4.

General Banking activities of

rupali babnk limited
4.1 Overview of Rupali Bank Madina Market Branch

Generally a model bank comprise of

minimum 3 departments. They are:
General Banking, Credit & Foreign
Exchange
But unfortunately Rupali bank
madina market branch has GB &
Credit Department
4.2 General Banking activities
4.2.1 Account Opening Section
4.2.2 Clearing Section
4.2.3 Remittance
4.2.3.1. Local Remittance
4.2.3.2 Foreign Remittance
4.2.4 Cash Section
4.2.5 Accounts Section

CONTENTS
Part

Page

Acknowledgement

LETTER OF TRANSMITTAL

Executive Summary

5&6

INTRODUCTION PART
1.0 Introduction

10
11

1.1 Origin of the report

11

1.2 Rationale of the study

11

1.3 Objectives of the report

11

1.5 Methodology of the study

12

1.6 Constraints of the study

12

ORGANIZATION PART

13

2.0 Origin of Rupali Bank

14

2.1 Location of the bank

14

2.2 Foreign corresponding Banks.

15

2.3 Diary of events & brief profile of Rupali Bank 16

2.4 Hierarchy of the Rupali Bank

17

2.5 Vision

18

2.6 Mission

19

2.7 Core values

20

2.8 Strategic Objectives of Rupali Bank Ltd.

2.9 Ethical Principles of Rupali Bank Ltd.

21
22 & 23

2.10 Core strengths

24

2.11 Services & Products

24

Services

24

2.11.2 Products
schemes

2.11.1
25

2.12. Loan

25 &26

LARNING PART

27

3.0 Operational producers of General Banking

29

3.1 Account opening department

29

3.1.1 Who can open A/c

29

3.1.2 Account transfer

30

3.2 Deposit Section

30

3.2.1 Types of deposit account

30

3.2.1.1 Current account

31

3.2.1.2 Savings account

32

3.2.1.3 Short term deposit account

3.2.1.4 Fixed deposit account

33
34

3.3 Kinds of depositors accounts

3.4 Formalities for opening different types of A/C

34-35
36

3.4.1 Documents for savings accounts

36

3.4.2 Documents for current accounts

36-38

3.4.3 Documents for short term deposit A/C

39

3.4.4 Documents for fixed deposit

39

3.5 Issue cheque book& payment of cheque

39

3.5.1 Issue cheque of book

39

3.5.2 How cheque book is processed

40

3.6 Closing of account

41

Local Remittance Department

42

4.0 Pay Order

43

4.1. Issuance of pay order

43

4.2. Payment of pay order

44

4.3. Issuance of duplicate pay order

44

4.4. Cancellation of pay order

45

5.0 Telegraphic Transfer

5.1 Steps of issuance of T.T

45
46

5.2 Cancellation of T.T

46

6.0 Demand Draft

46

6.1 Issuance of DD

47

6.2 Payment of DD

48

6.3 Cancellation of DD

48

Clearing Department

49

7.0 Clearing Department

50

7.1 Types of clearing

50

8.0 Bills Collection

52

8.1 Types of bills for collection

52

8.1.1 Outward bills collection

52

8.1.2 Inwards bills for collection

53

Dispatch Department

54

9.0 Dispatch

55

9.1 Inward Dispatch

55

9.2 Outward Dispatch

56

9.3 What kind of things will be dispatched

56

Findings and Recommendation

10.1 Problems identification

57
58

10.2 Recommendations

59

11.0 Conclusion

60

12.0 References

61

Introduction Part

AN INTRODUCTION
The internship program of BBA is a partial requirement to take a taste of real life
challenge conducted by the intern. It is an important part of the BBA program. This
program is for 3 months duration. The period for this program was from January 01, 2015
to March 31, 2015. During this period I have worked closely with the employees of
Rupali Bank in Corporate Branch. This report presents the outcomes of the study during
the internship Rupali Bank Ltd. I was assigned a topic- General Banking Activities of
Rupali Bank Ltd.
1.1 ORIGIN OF THE REPORT
To full fill the BBA degree requirement under the-------University Of Bangladesh, this
report is done. This is an individual assignment, which is to be prepared on the basis of
the practical working experiences and working at least three month under an organization
as a internship.
1.2 RATIONALE OF THE STUDY
Theoretical knowledge is not enough for a student. It is a far difference between
theoretical knowledge and practical field. Main purpose that may be to know about the
rules, regulations, and environment of an organization before getting a job.
1.3 OBJECTIVES OF THE REPORT
Every repot has its objectives. The main focus of the report is to know about the Rupali
Bank Ltd. and get an overall idea about this bank. The objective of the report is General
Banking Activities of Rupali Bank Ltd..

1.4 METHODOLOGY OF THE STUDY

During the time of internship period, I spent my time in the different department of the
bank as a rule of internship. I worked with the different department officers desk and
acquired knowledge. To prepare this report I have collected data or information from
different sources of the bank. The sources of data / information can be divided into two
parts:
1.4.1 Primary sources
Primary sources of data means are those data what we get from the practical work &
through interview of the customer of the Bank:

Discussion with the banking officer in-charge of Rupali Bank Ltd.

Direct conversation with the customer.

Discussion with the expert person.

1.4.2 Secondary sources
The secondary sources of data are given below:
Annual Report of the Rupali Bank Ltd.
Different web site that are related to this bank
1.5 Constraints of the study
In the study field I face some problems or constraints of the study. They are as follows:

All kinds of documents or paper related with my study are not sufficient.

