Centralization Process of Commercial Bank

The centralization of operational functions reduce the workload at the branches to enable them to concentrate on sales and service of the customers and eliminate risks associated in day to day branch banking .The department ensuring the services as the SL and mitigating the risk by following the local and group guidelines. Centralization of system maintenance! statement delivery! dormant accounts maintenance! routing customer credit.

#. CS$%C$ receives and checks documents

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

". b& 'f not okay! return to the source

). Pass B$* for checking and approval

+. a& 'f found okay then approves the account

+. b& 'f not found okay then returns to CS$%C$

,. CS$%C$ scanning the Signature

1) CSO/CO receives Activity documents from customer/source, attach check list and check as per AML policy and internal guideline !) a) "f okay, CSO/CO creates C"# and opens the account $) "f not okay, return the document to customer/ source %1&!'(, 1)1* %CA), !)1* %SA) +) CSO/CO passes the Account Opening #orm to $OM for necessary approval () a) $OM checks and approves the AO# and account ,) "f not okay, returns to CSO/CO *) A CSO/CO rectifies the error and re send for approval $ $OM approves the AO# and Account opening process after rectification &) CSO scans the customer%s) signature and send for approval to $OM %*'1, *'*, *'&, *')) -) $OM checks and approves the scanned signature )) CSO/CO .ill send the AO# to $S/O 0ept of 1O .ith courier tracker 2) Officer $S/O receives AO# 1') Checks the document and update data,ase 11) "f okay, 0ocumentation 3eam passes the AO# to the System Maintenance 3eam 1!) "f not okay, documentation team sends the document to respective $ranch 1+) System Maintenance team updates and maintain the information in Silver Lake System %!&+!), !&+!(, 1&1'*) 1() Officer $S/O re4uests Che4ue $ook and 0e,it card for the account %if applied ,y the account holder) 1*) Officer $S/O put seal and sign and returns the AO# to the respective ,ranch .ith for.arding " 1&) $ranch Archives the AO# 1-) CSO/CO print daily

1 CSO/C Responsi O

CSO/C O

CSO/C O

( *

$OM CSO/C O

&

CSO/C O $OM

CSO/C O

-. B$* checks and approves scanned the signature

CSO/C O 1' Officer, $S/O

.. Send the $( to BS/$

11 Officer, $S/O

#6. Check and update database

0. 1eceive the $(

1! Officer, $S/O

1+ Officer, $S/O

##. 'f okay! passes to System *aintenance Team

#". 'f not okay! then returns to the respective branch

1( Officer, $S/O

#). 2pdates and maintains customer3s info in B4S

1* Officer, $S/O

#+. Passes the $( for che5ue book and #.. rchiving the report

1& CSO/C O 1- CSO/C O

1)

CSO/C

Process7 $pen current %savings %call accounts8 'ndividual

Procedure$fficer receives the account opening form 9 of& and documentation from the branches. $fficer verifies the documents with the checklist 94ocumentation re5uired for ccounts opening page8:& and ensures that all documents have been obtained and the account opening have been duly filled in and approved. ;e%she also checks that all copies of related documents have been attested by CS$%1* and introducer3s signature in the account opening form and on the reverse of the photographs have verified. 'f it is a new customer! officer opens%<dit a new C'( number account on B4S 9branch delivery system&. $fficer pays particular attention to7 (ull name Parent3s name ddress Telephone number 'ntroducer account number 4ate of birth 9 ccording to photo id& SBS code 'f it is a new customer! officer opens%<dit a new *aster number account on 9branch delivery system&. $fficer pays particular attention to7 1* code Statement code =ominee name $fficer then opens%edit a subsidiary current %saving%call account in B4S on the basis of details appearing on the account opening form! paying special attention to the following> Product code Transaction profile B4S

Note8 'ncase where account opening forms are received incomplete or with
incomplete documentation! officer refers to 1*%B$*%B* of the respective branch to obtain clarification. Such accounts should only be opened with prior approval from head of operation or head of consumer banking. ccount should not be opened if the address of the applicant seems to be incomplete or suspicious or ambiguous or confusing or without CP?9contract point verification&.

uthority8
CS$ are authorised to open accounts on B4S and! scan signature on sigcap for opening current %savings%call accounts. 9'n branch& $fficer are authorised to approve account opening with missing %incomplete documentation provide the e@ception has been approved by ;$$%;$C. $fficer are authorised to approved and check amendments to standing data $fficer are authorised to confirm signatures recorded sigcap.

