Cash Systems and Procedures – A Handout (Module - 7) Chapter or Module Chapter or Screen title Voice-over Text
Cash Systems and Procedures
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Cash Officers Charge in an Emergency / Welcome Welcome to the Module on Procedure for Taking Over the Cash Officers Charge in an Emergency
Welcome to the Module on Procedure for Taking Over the Cash Officers Charge in an Emergency
Chapter or Module Chapter or Screen title Voice-over Text
Cash Systems and Procedures
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Cash Officers Charge in an Emergency / Objectives
By the end of this module, you should be able to: Describe the Procedure for taking over the Cash Officers charge in an emergency and explain the three types of contingencies.
By the end of this module, you should be able to: • •
Describe the Procedure for taking over the Cash Officers charge in an emergency Explain three types of Contingencies
Chapter or Module Chapter or Screen title
Cash Systems and Procedures
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Cash Officers Charge in an Emergency / Procedure Scene-1: Under the current procedure, when a Cash Officer proceeds on leave or is unable to attend on grounds of illness, emergency, incapacitation, etc., he nominates with the consent of the Branch Manager, a cash department employee Assistant ( Cash ) or a senior to act as his substitute during the period of his absence at his ( the Cash Officer’s) risk and responsibility.
Voice-over Text Under the cash department procedure the vicarious responsibilities of the cash Officer for the acts and intromissions of the employees working under him cease and it would not, therefore, be feasible to continue the present arrangement, which has for its basis the facts that a substitute is in any case working at the risk and responsibility of the Cash Officer and what is taking place is merely an enlargement of his functions during the Cash officer’s absence. In the circumstances, it is necessary to work out a formal
procedure for taking over the Cash Officer’s charge in an emergency and the conduct of day-to day work thereafter. Scene-2: The need for an emergency take over would normally arise in the following three types of contingencies: The Cash Officer applies for short leave for unanticipated and urgent reasons and the time available before the commencement of the leave is not adequate for a complete handing over; The Cash Officer falls ill but is well enough to attend office specifically for the purpose of handing over emergency charge and; The Cash Officer is suddenly incapacitated and, thus being not in a position to attend at all, either sends the keys in a sealed packet or requests that the keys be collected from him.
Scene-1:
•
Under the current procedure, when a Cash Officer proceeds on leave or is unable to attend on grounds of illness, emergency, incapacitation, etc., he nominates with the consent of the Branch Manager, a cash department employee Assistant ( Cash ) or a senior to act as his substitute during the period of his absence at his ( the Cash Officer’s) risk and responsibility. It is only where the duration of the Cash Officer’s absence exceeds a prescribed period ( 15 days) that a temporary Cash Officer is appointed, who takes over the cash Officer’s charge and acts on his own.
•
Under the cash department procedure the vicarious responsibilities of the cash Officer for the acts and intromissions of the employees working under him cease and it would not, therefore, be feasible to continue the present arrangement, which has for its basis the facts that a substitute is in any case working at the risk and responsibility of the Cash Officer and what is taking place is merely an enlargement of his functions during the Cash officer’s absence. In the circumstances, it is necessary to work out a formal procedure for taking over the Cash Officer’s charge in an emergency and the conduct of day-to day work thereafter.
• Scene-2:
The need for an emergency take over would normally arise in the following three types of contingencies: •
The Cash Officer applies for short leave for unanticipated and urgent reasons and the time available before the commencement of the leave is not adequate for a complete handing over
•
The Cash Officer falls ill but is well enough to attend office specifically for the purpose of handing over emergency charge
•
The Cash Officer is suddenly incapacitated and, thus being not in a position to attend at all, either sends the keys in a sealed packet or requests that the keys be collected from him.
Chapter or Module Chapter or Screen title
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Cash Systems and Procedures
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Contingencies (I) and (II) Contingencies one and two. When the cash Officer would be present for handing over emergency charge. The Assistant (Cash) or a senior, nominated by the Branch Manager for officiating as Cash Officer, consistently with the procedures in vogue for such selection, will take over , in the presence of the cash officer. The portion of the currency chest and small coin depot and other valuables so taken over would be kept in separate receptacles, the receptacles containing the portions not taken over being sealed by the Cash Officer with his personal seal.
