyrestrictedbaseduponaccessprivilegesdefinedinthecorebankingsolution.

Usersatthebranchleveltohavenorightstomodifythecommission,chargesamountsandinterestratespickupbythesystem.Interesttobeappliedtotheaccountsaspertheduedatesautomaticallybasedupondefinedrules.

PeopleRequirementSeniorstaffproficientintheirrespectivefunctionalareastoberesponsibleforsetting/changingtheparameterfilesStafftobethoroughlyawareoftheimpactofparameterchange

ManagementDecision

Allcommission/charges,interesttablestobesetcentrallybyseniorstaffmembersMethodofcalculationforcommission/charges,interesttobedefinedbythesameseniorstaffmembersPowerstobedelegatedtowaivechargesoflevy(+/-)amount/percentagesatthebranchlevel

Supportdefinitionofallcommission/charges,interestrates,tablesandmethodofcalculationasrequiredbytheBankforvariousproducts/schemesofferedbytheBankSupportaddon(+/-)charges,commission/interestamounts/percentagesandwaiversforeachproduct/schemeEaseofdefinitionofnewcommission/charges,interestrates,tablesandmethodofcalculation

VendorQuestionsCommission/Charges&InterestApplicationFutureState


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ChequeBookMaintenance&IssueCurrentStateAchequesbookisissueduponawrittenrequisitionfromthecustomer.EachchequebookcontainstherequisitionformThesystempromptsforchequesbookcharges,thesamemightnothaveparameterizedgloballyandacceptsanyamountthatisentered.ThismayresultinincomeleakageSystemallowsausertoenterduplicatechequenumbersatthetimeofchequebookstockentrySystemacceptsalphaseriesforchequebooksbutthereisnovalidationonthealphaseriesatthetimeoftransactionprocessingTheminimumbalancecriterionforaparticularaccountisbasedonthepresenceofachequebookissuedrecordinthesystemandnotonwhetherthecustomerhasrequestedforthefacilityatthetimeofaccountopening.DuplicationofeffortsDetailsofchequebookissuedrewritteninthechequebookissueregister.


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PersonalizedChequeBook

StockofchequebookstobemaintainedcentrallyinthecorebankingsolutionbasedonthenumberofleavesChequebookissueprocesstobecentraliseChequebookrequisitionslipstobecollectedbythebranchandsenttothedesignatedcentrallocationBranchestoensurethatrequireddetailsareappropriatelyfilledbythecustomeronthechequebookrequisitionslipCorebankingsystemtoensurethatduplicatechequenumberarenotissuedtotheparticularaccountacrosstheBank.ChequebookswillbeautomaticallypickedupfromthestockbaseduponthenumberofleavesrequiredandlinkedtotheparticularaccountCorebankingsystemtomaintainsafetylevelsofchequebookstockWarningmessagestobeflaggedbythecorebankingsystemintheeventthestockofchequebooksreachestheminimumsafetylevel.

ChequeBookMaintenance&IssueFutureState


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Chequebookissuechargestobeautomaticallyappliedintheaccountasdefinedintheglobalparameterfile.Systemwillcheckforaccountlevelparametersfor(+/-)charges,accountlevelparameterswillprecedeglobalparameters.SystemtosupportissueofchequebookswithalphaseriesandvalidatethesameatthetimeoftransactionprocessingexceptInwardClearingRequestforissueofchequebooktobeenabledthroughInternet&PhonebankingAllrequestforthedaytobeforwardedfromtheInternet/PhoneBankingsystemstothecentralisedlocation

Non-personalizedChequeBook

BranchestomaintainanAdhocstockofchequebooksforimmediateissuancetothecustomersThechequebooksmaintainedatthebrancheswillbefromthestockmaintainedcentrallyonlyOnissuanceofsuchchequebooksthebranchwillenterthedetailsofthechequebookinthesystemCustomertobelatersentapersonalizedchequebookfromthecentrallocationonintimationbythebranch

ChequeBookMaintenance&IssueFutureState


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ChequeBookMaintenance&IssueProcessCurrentStateFutureStateChequebookissueprocessde-centralisedSystempromptsforchequesbookchargesandacceptsanyamountthatisentered.SystemallowsausertoenterduplicatechequesnumbersatthetimeofchequesbookstockentryTheminimumbalancecriterionforaparticularaccountisbasedonthepresenceofchequesbookissuedrecordinthesystemandnotonwhetherthecustomerhasrequestedforthefacilityatthetimeofaccountopening.Detailsofchequebookissuedrewritteninthechequebookissueregister.

StockofchequebookstobemaintainedcentrallyinthecorebankingsolutionbasedonthenumberofleavesChequebookissueprocesstobecentraliseSystemtoensurethatduplicatechequenumberarenotissuedtotheparticularaccountacrosstheBank.CorebankingsystemtomaintainsafetylevelsofchequebookstockWarningmessagestobeflaggedbythecorebankingsystemintheeventthestockofchequebooksreachestheminimumsafetylevel.Chequebookissuechargestobeautomaticallyappliedintheaccountasdefinedintheglobalparameterfile.Systemwillcheckforaccountlevelparametersfor(+/-)charges,accountlevelparameterswillprecedeglobalparameters.

SystemtosupportissueofchequebookswithalphaseriesandvalidatethesameatthetransactionprocessingexceptInwardClearingRequestforissueofchequebooktobeenabledthroughInternet&Phonebanking

PeopleRequirementOfficialsusedfordataentrycanbeusedtoissuechequebooksBurdenonbranchstaffreduced,excessstaffcanbere-deployed

ManagementDecisionCentralisationofchequebookmaintenance&issueprocess

Placeforcentralisedlocation(branch,R.O.,newpremisesetc.)OfficialsusedfordataentrycanbeusedtoissuechequebooksMax.turnaroundtime(notgreaterthan4workingdays)PersonalisedchequebookstobeonlyissuedcentrallyNonpersonalisedchequebookstobeissuedformthebranchitselfNumberofleavesfornonpersonalisedchequebooks

SupportforCentralisationofchequebookmaintenance&issueprocessStockmaintenanceofchequebooksSupportthroughInternet/PhoneBanking

VendorQuestionsChequeBookMaintenance&IssueFutureState


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DemandDraftissue,cancellationandpurchasesupportedbythecurrentsystemsCommissionforissueofdemanddraftspartlymanualI.e.cashcommissioncalculatedmanuallyThesystempromptstheuserforthechargestobecollectedforcancellationofthedraftandacceptsanychargethatisenteredbytheuserInterestandchargesforpurchaseofinstrumentarecalculatedbythesystemDemandDraftreconciliationisdonebytheInterBranchReconciliationDepartmentCurrentreconciliationprocessislengthyandtimeconsumingCurrentsystemsallowduplicatedemanddraftnumberstobemaintainedinthestockCurrentlythereisnosystemtovalidatethegenuinessoftheinstrumentpresentedforpaymentorpurchasethroughthesystem.Currentprocessofpaymentofdraftswithoutanysystemvalidationispronetohighriskofencashmentorpurchaseofdraftsonbehalfoffraudulentpersonnel

DemandDraftsCurrentState


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DemanddraftstocktobeenteredandmaintainedatthecentrallevelforallcorebankingbranchesPhysicaldraftstock(securitypaper)tobemaintainedatthebranchforthestockthathasbeenfedinthesystem(allocatedtotheparticularbranch)CorebankingsystemtomaintainsafetylevelsofdraftsstockWarningmessagestobeflaggedbythecorebankingsystematthebranchaswellascentrallevelintheeventthestockofdraftsreachestheminimumsafetylevel.Corebankingsystemtoensurethatduplicatedraftnumberarenotissuedtotheparticularbranch.DraftstobeonlyissuedformthestockenteredDraftstobeautomaticallypickedupfromthestockenteredandlinkedtotheparticularaccountAmountsforcommission,charges,feesetc.forissue,cancellationetc.tobemaintainedcentrallyBranchestohavetheparametertowaiveoff/discountthechargeswithappropriateauthority

DemandDraftsFutureState


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Draftissuechargestobeautomaticallyappliedintheaccountasdefinedintheglobalparameterfile.Systemwillcheckforaccountlevelparametersfor(+/-)charges,accountlevelparameterswillprecedeglobalparameters.Draftwillbeautomaticallyprintedoncethetransactionisauthorizedonsingle/continuousstationeryasdesiredbytheBankRespectiveaccountheadwillbedebitedandcreditedwiththerespectiveamountsonlineSystemwillautomaticallygenerateanAdviceofDrawing,whichwillbeprintedatthepayingbranch(thebranchonwhomthedrafthasbeendrawn)Onpresentmentforpaymentkeydetails(I.e.draftnumber,amount,date)ofthephysicalinstrumentwillbeentered.Intheeventallthekeyfieldsmatchthedetailsofthedraftasenteredbytheissuingbranch,thedetailsofthedraftwillbedisplayedatthepayingbranchThedraftwillalsobevalidatedforAlreadyEncashed,Cancelled,Stale,PostDatedetc.beforepayment..OnverifyingthedetailsofthedraftsthepaymentwillbeauthorizedanddraftwillbepaidOnauthrisingthetransactiontherespectiveaccountheadswillbeupdatedonlinewiththeamounts



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Systemtosupportcancellationofdraftsandautomaticallycalculateandapplythecharges,commissionetc.asdefinedintheglobalparameterfiles.FurtherthesystemtopromptfortherequisitedocumentationtobecollectedfromthecustomerforcancellationofthedraftSystemtosupportpurchase/collectionofdraftsandautomaticallycalculateandapplycharges,commissionetc.SystemtosupportonlinecustomerverificationintheeventofdraftpurchaseforacustomeroftheBankonthecorebankingsolutionSystemtosupportdefinitionofpurchaselimitsbranchwise,userIDwisebasedupondefinedparameterse.g.sizeofbranch,locationofbranch,corebusinessofthebranchetc.Systemtosupportpayment/collectionofdraftsonbehalfofcorrespondentbanksandtrackdetailsofthesameSystemtosupportverificationofdraftdetailsbeforepaymentwiththedatauploadedinthecorebankingsystemreceivedfromthecorrespondentbanksSystemtosupportissueofdraftsonstationeryofotherBanks,withwhomCentralBankhasanarrangementandtrackdetailsofthesameSystemtosupportreconciliationofdraftsissuedbycorrespondentbanksonCentralBankandalsodraftsissuedbyCentralBankonotherBankswithwhomCentralBankhasanarrangement.Systemtosupportbulkissueofdraftsthroughelectronicmediumupload



