Proposal on IFB product maintenance within existing CBS

1. General frame work

 New IFB Branch code shall be created for each existing Branches
E.g. IFB Branch code for Main Branch 101 and its IFB Branch 701
 Creation of New IFB Finance code
E.g. Finance code 100 and IFB Finance code 700
 New IFB Branch shall be created Whenever BIB Open new branch as well.
 IT shall allow dual user for concerned staffs to access both IFB and Conventional
Branch
 Chart of accounts
 Replication of Conventional chart of account (except Interest and loan related
for IFB window by adding letter “I” at end.
 Creation of chart of accounts Specific to IFB window attached.
 Inventory
 Charitable fund payable
 Profit equalization reserve Payable (PER)
 Investment Risk reserve Payable (IRR)
 Hiba/Gift expense and its tax withholding account
 Late payment penalty charge
 Hamish Jidiyah/Urbun/ Margin held
 Preparation of separate financial statements, trial balances, daily transaction lists for
IFB window.
 Scheme types SBA and CAA can be used for Wadia saving and Wadia current
customer accounts respectively.
 Zero interest maintenance at product level rather than account level.
 Separate Financial statement for IFBD and IFB Branches
 Interest batch processing for conventional interest bearing accounts shall not affect
IFB noninterest bearing saving accounts at all time.
 Existing CBS cannot support Profit bearing IFB deposit account maintenance.

2. Cash management
 Each Branch shall serve IFB customers by IFB window/cage.
 All tellers/ CSOs perform their tasks via rotation (including IFB Window).
 All checkers shall also authorize IFB transaction as well.
 Each Branch shall close end of day cash transaction for conventional and IFB through
Vault and petty balances respectively.
 No need of additional strongbox.
 No need of additional tellers/CSOs in every Branch except Branches in which
transactions per teller exceed average tolerable figure.
 Each Branch shall have only one cash register for both IFB and conventional.

3. Account Opening Maintenance

 Follow conventional CIF Creation process for IFB wing.

 Source of income field shall not be left blank
 Follow conventional Account opening procedure by selecting proper scheme code
for IFB Deposit accounts.