When the cash Officer would be present for handing over emergency charge. The Assistant (Cash) or a senior, nominated by the Branch Manager for officiating as Cash Officer, consistently with the procedures in vogue for such selection, will take over , in the presence of the cash officer ( and the joint custodian in the case of items under joint custody), all bills in the cash officer’s custody, the cash officers hand balance, the branch cash balance and such part of the currency chest and small coin depot balances and other valuables as may be deemed necessary for day-to-day work during the anticipated period of cash officer’s absence. The portion of the currency chest and small coin depot and other valuables so taken over would be kept in separate receptacles, the receptacles containing the portions not taken over being sealed by the Cash Officer with his personal seal.
Chapter or Module Chapter or Screen title
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Cash Systems and Procedures
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Contingencies (III) Flip page 1: Contingency (III) – when the Cash Officer is not in a position to hand over emergency charge in person. The Assistant ( Cash) or a senior nominated by the Bank consistent with the procedures in vogue for selection for acting as Cash Officer will take over the Cash Officer’s keys. Not withstanding the fact that the other supervising official who functions as the joint custodian of cash would be having effective joint control over all the operations on and within the vault and the interest of the Cash Officer while on leave should, in no way, be in jeopardy, as an additional safeguard for protection, of the Cash Officer’s interest, and with a view to avoiding a complete taking over by a permanent cash Officer on resumption of duties, it is proposed to associate a third employee with the joint custodian and the acting Cash Officer in the matter of the emergency taking over. The Cash Officer will have the option to nominate this employee and where the employee named by him consents, he shall be the person chosen for the purpose. Where the Cash Officer does not nominate an employee or the employee named by him refuses to associate himself with the taking over, an official or an Assistant (Cash) etc. /Assistant (Accounts/cash) will be nominated by the Branch Manager in this behalf. Flip page 2: The strong room will be opened by the Supervising official in joint charge of cash and the acting Cash Officer, in the presence of the nominated employee. Immediately, thereafter , before the day’s work commences , all bills in the Cash Officer’s custody, the cash officer’s hand balance, the Branch Cash balance and portions of the Currency Chest and Small Coin depot balances and other valuables considered necessary for the conduct of day-to-day work during the anticipated period of Cash Officer’s absence will be taken over by the acting Cash Officer in the presence of the supervising official in joint charge of cash and the nominated employee aforementioned.
The receptacles containing the portions of the currency chest and small coin depot balances and other valuables not taken over would then be sealed with the Bank’s seal and the personal seal of the nominated employee or any other seal which the nominated employee wishes to use. Flip page 3: The entries relating to items taken over by the acting Cash Officer in an emergency charge will in all cases be authenticated by him jointly with the supervising official in joint charge of cash and the cash officer or the nominated employee as the case may be will also be required to authenticate the entries in the manner provided hereinafter. In the case of items already recorded in Registers e.g. bills gold ornaments etc., the authentication may be made by initials against the relative entries in the Registers. In the case of currency chest and small coin depot balances where receptacle-wise details of contents are not recorded in any standard Register the details the details of notes and coins taken over should be separately recorded in a portion of the Vault Register and the entries authenticated. Where the Cash Officer personally hands over the emergency charge, he will also authenticate the items by his initials and in addition, sign in full at the end of the recording in respect of the portions of the currency chest and small coin depot balances. Where the Cash Officer is unable to attend and a nominated employee is associated with emergency taking over, the initials of the nominated employee against the individual items and also his full signature at the end of the recording in respect of the portions of the currency chest and small coin depot balances shall be obtained. Flip page 4: While the original taking over of a portion of cash and valuables on the basis of anticipated requirements should normally be adequate for the purpose of handling the day-to-day work during the absence of the Cash Officer on leave without being put to necessity of opening any of the sealed almirahs, a situation may arise when it becomes necessary to do so. In that event, the seals of the receptacles would be broken in the presence of the nominated employee. For covering this