CBS Solution Overview

• Finacle CBS confirms to core banking , e banking and web based cash management requirements

• Customer oriented – CRM module is accessible from all applications & customer data is available across applications

• Comprehensive functionality through integrated back and front office

• Adherence to regulatory reporting and risk management ensure standardized practice

• Finacle CBS ensure assimilation of external components like payment systems, clearing house, central bank and card issue etc

Benefits of Finacle CBS

Customer centric design One view of the banking customer

All products and his account balance Any branch banking / transactions across post office for all customers

Aided by online verification of signature & photo (ECMS) Instant account transfer between CBS post offices 24x7 access to banking facilities

eBanking ATM Mobile Banking

Western Union Integration will ensure credit of foreign remittances into post office savings account

Benefits of Finacle CBS

Operational Efficiency Discrepancy between SOSB and SO data will cease to exist

No manual input of vouchers at SBCO Audit work reduced

Better access control on application based on pre-defined user roles Transaction based on exception based controls Hierarchy of who can approve what transaction

Complete flexibility for grouping of sub offices and head offices for reporting

MIS report generation – automated and instant reports

Benefits Of Finacle CBS

• Regulatory compliance Anti money laundering rules integratedDynamic customer risk profiling based on KYC

regulations which is liked to consolidated cutomer account balance

Electronic filing of CTR and STRAbility to create new scenarios based on new

regulatory requirements for AML

Customer Information File CIF

• The customer information file – CIF- provides a complete and accurate view of the customer.

• It is a single source of information about the relation of the customer with indiapost across the various SB products and across various SOL

CIF

CIFCORE CRM

Other external systems

CIF Creation Process (1/2)

Customer requests for

account opening ,submits all KYC

documents along with

account opening form

On receiving all the KYC

documents & AOF , Counter PA will go ahead for CIF

creation.

a de – duplication check will be done

by using menu option ‘CDEDUP ‘

to see whether the customer is an already existing

customer

CIF ID is created at the post office by using the menu

option “CCRC/CIFCR”

CIF ID is noted in the AOF& verified by

the counter supervisor - menu –

CCRC/CIFCR and send to CPC for further process

CIF Creation Process (2/2)

Before verification , if records entered are NOT correct as per

the physical documents ,

Supervisor rejects the CIF and asks the counter PA to modify the details –menu – ‘CCRC/CIFCR” and

resubmit

CIF/account modification after

verification is done through menu

‘CMRC/CIFMD’ at CPC only

After the customer record is created in the system the user

at CPC scans and upload the customer

documents in the ECMS system

CIF - Advantages

• 1 customer 1 CIF across Indiapost• A customer having a CIF opened in one office becomes a

customer of Indiapost and same CIF can be used to open accounts in any PO

• Every CIF account opening process goes through a de-dup check which checks on 11 parameters to prevent the Duplicate CIF creation

• CIF document status report at the time of account opening captures all the KYC documents obtained for account opening

• CIF related documents can be viewed from all the CBS POs• A customer of internet /mobile banking can see all the related

accounts in one screen

Demonstartion

• A brief view of the CIF

Demonstration

Core Services

Security item vendor

Office Double Lock

Counter Assistants

Damaged items

• Track inventory movement between locations and identification of inventory type (external vendor to double lock and to employee location )

• Maintain inventory status – used / unused/ destroyed

• Split & merge of inventory items

• Authorization of inventory movement between locations

• Maintain authorizer details• Management of series of

instruments

Inventory movement

• Operating guidelines:

– Inventory indent will be raised by HO for itself and for attached Sos– Inventory received by HO for itself will be in-warded into finacle for

further process– For SOs, an identified PA will change his context SOL to identified SOL

and move the inventory for that SOL – The PM / supervisor of the context SOL will verify the physical inventory– If the physical inventory and transaction matches , the SO PM will

complete the verification process– The in-warded inventory initially will be in double lock location in Finacle– The PM/Supervisor will have to assign the inventory to counter PA

through the system based on the actual number of inventory handed over .