The Bankers do not provide all the information which are very confidential.

Most of the time up to date information is provided by the banker.

ORGANIZATION PART

2.0 ORIGIN OF RUPALI BANK LTD.

Rupali means people. This is a progressive bank. It has been operating since it's inception in
1972 both in Bangladesh and overseas. Rupali Bank ltd. has been playing a significant role in
the economic development of the country by mobilizing savings and challenging funds into
different productive sectors. It is also a major player in the fields of micro-credit and software
development.
Rupali Bank ltd. is a nationalized commercial bank established under the Bangladesh Banks
(Nationalization) order 1972. The bank was created by taking over the branches of Three
abandoned Pakistani banks the Muslim Commercial Bank Ltd. Australasia Bank Ltd. and
Standard Bank Ltd.; the bank started its operations with an initial authorized capital of TK. 50
million and paid up capital of TK 50 million and later amount of paid up capital was raised to
TK.10.5 million. The authorized capital was raised to TK 30 million in 1973. Since then the
authorized and paid up capital remained unchanged till December 1983. Later, both were

increased from time to time and their amount stood at TK. 8 billion and TK. 2.594 billion
respectively on 30 September 2010. The reserve funds of the bank on that date were TK. 367
million.

2.1 LOCATION
NAME OF THE BRANCHES AT DHAKA ZONE:

1.

Dhaka
Divisional
34,
Motijheel
Commercial
Area,
Phone
:
9552214,
9551840,
Fax : 880-2-956414

Office
Dhaka-1000
9552746

2.2 FOREGIN CORRESPONDANCE:

Rupali bank has already established a worldwide network and relationship with
international banking through its four (4) overseas Barnacles in U.A.E, subsidiaries .
OVERSEAS BRANCHES:
Name of overseas branches is given below:
ABU DHABI:

SHARJAH:

Rupali bank

Rupali Bank

Abu dhabi bank

Sharjah Branch

Obied Sayah Al-Mansuri Building

Al Qassim Building

Abu dhabi, UAE

Sharjah, UAE

DUBAI:

Al-AIN:

Rupali bank

Rupali Bank

Dubai Branch

Al-Ain Branch

Baniyas complex

Al-Nahyan Building

Deira Dubai, UAE.

Al-Ain, UAE

2.3 DIARY OF EVENTS &BRIEF PROFILE OF RUPALI BANK:

GENERAL INFORMATION
Certificate of incorporation
Certificate of comment of business
Bangladesh bank licence
First branch opened
Number of branch
Number of employees
Global Corresponding
Listing of share

March, 12,1972
March, 12,1972
March, 23,1972
May, 25,1972
492(present)
More than 5000
More than 183
DSE &CSE

FINANCIAL STABILITY INFORMATION

Authorized capital
Paid- up capital
Paid- up capital& reserve
Deposit
Loan and advance
Investment
Operating profit

In Dec. 30, 2010

In Dec. 30, 2010
In Dec. 30, 2010
In Dec. 30, 2010
In Dec. 30, 2010
In Dec. 30, 2010
In Dec. 30, 2010

700.00 Crore
125.00 Crore
570.78 Crore
9112.63 Crore
6605.49 Crore
1476.25 Crore
250.00 Crore

CHAIRMAN OF THE BANK

Mr. Dr. Ahmed Al-Kabir

Chairman, Rupali Bank Ltd.

MANAGING DIRECTOR (MD) OF THE BANK

Mr. Md. Farid Uddin Ahmed

Managing Director, Rupali Bank Ltd.

DEPUTY MANAGING DIRECTOR OF THE BANK

Mr. Jaglul Karim

DMD, Rupali Bank Ltd.

Mr. Shaik Ahmed

DMD, Rupali Bank Ltd.

10

2.4 HIERARCHY OF RUPALI BANK LIMITED

Managing
Managing Director
Director (MD)
(MD)
Deputy
Deputy Managing
Managing Director
Director (DMD)
(DMD)
General
General Manager
Manager (GM)
(GM)
Deputy
Deputy General
General Manager
Manager (DGM)
(DGM)
Assistant
Assistant General
General Manager
Manager (AGM)
(AGM)
Senior
Senior Principal
Principal Officer
Officer (SPO)
(SPO)
Principal
Principal Officer
Officer (PO)
(PO)
Senior
Senior Officer
Officer (SO)
(SO)

2.5 Vision of Rupali Bank Ltd.:

Officer
Officer

Vision of Rupali Bank Ltd. to expand loyal customer base by being known as the
financial partner of choice that constantly
customer expectations.
Junior
Officer
Juniorexceeds
Officer

Assistant
Assistant Officer
Officer
Office
Office Assistant
Assistant (CT)
(CT)
Office
Office Assistant
Assistant (Gamader)
(Gamader)
Office
Office Assistant
Assistant (Peon)
(Peon)
Office
Office Assistant
Assistant (Arms
(Arms Guard)
Guard)
11

2.6 Mission of Rupali Bank Ltd.:

Develop long-term relationships that help our customers achieve financial

success.

Offer rewarding career opportunities and cultivate staff commitments.

Uphold ethical values and meet its customers financial needs in the fastest and
most appropriate way and continue innovative works in order to achieve human resource
with superior qualities, technological infrastructure and service packages.