contingency, even where the Cash Officer hands over emergency charge in person he would be given the option to nominate an employee for the purpose at the time of the original handing over itself; where he has not made a nomination or the nominee refuses to associate himself with the breaking open of the sealed receptacle(s), or the nominee is not available, an official or an Assistant (cash) etc./ Assistant (Accounts/cash) will be nominated by the Branch Manager in this behalf. Where a nominated employee was associated with the original taking over ( the cash officer not having been in a position to attend in person), the same employee will be associated with the breaking open of the receptacle(s) if he is present, should, however, he be absent on the day, the need to break open the receptacle(s) arises, etc. another official or an Assistant (Cash) etc./Assistant (Accounts/Cash) may be nominated by the Branch Manager in this behalf. Where it is possible to take over the entire contents of the receptacle(s) so opened, the items would be authenticated by the nominated employee as witness, in addition to the authentication in token of the taking over to be made by the acting Cash Officer jointly with the supervising official in joint custody of cash in the manner prescribed above in the case of taking over in the absence of the Cash Officer. Where, however, only a portion of the contents of a receptacle is taken over the items taken over should be authenticated, and witnessed by the nominated employee, in the prescribed manner and the receptacle resealed in the presence of the nominated employee who will also apply his personal seal or any other seal of his choice. Flip page 5: Unless any shortage/discrepancies are detected in the items taken over (in which event such shortages/discrepancies shall be immediately recorded in writing in the presence of the Cash Officer where he is handing over emergency charge in person or in the presence of the nominated employee where the Cash Officer is unable to attend), the acting Cash Officer would be responsible for the items taken over and subsequent operations/transactions until the permanent Cash Officer resumes duties and takes over everything that has been handled during his absence. In respect of the receptacles not covered by the emergency charge and kept sealed with the seal of the Cash Officer or the nominated employees. The Cash Officer’s responsibility shall continue in full force and he will not be required to take over the contents of such receptacles on resumption of duty unless the seals are
broken or have apparently been tampered with. In all cases where a nominated employee is associated with an emergency taking over in accordance with the procedures laid down herein he would be acting merely as a witness without any personal liability in respect of the operations/transactions he testifies to. Flip page 6: A suitable undertaking (as per draft enclosed) in respect of the officiating appointment and the duties and responsibilities attendant thereon will be obtained from an Assistant (Cash)/ Senior when he is called upon to act as a Cash Officer; undertaking so obtained will be supplemental to the original undertaking that would have been furnished by him as Assistant (Cash) etc. /Senior.
Contingency (III) – when the Cash Officer is not in a position to hand over emergency charge in person. Flip page 1: The Assistant ( Cash) or a senior nominated by the Bank consistent with the procedures in vogue for selection for acting as Cash Officer will take over the Cash Officer’s keys. Not withstanding the fact that the other supervising official who functions as the joint custodian of cash would be having effective joint control over all the operations on and within the vault and the interest of the Cash Officer while on leave should, in no way, be in jeopardy, as an additional safeguard for protection, of the Cash Officer’s interest, and with a view to avoiding a complete taking over by a permanent cash Officer on resumption of duties, it is proposed to associate a third employee with the joint custodian and the acting Cash Officer in the matter of the emergency taking over. The Cash Officer will have the option to nominate this employee and where the employee named by him consents, he shall be the person chosen for the purpose. Where the Cash Officer does not nominate an employee or the employee named by him refuses to associate himself with the taking over, an official or an Assistant (Cash) /Assistant (Accounts/cash) will be nominated by the Branch Manager in this behalf. Flip page 2: The strong room will be opened by the Supervising official in joint charge of cash and the acting Cash Officer, in the presence of the nominated employee. Immediately, thereafter , before the day’s work commences , all bills in the Cash Officer’s custody, the cash officer’s hand balance, the Branch Cash balance and portions of the Currency Chest and Small Coin depot balances and other valuables considered necessary for the conduct of day-to-day work during the anticipated period of Cash Officer’s absence will be taken over by the acting Cash Officer in the presence of the supervising official in joint charge of cash and the nominated employee