Process : Open current /call accountsCompany/Partnership/Proprietorship

A

Procedure8 $fficer receives the account opening form 9 $(& and documentation from the branches. $fficer verifies the documents with the checklist 94ocumentation re5uired for ccounts opening page8:& and ensures that all documents have been obtained. This check is very important in the case of corporate accounts as the account opening documentation may consist of several documents e.g. rticles%*emorandum of association !Broad resolution ! copy of valid trade licence! partnership agreement etc. $fficer checks to see that the Branch manager of the concern branch has authorised the opening of the account. 'f it is a new customer! officer opens%<dit a new C'( number account on B4S 9branch delivery system&. $fficer pays particular attention to7 (ull name Parent3s name ddress Telephone number 'ntroducer account number 4ate of birth 9 ccording to photo id& SBS code 'f it is a new customer! officer opens%<dit a new *aster number account on B4S 9branch delivery system&. $fficer pays particular attention to7 1* code Statement code =ominee name $fficer then opens%edit a subsidiary current %saving%call account in B4S on the basis of details appearing on the account opening form! paying special attention to the following> Product code Transaction profile

Note8 'ncase where account opening forms are received incomplete or with
incomplete documentation! officer refers to 1*%B$*%B* of the respective branch to obtain clarification. Such accounts should only be opened with prior approval from head of operation or head of consumer banking.

uthority8

CS$ are authorised to open accounts on B4S and! scan signature on sigcap for opening current %savings%call accounts. 9'n branch& $fficer are authorised to approve account opening with missing %incomplete documentation provide the e@ception has been approved by ;$$%;$C. $fficer are authorised to approved and check amendments to standing data $fficer are authorised to confirm signatures recorded sigcap.

Process: Close current /Savings/Call Accounts

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Procedure8
CS$ forward all re5uests for closing accounts to central operation department. $fficer checks account closing form or customer letter to check if it is complete and duly authorised by B*. Bhen re5uests are received where debit card has not been surrender by customer or reported lost! officer change the card status. $fficer check on B4S if there are any standing orders and deletes them. $fficer checks and ensure s that the balance in the account and accrued interest fields are nil. Bhere the balance needs to be transfer to another account with us or P$ to be issued officer prepares the vouchers and P$ and passes to officer! account services for checking and approval. fter approval officer gives the vouchers to clearing department. ll closed account files are filed with the $(. 1etention period from date of closure is #A years.

Process: Conversion of staff Accounts

Procedure:

Bhen staff leaves the employ of the bank! their accounts are converted to normal customer accounts. 1e5uests for conversions%amendments are received from *anager! ;uman resources 2pon receipt of instructions! officer en5uires on the B4S for all the accounts in the name of the particular staff member. ;e changes the segment code and 1* code in C'( and master. Change the all charges as a normal customer uthority8 $peration is authorised to accept instructions from *anager! ;uman resources to convert staff account to normal accounts

Process: Dormant Accounts Procedure8 0

ccounts not transacted for a period of time are designated as dormant account! on following basis7 Savings ccount Call ccount Current ccount " years from the date last transaction. " years from the date last transaction. # year from the date last transaction.

B4S automatically flags such accounts as dormant. The effect of this flagging is that B4S does not permit entries to be posted to such accounts without the use of a force flag. $n a periodic basis! daily basis 'T department provide dormant list. $n the basis of re5uest from customer through branches central operation department will change the dormant status of customer account e.g. re8activation of dormant account by removing the reCect status. 'f an account is in dormant and a che5ue is presented for withdrawal of cash or a cash deposit or a clearing che5ue is received! the teller after en5uiring from the B4S obtain B*%B$* approval! using a force transaction is carried out $fficer are authorised to change account status from B4S of change in account status from dormant *anager central operation is authorised to approve transfer to P/L% unclaimed as per management guide line B*%B$* are authorised to approve transaction to dormant accounts and the change of status to active on B4S

Process: nclaimed !alances Procedure8

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ccounts with dormant status are manually transferred to unclaimed balances as follows7 Savings ccount Current ccount Call ccount + year from date of transfer to dormant i.e , years from the date of last transaction. A year from date of transfer to dormant i.e , years from the date of last transaction. + year from date of transfer to dormant i.e , years from the date of last transaction.