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DemanddraftissuerequesttobesupportedthroughInternetandPhoneBankingAllrequestforthedaytobeforwardedfromtheInternet/PhoneBankingsystemstothecentralisedlocationDetailsofthedraftstobeenteredinthebranchwherethecustomerhasanaccountandtherequestforprintingtobeforwardedtotheBranch,andallsuchrequesttodisplayedinaseparatemenuoptionAccounttobedebitedon-linewiththecharges,commission,postageetc.oncethedetailsofthedraftfedinthesystematthecentrallocationhavebeenauthorizedBranchtoprintthedraftsafterauthorizationDraftstobedirectlycourieredbytheBranchtothecustomer



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DemandDraftsProcessCurrentStateFutureState.DDissue,cancellationandpurchasesupportedbythecurrentsystems.CommissionforissueofdemanddraftspartlymanualI.e.cashcommissioncalculatedmanually.Currentreconciliationprocessislengthyandtimeconsuming.Currentlythereisnosystemtovalidatethegenuinessoftheinstrumentpresentedforpaymentorpurchasethroughthesystem..Currentprocessofpaymentofdraftswithoutanysystemvalidationispronetohighriskofencashmentorpurchaseofdraftsonbehalfoffraudulentpersonnel

DemanddraftstocktobeenteredandmaintainedatthecentrallevelforallcorebankingbranchesPhysicaldraftstock(securitypaper)tobemaintainedatthebranchforthestockthathasbeenfedinthesystem(allocatedtotheparticularbranch)Systemtosupport:IssueofDemandDraftsCancellationofDemandDraftsPurchase/CollectionofDemandDraftsIssueofDemanddraftsonstationeryofotherBanksPaymentofCentralBankdraftsandalsodraftsissuedbyothercorrespondentBanksonCentralBank

SystemtosupportprintingofdraftsonCentralBank/otherbanksstationeryasdesiredbytheBankonsingle/continuousstationeryAllcharges,commission,interestandmethodsofcalculationforthesametobedefinedgloballySystemtosupportonlineupdationofrespectiveaccountheadsAutoreconciliationofdraftsRequestforissueofdraftstotobealsohandledthroughInternetandPhoneBanking

PeopleRequirement

BurdenonInterBranchAccountingdepartmentstaffreduced,excessstaffcanbere-deployed

ManagementDecisionDemanddraftstocktobeenteredandmaintainedatthecentrallevelforallcorebankingbranchesAutoreconciliationofdraftsSettingofpurchaselimitsMaximumturnaroundtime(notgreaterthan4workingdaysforrequestthroughInternetandPhoneBanking)Demanddraftsneednotbeissuedonacustomeronthecorebankingsolution,premiumcanbechargesforimmediatecredit

Exploreopportunitiesofnewcorrespondentarrangementsasnowdraftscanbedrawnupon,purchasedandpaidbyanybranchonthecorebankingafterappropriateverificationofthedetailsofthedrafts

SupportforCentralisedmaintenanceofdemanddraftstocksSystemtosupportprintingofdraftsonCentralBank/otherbanksstationeryasdesiredbytheBankonsingle/continuousstationerySupportthroughInternet/PhoneBanking


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VendorQuestionsDemandDraftsFutureState


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Volumes3000chequesperdayAllbranchesdoitontheirownPower&ManualEncodersarebothpresentSoftCopyforpreparingtosendtoRBIforHV&InwardreturnAlphacodingisnotbeingusedOutwardreturnscheques&returnmemosaresenttobranches

ClearingOutwardClearing(CurrentState)


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Options:

OutwardClearingentryandprocessingtobeacentralizedfunctionI.e.regionwisecentralisedattherespectiveservicebranchOutwardclearingentrytobedecentralisedatthebranchitselfandprocessingtobecentralised


Detailsofoutwardclearingtobeenteredcentrally(ServiceBranch).Incaseofcentralisedentryofoutwardclearinginstruments,branchestoonlyrecordthetotalinstrumentsreceivedandtheconsolidatedtotalsfortheparticulardate.Numberofinstrumentsandconsolidatedtotalsenteredatthebranchtobecomparedbythesystemattimeofentryatthecentrallocation.SystemtohighlightanddisplaydiscrepanciesifanyASCIIfilestobesenttotheclearinghousesforoutwardclearingtobegeneratedatthecentrallocationbranchwise/consolidated.CoreBankingsolutiontobeinterfacedwiththeRBIsystemtodownloaddetailsofinstrumentstobepresentedforlocalclearinganduploadclearingeffectsan

dreturns(ifany).BranchestodownloadthedatafromtheRBIsystemsandclubthentogetherwiththeoutwardclearinginstrumentstobepresented

ClearingOutwardClearing(FutureState)


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Servicebranchtodownloadthedetailsoftheinstrumentspresentedforclearingfromtheclearinghousewebsites/RBIintothecorebankingsolutionforreconciliationpurposes.ClearingeffectstobepassedontothecustomeraspertheclearingdatesReturnedinstrumentstobeenteredinthesystematthecentrallocationandsenttotherespectivebranchestobehandedovertothecustomers.Chequereturnchargestobeautomaticallycalculatedandappliedtotherespectiveaccountsuponauthorisationofthetransaction.


Detailsofoutwardclearingtobeenteredattherespectivebranches.ScheduleforoutwardclearingtobeprintedatthebranchandsenttotheservicebranchalongwiththeinstrumentsforprocessingOtherprocessestobethesameasmentionedaboveinthecentralisedfunction

ClearingOutwardClearing(FutureState)


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Volumes3000to4000perdayHardCopy&SoftCopySoftCopydownloadedfromtheRBIwebsiteCheques&StatementssenttobranchesReturnssenttoRBIinsoft&hardcopy,sentbetween1600to1630hoursBranchesInformtheservicebranchthroughfaxChequesareretainedatthebranches

ClearingInwardClearing(CurrentState)


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Inwardclearing-Supportstraightthroughprocessing.Intheeventofnonstraightthroughprocessingthedetailsoftheinstrumentstobeenteredatthecentrallocation(servicebranch)Servicebranchtodownloadtheclearingdetailsfromtheclearinghouse/RBIwebsiteforinwardclearingServicebranchtoverifythephysicalinstrumentswiththelistprovidedbytheclearinghouse/RBIforinwardclearing.InstrumentstobemarkedforDeliveredbutnotlistedandlistedbutnotdelivered.Instrumentdetailstobeuploadedinthecorebankingsystembasedupontheaccountnumberandchequenumber.CoreBankingsystemtocheckforthevalidityoftheinstrument,stoppaymentinstructionsetc.Allinstrumentsuploadedshouldbeshownasashadowbalanceinthesystemuntilthesignaturesonthephysicalinstrumentshavebeenverifiedwiththesystem.Theservicebranchtoverifythesignaturesofthephysicalinstrumentswiththesystem.IntheeventofsignaturesnotmatchingtheinstrumenttobemarkedasreturnedattheservicebranchandthereasonforthesametobecapturedattheservicebranchAllinstrumentsnotmarkedasreturnedeitherbytheservicebranchmanuallyorautomaticallybythesystemtobeeffectedintherespectiveaccountsafterthe

batchhasbeendulyauthorised.

ClearingInwardClearing(FutureState)


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TheservicebranchshouldprintareportofallrejectedtransactionsbranchwiseandsenditdirectlytothebranchesalongwiththeinstrumentsforfurtheractionAllrejectedinstrumentsshouldbedisplayedinaseparatemenuoptionattheindividualbranchesalongwiththereasonfortherejection.ThebranchtoverifythelistsentbytheservicebranchwiththeinstrumentsdisplayedasRejectedTheappropriateauthorityhavingtherelevantauthorizationpowersatthebranchtohavetheoptionofmarkingtheinstrumentasReturnedorCleared.AllinstrumentsmarkedasreturnedshouldbeautomaticallydisplayedintherelevantChequeReturnsmenuoptionalongwithalldetailsoftheinstruments.Systemtoautomaticallypickupthechargesetc.fromtheglobalparameterfileasdefinedandapplythesametotherespectiveaccounts.Thereturnedinstrumentdetailstoupdatedinthecustomersprofilealongwiththereasonforreturn.

ClearingInwardClearing(FutureState)


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HomeclearingreferstothechequesdrawnonBankbranches.Allhomeclearingchequesareenteredinthesystemattherespectivebranch.SuchchequesaresenttotheservicebranchalongwithanonsortedstatementTheservicebranchsortstheinstrumentsbranchwiseanddispatchesthesametotherespectivebranches.Theservicebranchsendsanadvicetotherespectivebranchforallrealizationsandreturns.Onreceivingtherealizationadvicethebranchreleasestheunclearedeffectsandtherespectiveaccountsarecreditedwiththeamount.Allchequestobepassed/returnedareenteredthroughthesamechequesentryoption.ThereisnowaytoidentifychequestobereturnedafterdataenteroftheinstrumentsexceptthattheinstrumentsarephysicallyseparatedfromtheotherinstrumentsMayresultinreturnedchequesbeingpassedastheofficerauthorizingcannotdifferentiatebetweennormalchequesandreturnchequesthroughthesystem.Systemspromptstheusertoenterthechargesforreturnsandacceptsanychargethatisentered.Thismayleadtoleakageofincomeor(and)customerdissatisfactionintheeventofwrongchargeapplication

ClearingHomeClearing(CurrentState)


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ChequesdrawnonBankcustomershavingaccountsinbranchesthatareontheCoreBankingsolutioncanbeeffectedimmediately.Alldetailsoftheaccountstodebitedincludingthesignatureswillbevisibletotheconcernedauthorityhavingtherequisiteaccessprivilegeseffectingthetransaction.Validityoftheinstrument,stoppaymentinstructionset.c.willbevalidatedbythecorebankingsystemfortheinstrumentpresented.InstrumentscanbereturnedonthespotaftervalidationandtheaccountwillbedebitedwiththerespectivereturnchargesasdefinedintheglobalparameterfileBankmaywishtochargethecustomeracommissionamountforeffectingpaymentsonthespot.ChequesissuedbyBankcustomersnotonthecorebankingsystemwillbeenteredatthebranch/directlysenttotheservicebranchforentry,inwhichcasethebranchwillonlyentertheconsolidatedtotalsoftheinstrumentscollected.Numberofinstrumentsandconsolidatedtotalsenteredatthebranchtobecomparedbythesystemattimeofentryattheservicebranch.SystemtohighlightanddisplaydiscrepanciesifanyServicebranchtosorttheinstrumentsbranchwiseandsentittotherespectivebranchvialocal/domesticcourier

Clearingeffectstobepassedonbytheservicebranchtotheindividualbranchtobereleasedtothecustomeraspertheclearingdates

ClearingHomeClearing(FutureState)


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Chequesdrawnonanyofthefourmetrosviz.Mumbai,Delhi,Calcutta,ChennaiareroutedthroughNationalClearing.NationalclearingchequesarehandledthroughthesystemThetellerentersthechequesforclearingintherespectivetimezones.Theofficerauthorizesallchequesenteredbytheteller.ThesystemautomaticallypicksupthechargesfornationalclearingAnunsortedscheduleofallchequescollectedbythebranchundernationalclearingisgeneratedbythesystem.TheinstrumentsfornationalclearingalongwiththeschedulearesenttothelocalservicebranchTheservicebranchsendsanadvicetotherespectivebranchforallrealizationsandreturns.ServicebranchkeepstrackofthemovementoftheseinstrumentsandisalsoresponsibleforreconciliationofthesameOnreceivingtherealizationadvicethebranchreleasestheunclearedeffectsandtherespectiveaccountsarecreditedwiththeamount.