afore-mentioned. The receptacles containing the portions of the currency chest and small coin depot balances and other valuables not taken over would then be sealed with the Bank’s seal and the personal seal of the nominated employee or any other seal which the nominated employee wishes to use. Flip page 3: The entries relating to items taken over by the acting Cash Officer in an emergency charge will in all cases be authenticated by him jointly with the supervising official in joint charge of cash and the cash officer or the nominated employee as the case may be will also be required to authenticate the entries in the manner provided hereinafter. In the case of items already recorded in Registers e.g. bills, gold ornaments etc., the authentication may be made by initials against the relative entries in the Registers. In the case of currency chest and small coin depot balances where receptacle-wise details of contents are not recorded in any standard Register the details the details of notes and coins taken over should be separately recorded in a portion of the Vault Register and the entries authenticated. Where the Cash Officer personally hands over the emergency charge, he will also authenticate the items by his initials and in addition, sign in full at the end of the recording in respect of the portions of the currency chest and small coin depot balances. Where the Cash Officer is unable to attend and a nominated employee is associated with emergency taking over, the initials of the nominated employee against the individual items and also his full signature at the end of the recording in respect of the portions of the currency chest and small coin depot balances shall be obtained.
Flip page 4: While the original taking over of a portion of cash and valuables on the basis of anticipated requirements should normally be adequate for the purpose of handling the day-to-day work during the absence of the Cash Officer on leave without being put to necessity of opening any of the sealed almirahs, a situation may arise when it becomes necessary to do so. In that event, the seals of the receptacles would be broken in the presence of the nominated employee. For covering this contingency, even where the Cash Officer hands over emergency charge in person he would be given the option to nominate an employee for the purpose at the time of the original handing over itself; where he has not made a nomination or the nominee refuses to associate himself with the breaking open of the sealed receptacle(s), or the nominee is not available, an official or an Assistant (cash).etc./ Assistant (Accounts/cash) will be nominated by the Branch Manager. Where a nominated employee was associated with the original taking over ( the cash officer not having been in a position to attend in person), the same employee will be associated with the breaking open of the receptacle(s) if he is present, should he be absent on the day, the need to break open the receptacle(s) arises, another official or an Assistant (Cash)/Assistant (Accounts/Cash) may be nominated by the Branch Manager. Where it is possible to take over the entire contents of the receptacle(s) so opened, the items would be authenticated by the nominated employee as witness, in addition to the authentication in token of the taking over to be made by the acting Cash Officer jointly with the supervising official in joint custody of cash in the manner prescribed above in the case of taking over in the absence of the Cash Officer. Where, however, only a portion of the contents of a receptacle is taken over the items taken over should be authenticated, and witnessed by the nominated employee, in the prescribed manner and the receptacle resealed in the presence of the nominated employee who will also apply his personal seal or any other seal of his choice. Flip page 5: Unless any shortage/discrepancies are detected in the items taken over (in which event such shortages/discrepancies shall be immediately recorded in writing in the presence of the Cash Officer where he is handing over emergency charge in person or in the presence of the nominated employee where the Cash Officer is unable to attend), the acting Cash Officer would be responsible for the items taken over and subsequent operations/transactions until the permanent Cash Officer resumes duty and takes over everything that has been handled during his absence. In respect of the receptacles not covered by the emergency charge and kept sealed with the seal of the Cash Officer or the nominated employees. The Cash Officer’s responsibility shall continue in full force and he will not be required to take over the contents of such receptacles on resumption of duty unless the seals are broken or have apparently been tampered with. In all cases where a nominated employee is associated with an emergency taking over in accordance with the procedures laid down herein he would be acting merely as a witness without any personal liability in respect of the operations/transactions he testifies to. Flip page 6 A suitable undertaking (as per draft enclosed) in respect of the officiating appointment and the duties and responsibilities attended thereon will be obtained from an Assistant (Cash)/ Senior when he is called upon to act as a Cash Officer; undertaking so obtained will be supplemental to the original undertaking that would have been furnished by him as Assistant (Cash) or Senior. Specimen letter to be addressed to employees nominated to officiate as Cash Officer. Specimen Letter To, Shri…………………….. C/o State Bank of India Dear Sir, With reference to your appointment to officiate as Cash Officer at this Branch of the Bank, we have to advise you that, during the period you officiate as Cash Officer, you will, in addition to the terms and conditions of your services as determined by the Bank, from time to time, in your