Balance in any dormant account which has not been transacted to as above by the customer is transferred to unclaimed balances periodically 9preferably at least half yearly&. Process for transfer7 $fficer reviews report and highlight accounts to be transferred to unclaimed balances and obtains approval from *anager! central operation. $fficer call account documentation from branch $fficer debits individual accounts with force flag and credits unclaimed balance account individually carefully with complete narration e.g. account number! name! amount etc. $fficer enters details on database program%register8account number! last transaction date! amount! name address etc. $fficer delete signature on account $fficer cancel 4ebit card $fficer close accounts on B4S

$fficer stamps the account documentation as account transferred to 2nclaimed balances o : 9date 'f the customer approaches the branch for reactivating an account which has been transferred to unclaimed balance! CS$ obtains details of the customer3s account and identification in the form of a copy of the photo '4. There after the B* approves re8 activation of the account. The customer is re5uested to complete a new account

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opening form and CS$ forwards the account opening form to central operation for opening a new account. The account opening form is marked Dre8activation of account no866"66"+666,"-#- transferred from unclaimed. $n receipt of the new account opening form! the officer opens the account in accordance with normal procedure. ;e then obtains authority from the manager central operation for debiting unclaimed balances and crediting to the new account $nce a year! a list to be prepared for accounts which has not been operated #6 years and above and transfer the balance to Bangladesh bank with the list as per format. 2T;$1'TE7 Branch manager %*anager central operation must approved balances from unclaimed balances for reactivating unclaimed accounts up to their individual authority.

Process: Refer/Re"ect #nstructions Procedure8

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1efer entry markers are placed on an account .'f transactions to the account need to be monitored. Bhere refer markers are placed! the entry can be posted by the officer normally! but the entry is reported in the sundry refers report! which is reviewed by branch manager%;$CB every day. 1eCect entry markers> on the other hand! reCect any posted to the account! unless a force flag is used. 1eCect entry markers are used if no transaction are to be allowed to the account for reasons such as central bank freezes! overdrawn account! unsatisfactory conduct of account! account opened with missing documents! account held under lien etc. Transaction posted using force flag are also reported in the sundry refers report. 1e5uests for placing refer or reCect entry markers on accounts should be in writing stating the reasons! and must be approved by B*%*anager central operation or other unit. $n receipt of such re5uests! the officer inserts a marker on the account! initials the re5uest and forwards the re5uest with the report for approval on the system. Sr. officer%manager approves the insertion 1eCect%refer flags may also be placed on corporate accounts. These are placed and removed by corporate banking division. 2T;$1'TE8 $fficer are authorised to change the refer%reCect entry markers on accounts! upon receiving a re5uest in writing from the Branch manager%;$CB%*anager credit operation%*anager credit consumer banking. B*s are authorised to approve transactions to be posted to account with a force flag.

Process: Open $i%ed Deposit Account Procedure8

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$fficer received the account opening form! documentation from the CS$ .$fficer verifies the checklist and ensures that all documents 94ocumentation re5uired for ccounts opening page:.& has been obtained. 'f the account is for non individual! i.e Corporate etc! upon receipt of the original documentation and $(s! the accounts are opened. 'f it is a new customer! $fficer opens a new master account o B4S. $fficer Pay3s particular attention to7 *ailing address 1* code Telephone number $fficer opens a subsidiary fi@ed deposit account in B4S on the basis of details appearing on the account opening form! paying special attention to the following7 Short name 'nterest rate *aturity date $fficer also raises vouchers when accounts are to be opened by transferring fund from another account. 'f the account from where funds are to be transferred is in separate master! debit authority must be taken and should be verified Senior $fficer%<@ecutive $fficer.