ClearingNationalClearing(CurrentState)


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Options:

NationalClearingentryandprocessingtoacentralizedfunctionI.e.regionwisecentralisedattherespectiveservicebranchintheeventtheregionhasaservicebranch/anyotherlocationintheregionwhichhandlestheclearingfunctionsoftheregionNationalclearingentrytobedecentralisedatthebranchitselfandprocessingtobecentralised


Instrumentscollectedbythebranchundernationalclearingtobesenttotheservicebranchforentry.Collectingbranchtoenterthenumberofinstrumentsregionwisealongwiththeconsolidatedtotals.ServicebranchtoentertheinstrumentsintherespectivebranchesNumberofinstrumentsandconsolidatedtotalsenteredatthecollectionbranchtobecomparedbythesystemattimeofentryattheservicebranch.SystemtohighlightanddisplaydiscrepanciesifanyASCIIfilestobesenttotheclearinghouses/localservicebranchesfornationa

lclearing(ifany)tobegeneratedatthecentrallocationregion-wise,intheeventthelocalservicebranchisnotonthecorebankingsolution.

.

ClearingNationalClearing(FutureState)


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ServicebranchtosendalltheinstrumentscollectedunderNationalclearingtotherespectiveservicebranchesforpresentmentCharges,commission,interesttobeautomaticallypickedup,asdefinedintheglobalparameterfile,calculatedandappliedtotherespectiveaccountsoncethebatchhasbeenauthorised.Clearingeffectstobepassedontothecustomerthroughtheservicebranchaspertheclearingdates


Detailsofnationalclearingtobeenteredattherespectivebranches.SchedulefornationalclearingtobeprintedatthebranchandsenttotheservicebranchalongwiththesortedinstrumentsforprocessingOtherprocessestobethesameasmentionedaboveinthecentralisedfunction

ClearingNationalClearing(FutureState)


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HighvalueclearingisalsoreferredasmetropolitanareaclearingcurrentlychequesaboveRs.50,000/-comeunderhighvalueclearing.ChequedepositedunderhighvalueclearingarerealizedonthesamedayHighvalueclearingchequesarehandledthroughthesystemThetellerentersthechequesforclearingintherespectivetimezonesTheofficerauthorizesallchequesenteredbytheteller.Anunsortedscheduleofallchequescollectedbythebranchunderhighvalueclearingisgeneratedbythesystem.TheinstrumentsforhighvalueclearingalongwiththeschedulearesenttothelocalservicebranchTheservicebranchsendsanadvicetotherespectivebranchforallrealizationsandreturns.Onreceivingtherealizationadvicethebranchreleasestheun-clearedeffectsandtherespectiveaccountsarecreditedwiththeamount.

ClearingHighValueClearing(CurrentState)


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AllinstrumentscollectedbythebranchesunderHighValueclearingtobeenteredbytherespectivebranches.Instrumentsalongwiththeclearingstatement/schedule(sortedbankwise)tobesenttotheservicebranchServicebranchtogeneratetheASCIIfilesinthedesiredformatbranchwise/consolidated.Effectsforhighvalueclearingtodownloadedbytheservicebranchfromtheclearinghouse/RBIwebsites.EffectstobepassedontothecustomeraspertheclearingdatesReturnedinstrumentstobeenteredinthesystemattheservicebranchandsenttotherespectivebranchestobehandedovertothecustomers.Chequereturnchargestobeautomaticallycalculatedandappliedtotherespectiveaccountsuponauthorisationofthetransaction.

ClearingHighValueClearing(FutureState)


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Upcountry/Outstation/OBCclearingclearingishandledthroughthesystemThetellerentersthechequesforclearingintherespectivetimezonesTheofficerauthorizesallchequesenteredbytheteller.ThesystemautomaticallypicksupthechargesandcalculatestheinterestamountforupcountryclearingThescheduleforupcountryclearingisgeneratedbythesystem.Theinstrumentsforupcountryclearingalongwiththeschedulearesenttothelocalservicebranchifthereisaservicebranchintheareaoforiginationoftheinstrumentelsetheinstrumentsaredirectlysenttothenearestbranchwheretheinstrumentwasdrawn.Theservicebranch/respondingbranchsendsanadvicetotherespectivebranchforallrealizationsandreturns.Servicebranch/respondingbranchkeepstrackofthemovementoftheseinstrumentsandisalsoresponsibleforreconciliationofthesameOnreceivingtherealizationadvicethebranchreleasestheunclearedeffectsandtherespectiveaccountsarecreditedwiththeamount.

ClearingOutstation/UpcountryClearing(CurrentState)


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Options:

Outstation/UpcountryClearingentryandprocessingtoacentralizedfunctionI.e.regionwisecentralisedattheservicebranch.Outstation/UpcountryClearingentrytobedecentralisedatthebranchitselfandprocessingtobecentralised


Allinstrumentscollectedbythebranchesunderupcountryclearingtobesenttothecentrallocation(I.e.servicebranch)forentry.Collectingbranchtoenterthenumberofinstrumentsregionwisealongwiththeconsolidatedtotals.ServicebranchtoentertheinstrumentsintherespectivebranchesServicebranchtogeneratetheASCIIfilesinthedesiredformat(ifrequired)branchwise,location/regionwisetobesenttothelocalservicebranch/nearestbranch,intheeventthelocalservicebranch/nearestbranchisnotonthecorebankingsolution.Servicebranchtosenttheinstrumentsalongwiththescheduletotherespectivelocalservicebranchifthereisaservicebranchintheareaof

originationoftheinstrumentelsetheinstrumentsaredirectlysenttothenearestbranchwheretheinstrumentwasdrawn.

ClearingOutstation/UpcountryClearing(FutureState)


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Effectsforupcountryclearingtobedownloadedbytheservicebranchfromtheclearinghouse/RBIwebsitesormanualintimation.EffectstobepassedontothecustomeraspertheclearingdatesCharges,commission,interesttobeautomaticallypickedup,asdefinedintheglobalparameterfile,calculatedandappliedtotherespectiveaccountsoncethebatchhasbeenauthorised.Returnedinstrumentstobeenteredinthesystemattheservicebranchandsenttotherespectivebranchestobehandedovertothecustomers.Chequereturnchargestobeautomaticallycalculatedandappliedtotherespectiveaccountsuponauthorisationofthetransaction.


DetailsofOutstation/UpcountryClearingtobeenteredattherespectivebranches.ScheduleforOutstation/UpcountryClearingtobeprintedatthebranchandsenttotheservicebranchalongwiththesortedinstrumentsforprocessingOtherprocessestobethesameasmentionedaboveinthecentralisedfunction

ClearingOutstation/UpcountryClearing(FutureState)


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Allclearingfunctionshandledbytheservicebranch.Servicebranchactsasnodal/linkbranchforgovernmentbusinessServicehandlesprocessingofpaymentsforinterest/dividendwarrantsServicebranchmaintainstheRBIaccountforthebankfornetclearingeffectsandisalsoresponsibleforreconciliationCurrentlytransactionprocessingismainlythroughmanualstatementsresultingin:IncreasedmanualeffortsReconciliationissuesHighchancesoferrorsDuplication/redundantprocessingatvariouslevels(branches,servicebranchetc.)

DuplicationofeffortsInstrumentdetailsre-enteredattheservicebranchfornational,upcountryclearingetc.

ServiceBranch(CurrentState)


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Allclearingfunctionstobecentrlisedattherespectiveservicesbranches.Servicebranchestoenterinformationforoutward,highvalue,upcountryclearingandreturns.Servicebranchestoencode,bundleandpresenttheinstrumentsforclearing.ServicesbranchestogenerateASCIIfilesforclearingdatainthedesiredformattobehandedovertotheclearinghouses/RBI.Servicebranchestodownloadclearingdatafromtheclearinghouse/RBIweb-siteforinward,outward,high-valueclearing.Servicebranchtoreconciletheinstrumentssentandreceived,toandfromtheclearinghouses/RBIServicebranchtoreconciletheinstrumentssentandreceived,toandfromthebranches.Individualbranchaccountstobemaintainedbytheservicebranchforclearing,reconciliationofthesametobedonebytheservicebranchClearinghouse/RBIaccountforclearingsettlementstobemaintainedandreconciledbytheservicebranch.Servicebranchtoalsohandlestraightthroughprocessingofdividendwarrantpayments

ServiceBranch(FutureState)


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Clearing&ServiceBranchFutureState

ClearingandServiceBranchProcessCurrentStateFutureStateClearingfunctionsde-centralisedDatacaptureinconsistentandinadequateDataenteredagainattheservicebranchagainfornational,outstation/upcountryclearingManualreconciliationatthebranchesandservicebranchLotofmanualeffortsattheservicebranchandbranchesforprocessingofclearinginstrumentsanddataTimeconsumingactivityatthebranchinvolvinghugeamountofresources

Clearingfunctionstobe:Centralised(I.e.entryandprocessingtoacentralizedfunctionforoutwardclearing,nationalclearingandupcountry/outstationclearing,inwardclearingDe-centralised(I.e.entrytobedecentralisedatthebranchitselfandprocessingtobecentralised)forhighvalueandhomeclearing

InwardclearingtobestraightthroughprocessingDatatobedirectlydownloadedfromtheRBI/clearinghousewebsiteintothecorebankingsolutionforstraightthroughprocessingandreconciliationofclearingdata.