2.7 Core values of Rupali Bank Ltd:

Social Responsibility-we care for and contribute to our communities

Performance-we measure results and reward achievements

Integrity-we uphold trustworthiness and business ethics

Respect-we cherish every individual

Innovation-we encourage creativity

12

Teamwork-we work together to succeed

The first letters of the initial words form SPIRIT and carry equal importance

2.8 Strategic Objectives of Rupali Bank Ltd

Develop a customer oriented service culture with special emphasis on customer

care and convenience.
Increase our market share by following a disciplined growth strategy.
Achieve a significant share of deposit and credits from the existing and niche
markets.
Leverage our technology platform and pen scalable systems to achieve costeffective operations, efficient MIS, improved delivery capability and high service
standards.
Develop innovative products and services that attract our targeted customers and
market segments.
Maintain a high quality assets portfolio to achieve strong and sustainable returns
and to continuously build shareholders value.
Explore new avenues for growth and profitability, particularly by diversifying
loan portfolio through structured finance and expansion of retail and SME financing.
Strengthen the banks brand recognition.

13

2.9 Ethical Principles of Rupali Bank Ltd. :

Customer Focus and Fairness: At RBL, our prime focus is to achieve perfection in our
customer service. Customers are our first priority and driving force. We wish to gain
customer confidence and be their trusted partner. We believe in fair treatment to all
customers, depositors, borrowers and clients without any discrimination.
Quality; Quality service experience is a paramount to our customers and we are strongly
committed to fulfilling this ideal. We have a culture of timely compliance of regulatory
requirements.
Honesty and Integrity: We ensure the highest level of integrity to our customers,
creating an ongoing relationship of trust and confidence. We treat our customers with
honesty, fairness and respect.
Belief in our People: We recognize that employees are our most valuable asset and our
competitive strength. We respect the worth and dignity of individual employees who
devote their careers for the progress of the bank. We trust in equal treatment to all
shareholders irrespective of their individual size of shareholdings.
Teamwork : We are a firm believer in team work and feel that loyal and motivated teams
can produce extraordinary results. We are driven by a performance culture where
recognition and rewards are based on individual merit and demonstrated track record.
Good Corporate Governance: Effective corporate governance procedures are essential
to achieve and maintain public trust and confidence in any company, more so in a
banking company. At RBL, we are committed to following best practices resulting in
good corporate governance.
Corporate Social Responsibility: As a responsible corporate , we consider it important
to act in a responsible manner towards the environment and society. Our commitment has
always been to behave ethically and contribute towards the improvement of quality of life
of our people, the community and greatly the society, of which we are an integral part.

14

2.10 Core strengths:

Quick decision making

Efficient team performance

Satisfied customer

Internal control
2.11 SERVICES AND PRODUCTS
Services and products are given below:

2.11.1 Services:

ATM SERVICES

15

LOCKER SERVICES
Locker services

Small
Medium
Large

Yearly charge
Tk.1000
Tk.1500
Tk.2000

Security deposit

Name of Branch

Tk.3000
Tk.2500
Tk.2000

Corporate branch
Corporate branch
Corporate branch

Security deposits are refundable when lockers surrender to the bank.

2.11.2 Products:
Deposit schemes

Revised interest rate on deposit

Current (CD)
Savings (SB)
Short Term Deposit (STD)

0.00%
4.50%
3.50%

Fixed deposit
3 (three) month FDR
6 (six) month FDR
1year FDR
2 year FDR

7.50%
7.75%
8.00%
8.50%

But the rate of interest may be change at the condition of bank and economy.
2.10 Loan schemes:
Rupali Bank Ltd. is a Govt. oriented bank. So they are always be with the people. They
provide loan to every sector. But at the moment following major loan
schemes are provided by the Bank.

16

LENDING CATAGORIES

LOAN SCHEME
Agriculture Scheme

Loan to primary producers

LENDING
RATES
10.00%

Loan to agriculture input traders and 10.00%

Commercial Lending

fertilizer dealers/distributors
Jute Trading

10.00%

Working Capital

Other commercial Lending

Jute

13.00%
12.00%

House Building

Other than jute

Real State Developers

13.00%
12.00%

Other Loans

Individual/Housing Finance co.

12.00%
For NBFIs/NGOs (non banking financial 10.00%
institution)

Small/ Cottage Industry

Large

/Medium

Consumer Credit scheme

Others
Term Loan

Scale Term Loan

13.00%
13.00%
11.50%
12.00%

Industry
Loan against Export

Jute Goods Exports

11.00% fixed

17

LEARNING PART
Based on General Banking (GB)

OPERATIONAL PROCEDURE
OF
GENERAL BANKINGS

3.0 GENERAL BANKING

18

General banking department is the heart of all banking activities. This is the busiest and
important department of a branch, because funds are mobilized, cash transactions are
made; clearing, remittance and accounting activities are done here.
Since bank is confined to provide the services everyday, general banking is also known as
retail banking. In Rupali Bank ltd., Corporate Branch, the following departments are
under general banking section:
Account opening section
Deposit Section
Cash Section
Remittance section
Clearing section
Dispatch

3.1 Account opening department

3.1.1 Who Can Open A/C?

Persons over 18 years (except some restricted persons)

Account of Club

Association

Agent

Govt. & Semi Govt. Organization

Liquidators

Married Women

Pordanshil Women

Illiterate Persons

3.1.2 Account Transfer

Customer has to submit an application mentioning that he/she wants to transfer his/her
A/C to their desired branch and the officer will verify the signature. Customer has to be
certified by different department of bank that he/she has no liabilities to the bank. Then
total particulars of A/C holder will be prepared and sent to the customer's desired branch.
19

3.2 Deposit Section

3.2.1 DIFFERENT TYPES OF DEPOSIT ACCOUNT
A deposit account is an account at a banking institution that allows money to be held on
behalf of the account holder. Some banks charge a fee for this service, while others may
pay the client interest on the funds deposited.
The account holder retains rights to their deposit, although restrictions placed on access
depend upon the terms and conditions of the account and the provider.
The Rupali Bank ltd. offers the following types of accounts to its various customers:
a. Current account.