=ote8
'n case where account opening form are received incomplete or with incomplete documentation and are not supported by a reCect marker form! refers to B*%1* of the respective branch to obtain clarification officer. Such accounts only be opened with prior approval from head of Business Banking or head of consumer banking.

uthority8
$fficer are authorised to open fi@ed deposit accounts on B4S. Senior $fficer%<@ecutive $fficer are authorised to approve account opening. Bith missing%incomplete documentation provide the e@ception has been approved by ;$CB. $fficer are authorised to approved and check amendments to standing data.

Process: Open R$CD Account #+

Procedure8 $fficer receives the account opening form 9 $(& and documentation from the branches. $fficer verifies the documents with the checklist 94ocumentation re5uired for ccounts opening page8:& and ensures that all documents including DCustomer 4eclarationF as per (<G guidelines have been obtained. 'f it is a new customer! officer opens%<dit a new C'( number account on B4S 9branch delivery system&. $fficer pays particular attention to7 (ull name Parent3s name ddress Telephone number 'ntroducer account number 4ate of birth 9 ccording to photo id& SBS code #.) 'f it is a new customer! officer opens%<dit a new *aster number account on 9branch delivery system&. $fficer pays particular attention to7 1* code Statement code =ominee name #.+ $fficer then opens%edit a subsidiary current %saving%call account in B4S on the basis of details appearing on the account opening form! paying special attention to the following> Product code Transaction profile

B4S

=ote8
'n case where account opening form are received incomplete or with incomplete documentation and are not supported by a reCect marker form! refers to B*%1* of the respective branch to obtain clarification officer. 'f the documents does not match with the (<G guide lines 1(C4 account cannot be opened.

uthority8 $fficer are authorised to open 1(C4 accounts on the basis of account opening forms%customer letters received from branches.

Process: #nterest Payment-R$CD accounts #A

Procedure8 <very month end officer gets report for 1(C4 accounts where no transaction was made e@pect credit entries. $n the basis of the report officer calculates the interest due for individual accounts as Per the interest rate provide by treasury for the previous month. $fficer prepares manual vouchers for interest payment. $fficer checks the details 9interest rate! amount and calculation& and approves the vouchers and return to check for posting. $fficer post the vouchers on B4S.

Process: &ncashment/Close a fi%ed deposit

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$n receipt of instructions from the branch! the officer encashes the deposit as re5uested by the customer. (or premature encashment! memo from chief e@ecutive provide guidelines on payment of interest as follow7

Bhere the deposit has stayed for less than ) months Bhere the deposit has stayed for more than ) months

saving interest rate given rate

'f the customer wishes to encashment his deposit and wants to transfer the proceeds to his%her account ! officer prepares vouchers for principle amount including interest 9'f any& and credits the proceeds after deducting the D <@cise dutyF as appropriate to the account. t present the rate of D<@cise dutyF is as follows7 Balance Tk #0666 Tk "66668Tk#66666 Tk#666666 to #666666 <@cise 4uty Tk 66 Tk #"6 Tk )A6

ll closed account files are filed in mandate file. 1etention period from date of closure is #A years. 'n case of roll8overs! every (i@ed 4eposit will be considered as a new one.

uthority8
$fficer are authorised to encashment deposits! upon receiving written instruction from the customer%other department.

Process: Roll-over of fi%ed deposits Procedure7 #-

B4S prints a reports ' due date order. Branches contact their customer prior to maturity and obtain 1oll8over%maturity instructions. B* send the customers instructions where received! and the report with roll8over instructions where customer instructions are either not received or not held on records. Bhere deposit are to be roll8over! the interest rate and tenor are also mentioned. By default! the rate applied is as per standard rate sheet and the tenor is the e@isting tenor. $fficer prepares vouchers for deduction of e@cise duty where applicable. *anager central operation reviews e@ception reports to ensure that deposits matured but not rolled8over are closely monitored and followed up. ;e also checks deposits accounts with zero balance to follow8up with the balances for resolution.

uthority8
$fficer are authorised to roll8over deposits! as per customer%B*%1* instructions or in the absence of customer instructions! for similar period at prevailing interest rate.