ASCIIfilesandclearingschedulestobegeneratedbytherespectiveservicebranchesforallbranchesunderthemIndividualbranchaccountstobemaintainedbytheservicebranchforclearing,reconciliationofthesametobedonebytheservicebranchClearinghouse/RBIaccountforclearingsettlementstobemaintainedandreconciledbytheservicebranchServicebranchtohandleprocessingofdividendandinterestwarrantpayments

PeopleRequirementShiftbankstafftocentrallocationHiredataentryoperatorsatlowcostSamestafftobeusedfordataentryofinward,outward,national,upcountryclearing

CentralisationwouldresultinstaffreductionatthebranchesandredeploymentBurdenonInterBranchAccountingdepartmentstaffreduced,excessstaffcanbere-deployed

ManagementDecisionOptionselection:centralisationv/sde-centralisationPlaceforcentralisedlocation(servicebranch,branch,R.O.,newpremisesetc.)Hiringofdataentryoperators/shiftingbankstafftocentralisedlocation.Maximumturnaroundtime(notgreaterthan15secaninstruments)DataentryandpaymentlinkedtoquotabasisMaintenanceandreconciliationofbranchclearingsettlementaccountsandRBIclearingsettlementaccountsbyservicebranch

Supportforbothcentralised/decentralisedfunctioningSupportforstraightthroughprocessinganddownloadingofclearingdetailsfromtheRBI/clearinghousewebsiteforreconciliationMaintenanceandreconciliationofbranchclearingsettlementaccountsandRBIclearingsettlementaccountsbyservicebranchConsolidationofthevariousRBIclearingsettlementsaccountsmaintainedbytheservicebranchesonperiodicbasisforoverallfundpositions


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VendorQuestions


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Collectionservicesincludeserviceslikecollectionoftaxes,phonebills,electricitybillsforbothcustomersandnoncustomersoftheBankCollectionsservicescurrentlymanualConsolidatedaccountingentriespassedinthebranchbankingsystemforcollectionsmadeduringthedayScheduleforcollectionsmadeforvarioustypesofcollectionsservicespreparedmanuallybythebranchReconciliationatthebranchdonemanuallyAllcollectionsmadeduringadayaresenttotheServicebranchwhichisthenodal/linkbranchalongwithanadviceforthetransferofcollectionamountReconciliationofallinstrumentssentbyvariousbranchesunderaparticularservicebranchisdonemanuallyattheservicebranch.Servicebranchafterreconciliationoftheinstrumentsandthecollectionamountssentbyvariousbranches,remitstheproceedstotheparentbranch(I.ethebranchwherethemaincollectionaccountisheld)alongwiththedetailsoftheinstruments.Consolidatedtotalsareverifiedattheparentbranchandcollectionamountsarecreditedtothecollectionaccount

Reconciliationofthetransactionentriesandcollectionamountswiththecollectionaccountholders(RBI,customs,exciseetc.)ishandledattheparentbranchAllMISasrequiredbythestatutory/regulatorybodies,managementetc.preparedmanuallyAccuracyofMISisaconcern

CollectionServices(CurrentState)


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Direct&Indirecttaxcollections,school,universityfeescollectionsetc.tobehandledatthebranchesthroughtherespectiveoptionsEachbranchwouldhaveseparateaccountsfordifferenttypesofcollectionsservicesoffered.Dailythecollectionsmadebytheparticularbranchwillbeenteredinthecorebankingsolutionbythebranchalongwithallthedetailsofthetransactions.Attheendofbusinesshoursthephysicalcollectioninstruments(e.g.challanreceipts)willbesenttothenodalbranchalongwiththescheduleofcollectionThebrancheswillfurthertransferthecollectionsforthedaytothenodalbranchasperthecollectionschedulebeingsentbythebranchtothenodalbranch.(OptiontodefinethetransferperiodofcollectionfundsfromthenodalbranchestotheparentbranchandthemodeoftransferI.e.automated/manual)IntheeventofchequepaymentstheentrywillbeautomaticallypickedupbythesystemonthedaythechequewasrealizedandtheamountwillbeautomaticallytransferredfromthesundryaccounttothebranchcollectionaccountThenodalbranchwillberesponsibleforreconciliationoftheinstrumentssentbythebrancheswiththephysicalinstrumentsandalsotheamountstransferredbythebranches.

CollectionServicesFutureState


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Thenodalbranchwillalsohavethefacilitytouploadtransactiondetailsreceivedthroughelectronicmedium/manuallyenterrequireddata,forbranchesnotonthecorebankingsolution/manualbranches.Thenodalbranchwillberesponsibleforreconciliationoftheinstrumentssentbythebrancheswiththephysicalinstrumentsandalsotheamountstransferredbythebranches.Thenodalbranchwillalsohavethefacilitytouploadtransactiondetailsreceivedthroughelectronicmedium/manuallyenterrequireddata,forbranchesnotonthecorebankingsolution/manualbranches.ReconciliationandaccountingofbranchesnotconnectedtothecorebankingsolutionwouldberoutedthroughtheInterbranchReconciliationDepartment.Forbranchesconnectedtothecorebankingsolutiontherespectivebooksofaccountswillbeupdatedonlineonarealtimebasis.Dailytheamountsalongwiththetransactiondetailswouldbetransferredbythenodalbranchestotheparentbranch.(OptiontodefinethetransferperiodofcollectionfundsfromthenodalbranchestotheparentbranchandthemodeoftransferI.e.automated/manual)Theparentbranchwillreconciletheconsolidatedtotalsforeachtypeofcollectionandtransferthecollectionstotheparentaccount.Thecorebankingsolutionwouldkeepatrackofallcollectionsmadetoaparticularbranchasonaparticulardatealongwiththedetailsofthetransactions.



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Thecorebankingsolutionwouldalsocalculatethecommissionreceivable(ifany)basedupondefinedrulesfromthecollectionaccountsforservicesofferedbyCentralBank.Thecommissionamountswouldbecomparedbythesystemwiththeactualcommissionreceivedfromthecollectionaccountholders.Discrepanciesifanyshouldbedisplayed.Reconciliationofthetransactionentriesandcollectionamountswiththecollectionaccountholders(RBI,customs,exciseetc.)ishandledattheparentbranchTheparent,nodal/link,aswelltheoriginatingbranchwillbeabletoviewalldetailsofthetransactionsmadeandtheflowofthetransactionsatthemicrolevelatanypointintimeCollectionsserviceswillalsobeofferedthroughInternetBankingtothecustomersIntheeventofcollectionsmadethroughInternetBankingthebranchwillprintareportofthesamecollectionaccountwisefortransactiondoneuptothecloseofthebusinesshour/cutofftimeandsendthisscheduletothenodal/linkbranch.ThebranchwillconsolidatetheamountscollectedthroughinternetBankingalongwiththetotalcollectionsmadefortheday.

Thenodal/linkbranchwillalsoreceiveacopyofthecollectiontransactionseffectedinthecorebakingsystemuptothecloseofthebusinesshour/cutofftime(asparameterizedfortheparticularbranch)throughtheInternetBankingserverbranch-wise.BoththesereportsI.e.onesentbythebranchandtheotherreceivedbythenodal/linkbranchwillbeusedforreconciliationpurposesbythenodal/linkbranch



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CollectionServicesProcessCurrentStateFutureState

Collectionsservicescurrentlymanuale.g.taxcollectionsConsolidatedaccountingentriespassedinthebranchbankingsystemforcollectionsmadeduringthedayScheduleforcollectionsmadeforvarioustypesofcollectionsservicespreparedmanuallybythebranchReconciliationatthebranchdonemanuallyAllMISasrequiredbythestatutory/regulatorybodies,managementetc.preparedmanually

Direct&Indirecttaxcollections,school,universityfeescollectionsetc.tobehandledatthebranchesthroughtherespectiveoptionsEachbranchwouldhaveseparateaccountsfordifferenttypesofcollectionsservicesoffered.Branchesinaparticularregion,localityetc.tobelinkedtoaparticularnodalbranchandthenodalbranchesinturntobelinkedtoaparticularparentbranch(I.e.thebranchwherethemaincollectionaccountismaintained)Reconciliationofthecollectionsmadebythevariousbrancheswillbehandledbythenodal/linkbranch,whereasthereconciliationoftheactualcollectionaccountwillbehandledbytheparentbranchSystemtosupportreconciliationofindividualtransactionwiseaswellasconsolidatedtransaction-wise

Nodalbranchestohavetheoptionofconsolidationscollectionsmadebynoncomputerisedbranchesthroughmanualdataentry/directuploadtothesystemifdataisavailableinelectronicformatCollectionsmadeonaparticulardaytobeautomatically/manuallytransferredtothenodal/linkbranchuponauthorisationofallcollectiontransaction,andfromthenodal/linkbranchtotheparentbranchuponauthorisationafterreconciliationatthenodal/linkbranchThesystemwouldkeepatrackofallcollectionsmadeaparticularbranchasonaparticulardatealongwiththedetailsofthetransactions.Theparent,nodal/link,aswelltheoriginatingbranchwillbeabletoviewalldetailsofthetransactionsmadeandtheflowofthetransactionsatthemicrolevelatanypointintimeCollectionsserviceswillalsobeofferedthroughInternetBankingtocustomers

PeopleRequirementAutomationofthecollectionprocessandofferingthesamethroughInternetBankingwouldresultinstaffreductionatthebranchesandredeployment

ManagementDecision

Periodicityformovementoffundsfromthebranchestothenodal/linkbranchandfromthenodal/linkbranchtotheparentbranchReconciliationofallcollectionsmadebythebranchestobedonebythenodal/linkbranchIdentificationofthenodal/linkbranchIdentificationofthebrancheslinkedtothenodal/linkbranch

Abilitytolinkbranchestoanodal/linkbranchandnodal/linkbranchestoaparentbranchAbilitytosupportconsolidationandreconciliationatthenodal/linkbranchesandparentbranchAbilitytoautomatically/manuallytransferthecollectionmadefromthebranchestonodal/linkbranchesandfromthenodal/linkbranchestotheparentbranchAbilitytosupportallcollectionservicesasdesiredbytheBankthroughInternetBanking

VendorQuestions


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WrittenmandatesaretakenfromthecustomersforeffectingstandingordersCurrentlythestandinginstructionmoduleisusedforintrabranchaccounttransfersmainlyforloaninstallmentandRDpayments.Paymentstobemadetobeneficiariesoutsidethebranch/otherbanksetc.aremanuallymaintainedinregistersThebranchhasnowaytoknowwhatstandingordershavenotbeenexecutedonaparticulardayasthesystemdoesnotgenerateanyreportforStandingInstructionsnotexecutedonaparticularday.Thesystemhasnooptiontorecordthereceiptofpaymentmadebythecustomerdirectlyandautomaticallyadjustthenextpaymentdates.Soeventhoughthecustomerhasmadethepaymentthesystemduringthenextexecutionautomaticallyrecoversallamountduefromthedatewhenthestandingorderwasnotexecuted,thusdebitingthecustomersaccountmultipletimeseventhoughthepaymentforthesamehasbeenmadethroughsomeothermodeofpayment.Asaresultofthesemultipledebitsintheaccountatasinglepointoftimegenuinechequesofthecustomermaybounceforlackoffunds,customermaybechargedminimumbalancechargesetc.eventhoughthebalanceintheaccountwassupposedtobesufficientThiscausescustomerdis-satisfactionandinconveniencetothecustomer.Furtheritalsoresultsinalotofmanualeffortatthebranchforproblemidentificationandrectificationofthesame.

