16. 8 TO 8 FUNCTIONALITY Section
Section Description
Page
16.01
Cash Transactions
369
16.02
VPIS Security Forms
371
16.03
Switching of Vault Teller
372
16.04
Broad Guidelines
372
16.05
Flow of Transactions
373
16. 8 to 8 Functionality This document details the procedure to be followed by branches, which have been identified to function from 8 AM to 8 PM under Core Banking Solution. The changes would relate only in cases where multiple Cash Officers are proposed to be utilized for handling 8 to 8 transactions. There will be no change in the present CBS functionalities, if shift duties are proposed. Cash Transactions (Annexure 1): Present system: (Normal)
Vault Teller issues cash to Cash Officer. The system passes a Credit transaction for the amount issued in BGL Cash Account.
Cash Officer in turn issues the cash to Tellers who actually conduct Cash transactions.
At the end of day, after balancing, the Tellers return the cash to Cash Officer along with Cash Report.
The Cash Officer generates the necessary day end cash reports and returns the Cash to Vault Teller. The system passes a Debit transaction for the amount returned in BGL Cash Account.
At this point, the (i) Physical Cash, (ii) Cash Drawer Cash of Vault Teller and (iii) BGL Cash will tally. The next day, the branch will verify whether CGL cash tallies with BGL Cash Balance.
Changes proposed: (8 to 8) Day Activities are divided into two sessions, viz., morning and evening sessions and will be handled by two different teams. An official (OIC) will be identified to take charge of evening session. The exact timing of these two sessions is an operational issue to be decided by the Controller concerned. 1.Vault Teller issues cash to Cash Officer. The system passes a Credit transaction for the amount issued in BGL Cash Account. 2. Cash Officer in turn issues the cash to morning session Tellers who actually conduct Cash transactions. 3. When Officer-in-Charge (OIC) arrives, the Cash Officer will issue cash to OIC by debit to BGL Cash (evening session) account (98954+bbbbb+c where bbbbb is 5 digit branch code and c is check digit). The debit voucher will be signed by OIC on the back as a token of receipt of Cash. Reference number generated should be noted down in full (SYS00000000000XXXXX). Note: OIC, should posses Capability 7 and User Type 45 in case of Sunday Banking 4. OIC will now put through a Cash receipt txn for the amount received from Cash Officer to the BGL Cash (evening session) using the reference number in full, as it is generated. This will zeroise the BGL cash (evening session) and update OIC’s Cash Drawer.
369
5. OIC will now issue cash to evening session tellers through system. The evening session tellers can commence work irrespective of closure or otherwise of morning session. 6. At the end of morning session, after balancing, the morning session Tellers return the cash to Cash Officer along with Cash Report. 7. Balancing of the physical cash in joint custody, Cash Drawer Cash of Vault Teller and BGL Cash will continue as at present. 8. The Cash Officer generates the necessary cash reports and returns the Cash to Vault Teller. The system passes a Debit transaction for the amount returned in BGL Cash Account. This concludes the morning sessions Cash activities. During this period, evening session tellers and OIC will be required to close the cash drawer to enable CO and VT to complete the above transactions. 9. At the end of evening session, after balancing, the evening session Tellers return the cash to OIC along with Cash Report. 10. The OIC, after balancing the cash, will note down the balance (with denominations) in Cash Drawer in a separate Cash Balance book. Then, one of the Tellers will make a payment transaction for the closing cash balance of the Evening session by debit to BGL Cash (Evening session) account (voucher to be prepared as usual) and will be authorized by the OIC. Immediately after authorization, the OIC will pick the payment transaction and accept the same from the queue, which will update OIC’s Cash drawer and make it nil. OIC will retain the physical Cash Balance in his sole custody overnight. The reference number generated by the system should be noted in full (SYS00000000000XXXXX) (which will be used for reversal of the entry the next day). 11. The OIC will have Teller-wise/OIC’s own reports generated. 12. Similarly, after end of the evening session, (a) physical cash in custody of OIC and BGL cash (evening session) should tally. The next day, the branch will verify that CGL cash tallies with the sum total of BGL Cash and BGL cash (evening session) Balances. (The BGL Cash (evening session) is also mapped to CGL Cash Balance Account) 13. The morning session on the next day will start functioning as usual. 14. Before commencement of evening session, the OIC will hand over the cash in his custody to Cash Officer (which Cash Officer will cross check with OIC Cash reports/Cash Balance book) along with credit voucher for the amount. Cash Officer will post the credit voucher to the credit of BGL cash (evening session) and zeroise the account. 15. OIC will receive cash afresh from Cash Officer for the next day evening session as per procedure stated above. 16. This system of returning the previous day cash and receiving cash afresh will ensure:
370
a) Proper accounting of cash in the hands of OIC overnight IN SINGLE CUSTODY. b) Any excess cash (over the limit approved by the Controllers) held overnight by OIC is also returned. 17. The OIC will be in charge of proper filing of evening session Cash reports. 18. Procedural control to be exercised over the cash held overnight by OIC exceeding the threshold limit fixed by Controllers (same as in case of reporting excess branch cash balance). 19. The same procedure to be followed in case of Sunday Banking also. A chart showing sample accounting entries is enclosed (Annexure-5) (16.05). VPIS (Security Forms) - Annexure 2: Present system: (Normal)
The VPIS custodian issues VPIS to the Tellers (through system).
The tellers acknowledge the VPIS (through system).
Enquiry on VPIS will reveal the Tellers with whom the security forms are held.
On completion of business, the Tellers will return (through system) the remaining VPIS to VPIS custodian (returning VPIS to any other Teller other than VPIS custodian is prohibited by system).
VPIS custodian acknowledges the VPIS (through system).
