General Banking Activities of NRB Global Bank

General Banking Activities of
NRB Global Bank Limited

Bank plays a crucial role in the development process of a country as it helps to accelerate the pace of development by securing continuous supply of financial resources to people engaged in numerous economic activities. The tremendous growth that the world economy has experienced is contributed by these financial institutions. The role of banking is comparable to what an artery system does in the human body. Now-a day‟s banking sector is modernizing and expanding its hand in different financial events every day. At the same time the banking process is becoming faster, easier and is becoming wider. In order to survive in the competitive field of the banking sector all organizations are looking for better service opportunities to provide their fellow clients. So it has become essential for every person to have some idea on the bank and banking procedure.

Objectives of the Study

i. To know the general banking activities of NRB Global Bank.

ii. To recognize the various product and services of NRBGB.

iii. To gather the practical experience base on the theoretical knowledge.

iv. To familiar with the corporate environment and culture.

v. To serve the function of overall banker-customer relationship.

vi. To evaluate the function of general banking system.

vii. To observe the function of commercial banking operations.

viii. To analyze the strength of NRBGB‟s general banking.

ix. To understand the activities of a front desk officer.

x. To identify challenges regarding as a front desk officer

xi. To suggest recommendations on the basis of findings.

xii. To learn and acquainted to fulfill the academic purpose

Introduction of NRB Global Bank Ltd.:

The commercial banking system dominates Bangladesh’s financial sector. Bangladesh Bank, the central bank and head regulatory body for the country’s monetary and financial system, was established in Dhaka as a body corporate vide the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972) with effect from 16th December, 1971. The banking system is composed of four state owned commercial banks, five specialized banks, thirty eight private commercial banks, one land development bank and nine foreign commercial banks. The Nobel Prize–winning Grameen Bank is a specialized micro-finance institution, which revolutionized the concept of micro-credit and contributed greatly towards poverty reduction and the empowerment of women in Bangladesh.

NRB Global Bank is one of the private commercial banks which is monitored and controlled by Bangladesh Bank (BB). The central bank has approved three new commercial banks sponsored by non-resident Bangladeshis (NRBs) on the condition that those would contribute to boosting the inflow of foreign exchange.

History:

Since Bangladesh Bank approved nine banks as fourth generation banks in which, three banks have the funding of non-resident Bangladeshi (NRB) people. NRB Global Bank Limited is one of those three banks to materialize the dream of people having the goal to keep Bangladesh well connected with other advanced nations. It is the brainchild of 25 (twenty five) well reputed visionary Non-Resident Bangladeshi (NRB) people residing in different countries of the world. It has been approved by the regulatory bodies in 2012 to operate business in banking of Bangladesh.

After hard labor of almost three years complying with all regulatory rules and regulations, it has got the final approval on July 25, 2013 from the regulatory body to run the banking business in Bangladesh. Gradually, the mentioned brainchild of those NRBs has become the reality. Head office of this bank has already been formally inaugurated on September 09, 2013. Its head office is situated at Khandker Tower, 94 Gulshan Avenue, Gulshan 1, Dhaka 1212, which is a great example of post modern structure and one of the finest buildings in Bangladesh. Even, this bank has opened its first branch at the same premise on October 23, 2013.

Mr. Nizam Chowdhury is the founding Chairman of this bank having a long professional experience of 26 (twenty six) years in the U.S.A and other Directors are also well reputed in their own sectors of business. These nice personalities have well defined mission and vision. Their mission is not to restrict NRB Global Bank Limited to a particular group of people but to bring the huge unbanked people under banking. Their vision is to make NRB Global Bank Limited truly global providing world class services throughout the world.

Products and services:

NRBGB is offering the following products or services to the client for financing different purpose that fulfill the requirements of the bank and have good return to the investment as well as satisfy the client.