substantive capacity as Assistant (Cash) etc. be governed by the following special terms and conditions in respect of your officiating appointment as Cash Officer. You shall discharge such duties and functions and be subject to such liabilities and responsibilities as may devolve on a Cash Officer or Manager (Cash) by contract, custom, usage, procedures and instructions as may be in vogue in the cash department of the Bank from time to time. Such duties, functions, liabilities and responsibilities shall among others include:Receipting and authorizing payment of Government and Bank vouchers. Holding charge in the manner provided in the Bank’s rules, procedure and instructions and being responsible, jointly and severally with any other officer who may be entrusted such charge jointly with you, for the safe custody and correctness of the cash, currency chest and small coin depot balance and all other valuables at the branch to the extent these have been or are subsequently taken over by you and also for all losses, damages, costs, charges and expenses which may be caused to or incurred by the Bank or which the Bank may sustain or incur by reason or arising from or in consequences of any act, omission or negligence on your part. Being responsible to the Bank jointly and severally with any other officer who may be in joint custody with you for the safe custody of all bullion, securities and other property belonging to or deposited at the branch to the extent these have been or are subsequently taken over by you and being liable for all or any losses, damages, costs, charges and expenses which may be sustained or incurred by the Bank by reason of loss of any such property caused by any act, Omission or negligence on your part; Being responsible for the correctness of the entire cash in the branch except cash in sealed receptacles not taken over by you it being, however, clearly understood that such responsibility shall not extend to such cash which you are not required to physically count or recount in accordance with the instructions that may be issued by the Bank from time to time allocating, signing or fixing responsibility , to various categories of employees in the cash department, are not required to physically count or recount in accordance with the instructions that may be issued by the Bank from time to time allocating, assigning or fixing responsibility to various categories of employees in the cash department; Being responsible for the correctness and genuineness of all hundies, cheques, securities, vouchers, deeds, documents, instruments, writings and signatures written in any language or character other than English language and character which you may accept or deal with or which may come into your hands and have been accepted and dealt with as correct and genuine and be liable to make good to the Bank all and any losses, damages, costs, charges, and expenses whatsoever which may be sustained or incurred by the Bank in consequence of any such hundies cheques, securities, vouchers, deeds documents instruments and writings or signatures being found to be forged Instruments or signatures or being, otherwise ineffective, inoperative, invalid and incorrect; Being responsible to enquire into and as far as possible ascertain and to truly and faithfully report in writing in such form and detail as the Bank may stipulate from time to time upon the identity, business and personal integrity , credit solvency and circumstances of all persons who have been dealing or contemplate dealing with the Bank and to make good to the Bank all and any losses and damages costs, charges and expenses whatsoever which may be sustained or incurred by the Bank by reason of lack of due care and caution or default or negligence or defect or irregularity or fraud or misrepresentation in connection with any such enquiry or report made by you. Your appointment as officiating Cash Officer will take effect on your returning to the undersigned duly signed the accompanying copy of this letter confirming your acceptance of and agreement to be bound by, the terms and conditions set out herein. Yours faithfully, Branch Manager
Chapter or Module Chapter or Screen title Voice-over Text
Cash Systems and Procedures
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Summary Banks should ensure that all their designated branches undertake note exchange business seriously and display the note, “MUTILATED NOTES ARE ACCEPTED AND EXCHANGED HERE” on the notice board.
In this module, you have learned: • Taking over the Cash Officers charge in an emergency • Three types of Contingencies