Individual current account

Proprietorship current account

LTD. Company current account

Club, Society current account

b. Savings account
c. Short term deposit

d.

Fixed deposits

e.

Rupali Pension Schem

3.2.1.1 CURRENT ACCOUNT:
Current account is purely a demand deposit account. There is no restriction on
withdrawing money from the account. It is basically justified when funds are to be
collected and money is to be paid at frequent interval. Some important points have been
discussed in the project part.

Rules:
The primary rules for opening current account are given below:

20

Current account can be opened for individuals and individuals and business

concerns including non-profit organizations.

A Current Account shall be opened with a minimum balance of tk.10000.00 at

Rupali Bank ltd.: Corporate Branch.

A Current A/C shall be opened with an initial cash deposit.

Cheque book shall be issued to the account holder having a minimum balance of
tk.5000.00.
A current account holder can draw cheque on their accounts for any amount and

any number of times in a day subject to the availability of balance.

No interest should be allowed on current accounts.

The bank reserve the right to refuse or close any account without assigning any
reason thereof.
Notice, Stopping payment of any cheque shall be made by the account in

writing, which shall be recorded.

3.2.1.2 SAVINGS ACCOUNT:

This deposit is primarily for small-scale savers. Hence, there is a restriction on
withdrawals in a month. Heavy withdrawals are permitted only against prior notice. Some
Important Points have been discussed in project part.

Rules:
The primary rules for opening saving account are given below:

Savings bank account shall be open in the name of adult individual or jointly in
the names of two or more person payable either or both all of them or clubs, associations,
and similar types of institutions.

21

Saving A/C shall be opened with an initial minimum cash deposit Tk. 10000 and

depositors always have to maintain till account closed.

No person should be allowed to open more than one account in his /her name. .

Cheque book shall be issued to the A/C holder having a minimum balance
Tk.5000 in the account.

A savings A/C holder shall deposits money as often as he wishes.

Rate of interest shall be altered from time to time.

Interest shall be allowed only on accounts bearing a minimum balance

tk 5000.00-per calendar month.

The reserve the right to stop issuance of new cheque book to any customer.

Saving account shall not be allowed to be conducted as current account.

A saving account shall not allow being overdrawn.

Notice, Stopping payment of any cheque shall be made by the account holder
in writing, which shall be recorded.
3.2.1.3 SHORT TERM/SHORT NOTICE DEPOSIT A/C (STD/SND)
Normally various big companies, organizations, Government Departments keep money in
STD/SND account. Frequent withdrawal is discouraged and requires prior notice.
The deposit should be kept for at least seven days to get interest. The interest
offered for STD/SND is less than that of savings deposit. Interest is calculated
based on daily minimum product and paid two times in a year.
Rules:
The primary rules for opening short term account (STD/SND) are given below:

Short-term/Short Notice deposit a/c (STD/SND) special notice deposit accounts

are opened usually by corporations, banks, financials institutions, public limited
companies etc.

The rate of interest on such deposit is subject to change to be fixed by Head office
from time to time.

22

Interest shall be paid in the clients account on daily product basis to be calculated
at the end of each calendar year.

Statements of account shall be dispatched to all account holders by the bank on a

monthly/ quarterly /half yearly as per desire of the customers to be specified in the A/C
opening form while opening an A/C.

3.2.1.4 FIXED DEPOSITS A/C:

Fixed deposits account is a kind of a/c where any one can open FDR. This accounts is
basically periodical a/c. Maturity period of this account is 3months, 6 months, 1 year and
above, and two year and above.
Rules

Fixed deposits are neither transferable nor negotiable.

Fixed deposits shall be opened singly or jointly.

Fixed deposits shall be opened in the name of a minor jointly with the guardian.

Fixed deposits shall be opened for a period of one month and above.

Interest on fixed deposits shall be payable at the rates fixed by Head Office from
time to time, depending on the period of maturity.

Interest on accrued on FDR shall be paid on maturity of instrument.

The FDR shall be paid before the expiry of the maturity period at request of the
party. For payment of interest of premature FDR that case Head Office circular issued
from time to time is to be followed.