– Once the inventory is available with the counter PA , it can be issued to the customer

ECMS and SVS

Customer submits AOF & KYC docs

Counter PA check Docs• Form is fully filled • Correctness - KYC• KYC- A4 paper• Take specimen

signature – ss book

Counter PA

• Account opened with minimal fields

• Required doc accepted & stapled

ECMS & SVS – Process flow

Supervisor • Checks in the fields

entered by counter PA

• Approves

Counter PA • Creates packets of

stapled forms and KYC docs

• Counter PA mentions the account number & CIF ID on the AOF

Counter PA • Generate report for

CIF/accounts opened on the date

• Paste the report on the bundle

All packets will be send to CPC for scanning

ECMS & SVS – document management

• At CPC – MTS

• receives the bundle and open the packet• tally the form received with the list and mark the missing

• PA – Checks the KYC , mark the incorrect / missing – Submit to supervisor

• Supervisor– Verifies the objections by PA and returns the form back

to PA

Contd

• PA– Updates the status of AOF in Finacle hand over accepted

forms to MTS• MTS– Prepares batch of accepted AOFs

• Documents are unstapled • Separator sheets are placed with filled side on top

• PA – Scans the forms – Check the quality of images and rescan if required– Verified images are uploaded to Data Cap

Contd

• Data Cap – Maker

1. Image correction2. Page identification3. Image extraction4. Data correction

– Checker 1. Verification

• Batch files created for upload – Data files : export to Filenet repositories with tagged meta data– Images ( signature& photo ) upload to finacle – Document reference upload through batch file to finacle

• Finacle CBS – Account is completed by referring to physical

documents– Supervisor • checks the updates in finacle and accept the same

– PA • Hand over the bundles to MTS

– MTS • Removes the separator sheets and staple it back

• ECMS – A cloud based infrastructure that captures and stores all the

scanned documents obtained during account opening .– ECMS is interfaced to Finacle CBS for dynamic access of scanned

documents including signature and photo of the customer– ECMS process is done at CPC

• SVS – Integral part of Finacle CBS– Facilitates upload and viewing of photographs , signatures and

documents of the customers– For post offices view only facility

Topics

CPC Activities Office accounts

• O A basics• O A pointing • OA system

pointing • Inter SOL

accounts

Customer accounts

Account maintenance

Stop payments ,

• account attachments ( freeze )

• Lien operations

CPC

• Activities in CPC – Existing CIF modification / maintenance– Welcome kit based account opening – Existing account maintenance /modifications– Cheque book request capturing – Due notice generation – Signature and photograph viewing

• Activities related to ebanking – User login creation for internet banking access– Pin mailer generation , printing and mailing them to customer– Activities based on the cutomer requests through internet /mobile banking

• Activities related to ECMS– Physical document receipt, segregation– Scanning– Uploading to the content server– Revert the physical documents back to originating office for safe keeping

• ECMS Video

Office accounts

• Type of Office accounts– Office Account Basic (OAB)

• These are simple internal accounts . These accounts help in managing the General Ledger

• Accounts like Cash, Asset account , liability account , contingent accounts, interest , commission, exchange , discount and charges are opened under this scheme type

– Office Account Pointing • Pointing accounts are used when transactions are created for short period with a

reference and they will have to be reversed. Ex : sundry creditors, suspense payments etc

– Office System pointing • The users are not allowed to do any transactions• The transactions are generated and verified by the system on invoking or at events

. Ex For interest calculation system calculates and creates a transaction and posts it

Office Accounts

• Inter SOL accounts– In a centralised database where transaction

pertaining to accounts of more than one SOL is involved , the transactions are not routed throgh Head Office accounting . Whenever a transaction takes place between two accounts of different SOLs

Topics

CPC Activities Office accounts

• O A basics• O A pointing • OA system

pointing • Inter SOL

accounts

Customer accounts

• Various types of accounts

Account maintenance

Stop payments ,

• account attachments ( freeze )

• Lien operations

Demonstartion

Demonstration

Customer accounts – SB

• Accounts can be opened as per the DoP rule • Nomination can be captured as part of account opening process• Account number is system generated – 10 digits• Maker – checker process is applicable • Modification can be done before or after verification by due

process• Cheque book request can be captured through internet banking

channel or physical submission of request • Standing instruction can be set up for credit / debit to / from

the account – fully automated process• Feel good factor – welcome kit based account opening