Retail Banking Products:

This bank offers various products of retail banking such as-

NGB DPS (Allow to build up savings through regular monthly deposit)
NGB Double Benefit ( Help to double deposited money on maturity)
Fixed Deposit (Higher interest on savings for long term investment)
NGB Professionals Loan (Personal loan facility for self-employed professionals like doctors, IT Professionals, engineers & mariners etc.)
NGB Monthly Benefit (Helps to earn extra income from every month of deposited money which lets to earn yearly benefit every month)
Senior Citizen Benefit Plan (Benefit plan for the senior citizen to carry out day-to-day banking transactions independently).
NGB Pre-Paid Card
NGB Debit Card
NGB Executive (term loan facility for any legitimate purpose designed especially for Salaried Executives at different Corporate both permanent & contractual)
NGB Salary Account (employer can credit monthly salary/paycheck every month will credit to account)
NGB Festivals (to meet festival expenses)
NGB Freshers (For students)
NGB Junior (For children aged between 3 to 18 years but account is operated by parents until Child attain his/her maturity (Age 18))
NGB Marriage Loan (for covering the marriage expenses)
NGB Perfect (Allows an individual to manage savings and transaction simultaneously)
NGB Queen ( An interest bearing account designed exclusively for woman)
NGB Travelers (A “Travel purpose” loan which means the applicant has to declare his/her Inland/Outland travel purpose.

Loan products

The loan and advance products are:

Personal Loan

o Car Loan

o House Loan

o Education Loan

Project Financing.
Working Capital Financing
Agricultural Financing
Consumer Financing
Lease Financing
SME Financing
House Building Financing
Import Financing
Export Financing
NGB Adhoc Loan
NGB Travel Loan
NGB Marriage Loan
NGB Executive Loan

Foreign Trade product:

Foreign Trade Products that is offered by NRB are as under:

Letter of Credit (L/C)
Back to Back Letter of Credit (BTB L/C)
Foreign Demand Draft (FDD)
IDBC(Inland Brick to Brick Local L/C)
IDBP(Inland Documents Bill Purchase)
Remittance products
Pay Order (PO)
Demand Draft (DD)

Other Service Products:

Corporate Banking
Tele Banking
SMS Banking
ATM card
Mobile banking
Locker service

Banking Activities Executing By NRB Global Bank Ltd.

General Banking Department of NRBGB:

General Banking Department is considered as the direct service center. The clients and customer build their intuition whether they are going for further dealings with the bank or not on the basis of the service in the department, Moreover this department is the one that gives the first impression about the bank to the clients. So, GB is one of necessary parts of conducting a bank.

Foreign Trade Department of NRBGB:

Foreign exchange is the conversion of one country’s currency into that of another. This department has 2 section including “Export” and “Import”. Both of sections mainly work for L/C or Letter Of credit. In addition it works for L/C opening procedure, types of L/C, L/C payments, required documents, documents checking, issuing IDBP and IDBC.

Credit and Loan Department of NRBGB:

This department works with two category loan. One is personal loan and another is corporate loan. Some necessary documents are mandatory to give here for loan proposal like guarantor‟s portfolio, trade license, bank solvency, CIB (Credit Information Bureau) report, CRG (Credit Rate Grading) report, TIN & VAT certificate, PNW (Personal Net Worth) statement, applicants profile and so on.

General Banking Activities Performing By NRB Global Bank Ltd.

Function of General Banking of NRB Global Bank:

The specific functions of general banking are as follows:

Establishing of banker-customer relationship through account opening.
Dispatching customer‟s money from one place to another.
Taking deposits
Honoring cheques.
Clearing cheques.

Different Parts of General Banking of NRB Global Bank:

General Banking Department constitutes of the following sections:

Account Opening Section:

Banking business is very much correlated with banker customer relationship. To be a customer one person must have some sort of banking relationship with the bank. Account opening section establishes that relationship by opening a new account for the customer.

