Chapter 10 (Ten) Gereral Banking Portfolio, and Clearing House

GENERAL BANKING PORTFOLIO OF IBBL : -AN OVERVIEW

Introduction:

Banking functions and activities are mainly segregated by three areas which are operation, investment & foreign exchange (international banking) at Head Office level and general banking, investment & foreign exchange at branch level.       

General banking portfolio:

The areas of general banking covers most functions and activities of a branch which is treated as general banking portfolio. The areas are identified as section or department which are as follows:

Sections of general banking:

•          1. Reception and account opening

          section

•          2. Cash section

•          3. Clearing and collection section

•          4. Remittance and bills section

•          5. Dispatch section

•          6. Accounts section

•          7. Reconciliation section

•          8. Others-Security, Locker service etc.

Reception and account opening section:

a. Reception:

Young, energetic, diligent and cooperative

officials: will led the customer right place/official.

b. Account opening section:

•          Transaction oriented cheque accounts:

     MSA, AWCA, MSN: Opening, transferring, closing, cheque

                                      book issuing etc.

•          Non-cheque account:

     MTD, MSS, MSB, MHS, MPD, MMS, MWCDA: Opening, transferring (in applicable cases), closing etc. 

Cash section:

a. Cash management:

   Feeding/remittance/lifting of cash,

   liquidity maintain, limit maintain, cash position and vault register

   maintain, insurance maintain, vault key maintain, petty cash and

   stamp in hand maintain, management of soiled, mutilated and non issue notes etc.

b. Cash receiving:

    Receiving from the customers and feeding branch, register maintaining, posting in computer, balancing and handing over to chief cashier.

c. Cash payment:

    Receiving cash from chief cashier, cheque posting in computer, register maintaining, payment of cash, balancing and rest amount handing over to chief cashier.

Clearing and collection section:

1. Clearing House function-As member of clearing House: Within command

                                        areas of clearing.

b.   Transfer delivery-Inter branch mini clearing: Only for Dhaka city branches.

c.  OBC-IBC- For beyond clearing area:

  *  Inter branches of same bank.

  * Inter bank branches.

Remittance and bills section:

1. Classification of remittance:

a. Local remittance-Within the country:

•          Inter branches/feeding branch remittance.

•          Inter bank, inter bank branches.

•          With central bank/representative of central bank.

b. Foreign remittance.

c. Inward remittance.

d. Outward remittance.

2. Medium of remittance: PO, DD, TT, IBG (IBCA & IBDA), FDD, FTT, TC, e-cash/ spot cash etc.

Despatch section:

1. Inward:

      incoming letters receiving, acknowledging, opening, entyring, marking, handing over etc. 

1. Outward:

     Entyring, posting/courier, payment, collecting acknowledgment etc.

c. Cash receiving from suspense a/c and maintenance.

Accounts section:

. Book keeping and Transfer scroll

b. GL/clean cash preparing

c. Income-expenditure register maintaining

d. Sundry-suspense maintaining etc. 

Reconciliation section:

1. IBG advice (IBCA-IBDA) writing and signing.
2. IBG statement preparing and sending
3. Complying letters from reconciliation department etc. 

Clearing house:

Clearing  is a process of collection and payment of instruments ie cheques, pay order, drafts through inter bank / branch settlement under the leadership of Bangladesh bank. By clearing house, payable and receivable of different banks are settled easily. Clearing house is operated under the supervision of Central Bank. In absence of central Bank, Sonali bank acts as agent of it.

Operational Procedure:

Each member of Clearing House maintain an account in Bangladesh Bank or Sonali Bank. Bangladesh bank settles the instruments as per instructions. Customers of the bank present  cheques to his own account drawn on other banks for collection. Before presenting, customers endorse the instrument in favour of his own bank. Banks give entry of these instruments for collection and use the crossing seal of bank on the face of instruments. Each bank uses “Clearing House Book” for using in the clearing house. Cheques are given entry  bank- wise in this book. By introduction of BACH, banks send image of instruments. And if paying bank finds it ok, the proceeds will automatically be credited in collecting banks account by BEFTN.

Same Day Clearing: done for instruments of 5 lac by BACH.

Transfer Delivery: for clearing within branches of same bank in Dhaka city, a branch is given responsibility which acts as a clearing house of same bank. Settlement is done by IBCA & IBDA. Local Office is acting as the clearing house of IBBL.