Changes proposed: (8 to 8) 1. The VPIS custodian issues and gets back the VPIS as per existing for morning session Tellers as above.
procedure
2. The VPIS custodian issues VPIS to OIC (through system and also in a register maintained for the purpose). 3. OIC in turn issues VPIS to evening session Tellers (through system/register). 4. The evening session tellers acknowledge the VPIS (through system/register). 5. After completion of VPIS transactions, evening session tellers hand over VPIS to OIC (through system/register). 6. OIC will hold the VPIS in single custody along with cash, overnight. 7. For the next day operation, OIC will issue VPIS again to evening session tellers. OIC can obtain additional VPIS in case of need from Vault Teller (VT) (as per procedure stated above). 8. Once in a week, the VPIS Forms in the custody of OIC will be checked by VT/authorised official with that of system/register.
371
16.03 Switching of Vault Teller (at the day end) - Annexure 3 Present System: (Normal)
All Tellers complete the day’s work and return the cash to Cash Officer.
All Tellers close the Cash Drawer.
Cash Officer returns the Cash to Existing Vault Teller.
Both Cash Officer and Vault Teller close their Cash Drawer.
New Vault teller physically takes charge from Existing Vault Teller.
Cash Officer/Branch Manger/DPB can perform switching of Vault Teller in the system.
For switching of Vault Teller to be successful, no Cash Drawer should be open and incoming Vault Teller should have opened and closed the Cash Drawer at least once.
Changes proposed: (8 to 8): 1. There is no change in procedure as above. 2. During the switching of Vault Teller operation, the OIC and evening session tellers will be required to close their cash drawer. As switching of Vault Teller takes only a minute to complete, this will not affect the functioning of evening session. 16.04
Broad Guidelines - Annexure 4
1. Each day will be divided into two sessions, viz., morning and evening (timings will be decided by Controlling Authorities). 2.Timing and staffing pattern for these sessions will be decided by the Controlling Authorities based on the business needs of the branch. 3.The Cash Balance and VPIS of the Evening Session will remain overnight in the SINGLE CUSTODY of the OIC. 4. In case of necessity (where two officers having user admin powers are not available), User Admin functions will be done by CDC. 5. Passing of transactions/issue of DD/BC, etc., will depend upon the passing powers of officials in the evening session as per extant instructions (e.g- draft issue for value in excess of Rs.50,000/- can be issued only if two signatories are present at the branch). 6. Sanction of loan against Gold ornaments and Approved Securities, Safe Deposit Lockers and Safe Custody will not be undertaken during the Evening Session, as the securities obtained have to be held in joint custody. However, closure of such loans accounts can be accepted during the Evening Session but the securities thereof will be delivered only on the subsequent morning session.
372
7. Sanction and Disbursements in Loan accounts (other than those mentioned above) can be made subject to the availability of concerned dealing officials. 8. Instruments for Clearing / Collections / DDP will be accepted (mode of acceptance like drop boxes, etc., to be decided by the branch) in the evening session, but processing of the same will be done only during next morning session (this is suggested in view of operational problems that may arise in accounting for the instruments and powers of the officials manning the evening session). 9. Emergency arrangements will be put in place by the Branch / Controllers for OIC also. 10. The amount of cash delivered to OIC will be based on business needs of the branch. Overnight cash retention limit by OIC should be decided by Controllers. Procedural control to be exercised over the cash held overnight by OIC exceeding the threshold limit fixed by Controllers (same as in case of reporting excess branch cash balance for insurance cover or otherwise). 11. Separate Branch Cash Balance book will be maintained by OIC for recording closing balance of the Evening session along with denominations. 16.05
Flow of Cash Transactions with example - Annexure 5
Morning of First day: CGL Cash Balance 10,00,000.00 Dr
(K)
BGL Cash Balance 10,00,000.00 Dr BGL Cash Balance (Evening Session) nil Physical Cash Balance 10,00,000.00 Vault Teller Cash 10,00,000.00 Vault Teller Withdraws Rs.6,00,000 and issue to CO Systems updates the Cash Drawer of CO with Rs.6,00,000.00
(A)
Cr BGL Cash Balance with Rs.6,00,000 (resultant Balance in BGL Cash Balance is Rs.4,00,000 (Dr)) Transactions for the Morning Session: Cash issued to OIC of Evening Session 4,00,000.00(B) Total Receipt of all Morning Session Tellers 5,00,000.00
(C)
Total Payment of all Morning Session Tellers 3,00,000.00
(D)
Net Cash Balance with CO (A+C-B-D) 4,00,000.00 CO returns Rs.4,00,000 to Vault Teller System updates the Cash Drawer of Vault Teller with Rs.4,00,000 Dr BGL Cash Balance with Rs.4,00,000
373
(resultant Balance in BGL Cash Balance is Rs.8,00,000 (Dr) (E) resultant Balance in Vault Teller Cash Drawer is Rs.8,00,000 (F) CO will make cash payment of Rs.4,00,000 to BGL Cash(Evening Session) OIC will make Cash receipt of Rs.4,00,000/- to BGL Cash(Evening Session) which will update OIC Cash Drawer and zeroise the account. Transaction for the Evening Session by OIC Cash Received from Cash Officer 4,00,000.00 Total Receipt of all Evening Session Tellers 2,00,000.00 Total Payment of all Evening Session Tellers 3,50,000.00 Net Cash Balance with OIC (B+G-H) 2,50,000.00
(B) (G) (H) (I)
OIC will make a Cash Payment by debit to BGL Cash (Evening Session) The resultant balance in the above account is Rs.2,50,000 (Dr) (J) Physical Cash Balance BGL Cash Balance CGL Cash Balance
: : :
10,50,000 10,50,000 10,50,000
**********
374
(F+I) (E+J) (K+C-D+G-H)