Savings bank – Menu 0ptions

Activity Menu option

Opening of account CASBAO/QDESA

Verification of account opened CASBAV/QDESAVF

Modifying before verification CASBAOM/QDEMSABV

Modification of account details after verification CASBAM/QDEMSA

Cash receipt and modification CTM

Fund (Cash) transfer CXFER

Account closure HCAAC

Closure verification HCAAC

Demonstration

Demonstration

Term Deposit

• Time deposit can be opened for different type of customers – Single, Joint, Minor, Guardian on behalf of minor

• The term deposit module covers the entire life cycle of an account

• Post office can define the different interest calculation method while defining the product

• Finacle facilitates passbook /certificate printing. Reprinting and duplicate printing

• Upon maturity, TD can be automatically renewed for the period it is opened

• Closure can be pre closure or on maturity • Lien if any should be revoked

Term deposit – key terminology

TERMS DESCRIPTIONFlow Code Associated with financial transaction to deposit account . This is to identify the type of

transxn to and from a deposit account ( deposit credit , interest credit , interest payment etc)

Extension Premature renewal of a term deposit

Principal Inflow Crediting deposit amounts to deposit account for all type of accounts ( except RD)this flow happens only once to the account ideally at the time of opening of account

Principal Outflow This flow is used for debiting ( payment ) of the deposit amount ( principal) . Normally this is used when inerest is paid periodically to the customer separately . So on closure customer is entitled to receive only the principal amount .

Interest inflow This is the interest credit to the deposit account .this is used in case of cumulative type of deposits.

Total outflow Debit of closure proceeds which includes principal and interest credited to the deposit account . Normally it refers to the debit transaction of a deposit account on closure which had interest flow.

Term Deposit – Operations

Activity Menu option

Opening of a term deposit CMISAOP/MISAO

Verification of the account opened CMISAOPV/MISAVF

Modification of the account before verification

CMISAOPM/MISAMBV

Printing of passbook/ certificates HPBP

Renewal of term deposit account HTDREN

Closure of a Term Deposit Account HCAACTD

Verification of closure HCAACVTD

Modifying the closure criteria before verification

HCAACMTD

Demonstration

Demonstration

Recurring Deposit – Account Operation

Activity Menu Option

Creation of CIF ID for new customer CVRC

Opening of RD Account CRDOAAC/RDAOCM

Transaction at the time of account opening CRDOAAC/RDAOCM

Verification of the account CRDOAACV/RDACLM

Modification of the account before verification CRDOAACM/RDMAO

Issue of passbook for RD account HPBP

Closure of Rd account CRDCAAC/RDACLM select function Z - close, V – verify & cancel as required. Enter the acc number for closure

Verification of the account closure CRDCAACV/RDACLM by another user

In RD , the existing half withdrawal will be known as loan against RD . A separate account viz., RD loan account will be opened

Value addition in CBS – RD/TD

• RD account instalments can be paid through internet banking/ agents

• Agents can use agent portal to improvise the collection process

• Super agent facility to support agents from a PO location for RD installment collections

• Various process in account operation is fully automated• Interest application process run is done at DC• A customer for any of this service can do the

transaction from any CBS PO

Demonstration

Demonstration

NSC

• Certificate is issued on account opening• Each certificate issued is considered as an account in CBS. • An account number is allotted for each certificate issued• Conversion of the account from single to joint and vice versa is allowed.• Provision is made for marking lien and to freeze at the time of pledging

or on court order• In general interest is paid only on maturity• When bank advance loan against NSC pledged, PO will only mark a lien

on the account or freeze it .• In case of non-availability of the certificate inventory in the stock , the

counter PA should issue a NC(4) by noting the NC 4 number in the account opening form

• A report can be generated for NC 4 issued accounts

NSC – Process flow

Activity Menu

Opening of NSC account CSCOAAC/NSCAO

Account verification CSCOAACV/NSCAOVF

Posting of transaction ID( on verifn of an SC account , a transaction ID is generated)

HTM

Modify an account before verification CSCOAACM/NSCAMBV

Modify an account after verification CSCACM/NSCAM

Closure CSCCAAC/NSCAC

Report for the closed accounts HPR

Pending certificate issue HFINRPT option 64

In case multiple certificates are issued to a single customer , finacle CBS generates a unique number for each certificate with a common registration number