Job Descriptions:

Opening different types of account.
Handling operation of different types of accounts.
Responsible for issuing if cheque books.
Transferring &closing different types of accounts.
Giving account statements to the clients.
Making different vouchers regarding above transactions.
Giving support to the valued clients of the Bank and so on.

Types of Accounts:

Current Account
Savings Account
Fixed Deposit(FD)
Short Term Deposit(STD)
Foreign Currency (FC)

Cheque

It is a written, dated and signed instrument that contains an unconditional order from the drawer that directs a bank to pay a definite sum of money to a payee. In legal terms, a cheque is a bill of exchange where the drawee is a bank. This is signed by the account holder directing a certain person to pay certain amount of money only to or to the order of a certain person or to by barer of the instrument, a cheque is always supposed to be drawn against the funds in the person‟s account in the bank.

Issue of a Cheque Book

At the time of opening an account, a person is required to sign a “Cheque Book Requisition Slip”. If the account opening form is found complete in all respects, a cheque book is issued to client; the account number is written in cash leaf of the cheque book and in it requisitions slip.

The name and account number of the client is also entered in the Departmental cheque books issued register against the particular cheque book series and it is also recorded in the computer.

Lastly the requisition slip is preserved as voucher.

Clearing Section:

Clearing a check means processing it so that funds are deducted from the payer’s account and put into the payee’s account. NRBGB go through the process of settling transactions between banks. Because so many transactions take place between banks on a given day, bank clearing exists to process what each party owes or is owed in a central location so the least amount of money actually changes hands.

Job Descriptions:

Issuing cheques
Giving 3 clearance seals on cheques (1 crossing seal and 2 endorsement seals).
Categorizing cheques according to high value (500000tk.-above 500000tk.) and regular value (below 500000tk.) allocation.
Giving posting in the system software
Dishonoring cheques if any specific reason comes across.
Passing cheques after declaration of Bangladesh Bank(Central bank of Bangladesh)
Giving account statement to the clients if he or she wants to know.

Inward Cheques:

It means what are sent to the outside. Outward clearing cheques are own bank‟s cheques which are presented on the other concerned banks for collection through clearing house of Bangladesh Bank.

Outward Cheques:

It means what are receives from the outside. Outward clearing cheques are those ones which have drawn from the other banks which will be cleared / honored through the internal clearing system of NRBGB.

Clearing Seal:

There are three necessary seals without which cheque cannot be either accepted or passed. They are – one crossing seal and two endorsement seal. In crossing seal the name of NRBGB is written. On the other hand, one endorsement seal is known as clearing seal where date and clearing must be given. In another seal payee‟s A/C credited for NRBGB is written. The authorizer put his or her signature on it for authorization and issuance of the cheque.

Software:

NRBGB use “Temenos T24” software for clearing cheques. It is mainly such kind of software making companies which only make various customized software for banking activities of banks.

Cash section:

Cash is one of the most important sections of general banking department because it deals cash. This department is mainly engaged with cash receipt and cash payment.

Job Descriptions:

Receiving cash
Paying Cash
Issuing Vouchers
Keeping record of receipts

Receiving of cash:

Receipt of cash is the source of cash at branch. It may be from customer, from central bank, from any other bank or any other branch of the same bank.

Receiving Process:-

Checking of deposit vouchers account amount word and figures.
Count the cash if possible manually or by the counting machine.
Check the Notes- Mutilated, Mismatched or forged.
Put signature in the deposit voucher including counter foil.
Pass on the credit voucher with counter foil to the receiving cashier.
At the close of business hour sum up the register and tally it with the Receiving registers.
Totaled the entries and match it with the receiving total.
Count the no. of vouchers
Checked by officer and countersigned.

Cash is used by a bank for the payment to its customer and the surplus cash is remitted to cash feeding branch.

