Account opening processes for banks and operations

BANKING OPERATIONSDAY-3 SESSION-2

MAIN FUNCTIONS OF DAU Deposit Accounts Unit normally

performs the following functions- Maintenance of Current Accounts of Banks

& other financial institutions Local Remittance Management Dealing with Govt. LCs Maintenance of GL and financial

statements Miscellaneous work

MAINTENANCE OF CURRENT ACCOUNTACCOUNT OPENING

i. An application in the prescribed form no. Bkg. 34 for opening an account, in the books of the SBP BSC (Bank) duly signed by an authorised official,

ii. Certified copy of the license issued by the concerned department of the SBP to work as a banking company in Pakistan.

iii. Original Certificate of Incorporation in terms of Section 32 of the Companies Ordinance, 1984 A Certificate of registration with SECP is also demanded from banks incorporated in foreign countries. (For inspection & return.)

iv. Original certificate of commencement of business issued by concerned department of regulating authority. (for inspection & return.)

v. Original copy of the Memorandum and Articles of Association duly authenticated by the Chairman/Secretary of the Board of Directors of the bank concerned. (for inspection & return.)

MAINTENANCE OF CURRENT ACCOUNTACCOUNT OPENING

vi. A copy of the resolution passed by the Board of Directors of the bank authorising the opening of an account with the SBP BSC (Bank). In cases where the officials who have signed the application form for opening the current account with the SBP BSC (Bank) have been empowered by a duly executed Power of Attorney to open account with the SBP BSC (Bank), production of a resolution by the Board of Directors need not be insisted upon.

vii. A power of Attorney authorising certain named officials of the bank concerned to operate on its Current Account with the SBP BSC (Bank).

viii. Duly attested three specimen signatures of the authorised officers of the bank concerned on the Bank’s specimen signature cards dully filled in all respects. These signatures should be duly verified by an official known to the SBP BSC (Bank)

MAINTENANCE OF CURRENT ACCOUNTACCOUNT OPENING

ix. In order to mitigate financial risk, a clear undertaking in form no. Bkg. 121 will be obtained from the scheduled banks which will enable the SBP BSC (Bank) to retain its right to reverse entries of wrong credits without prior approval of the beneficiary bank.

Note. If any bank experiences difficulty in furnishing the aforesaid documents in original to each of our offices, it will be sufficient if the original documents have been submitted to our Karachi office who has checked / verified the same. In such a case other offices may obtained certified copies of documents which are needed for opening of Current Account of the bank with SBP BSC having certified on each Page “Original seen” under the initials of OG-2 and affixing round stamp.

ISSUANCE OF CHEQUE BOOKS TO BANKS

On the request of the bank Cheque books are issued after proper scrutiny of the requisition slip

Entries in the Globus system and sign the forwarding letter.

Cheque book will be delivered to an authorised representative of the bank.

Cheque books are issued through system and the particulars of the cheque book to be supplied are entered in the Cheque Management Menu.

A cheque book fee which is currently Rs. 250 is automatically deducted in the issuance the process

DEPOSITS INTO CURRENT ACCOUNT

Balances in the current accounts are replenished in following ways

a) …Cash Depositb) …Cheque Depositc) ….TT/Authorities received from SBP /BSC in favour

of the Bank. CASH DEPOSIT Prescribed Green Pay in slip is submitted in DAU Security of the slip (amount in words figures, detail of cash..) Signature verification by DAU Affixing of “ACCEPT CASH” stamp by DAU Deposit of cash at cash counter in Cash division Transaction Processing (Inputting and authorisation) by Cash

Div. Counter folio of the slip is issued to the bank as receipt Returning of green slip duly stamped and initialled by ATO/TO

to DAU and preserved as credit vouchers by DAU

DEPOSITS INTO CURRENT ACCOUNT

CHEQUE DEPOSIT Cheque is deposited with Pink pay- in -slip in DAU Scrutiny of slip vis-à-vis cheque Passing of cheque by authorised official Returning of counter folio duly initialled by DAU

officials to the representative of the bank Input and authorisation in the Globus system by

DAU officials Cheque as debit and pink slip serves as credit

vouchers

SECRUTINY OF CHEQUE –PRESENTED FOR WITHDRAWL

The presenter (generally the cashiers of the banks) will be made to sign on the back of the cheque in the presence of the counter staff/official, dealing official will match his signature with signature alresdy available on back of cheque and dully verified by authorized officers of bank. Thereafter, the Staff/Officer will scrutinise the cheque to ensure that: 1. The cheque is not stale or post-dated. 2. The cheque is free from stoppage 3. The cheque is properly dated.4. The cheque form is genuine and issued by SBP BSC

(Bank) to the account holder 5. The amount in words and figures agrees. 6. If cheque is for cash payment it is not crossed.

SECRUTINY OF CHEQUE –PRESENTED FOR WITHDRAWL

7. The cheque is signed by the authorized signatory to the account..

8. There are no cuttings in the cheques thereby changing the beneficiaries of the cheque. If such cuttings are there, they should be duly authenticated by the full signature/s of the drawer

9. There are no erasures and over-writings on the cheques.

10. Credit balance in the account is sufficient to permit of the withdrawal of the amount of the cheque.

11. Endorsements if any are regular. 12. The signature of presenter (generally cashiers of

the banks) holding authority to obtain cash payments agrees with that recorded with the Bank

WITHDRAWAL THROUGH TRANSFER CHEQUES

In case of transfer, cheques will be received and passed by applying all the relevant controls By OG-1/OG-2/OG-3 of DAU and are processed in the system in DAU

WITHDRAWL THROUGH DEBIT AUTHORITY Amounts from current accounts are also withdrawn

on the basis of debit advices/authorities duly signed by the authorised officials , that are received by the SBP BSC (Bank) from the bank concerned. Generally, this happens in the case of purchase of foreign currency repayment of loans and advances taken by them from the Bank.

RETURNING OF PAID CHEQUES TO COMMERCIAL BANKS

Unlike other commercial banks all the paid cheques are segregated bank wise on monthly basis

Tallied with the bank record

Returned to the bank concerned after six months against proper acknowledgment

MONITORING OF ACCOUNTS

Intra day monitoring

End of day monitoring

Recovery of loans/advances