Process: Central operation- 'iscellaneous Re(uests rocedure8 #.

$n receipt of standard D ccount services form or customer re5uest letter attached with the above form approved by B*%1*%B$* the central operation does the following7 Signature change%add8logs on to sigcap! makes necessary changes%additions. ddress%Telephone number change8logs on to B4S and respective C'( account and changes the same. Statement fre5uency % other re5uest8 logs on B4S and changes as appropriate. $fficer then files the letter % form respective customer3s mandate file. =ote8 number ddress % telephone number changes should not be done if the address of the applicant % telephone no seems to be incomplete or suspicious or ambiguous or confusing. Such cases should be referred to Branch. uthority8 $fficer are authorised to changes address % telephone number %signature at the re5uest of customer which is duly approved by CS$%B*%1*.

Process: De)it card process Procedure8 5eceive de,it card re4uest from customer ,y AO# or ,y de,it card application form CSO/CO .ill check the signature / application form

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"f found okay then deduct the charges and send the re4uest to $S/O "f not then rectify the lapses 5eceive re4uest from ,ranch6 check a/c name, num,er, and type of a/c in system %general, staff, e7ecutive or priority) Check the charge in the system .hether it is deducted or not %Charge should ,e deducted as per the category of the customer) "f charge is deducted then proceed, other.ise return the re4uest to the ,ranch Create the card in CMS %Card Management System) as per customer8s prefera,le name re4uest Send mail to vendor in the end of the day mentioning the total no of card, ,atch num,er $S / O received the cards and 9":s in the ne7t day After receiving the cards import data from CMS 0o.nload the daily production report 9repare the delivery sheet 0edicated courier service delivers the card and 9":s according to delivery ,ranch a Officer at ,ranch receives the card and 9":s and ackno.ledge , Courier Company keeps the ackno.ledgement copy on ,ehalf of $S / O 1ead Office c #or any 4uery, Courier Company supplies the 9O0 %proof of delivery) to $S / O $ranch updates the card and 9":s register Card and 9":s kept under ! separate designated custodians At the time of delivery, $ranch Official verify customer8s signature, update register, approved ,y $M/$OM "f customers .ill not come to collect the card and 9":s .ithin three months then ,ranch .ill call the customer to collect it

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After calling the customers if customers still not come to the ,ranch to collect it then ,ranch .ill issue a letter to collect the instrument "f the customer .ill not come .ithin - days from the letter issue date then ,ranch .ill destroy the instrument and keep the 9O0 in a file

Process: Che(ue !oo*s

Procedure8 Che5ue books are processed by central operation. Stocks are maintained at central operation and e@ternal printing 9name and account number& is also co8ordinate by central operation. s per agreement with the printer central operation supplies che5ue books to the printer on a weekly basis. $fficer receives che5ue books re5uisition form for e@isting and new accounts from branches within the cut8time. $fficer email the re5uisition to the printer for printing the names and account no. Te printer delivers the printed che5ue books for branches in 4haka on the ne@t working day. (or remote branches the printer mails the che5ue books directly to the branches through our designated courier on the same day and branches receive the same on the following day. $fficer checks the printed che5ue books will the re5uisition. 'f any error is identified che5ue book will be destroyed and a fresh che5ue book will be printed. $fficer sends che5ue books along with the re5uisition form to the branches for onward delivery to customer

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$fficer receives back the acknowledgement copy of che5ue book re5uisition form branches and files the same date order. 'f acknowledgement is not received from the branches by two working days! the officer follow8up with the branches for resolution Courier controls must be followed.

uthorised8
$fficer are authorised to place order with printer for printing che5ue books.