StandingInstructionsCurrentState


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Forotheraccountsbesidesloanaccountwherestandinginstructionsaretobeeffectedgounnoticedtillthecustomercomplaintsaboutthesameasitisnotpossibleforthebranchtocheckallaccountsonadailybasis.Nocheckforexistenceofstandinginstructionatthetimeofaccountclosure.Sobeforeanaccountisclosedtheconcernedofficerhastogothroughthestandinginstructionsmoduletomakesurethatnoactivestandinginstructionsarelinkedtotheparticularaccount.

StandingInstructionsCurrentState


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Standinginstructionstobeenteredbythebranchitselfinthecorebankingsystem.DatafieldstobecapturedwouldbedefinedatthecentralleveltoensureconsistencyofdataandaccurateprocessingofstandingordersProposedstandinginstructionmoduletobecapabletohandleintrabranch,interbranchandinterbanktransactions.Theprocessofexecutionofthestandingorderwillautomatee.g.daybegin,dayendetc.StandinginstructionmoduletosupportgenerationofdesiredmessageformatsforinterbanktransactionstobepassedontotheRTGS/respectivesystemsfordirectinterbanktransfers/entriesThestandinginstructionsmoduletosupportautomaticgenerationofDD/PO.setc.asperdatesdefinedinthestandinginstructionsmoduleinthedesiredformat,recovercharges/commissionforthesameasparameterisedintheglobalparameterfilesThestandinginstructionsmoduletosupportautomatictransferoffundsbeyondaparameterisedamountforaparticularcustomer/group,betweenaccountsofthesame

branch,acrossbranches,thirdpartyaccountsThesystemwillautomaticallygeneratealistofallstandingordersexecuted/non-executedonaparticulardayalongwithreasonsfornonexecutionofthesame.Allnonexecutedstandingorderswillbedisplayedandcanbepassedwithappropriateauthorization,forallotherrejectedtransactionsthesystemwillretryforthenumberoftimesspecifiedintheparameter

StandingInstructionsFutureState


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AllstandingorderspassedwithhigherauthorizationswillnotbeconsideredforretryThesystemwillretrytoexecutethenonexecutedstandingordersforthenumberoftimesasspecifiedintheparameterfile.Asperdefinedparametersthesystemwillgenerateappropriatewarninglettersinformingthecustomer:tomakethebalanceavailableintheaccount,informingthecustomertomakethepaymentdirectlyuponcrossingthenumberofretries,informingthecustomeraboutautomaticallyterminatingthestandinginstructionfornonexecutionofthestandingorderforxnumberofconsecutivetimes,informingthecustomeraboutterminationofthestandingorderuponreachingtheexpirydateofthestandingorder.

Thesystemtoautomaticallygenerateareportasperdefinedfrequencyforallinterbranch/interbanktransactionsthroughstandingordersgivingcompletedetailsofthetransaction.Systemtocheckforexistenceofstandinginstructionatthetimeofaccountclosure

anddisplayappropriatewarningmessagesforthesame.SystemtosupportrequestforstandingorderinstructionsthroughInternetBanking,InwhichcasetheinstructionswouldbedownloadedatperiodictimeintervalsfromtheInternetBankingserverandbefedinthecorebankingsystematacentrallocationhandlinginternetbankingtransactions.

StandingInstructionsFutureState


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StandingInstructionsProcessCurrentState

FutureState

CurrentlythestandinginstructionmoduleisusedforintrabranchaccounttransfersmainlyforloaninstalmentandRDpayments.Paymentstobemadetobeneficiariesoutsidethebranch/otherbanksetc.aremanuallymaintainedinregistersThebranchhasnowaytoknowwhatstandingordershavenotbeenexecutedonaparticulardayasthesystemdoesnotgenerateanyreportforStandingInstructionsnotexecutedonaparticularday.Thesystemhasnooptiontorecordthereceiptofpaymentmadebythecustomerdirectlyandautomaticallyadjustthenextpaymentdates.Nocheckforexistenceofstandinginstructionatthetimeofaccountclosure

Standinginstructionstobeenteredbythebranchitselfinthecorebankingsystem.DatafieldstobecapturedwouldbedefinedatthecentralleveltoensureconsistancyofdataandaccurateprocessingofstandingordersProposedstandinginstructionmoduletobecapabletohandleintrabranch,interbranchandinterbanktransactionsinbaseaswellasforeigncurrency.Theprocessofexecutionofthestandingorderwillautomatee.g.daybegin,dayendetc.

StandinginstructionmoduletosupportgenerationofdesiredmessageformatsforinterbanktransactionstobepassedontotheRTGS/respectivesystemsfordirectinterbanktransfers/entriesThestandinginstructionsmoduletosupportautomaticgenerationofDD/POsetc.asperdatesdefinedinthestandinginstructionsmoduleinthedesiredformat,recovercharges/commissionforthesameasparameterisedintheglobalparameterfilesThestandinginstructionsmoduletosupportautomatictransferoffundsbeyondaparameterisedamountforaparticularcustomer/group,betweenaccountsofthesamebranch,acrossbranches,thirdpartyaccountsThesystemwillautomaticallygeneratealistofallstandingordersexecuted/non-executedonaparticulardayalongwithreasonsfornonexecutionofthesame.SystemtoautomaticallyretryforthenumberoftimesasspecifiedintheparameterfileSystemtogenerateappropriatewarning&terminationlettersbasedonparameterdefinedinthe

systemThesystemtoautomaticallygenerateareportasperdefinedfrequencyforallinterbranch/interbanktransactionsthroughstandingordersgivingcompletedetailsofthetransaction.SystemtocheckforexistenceofstandinginstructionatthetimeofaccountclosureSystemtosupportrequestforstandingorderinstructionsthroughInternetBanking

PeopleRequirement

Automationoftheprocesswouldresultinstaffreductionatthebranchesasthisfunctioncanbehandledbyanyofficer,noexclusivestaffrequiredforthisprocess.

ManagementDecisionPermitinterbranch,intrabranch,interbanktransfersthroughstandingordersSystemparameterstobesetglobally,branchestohavenocontroloverparametersettingsAutoterminationofstandingordersbaseduponparametersdefinedinthesystem

Abilitytosupportinterbranch,intrabranch,interbankstandingordersHighlyparameterisedsystemAutomaticgenerationofwarning&terminationlettersbaseduponparametersdefinedinthesystem


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SupportrequestforstandingorderthroughInternetBanking

VendorQuestionsStandingInstructionsFutureState


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ChequepurchasesupportedbythesystemChequesaremainlypurchasedbytheBranchfortheircustomersonly.Intheeventthecustomerisofanotherbranchthecustomerdetailsareverifiedoverthephonewiththebranchwherethecustomerhasanaccount.Applicablecommissionandinterestisautomaticallypickedupanddisplayedbythesystemaspertheparameterset.Chequespurchasedbythebrancharesenttotheservicebranchforcollectionalongwithanunsortedschedule.Uponrealizationoftheinstrumentstheservicebranchsendsanadvicetothebranchinformingthemabouttherealization/returnoftheinstrument.

ChequePurchaseCurrentState


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AllbranchesonthecorebankingcanofferthisfacilitytotheircustomersfromanybranchoftheBankwhichisconnectedtothecorebankingsolution.EachbranchonthecorebankingwillhavetherighttoaccessdataofallotherbranchesconnectedtothecorebankingbaseduponaccessprivilegesThecorebankingsolutiontomaintainthecustomerhistorycardgivingallrelevantdetailsofthecustomerinasnapshot.Thecustomeraccountcanbedirectlycreditedwiththeamountofthecheque(lessdeductionsI.e.interest,commission/chargesetc.)Theinstrumentcanbedirectlypostedatthepayingbranchinthecustomersaccount(I.e.thepersonwhohasissuedtheinstrument)iftheaccountisonthecorebankingsolution.ThesystemtovalidatetheinstrumentforAlreadyEncashed,Cancelled,Stale,Datedetc.beforepayment.Intheeventofanydiscrepanciesinthevalidationstheinstrumentcanbereturnedonthespot.Intheeventthecustomersaccount(debit)isnotonthecorebankingsolutiontheinstrumentwillbeforwardedtotheservicebranchforprocessing.

Allinterest,commission,chargestobeautomaticallycalculatedanddeductedfromthecustomersaccountasdefinedintheglobalparameterfile.Chequepurchaselimitsbranchwise,useridwisetobedefinedinthesystemandthesystemtovalidatethesameatthetimeoftransactions

ChequePurchaseFutureState


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ChequePurchaseProcess

CurrentState

FutureStateChequepurchasesupportedbythesystemChequesaremainlypurchasedbytheBranchfortheircustomersonly.Intheeventthecustomerisofanotherbranchthecustomerdetailsareverifiedoverthephonewiththebranchwherethecustomerhasanaccount.Applicablecommissionandinterestisautomaticallypickedupanddisplayedbythesystemaspertheparameterset.Chequespurchasedbythebrancharesenttotheservicebranchforcollectionalongwithanunsortedschedule.Uponrealizationoftheinstrumentstheservicebranchsendsanadvicetothebranchinformingthemabouttherealization/returnoftheinstrument.