If an FDR is issued to one individual, additional name shall be included in the

FDR ay his request.
3.3 KINDS OF DEPOSITORS ACCOUNTS:

23

Branches shall open accounts for the following categories of depositors:

Individuals: Any adult competent to enter into contracts can open an individual account.
Individual accounts can be opened for adults (i.e. over 18 yeas of age) who are competent
to enter into contracts.
Joint Account: More than one adult jointly or adult with minor(s) shall constitute joint
accounts.
Sole proprietorship Concerns: A business or trading concern owed by a single adult
person is a sole proprietorship concern.
Partnership firms: A business concern owned and managed by more than one person
whether registered or not is a partnership firm.
Private Limited Company: A corporate body formed and registered under Companies Act,
1913 with limited liability having a Certificate of Incorporation give y Registrar of Joint
Stock Companies.
Public Limited Company: A corporate body formed and registered under Companies Act,
1d913 with limited liability of the shareholders and with no upper ceiling on the number
of shareholders. It shall have the following valid documents:
Clubs/Associations/Societies: These organizations shall be created and registered under
Societies Registration Act. They may not be registered organizations. Some of them shall
be registered under Companies Act.
Co-operatives: These are corporate bodies registered under Societies Act.
Non-Government Organizations: Non-Government Organizations (NGOs) are voluntary
organizations created & registered under Societies, Registration Act or Co-operative
Societies Act.
Non-trading Concerns: These are organizations registered under Societies Registration
Act or Companies Act or Co-operative Societies Act.

3.4 Formalities for Opening Different Types of A/C

24

The following documents duly completed shall be obtained from the customer at the time
of opening of:
3.4.1DOCUMENTS REQUIRED FOR SAVINGS ACCOUNTS:
Documents that are require for opening saving account given below:

Two copy Passport Size Photo.

Account Opening From

Mandate or authority shall be obtained in case the customer wants to authorize another
person to operate the account.

Copy of Passport/Nationality Certificate/Voter ID of the persons operating the account.

KYC (Know your Customer) Form.

3.4.2 DOCUMENTS REQUIRED FOR CURRENT ACCOUNT:
There have different categories of current account. That are in following and documents
that are require for that categories are given below:

Current Individual/joint A/c

Current Partnership A/c

Current Proprietorship A/c

Limited company A/c

Societies, Clubs, Associations A/c
Current Individual / Joint Account

1.

Introducer of the account.

2.

Two photographs of the signatories duly attested by the introducer.

3.

Identity (copy of passport).

4.

Joint Declaration Form (For joint a/c only).

5.

Employees Certificate (in case of service holder).

25

6.

KYC (Know your Customer) Form.

Current Partnership account

1.

Introduction of the account.

2.

Two photographs of the signatories duly attested by the introducer.

3.

Partnership letter duly signed by all partners (Sign should be similar as stated in
Partnership Deed).

4.

Partnership Deed duly certified by Notary public.

5.

Registration (If any).

6.

Updated Trade license.

7.

KYC (Know your Customer) Form.

Current Proprietorship account

1. Introduction of the account.

2.

Two

3.

Valid copy of Trade License.

4.

Rubber stamp.

5.

TIN number certificate.

6.

Identity (Copy of passport).

7.

Permission letter from DC/ Magistrate (in case of newspaper)

8.

KYC (Know your Customer) Form.

photographs of the signatories duly attested by the introducer.

Limited company

1.

Introducer of the account.

2.

Two photographs of the signatories duly attested by the Introducer.

3.

Valid copy of Trade License.

4.

Board resolution of opening A/C duly certified by the Chairman/Managing

Director.

5.

Certificate of Incorporation.

6.

Certificate of Commencement (In case of Public limited company).

7.

Memorandum article of association.

26

8.

List of directors along with designation & specimen signature.

9.

Latest certified copy of Form xii (to be certified by register of joint stock
companies) (In case of Directorship change).

10.

Rubber Stamp (Seal with designation of each person)

11.

Certificate of registration (In case of Insurance Company Obtained from

department of Insurance from the Peoples Republic of BD)

12.

KYC (Know your Customer) Form.

Club / societies account

1.

Introduction of the account.

2.

Two photographs of the Signatories duly attested by the introducer.

3.

Board Resolution for Opening A/C duly certified by President/ Secretary.

4.

List of Existing Managing Committee.

5.

Registration (if any).

6.

Rubber Stamp.

7.

Permission letter from Bureau of N.G.O. (In case of N.G.O. A/C).

8.

KYC (Know your Customer) Form.

1.

In case of foreign person:

The person who want to open a/c he/she must have the permission
latter from the Govt.

2.

Permission from Board of Investment.

3.4.3 DOCUMENTS REQUIRED FOR SHORT TERM DEPOSIT ACCOUNT:

Short Term Deposit Account (STD) shall be opened in the Account Opening Forms used
for Current Deposit Account and the documents required for current A/c should be
equally applicable for STD. In case of a STD A/c on the top of current deposit A/c
opening form the word-"Short Term Deposit Account shall be written in block letters
and the notice period shall be noted on the serial Instructions column.

27

3.4.4 DOCUMENTS REQUIRED FOR FIXED DEPOSIT ACCOUNT (FDR):

For open fixed deposit account (FDR) no other papers are require. Any one can open this
a/c by depositing cash or cheque. After the end of maturity depositor get interest based on
contract. Here have tow option at the end of maturity. Thats are depositors may withdraw
the FDR amount or he/she can renew his FDR account.
3.5 ISSUE CHEQUE BOOK AND PAYMENT OF CHEQUE
3.5.1 ISSUE OF CHEQUE BOOK:

Cheque books required for current use shall be taken out from the main stock after
necessary entry in the register.

Separate folios of register shall be allocated for current account cheque books of
20 and 50 leaves and savings bank account cheque book of 10leaves.

The cheque books taken out from the main stock for daily consumption shall be
kept in a security box under lock and the dealing officer shall be responsible for safe
custody.