Process: Courier controls

Procedure8
4ue to centralised operation in 4haka! there is a substantial flow of document s% correspondence%che5ues%cards etc! between the branches and central operation. 't is e@tremely important that all mail despatch and receipt is done with proper controls. (or despatch to central operations! all branch staff must use the special envelopes and provide a mail from branch. Contents of envelope must be clearly stated on the control sheet. The control sheets are in three ply and pre printed. consecutive serial number is to be used. Two copies should be sent to central operation along with the contents. 2pon receipt of envelope at central operation! contents will be checked against the control sheet and if found correct! one copy will be signed and back to the respective branch. ny discrepancy is to be immediately followed up and resolved. 2pon receipt of the acknowledgement copy back from central operation! branch staff must Dmark8offF their copy. t central operation any missing receipts must be followed up immediately with the respective branches. t the branches! any missing acknowledgements must be followed immediately upon receipt of the subse5uent serial number. ""

(or despatches by account services to the branches! staffs use D*ail from ccount ServicesF. The same procedures stated above apply e@cept that the despatch is originated by account services and the acknowledgements are sent by the branches. ll mail received at account services and at branches must be time and date stamped Control sheets and acknowledgements must be kept on file for at least )6 days.

uthority8
$fficer are authorised to receive and despatch mail and to sign the control sheets and acknowledgements.

Process: Documentation re(uired for accounts opening

Procedure8

Current ccount 9local currency&7

Completed personal account opening form9 $(& Photo 'dentity and photograph dully attested by introducer =ote8 (oreign nationals are not entitled to open savings account

Current ccount 9local currency&7

Complete personal account opening 9 $(& Photo 'dentity and photograph dully attested by introducer

(i@ed deposits 9local currency8for new customer&

Complete personal account opening 9 $(& Photo 'dentity and photograph dully attested by introducer ")

ssociations%Clubs%Charities%Societies etc7
Complete account opening form Copy of constitution % By8laws% trust deed %memorandum and articles of association. Copy of certificate of registration of the association % club% society% charity 9*inistry of social welfare or registrar of co8operative& List of members of governing body % e@ecutive committee of the association % club % society% charity etc. <@tract of resolution of the governing body or e@ecutive committee of the association % club% charity % society for opening account with the bank. ttested photo identity%photograph of the persons authorised to sign of such institutions.

Limited liability Company7

Complete account opening form. 1esolution or e@tract of resolution for opening the account authorisation for its operation should be certified as state in the articles of association or by the chairperson. Certified true copy of memorandum and articles of association of the company certificate of incorporation. ?alid trade license. List of directors with their address. Certified copy of form @ii. The account certified by the chairperson. Photographs of signatories duly attested. Certificate of commencement of business 9in case of public limited company& Copy of certificate of chief controller of insurance 9only in case of insurance companies& =.H.$7 Completed account opening form.

"+

1esolution or e@tract of resolution for opening the account authorisation for its operation should be certified as state in the articles of association or by the chairperson. Certified true copy constitution % By8laws% trust deed % memorandum and articles of association. Certificate of registration from ministry of social welfare. Certificate of registration from =.H.$ bureau 9in case of =H$s funded by overseas donor agencies&. List of members of the governing body or e@ecutive committee with their address Certified copy of form 9if registered with 1.I.S.C& Photographs of signatories duly attested.

uthority8
CS$%B$* are not authorised to waive standard documentation re5uired for account opening. ;ead of business%head of consumer banking is authorised to open account with pending documents. 'n such cases CS$%B* prepares a list of documents missing%discrepancies> a copy of which will be retained by the branch for following up with the customer and regularisation.

"A

Problems identified8
#. Central operation process is doing their Cob with the help of worldwide standard softwares! which is very costly. 'n addition! the maintenance costs like upgrading and customizing them are 5uite high. ". 't is often observed that the software does not function properly. ). Central operation department does not communicate with the customers directly. ;ence it becomes 5uite difficult and time consuming! sometimes! to solve even the simplest of problems. +. Central operation department collects and sends various documents! debit cards! pins! vouchers etc through their courier service. Sometimes the courier service does not provide their service properly and timely.

1ecommendations8

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#.

'T department team needs to be develop so that they can upgrade the softwares and other technical issues all by themselves! otherwise it might cost a fortune to upgrade it from the software service provider.

". Central operation department should directly communicate with their customers over phone or e8mail which will make the process more efficient. ). Central operation department should collect and send varies documents! vouchers through mail 9scan copy& instead courier service which will be safe! 5uick and cost effective.

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