AllbranchesonthecorebankingcanofferthisfacilitytotheircustomersfromanybranchoftheBankwhichisconnectedtothecorebankingsolution.EachbranchonthecorebankingwillhavetherighttoaccessdataofallotherbranchesconnectedtothecorebankingbaseduponaccessprivilegesThecorebankingsolutiontomaintainthecustomerhistorycardgivingallrelevantdetailsofthecustomerinasnapshot.

Thecustomeraccountcanbedirectlycreditedwiththeamountofthecheque(lessdeductionsI.e.interest,commission/chargesetc.)ThesystemtovalidatetheinstrumentforAlreadyEncashed,Cancelled,Stale,PostDatedetc.beforepayment.Intheeventofanydiscrepanciesinthevalidationstheinstrumentcanbereturnedonthespot.Intheeventthecustomersaccount(debit)isnotonthecorebankingsolutiontheinstrumentwillbeforwardedtotheservicebranchforprocessing.Allinterest,commission,chargestobeautomaticallycalculatedanddeductedfromthecustomersaccountasdefinedintheglobalparameterfile.Chequepurchaselimitsbranchwise,useridwisetobedefinedinthesystemandthesystemtovalidatethesameatthetimeoftransactions

PeopleRequirementCanbehandledbyanyseniorofficerinthebranchnorequirementofstaffexclusivelyforthispurpose.

ManagementDecisionPermitchequepurchaseforacustomerofanybranchatanybranchonthecorebankingsolution.SetuplimitsforpurchaseinthesystemDefinerulesforchequepurchaseacrossbranchesandupdatethebranchoperatingmanualswiththesame.

Abilitytosupportchequepurchaseforacustomerofanybranchatanybranchonthecorebankings

olution.AbilitytotrackthemovementofthechequesalongwiththedetailsofthetransactionsAbilitytomaintaincustomerhistorycardforonlineverificationAbilitytodefinechequepurchaselimits

VendorQuestions

ChequePurchaseFutureState


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CustomernotuniquelyidentifiedintheBranchI.e.allaccountsofacustomerarenotgroupedtogetherAccountopeningnotacentralizedfunctioneachdepartmentopentheirownaccounts.NocheckingofcustomersrecordsforduplicationsatthetimeofaccountopeningSinglecustomerhavingmultipleaccountsinthesamebranchTDSisonlydeductedfromtermdepositaccountsotheraccountslikesavingsarenotconsideredNofacilitytospecifyotheraccountsfromwhichTDScanberecovered.TDScalculatedmaynotbeaccurateCurrentsystemsdonotsupportcalculationofTDSHugeamountofmanualeffortsinvolvedincalculationandrecoveryofTDSAllMISwithregardstoTDSpreparedmanually,whichistimeconsumingexerciseandresultsinhugeamountofresources

TaxDeductedatSourceCurrentState


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CustomertobebeidentifieduniquelyacrosstheBankthroughhis/hercustomerID.Allaccountsofthecustomerwillbegroupedtohis/hercustomerIDAccounts/products,schemestobedefinedinthesystemwhereTDSisapplicableRulestobedefinedinthesystemforcalculationandrecoveryofTDSTaxslabsandrateapplicabletobedefinedgloballybaseduponcertainparametersliketypeofaccount,typeofcustomeretc.AbilitytorecoverTDSfrom:Oneormoredepositaccountsofthecustomerinthesame/anyotherbranchonthecorebankingsystemDirectdeductionatthetimeofpaymentofhistermdeposit

SystemtosupportrecoveryofTDSamountalongwithinterestfromthecustomerintheeventtheBankhaspaidTDSonbehalfofthecustomerGeneratewarningletters/reminderlettersforrecoveryofTDSamountsfromthecustomerorpaymentofTDSasparameterizedinthesystemGenerateTaxcertificatesinuserdefinedformatsforanytaxdeductedatsource.

TaxDeductedatSourceFutureState


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DisplayandprinttheprojectedTaxdeductedamountattheopeningofdeposit.Thesystemshouldconsiderallthedepositaccounts/Termdepositsheldbythecustomerwiththebranch/bank.GenerateTDSReturn,asofanyparticulardate,tobefiledwiththetaxauthoritiesforTaxdeductedfromcustomers,intheformatasrequiredbythetaxauthorities.Capturedetailsofform15H,16AAutomaticallyrecalculatetheTDSamountintheeventofaprematureclosureanddisplaythebalancepayable/recoverablefromthecustomerSupportpro-ratacalculationofTDSintheeventofperiodicinterestcalculation

TaxDeductedatSourceFutureState


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TaxDeductedatSourceProcessCurrentStateFutureStateCustomernotuniquelyidentifiedintheBranchI.e.allaccountsofacustomerarenotgroupedtogetherNocheckingofcustomersrecordsforduplicationsatthetimeofaccountopeningSinglecustomerhavingmultipleaccountsinthesamebranchCurrentsystemsdonotsupportcalculationofTDSHugeamountofmanualeffortsinvolvedincalculationandrecoveryofTDSTDScalculatedmaynotbeaccurateAllMISwithregardstoTDSpreparedmanually,whichistimeconsumingexerciseandresultsinhugeamountofresources

CustomertobebeidentifieduniquelyacrosstheBankthroughhis/hercustomerID.Allaccountsofthecustomerwillbegroupedtohis/hercustomerIDAccounts/products,schemestobedefinedinthesystemwhereTDSisapplicableRulestobedefinedinthesystemforcalculationandrecoveryofTDSTaxslabsandrateapplicabletobedefinedgloballybaseduponcertainparametersliketypeofaccount,typeofcustomeretc.AbilitytorecoverTDSfromoneormoredepositaccountsofthecustomerinthesame/anyotherbranchonthecorebankingsystem,directdeductionatthetimeofpaymentofhistermdepositSystemtosupportrecoveryofTDSamountalongwithinterestfromthecustomerintheeventtheBa

nkhaspaidTDSonbehalfofthecustomerGeneratewarningletters/reminderlettersforrecoveryofTDSamountsfromthecustomerorpaymentofTDSasparameterizedinthesystemGenerateTaxcertificatesinuserdefinedformatsforanytaxdeductedatsource.GenerateTDSReturn,asofanyparticulardate,tobefiledwiththetaxauthoritiesforTaxdeductedfromcustomers,intheformatasrequiredbythetaxauthorities.

PeopleRequirementAutomationofthisprocesswouldresultinreductionofeffortsatthebranchesfortheabovementionedprocess,asmanualinterventionrequiredwouldbeminimal.Excessstaffcanbere-deployed

ManagementDecision

DatacapturetobeuniformacrossallbranchesCheckforexistenceofaccountamustAllaccountsofacustomertobegroupedunderauniquecustomerIDAllparametersforcalculationandrecoveryofTDStobegloballyparameterised,branchestohavenoaccesstomodifythesame.IdentifyproficientpersonneltodefinerulesforTDScalculationandrecovery

AbilitytosupportTDScalculationforacustomerofanybranchatanybranchonthecorebankingsolution.

AbilitytotrackthemovementoftheTDScertificatesalongwiththedetailsofthetransactionsAbilitytomaintaincustomerhistorycardforonlineverification

VendorQuestionsTaxDeductedatSourceFutureState


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OtherProcessesProcessCurrentState

FutureStateDe-centralisedSystempromptsusertoentercharges,andacceptsanyamountenteredaschargesresultingin:PossibilityofleakageofincomeCustomerdissatisfactionforwrongchargesapplied

Processeslikestoppayments,Accountholdandrestriction,accounttransfers,canbehandledbyanybranchonthecorebankingsystem.Instructionsforstoppayments,accountholds,accounttransferscanbe:GivenbythecustomeroverthecounterThroughinternet/phonebankingATMetc.

Systemtoautomaticallyapplythedateandtimestampintheeventtheinstructionshavebeenreceivedthroughanyofthedeliverychannels,butintheeventtheinstructionsaregivenoverthecounterthecollectingofficerwouldmanuallyputthedateandtimestamp

AllinstructionsreceivedoverthecounterwouldbeenteredimmediatelyinthesystembythereceivingbranchInstructionsreceivedthroughthevariousdeliverychannelswouldbedownloadedtothecorebankingsystematperiodicintervalforupdaton.SystemtovalidatetheinstrumentsbeforestoppaymentsAllcharges,commissionetc.toberecoveredfromthecustomertobegloballyparameterisedAccessrightstobedefinedinthesystemforplacing/revokingholds,stoppaymentsetc.FloorlimitstobedefinedinthesystemforinterbranchtransactionsRulesforinterbranchtransferstobedefinedinthesystemSystemtoautomaticallyprintareportbeforedayendforallinterbranchtransactionsdonebyaparticularbranchonotherbranchesandtransactionsdonebyotherbranchesofaparticularbranch

PeopleRequirementNoadditionalstaffrequiredtohandletheabovementionedprocessesIndividualdepartmentheads/officerstohandletheprocesses

ManagementDecisionDefinerulesforinterbranchtransferse.g.betweenthesamecustomeraccount,between3rdpartyaccountsMovementofinstructionsforstoppayment,accounthold/restrictionI.e.toacentrallocation,tothebranchwherethecustomeraccountismaintained,atthebranchwheretherequestwasacceptedDefinefloorlimitsforinterbranchtransactions

Definethetransactiontobeallowedthroughdeliverychannels

AbilitytohandletheabovementionedprocessesthroughanybranchonthecorebankingsolutionAbilitytodefinefloorlimitstointhesystemforinterbranchtransactionsAbilitytodefinerulesforinterbranchtransfersinthesystemAbilitytoautomaticallyprintareportbeforedayendforallinterbranchtransactionsdonebyaparticularbranchonotherbranchesandtransactionsdonebyotherbranchesofaparticularbranch