At the time of opening account, the customer shall require to sign a cheque book
requisition slip. If the account openings form if found complete in all respect, then the
cheque book is issue to the customer.

All subsequent cheque book shall be issued to the account holder against the
cheque book requisition slip extracted from a previous cheque book issued to him /her.

Upon receipt of the requisition slip duly filled and signed, the dealing officer shall
get the signature of the A/C holder verified by the deposit in change/ Authorized officer.

In case if the requisition slip is lost, then the in charge officer will saw all kind of
previous report of the customer and depend that the cheque book is issued.
3.5.2 How cheque book is processed?

The leaves of the chequebook under issue shall be counted to ensure that all
leaves and the requisition slip are intact.

The name and the account number shall be written on the cheque book cover and
its requisition slip.
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The account number shall be entered on all leaves on the cheque book with initial
of the cheque book officer.

The name and the account number of the customer shall be entered in the cheque
book issue requisition against the particular cheque book series.

Cheque book shall be delivered to the customer at him counter against their
acknowledgement on the requisition.

After issuing cheque book the requisition slip shall sent to the system for
recording the cheque series.

3.6 CLOSING OF ACCOUNTS

The formal ways of closing of accounts are following:
A customer may close his/her account at any time by submitting an application to the
branch manager.

Unused cheque page have to submit with Application.

Verification of signature of applicant that he or she signed for opening and closing
A/C form.

Access duty fee will applied if deposit is above Tk.10, 000.

Verification of loan that the A/C holder has on the bank if have then the A/C
cannot be close.

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The interest rate will provide if the A/C exist to June. If he or she closes A/C

before June or December then A/C holder wont get any kind of interest if A/C holder has
huge number of money in that case he can claim for interest.
Closing charges are taken for the A/C closing. Whatever the amount that depositor

has it make no effect at the closing charge.

The amount that depositor has after closing the A/C. The amount will pay to the

depositor by using pay slip.

At last, depositor will receive the pay slip and submit the pay slip to the cash

counter of that Bank. Finally the depositor will receive his or her rest of amount.
For Ltd. Company the A/C holder is behalf of the company, cannot close the A/C.

He or she has to submit the decision of Board of director (BOD) that A/C should be
closed.

REMITTANCE

DEPARTMENT

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4.0 ISSUANCE AND PAYMENT OF PAYORDER

Definition of pay order:
A pay order is a written order, issued by a branch of

bank, to pay a certain sum of

money to a specific person or a bank. It is also termed as a bankers cheque as the bank
drawn upon and payable issues it by itself. A pay order is issued and paid by the same
branch of the bank and such as; the drawer and drawee are same. The person or the
organization in whose favor it is issued is known as payee or beneficiary. It is some times
sold to an individual on payment of issued who may not be a customer and is called the
purchaser. Pay order part:

The actual pay order.

The second counterfoil to be retained by the payee.

Another counterfoil to be retained by the issuing branch as record.

4.1 ISSUANCE OF PAY ORDER:
The purchaser shall signs the standard application from giving detail particulars and
request to issue of pay order. The payee or beneficiary shall not to be fictitious. His full
name and address shall be written on the application.
Steps of issuances of pay order:

Purchaser applies through banks prescribe payment order application.

Purchasers deposit the money through the application from.

Bank official fill up the columns of the instrument with help the application from.

Make necessary entry in the payment order register.

After joint order signatures in the instrument the payment order is handed over to
the purchaser and the purchaser put the signature on the counter part of the instrument as
acknowledgement of receipt of the instrument.

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4.2 PAYMENT OF PAY ORDER:

It shall be paid to payee or beneficiary after proper identification or it may be

credited to as account.

A pay order is transferable. As it is banker cheque payable to order the payee/

beneficiary may transfer it, by giving proper discharge on its back, to some one else who
receive as the transferee.

It is not generally collected for a person other that original payee except in case
the where the depositor is a valued client known to the bank.

Before making payment the signature of issuing officers shall be verified and the
date pf payment shall be marked in the register.
4.3 ISSUANCE OF DUPLICATE PAY ORDER:
For issuance of duplicate pay order thus, may be made after observing the following steps
we have to follow:

Written request from the purchaser, in case of loss from custody of the purchaser
along with the copy of GD entry.

Written request from the purchaser.

Head office approval of issuance of duplicate pay order.

4.4 CANCELLATION OF PAY ORDER:

If the purchaser request for cancellation of pay order after its issue and before it is
passed to payee. The same can be done after obtaining a written request from him and
verifying his signature on the letter of request.

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But if the purchaser request for cancellation and refund the amount after laps of

some time, the consent of the payee for cancellation of pay order shall be required to b
produce red by the purchaser.
If the purchaser is a valued customer of pay order may cancelled as very special

case, in the absence of written consent from the payee after obtaining sufficient
indemnity from the purchaser.
5.0 ISSUANCE AND PAYMENT OF TELEGRAPHFIC TRANFER
Telegraphic Transfer (T.T) may be affected at the written request of any person and
against value received from him. A written application on our prescribed from duly
signed by the purchaser shall be obtained .If the application for issue of (T.T) contains
instruction to debit the account of purchaser his signature shall be verified.
The application from shall be invariably checked on the following points:

That we have a branch in the place on which telegraphic transfer will be issued.