Demonstration

Demonstration

KVP

• KVP opening is discontinued 1-1-2011. However all existing account can be migrated to CBS. Following operations can be performed for the accounts transferred to CBS– Modification of account details – nominations– Premature closure as per applicable interest rate– Closure on maturity – Transfer of account from one post office to

another

KVP - Process

Activity Menu

To modify a KVP CSCACM/NSCAM

Balance enquiry HACLI

Closure/pre-closure of the KVP account CSCCAAC/NSCAC

View of account closure report HPR

1. A memo pad feature help to follow up for any missing document o any pending queries from audit or any other department

2. History can be maintained so that duplicates can be prevented across CBS offices

SCSS - PROCESS

Activity Menu

Account opening CSCAOP/SCSSAO

Verification of Account CSCAOPV/SCSSAV

Modification of the account opened before verification

CSCAOPM/SCSSMBV

Modification of the account opened after verification

CSCAM/SCSSMAV

Cash deposit and transfer transactions CTM/CXFER

Closing of an account HCAACTD

Verifying the closed account HCAACVTD

Demonstartion

Demonstration

MIS

Activity Menu options

Opening the account ( after enquiry of customers balance holding )

CMISAOP/MISAO

Verification of the account opened CMISAOPV/MISAVF

To modify an account before verification CMISAOPM/MISAMBV

Modification of an account after verification CMISAM/MISAMAV

Fund the account through cash CTM

Fund the account through transfer CXFER

Enquiry of ledger balance HACLI

Closing of MIS account HCAACTD

Verification of the closed account HCAACVTD

Age validation of the defence personnel SCDEF

MIS

• CIF ID facilitates to check the MIS limits for the customer

• Batch job for transfer of interest – automatic during end of day/month end

• Distinguish accounts for tax deduction at source

• ECS enablement help to transfer monthly interest to accounts held in other banks

Demonstartion

Demonstration

PPF

Terms Description

Deposits Amount credited to the account . Mini 500 and max 100000 per annuum

Withdrawal Allowed only after 5 years ( partial withdrawal)

Discontinued account If minimum deposit for an year is not deposited . Loan and withdrawal are not allowed in such account

Extension A matured PPF account can be extended for another 5 years. This can be extended for further block of 5 years

HUF HUF are not allowed to open PPF

PPF – Operations

Activity Menu Options

Account opening CPPFAO/PPFAO

Verification of the account CPPFAV/PPFACVF

Deposit CPDTM

Withdraw from the account CPWTM

Account closure and verification HCAAC

Demonstration

Demonstration

Discontinued schemes & exceptional schemes

• There are 21 discontinued schemes which are to be maintained so as to ensure closure of the accounts on mature /overdue /otherwise

• The only operation possible in these schemes are pay out the amount to account holder

• Balance of all such accounts are maintained in a specific office account per scheme

• During pay out specific office account will be debited and customer account will be credited

• Interest on these account has to be calculated manually based on the table

• Handling of account movement to exceptional schemes – The account has to be transferred from current

scheme to exceptional scheme using the menu “HACFR”

– The transfer has to be verified using the same menu option

– MOF relaxation cases and court cases are also handled under exceptional schemes

Topics

CPC Activities Office accounts

• O A basics• O A pointing • OA system

pointing • Inter SOL

accounts

Customer accounts

Account maintenance

Stop payments ,

• account attachments ( freeze )

• Lien operations

Account maintenance

• Lien – lien means placing an account on hold– There are two types of lien – system lien and user lien– Lien can be for partial or for entire balance in an account

• Freezing an account – Freezing is imposing restriction on an account – Frozen account does not allow any transaction – Freezing can be only for debit , only for credit or for both

• Stop payment of cheque – This is as per request of customer– This requires verification

Demonstration

Demonstration

Clearing operations – Outward

• Outward clearing : this is the process by which the instruments are send to other FI and receive the proceeds of the instruments to the customer accounts of the DOP – The process involves creation and maintenance of the

Zone . Various operations that can be performed are • Open an outward clearing zone - HMCLZOH• Suspend a zone• Revoke suspension• Inquire a zone • Regularise shadow balance

Clearing Operations – Outward

• Clearing Zone transaction– Instruments are lodged only for the opened zone – The user has the following options for entry of the

instruments– Multiple instruments for a single credit – Single instrument for a single credit – Single instrument for multiple credit

Clearing operations

• Inward clearing : – Process in which the PO receives various instruments from other

FI customers and debit the customer account to send the proceeds to the presenter

– Finacle Process includes • Opening of Zone to enable the entry of instruments • Lodging of instruments in order to pass/reject them• Verify the zone • Run through the process of suspend , validate and post the zone • Close the zone • Inquiry and reports

• The amount of the instrument will be shown as carving balance . This amount will not be available for withdrawal .