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VendorQuestions

StopPayment,AccountHolds,AccountTransfersProcessesFutureState


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BranchestoconcentrateonmarketingofcreditExpertisetoevaluatecreditproposaltobedecentralizedorcentralizedfortheBankasawholeattheHeadofficePowerstobedelegatedtothebranchestoprocessanddisburseloansonthebasisofamountofloan,purposeofloan,typeofbranchetc.Thesametobeconfiguredinthecorebankingsystem.Loan/advanceproposalbeyondthepowersofthebranchestobedirectlyforwardedtothecentralisedlocationforevaluationandprocessing.All/selectedbranchestohaveaccesstothecreditappraisalsystem.Parametersforcreditscoringandrating,benchmarking,documentationrequirementandcompliancetobeparameterisedinthecorebankingsystematacentrallevel.Branchestoonlyhaveaccesstoentertherelevantinformationforgenerationofthecreditappraisalreport.Branchestoobtainapprovalfromhigherauthorityintheeventofdeviationsfromthecreditappraisaldonebythesystem.Maximumfacilitythatcanbeofferedtothecustomerbaseduponhiscreditapprai

salandratingtobeascertainedbythesystemandvalidatedatthetimeoflimitgranting.Alldetailsofthecustomerfortheparticulartypeofloan,securitydetails,documentationdetailsetc.tobeenteredatthebranchintheeventthecreditappraisalfortheparticularcustomerwasdoneatthebranch,elsethecentraldepartmentwillberesponsibleforenteringdetailsofthecustomerfortheparticulartypeofloan,securitydetails,documentationdetailsetc

Loans&Advances(Pre-Sanction)FutureState


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Disbursalschedulestobeautomaticallygeneratedbythesystemonenteringtherequiredloandetails.Branchestobeinformedbythecentraldepartmentsthroughthecorebankingsystemabouttheacceptance/rejectionoftheproposal.Loanapprovallettertobegeneratefromthebranchandcourieredtothecustomer.Disbursaloftheloan/advancetobedonebytherespectivebranchwherethecustomerhasanaccount.

Loans&Advances(Pre-Sanction)FutureState


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Corebankingsystemtosupportpostsanctionactivitieslike:DisbursalsCollectionsCreditmonitoringNPAmanagementRecoveryGenerationofreminderlettersGenerationofstatutory&regulatoryMISPDCmaintenanceandlodgmentetc.Legal

Rulesforaccountclassifications,provisionsetc.tobeparameterizedcentrally.Branchestohavenoaccesstomodifythedefinedrules.AccountclassificationandprovisioningtobeautomatedasperdefinedbusinessrulesBranchestohavetheoptionstore-classifyaccountsalreadyclassifiedbythesystemwithappropriateauthorityMonitoringofaccountstobecentrally/de-centrallycontrolledbasedupontheamountofloan,purposeofloan,typeofbranchetc.

CentraldepartmenttohaveaccesstoviewandmonitorallaccountsbaseduponaccessprivilegesdefinedinthesystemPDCmaintenanceandlodgmenttobecentralizedregionwiseoratindividualbranchesAllstatutory,regulatory,managementandexecutiveinformationandreportstobegeneratedbythecorebankingsystem

Loans&Advances(Post-Sanction)FutureState


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Loans&AdvancesProcessCurrentStateFutureStateDecentralisedprocessingofloansandadvancesBrancheshavingthenecessaryexpertiseonlydeal/disburseparticulartypesofloans/advancesCustomerredirectedtothenearestbranchwithdealsintheparticulartypeofcreditShortageoftechnical/functionalexpertisetoservicelargecustomerbaseMISgenerationforstatutory,regulator,managementandexecutiveinformationsystemsmainlymanualinthebranches,resultingindelayedinformationflowDatacaptureinconsistent&inadequateacrossbranchesAccuracyofMISisaconcern

BranchestoconcentrateonmarketingofcreditExpertisetoevaluatecreditproposal,monitoraccounts,recovery,legal,tobedecentralisedregionwiseorcentralisedfortheBankasawholeattheHeadofficePowerstobedelegatedtothebranchestoprocessanddisburseloansonthebasisofamountofloan,purposeofloan,typeofbranchetc.Thesametobeconfiguredinthecorebankingsystem.Loan/advanceproposalbeyondthepowersofthebranchestobedirectlyforwardedtothecentralisedlocationforevaluationandprocessing.All/selectedbranchestohaveaccesstothecreditappraisalsystem.Datacapturefieldsfordataentrytobefixedcentrallytoensuredatauniformity

Forloansdisbursedbythebranches,dataentryfortheloantobedonebytherespectivebranches,elsedataentryfortheloanwillbedonebythecentralisedlocationLoanapprovallettertobegeneratefromthebranchandcourieredtothecustomer.Disbursaloftheloan/advancetobedonebytherespectivebranchwherethecustomerhasanaccount.Activitieslikecreditmonitoring,creditappraisal(beyondthepowersofthebranch),NPAmanagement,recovery,PDCmaintenance,legaltobecentralisedregionwise/bankwideRulesforaccountclassifications,provisionsetc.tobeparameterizedcentrally.Branchestohavenoaccesstomodifythedefinedrules.Anydeviationfromcreditrulesdefinedinthesystemforappraisal,sanction,interestrates,classificationetc.wouldrequirehigherapprovalBranchestobeinformedbythecentraldepartmentsthroughthesystemabouttheacceptance/rej

ectionoftheproposal,reviewcomments,actionstobetaken,etc.Consolidatedviewandcentralizedmonitoringoftotalcustomerexposure,industryexposure,groupexposureetc.Allstatutory,regulatory,managementandexecutivereportsandinformationtobegeneratedfromthecentrallocation

PeopleRequirementBurdenofloanprocessing,dataentry,monitoring,MISpreparationetc.reducedatthebranchlevel,resultinginreductionofstaffhandlingloansandadvances.ExcessstaffcanberedeployedformarketingeffortsIdentificationofcorefunctionalpersonnelintheareasofcreditappraisal,monitoring,NPAmanagement,recovery,legalacrosstheBank

ManagementDecision

Expertisetoevaluatecreditproposal,monitoraccounts,recovery,legal,tobedecentralisedregionwiseorcentralisedfortheBankasawholeattheHeadofficePowerstobedelegatedtothebranchestoprocessanddisburseloansbaseduponcertaincriteria,allotherloanprocessingtobehandledcentrallyCriteriafordisbursalatthebranchestobefixed


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Rulesformovement/classificationofaccountstobeparameterisedgloballyActivitieslikecreditmonitoring,creditappraisal(beyondthepowersofthebranch),NPAmanagement,recovery,PDCmaintenance,legaltobecentralisedregionwise/bankwideAllMIStobegeneratedfromthecentrallocationExtentallloansandadvancesschemestoallbrancheswithcontrolsonthesametobecentralised

Abilitytosupportcentralisedanddecentralisedbackofficeprocessing,monitoring,NPAmanagement,recovery,PDCmaintenance,legaletc.AbilitytosupportallcurrentloanandadvancesproductsHighlyparameterisedsystemEaseofconfiguringnewloanandadvancesproductsGenerationofMIStobecentralised/decentrlisedReminderletters,warningletters,reviewwarningsetc.tobebothcentralisedandde-centralised

VendorQuestionsLoans&AdvancesFutureState


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CorebankingsystemtosupportdocumentationmanagementforallproductsandservicesofferedbytheBank.Documentationrequiredforeachtypeofproduct/servicetobeparameterizedinthesystemalongwiththeirgraceperiods,reviewandexpiryperiodsetc.centrallyScreensforcapturingthedetailsofthedocumenttobedesignedinthecorebankingsystemaspertheBanksrequirementDocumentstobeparameterizedasmandatory,nonmandatoryinthecorebankingsystemforvariousproducts/schemesRulestobedefinedinthecorebankingfor:DocumentsnotcollectedEscalatethemattertothehigherauthorityStopall/sometransactionsintheaccountetc.

Documentsnotreceivedintimeetc.Automaticallytriggerevent(maketheDrawingPower0,etc.)EscalatethemattertothehigherauthorityChangethestatusoftheaccountChargepenalinterest/flatfees

Documentationmaybebypassedorrulesmaybeviolatedbythebranchessubjecttohigherapproval

DocumentationManagementFutureState


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Rulesforcalculationoflimits,drawingpower,marginetc.basedupondocumentationdetailsprovidedtobeparameterisedinthecorebankingcentrally.Systemtogeneratewarningmessages/lettersxnumberofdays(asparameterised)inadvancefordocumentexpiringonaparticulardate.Documentdetailstobeenteredbythebranchintheeventthecreditappraisalwasdoneatthebranches,elsethedocumentsshouldbecollectedbythebranchasperthelistofdocumentsfortheparticularproduct/schemeandthesameshouldbesenttothecentrallocationforentry.ThecentraldepartmenttohaveaccesstoviewandmonitoralldocumentationdetailsbasedupondefinedaccessprivilegesSystemtogeneratealertsfordocumentstobereviewedxnumberofdays(asparameterised)inadvance.Systemtorecalculatelimits/drawingpowerbasedonrevieweddocumentationSystemtointerfacewiththeinsurancepackageforautomaticuploadofinsurancedetailsinthecorebankingsolutionforrenewals,freshpoliciesetc.Systemtohavethefacilitytolinkmultipledocumentstooneproduct/schemeof

singledocumenttomultipleproducts/schemesWorkflowstobedefinedforautomatedescalations,approvals,authorisationsetc.basedupondefinedrules.



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DocumentationManagementProcessCurrentStateFutureStateNodocumentationmanagementsystemDetailsofdocumentsnotcapturedinthesystemDelayinreceiptofdocumentationfromthecustomer/documentsnotreceived/collectedbythebranchStorageandmovementofdocumentationisaconcernatthebranchesExpertisetocriticalevaluatedocumentsnotavailableatallbranchesManualduedatediariesmaintainedbythebranches

CorebankingsystemtosupportdocumentationmanagementforallproductsandservicesofferedbytheBank.Documentationrequiredforeachtypeofproduct/servicetobeparameterizedinthesystemalongwiththeirgraceperiods,reviewandexpiryperiodsetc.centrallyScreensforcapturingthedetailsofthedocumenttobedesignedinthecorebankingsystemaspertheBanksrequirementDocumentstobeparameterisedasmandatory,nonmandatoryinthecorebankingsystemforvariousproducts/schemesRulestobedefinedinthesystemandactionstobetriggeredfordocumentsnotcollected/documentsnotreceivedintimeDocumentationmaybebypassedorrulesmaybeviolatedbythebranchessubjecttohigherapprovalRulesforcalculationoflimits,drawingpower,marginetc.basedupondocumentationdetailsp

rovidedtobeparameterisedinthecorebankingcentrally.Systemtogeneratewarningmessages/lettersxnumberofdays(asparameterised)inadvancefordocumentexpiringonaparticular.Documentdetailstobeenteredbythebranchintheeventthecreditappraisalwasdoneatthebranches,elsethedocumentsshouldbecollectedbythebranchasperthelistofdocumentsfortheparticularproduct/schemeandthesameshouldbesenttothecentrallocationforentry.ThecentraldepartmenttohaveaccesstoviewandmonitoralldocumentationdetailsbasedupondefinedaccessprivilegesSystemtogeneratealertsfordocumentstobereviewedxnumberofdays(asparameterised)inadvance.Systemtorecalculatelimits/drawingpowerbasedonrevieweddocumentationSystemtointerfacewiththeinsurancepackageforautomaticuploadofinsurancedetailsinthe

corebankingsolutionforrenewals,freshpoliciesetc.Systemtohavethefacilitytolinkmultipledocumentstooneproduct/schemeofsingledocumenttomultipleproducts/schemesWorkflowstobedefinedforautomatedescalations,approvals,authrisationsetc.basedupondefinedrules.