The amount of T.T commission and telex/fax charge shall be received from the
purchaser.
A cost memo has to be correctly prepared by the officer concerned as to the

account, name of beneficiary, instruction regarding mode of payment and the place of
payment.

The concerned officer shall correctly prepare the test.

T.T over telephone may be transmitted on account of valued clients of the bank.
Branches with teleprinter/fax facilities shall transmit T.T massage through telex/fax.

5.1 STEPS OF ISSUANCE OF T.T:

A customer applies through banks prescribed application from.

Amount of T.T +commission+ Telegram charge is recovered in cash /transfer

voucher.

Separate folio in T.T register is maintained branch wise.

A cost memo is given to the client.

Massage transmitted to drawee branch over Telex/ Telephone/ Fax and Internet
etc

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5.2 CANCELLATION OF T.T:

Whenever a T.T massage has been duly transmitted, payment thereof cannot be

stopped, no

Matter whether the amount has been paid to the beneficiary or not.

However, the applicant of a T.T may asked for stopping the

T.T and for refund

the amount

Only if the massage has not been transmitted.

In such case, care must be taken to see that entries made in books /register as well
as the

Vouchers are cancelled immediately.

6.0 ISSUANCE AND PAYMENT OF DEMAND DRAFT

Definition of demand draft (DD)

Demand Draft is an instrument containing an order of the issuing branch upon known as
drawee branch, for payment of a certain some of money to the payee.
The following are the essential feature of demand draft issued by the bank.

It is drawn by one branch of the bank upon some other branch of the bank.

It is payable on demand.

Its payment is to be made to the person whose name is mentioned.

6.1 ISSUANCE OF DEMAND DRAFT

The customer has to complete the form, which is treated as an application from. The
application from shall be checked the following points:
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The place of payment shall be such where the bank has a branch.

Full name of the payee.

The amount in words and figures is the same.

The purchaser signs the application.

If the purchaser is not an account holder he his address on the application.

The voucher is given to the customer to deposit the cash.

The cashier receives the cash and delivers the voucher to the remittance department.
Draft shall be prepared and entered in DD issue register.

6.2 PAYMENT OF DEMAND DRAFTS

The branch shall exercise proper care while paying drafts:

When the demand draft is present for payment, the particulars of the draft are

cheeked with the advice and signatures therein verified.

Payment of the DD has not stopped is to be ensured.

In case the advice is not received when the demand is presented, the bank will still
pay the draft after satisfying itself that the instrument is in order.

On payment draft in the absence of the relative advice the drawee branch shall

inform the issuing branch and obtained confirmation about the payment.
The drawee branch shall ensure that the payment of the instrument is made in due

course.

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6.3 CANCELIATION OF DEMAND DRAFT

To cancel the DD the bank has to do following things:

Receiving the written application along with the original draft by the issuing
branch from the purchaser.

Confirmation to be obtained from the drawee branch regarding non-payment of

the DD.

Taking two signatures with revenue stamp on the reserve side of the DD.
After completing the entire things bank can cancel the DD.

CLEARING
DEPARTMENT

7.0 Clearing Department:

The amount of Cheques, Pay Order (P.O), and Demand Draft (D.D) Collection from other
banks on behalf of its customer is a basic function of a Clearing Department.

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Clearing: Clearing is a system by which a bank can collect customers fund from
one bank to another through clearing house.

Clearing House: Clearing House is a place where the representatives of different

banks get together to receive and deliver Cheques with another banks.

Normally, Bangladesh Bank performs the Clearing House in Dhaka, Chittagong,

Rajshahi, Khulna & Bogra. Where there is no branch of Bangladesh Bank, Sonali bank
arranges this function.

Member of Clearing House: NCC BANK limited is a scheduled Bank. According

to the Article 37(2) of Bangladesh Bank Order, 1972, the banks which are the member of
the clearinghouse are called as Scheduled Banks. The scheduled banks clear the cheque
drawn upon one another through the clearinghouse.
7.1 Types of Clearing

A)

Outward Clearing: When the Branches of a Bank receive cheques from its
customers drawn on the other Banks within the local clearing zone for collection through
Clearing House, it is Outward Clearing.

B)

Inward Clearing: When the Banks receive cheque drawn on them from other
Banks in the Clearing House, it is Inward Clearing.

Bills for Collection

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8.0 Bills Collection

In modern banking the mechanism has become complex as far as smooth transaction and
safety is concerned. Customer does pay and receive bill from their counterpart as a result
of transaction. Commercial banks duty is to collect bills on behalf of their customer.

8.1Types of Bills for Collection

Outward Bills for Collection (OBC).

Inward Bills for Collection (IBC).

8.1.1 Outward bills collection (OBC)
OBC means Outward Bills for Collection .OBC exists with different branches of different
banks outside the local clearinghouse. Normally two types of OBC:

OBC with different branches of other banks

OBC with different branches of the same bank

Procedure of OBC:

Entry in the OBC register.

Put OBC number in the cheque.

Crossing seal on the left corner of the cheque & payees account will be
credited on realization seal on the back of the cheque with signature of the concerned
officer.

Despatch the OBC cheque with forwarding.

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Reserve the photocopy of the cheque, carbon copy of the forwarding and
deposit slip of the cheque in the OBC file.
8.1.2 Inward bills for collection (IBC)
When the banks collect bills as an agent of the collecting branch, the system is known as
IBC. In this case the bank will work as an agent of the collection bank. The branch
receives a forwarding letter and the bill.
Procedure of IBC:

IBC against OBC: To receive the OBC cheque first we have to give entry in
the IBC Register .The IBC number should put on the forwarding of the OBC with date.