Clearing operations

• Other Processes – Inward clearing – Revoke Suspension : when zone is suspended , the user cannot

add any instruments/records. To enable this suspension of zone is to be revoked. Menu HMICZ with function R

– Unlock zone : if for any reason during the inward clearing processes , the system results in a fatal error , the process gets terminated abnormally and the zone gets locked . To resume the user has to invoke the menu HUNIZ and unlock the zone .

• Inward zone should be closed on the same day .Inward zone closure is a binding transaction for Day end Operation

Demonstration

Demonstration

ECS Process

• Customer gives the mandate /ECS data to the PO• PO updates the data to the core server and create

flat file for sending it to NCC ( outward/inward)• NCC process and send the data to respective

destination bank for processing • Destination bank updates the transaction and

send back rejects to the originating PO through NCC

ECS Mandates

• Outward – Type of Mandates– TD – outflow of interest , total outflow, principal outflow– Standing instructions– Loan payments– Interest warrant and dividend warrant payment by

companies– Utility bill payments

• Inward – inward credit of interest / dividend /warrant etc– Utility payment or any other debits from other banks– Inflow of interest from other bank TD

ECS – Finacle Process

• Enable the facility for the customer • Set up a mandate for the customer account

for outward transaction in ECS• Run the required batch job through

centralised operation for creation of upload /download data files for outward /inward clearing . Perform data segregation if required

Electronic Channels – Agent Portal

• In finacle CBS separate web portal is available for agents to view and create transactions into the RD accounts for which they have collected money

• Facilitates capturing the agent detail in agent master file by creating DSA ID/ Agent ID

• Every DSA ID can be linked to different products like RD, MIS, TD, NSC at the time of account opening

• Enables printing of agent details on the pass book of all deposit accounts

• Facilitates maintenance and payment of commission to the agents• Generates the Register of commission paid to the agents and TDS

deducted

Demonstration

Demonstration

Agent Portal

• Creation of Agent Master ( DSA)– HDSAMM to add an Agent Master – Same menu for verification by the supervisor

• Linking of an agent record to an account – Can be linked to deposit account at the time of account opening – For existing account – modification is required – Requires verification by Supervisor

• Agent transaction through e Banking & CBS– Installment to RD account can be collected through the e Banking agent portal – Reference number generated in e-Banking is used for remitting cash at post office

counter and update the customer account .• Viewing the agent Details

– Agent license number and name can be printed in all pass books of accounts linked– Commission, accounts canvassed by the agent and related transactions can be

viewed in core through DSA master maintenance

Agent Portal – Work Flow

Agent logs in and enters the RD

denominations collected for the Day

Agent segregate the cash, DOP cheques, Non DOP cheques generates a report.

Each type of collection have a

reference number.

Agent carry the physical cash and

cheque along with his report to the PO and hand over to counter

PA

PO PA download the data from agent

portal into Finacle CBS , check data against physical

instruments, submit for verification

Agent Portal

System

Finacle CBS

Demonstration

Demonstration

EOD and BOD process in a PO

• EOD and BOD are operations in finacle CBS to mark the logical end of the day for PO and mark the beginning of next working day – The PO will be able o simply proceed to next business

date and continue doing transaction as usual – For PO , the business date is the business date of the

branch from where the transaction is originating , whereas for the channels the business date is the business date of the data centre .

EOD/BOD process in a PO

• The events involved in SOL date change and closure are o Initiate SOL business date change operations _

HISCODo SOL change of Operating Date – HSCODo SOL closure batch job- HSOLCOPo SOL closure of last day – HSCOLD

Inquiry on SOL Status in Finacle is initiated using the menu Option HSSI