PeopleRequirementNoadditionalstaffrequiredforthisprocess,shouldbehandledbyofficersofrespectivebusinessfunctions

ManagementDecision

ParameterisationofDocumentationrequiredforeachtypeofproduct/servicealongwiththeirgraceperiods,reviewandexpiryperiodsetc.centrallyRulestobedefinedinthesystemandactionstobetriggeredfordocumentsnotcollected/documentsnotreceivedintimeDocumentdetailstobeenteredbythebranchintheeventthecreditappraisalwasdoneatthebranches,elsethedocumentsshouldbecollectedbythebranchasperthelistofdocumentsfortheparticularproduct/schemeandthesameshouldbesenttothecentrallocationforentry.

Abilitytosupportallcurrentloanandadvancesproducts


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HighlyparameterisedsystemAbilitytodefinetheworkflowstobedefinedforautomatedescalations,approvals,authorisationsbasedupondefinedrules

VendorQuestions



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OnlydesignatedBankbranchesdealinforeigncurrencytransactionsExistenceofaseparatepackageforrecordingForextransactionwithnointerfacetothebranchbankingsystemBranchonlypurchases/sellforeigncurrency/travelerschequesforcustomerswhomaintainanaccountwiththatbranch.Intheeventtheparticularbranchisnotdesignatedtodealinforexthecustomerissenttothelinkbranchforpurchase/saleofforeigncurrency/travelerscheques.ThecustomerhastosubmitawrittendeclarationintheformofaletterstatingthetransactiondetailsThedetailsarerecordedinamanualregister.Currency/crosscurrencyconversionandcommissioncalculationisdonemanually.Vouchersarepreparedmanuallyforpaymentofcash,accounttransferetc.Transactionsarere-enteredinthebranchbankingsystemforthetransferamounts.

Purchase&SaleofForeignCurrency&TCCurrentState


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ProcessofIssue/PurchaseofTravelersCheques/ForeignCurrencybecompletelyautomatedandbehandledbyanybranchofthebankAllincomerelatedfields(e.g.commission,chargesetc.)forallcurrenciesbegloballyparameterized.Systemtocapturealldetailsforthepurposeofissue/purchaseofTravelsCheques/ForeignCurrency.CommissiontobeautomaticallybecalculatedforbothIssue/PurchaseofTravelersCheques&ForeignCurrencyExchangerates,crosscurrencyratesforallcurrenciestobepickupautomaticallyfromtheglobalparametertablesandtobeappliedtotheaccountsbasedupontheamountofthetransactionsormanuallyenteredSystemtopromptforspecialratesfromthetreasuryintheeventthetransactionamountisbeyondthanwhatisspecifiedintheparameteroronthebasisofthenatureofthetransaction.StockmaintenanceofTravelerscheques&ForeignCurrencyissuedtobranchestobe

enteredatacentrallocationandmonitoredbothfromthebranchaswellasthecentrallocationSystemtoapportiontheproceedsofthePurchase/salesofForeignCurrency/TravelersChequesbycash,accounttransfersorcombination.StoppaymentdetailsoftravelersChequestobeuploadedinthecorebankingsentbyTravelersChequesagents

Purchase&SaleofForeignCurrency&TCFutureState


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TravelerschequenumbertobeverifiedforstoppaymentwiththedetailsuploadedbeforeprintingtheCustomerTransactionreceiptSystemtoprinttheCustomertransactionreceiptforsale/purchaseofTravelersCheques/ForeignCurrencyasdesiredbytheBank.OnlineupdationofrespectiveaccountheadsThesystemtointerfacewithTreasurysystemforonlinereportingofpositionaswellasavailingexchange/crosscurrencyrates.Abilitytospecifylimitsforcurrency/travelerschequesholdingatthebranchesbaseduponuserdefinableparameterse.g.sizeofbranch,forexbusiness,etc.

Purchase&SaleofForeignCurrency&TCFutureState


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PurchaseandSaleofForeignCurrencyandTravellersChequesProcess

CurrentStateFutureStateOnlydesignatedBankbranchesdealinforeigncurrencytransactionsExistenceofaseparatepackageforrecordingForextransactionwithnointerfacetothebranchbankingsystemBranchonlypurchases/sellforeigncurrency/travellerschequesforcustomerswhomaintainanaccountwiththatbranch.Intheeventtheparticularbranchisnotdesignatedtodealinforexthecustomerissenttothelinkbranchforpurchase/saleofforeigncurrency/travellerscheques.Currency/crosscurrencyconversionandcommissioncalculationisdonemanually.Vouchersarepreparedmanuallyforpaymentofcash,accounttransferetc.Transactionsarere-enteredinthebranchbankingsystemforthetransferamounts.

ProcessofIssue/PurchaseofTravellersCheques/ForeignCurrencybecompletelyautomatedandbehandledbyanybranchofthebankAllincomerelatedfields(e.g.commission,chargesetc.)forallcurrenciesbegloballyparameterised.Systemtocapturealldetailsforthepurposeofissue/purchaseofTravelsCheques/ForeignCurrency.CommissiontobeautomaticallybecalculatedforbothIssue/PurchaseofTravellersCheques&ForeignCurrency

Exchangerates,crosscurrencyratesforallcurrenciestobepickupautomaticallyfromtheglobalparametertablesandtobeappliedtotheaccountsbasedupontheamountofthetransactionsormanuallyenteredSystemtopromptforspecialratesfromthetreasuryintheeventthetransactionamountisbeyondthanwhatisspecifiedintheparameteroronthebasisofthenatureofthetransaction.StockmaintenanceofTravellerscheques&ForeignCurrencyissuedtobranchestobeenteredatacentrallocationandmonitoredbothfromthebranchaswellasthecentrallocationSystemtoprinttheCustomertransactionreceiptforsale/purchaseofTravellersCheques/ForeignCurrencyasdesiredbytheBank.OnlineupdatingofrespectiveaccountheadsThesystemshouldbecapabletointerfacewithTreasurysystemforonlinereportingofpositionaswellasavailingexchange/crosscurrencyrates.

PeopleRequirementAutomationofthisprocesswouldresultinstaffreductionatthebranches.Redeploymentoftrainedstaffformbrancheshavingexcesstootherbranchestoexpandtheserviceofferings

ManagementDecision

Increasethebranchesfromaselectedfewtomaybeall/80%ofthebranchesonthecorebankingsolutionforallforexrelatedtransactions.IdentificationofbranchesforofferingforextransactionsSettingupofsmallcountersofferingforextransactionsatdomestic/internationalairports

andportsExtendthefacilityofpurchase/saleofforeigncurrencyandtravellerschequestononCentralbankcustomersRemitallforeigncurrencypurchasedtoacentralizedlocationorselltheforeigncurrencytothelocalauthoriseddealersandgetexchangeratesfromthembeforepurchase.Centralisedfundsmanagement

SupportcompleteautomationofIssue/PurchaseofTravellersCheques/ForeignCurrencySupportforcentralisedfundsmanagement


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VendorQuestionsPurchase&SaleofForeignCurrency&TCFutureState


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Definethesetofaccountingentriesthatshouldgetgeneratedateverystageofatransaction:onentryauthorizationModificationDeletionofatransaction

Definethedifferentgeneralledgersthatneedtobeupdated,basedonthetransactions,theGeneralledgerscouldbethetransactingbranch,headoffice,treasury,customerbranchetc.DefinewhentheGeneralLedgers(ofthebranch,theheadoffice,treasuryandtherelatedbranches)shouldbeupdatedbythesystem,forexample:On-linerealtimebasisAfteraspecifiedtimeinterval(30minutes,1houretc.)AtthedayendUponcompletionofspecifiednumberoftransaction

Abilitytohandleoff-linetransactionsAbilitytodefinetheaccountheadsasreconcilableandsupportautomaticreconciliationofsuchtransactionsAbilitytosupportautomaticreconciliationforalltransactionsdonebetweencor

ebankingbranches

AccountingFutureState


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Abilitytosupportreconciliationoftransactionsfornoncorebankingbranches,routedthroughtheInterBranchAccountingdepartmentAbilitytogenerateadvicesfortransactionsdoneonnoncorebankingbranchesAbilitytobifurcateaccountingentriesandposteachentryintherespectivecustomeraccountsandgeneralledgeraccountheads(e..g.interest,charges,commission,etc.)ModificationstoaccountingentriesafterauthorizationofthetransactionstobediscouragedSystemgeneratedentriestoautomaticallyeffectedintherespectiveaccountsbaseduponparametersset.SystemtosupporttransactionsfromvariousdeliverychannelssuchasATM.S,InternetBanking,PhoneBanking,SMS/MobileBankingSystemtobeabletoidentifytransactionseffectedinthecorebankingthroughvariousdeliverychannelsandcapabilitytoprintareportforthesamebaseduponuserdefinableparameterse.g.deliverychannel-wiseetc.Centraldepartmenttohavenoaccesstodirectlypostanyentriesinbranchbooks,intheeventofanydiscrepanciesinreconciliation/wrongentriesthesameshouldberectifiedbytheoriginatingbranch/departmentonly.Alltransactionsdonebycorebankingbranchesonnon-corebankingbranchesandviceversatobehandledthroughtheInterBranchaccountingandreconciliationdepartment

AccountingFutureState

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