Deposit of OBC amount: OBC cheque amount is put into the sundry depositsundry Creditors account, prepare debit & credit voucher of it. If the OBC cheque is
honored, send credit advice (IBCA) with signature & advice number of the concern
branch for the OBC amount.

If the OBC cheque is dishonored, the concerned branch is informed about it.

Again place in the clearing house or send the OBC cheque with Return Memo
to the issuing branch according to their information.

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DISPATCH
DEPARTMENT

9.0 DISPATCH:
The dispatch department of Rupali bank is so much effective. This department is mainly
known as the mail transaction of the bank with other. This department is divided into two
parts. Those are given below:

Inward dispatch

Outward dispatch.
Transaction systems of inward and outward dispatch are given below:
9.1 INWARD DISPATCH:

Dispatch seal, date, signature, and endorsement are given on letter and documents
received from courier, special messenger.

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All letters and documents are recorded in the inward dispatch register.

All mails are placed to the Head of Branch.

Manager assigns all mails to respective officials through endorsement.

It is properly field and recorded.

Fax / Telex etc, received shall be placed before the Head Office Branch/
Divisional

Head Office and marked by the concerned officer and subsequently all

those entered in the inward mail register.

9.2 OUTWARD DISPATCH:

All the outgoing letters documents with covering letters etc, are received in
duplicate from various department.

Acknowledgement is given on the duplicate copies and the original litters.

All letters and documents are signed and given dispatch number.

All letters and documents are recorded in the outward dispatch number.

All offices copies, master copies are properly filed and recorded.
9.3 What kind of things will be dispatch?

CIBT (Computerized inter Banking Transaction).

Pay order

Latter of credit (LC)

Local Payment.

Corresponded Letter.

Demand Draft Advice.

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Mail Transfer Advice.

OBC (Other Banking Collection).

Foreign Telegraphy Transfer advice

Foreign Demand Draft advice

Swift massage

Foreign Document etc.

FINDINGS
AND
RECOMMENDATION

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10.1 Problems Identification

Each and every problem identification here is only related to Rupali Bank ltd., Corporate
Branch.

The first problem of this bank is that the employees are not punctual.

They have no uniform. For that reason some customers find it, difficult to identify
the bank employee.

Some superior officers of this bank are not available sometime. For that some of
the depositors have to suffer.

The cash counter of this bank is little bit congested and the procedure of handling
cash is also traditional.

In general banking department they follow the traditional banking system. The
entire general banking procedure is not fully computerized. Even now they are using type
writer which is very much time consuming.

Account Opening form is in English which many people are unable to understand.

They have lacking in marketing activities and they are not providing necessary
advertisement of their product service to the general people.

They are using so many employees in General Banking section as a result it is

becomes more expensive.

Now a day computer leads every sphere of lives effective including general
banking activities, But Rupali Bank ltd. does not have experts in computer.

10.2 Recommendations:

Management of the bank should pressurize employees for being punctual.

Rupali Bank ltd. should arrange uniform for the employees.

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If for some reason superior officer can not be at his/her desk. During that time
bank should arrange different ways to perform his/her duties for the help of customers.

Cash payment section and cash received section should be separated by using data
based software.

Nearly every bank follow traditional system in general banking activities but bank
should introduce computerized system, it will reduce time, labor and cost also.

Our mother language is Bengali. So the bank should arrange form in Bengali. The
people who are not able to understand English they can use this form.

To increase their have the employees service they need more marketing activities.
Marketing department should be more aware on this problem.

Head office of Rupali Bank ltd. should decide to reduce some employee from
General Banking section of corporate branch.

The bank waste enough time of their clients in providing services as it lacks in
expert computer operators. To remove this problems, I think, bank should arrange some
sort of training programs in this sector.

Conclusion
During the three months internship program at Rupali Bank ltd. (Corporate Branch),
almost all the desks have been observed more or less. This internship program, at first,
has been arranged for gaining knowledge of practical banking and to compare this
theoretical knowledge with practical knowledge. Comparing practical knowledge with
theoretical, involves identification of weakness in the branch activities and making
recommendations for solving the weakness identified. Though most of the departments
and sections are covered in the internship program, it is not possible to go to the depth of
each activities of branch because of some internal limitation. Highest effort has been
given to achieve the objectives of the internship program.

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During the internship, it is found that the branch provides all the conventional banking
services as well as some specialized financing activities to the economy. Thus by
providing this various services, Rupali Bank (Corporate Branch), is playing an important
role in the banking system and economic development of Bangladesh.

References
THE followings Sources have been used from Rupali Bank Head Office and Corporate
Branch:
Prospectus of Rupali Bank ltd.
Annual Report of RUPALI BANK LTD. (2003)
Annual Report of RUPALI BANK LTD. (2004)
Annual Report of RUPALI BANK LTD. (2005)
Annual Report of RUPALI BANK LTD. (2006)
Documents that they provide for employee training.
Some documents are taken from Rupali Bank Ltd. web site and other source by using
internet. The web site addresses are followings:
www.rupali-bank.com
www.banglapedia.search.com
www.google.com
Search names are following:

History of Rupali Bank Ltd.

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Rules of Rupali Bank Ltd.

PDF. Files about loan

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