Payment of cash Process:-

Every payment must be paid in due course.
Analysis of the instrument before payment.
Passed for payment by canceling officer.
Amount, date, endorsement/order/bearer.
Obtain bearer signature on the backside of the instrument.
Verify signature with the same obtained at the time to token.
Write value on backside of the instrument.
Affix cash paid stamp no. 26 in the face of the instrument.
Entry the figure of the instrument in paying cashier book no.
Return the un-paid instruments.
Total the entries and balance it with the token and tally total.
Write in word the total amount and put signature.
Release of paid instrument from the paying cashier book.
Send the vouchers to the respective department.

Cash balancing:

All employee related to cash must ensure the balancing of cash has done correctly on daily basis. For balancing of cash following works have to perform:-
All cash register must be totaled and duly written in words and signed.
Balancing them with each other.
All register must be duly counter signed by checking officer.
Balancing the register with the physical cash.
Pass voucher if any surplus or short cash.
Prepare cash position memo.
Write cash balancing book.
Ensure accounting of balance is correct.
Prepare cash cum Day Book.

In the computerized branch hard copy “Day End” position is to be signed by cash in charges and cash officer.

Process of Opening of current & Savings A/C:

While opening new accounts a systematic process must be conducted in order to ascertain the identification of the account holder and the beneficiaries/ nominees. Passport size photograph of the account holder & Nominee along with Transaction Profile and Known Your Customer Form (KYC) to be obtained in this process. Then Thanks letter to be sent to the customer to his/her present address to verify account holder‟s address.

Know your Customer (KYC) Concept:

The officer related to account opening formalities must know details of their customers (depositors and borrowers) because of the guidelines provided by the Central Bank to identify the source(s) of money and use of credit.

It is said in the view of bank that, the banker-customer relationship is commenced through opening CD/STD/SB account. During the period of account opening, the customers must complete the KYC Profile which includes residence address, business address photographs, signatories, photocopy of valid passport, trade license, source of money, TI Number, photocopy of VAT Certificate, In case of company: photocopy of Memorandum of Association, certificate of incorporation, certificate of Board of Investment, list of directors, etc as per requirement of the bank. Information regarding business pattern, nature of business, and volume of business etc. can also be discovered. Any doubtful transaction must be addressed and find out to take corrective measures as per regulation of the Central Bank.

Following documents are required to be completed before a current or a savings account is opened in a bank.

Required Documents for Personal Account:

Two copies of passport size photograph of the account holder(s)/person(s) who will operate the A/C duly attested by the introducer
A/C to be introduced by current/savings account holder
Photocopy of valid passport (1 to 7 pages)/driving license/national ID card/employer‟s certificate/national certificate issued by the Ward Commissioner or Chairman etc.
Paper related to sources of income
One copy passport size photograph of nominee(Attested by Account Holder)
TIN Certificate (if applicable)

Required Documents for Non-Personal (Corporate) Account:

Proprietorship Firm-

Request Letter/Application in Firm‟s Letter-Head Pad for Account Opening Purpose.
Up-To-Date Trade License, TIN,VAT Copies Of The Firm
Seal Of The Firm & Visiting Card Of The Signatory/Ies (If Applicable)
2 Copies Of Photographs Of Each Signatory (Attested By Introducer)
Photocopy Of National ID Card/Passport/Citizenship Certificate With The Original Copy For Verification Purpose
Signature And 1 Copy Of Photograph Of Each Nominee (Attested By The Account Holder)
Tenancy Agreement Copy (If Applicable)

Partnership firm

Request Letter/Application in Firm‟s Letter-Head Pad for Account Opening Purpose.
Registered Partnership Deed On Non-Judicial Stamp Of Tk.300 & List Of The Partners With Portfolio
Up-To-Date Trade License, TIN,VAT Copies Of The Firm
Resolution Regarding Operation Of Bank Account And Signing Of Bank‟s Charge Documents With Execution Of Mortgage Deeds And Other Bank‟s Papers & Documents Etc. As Per Partnership Deed
Seal As Per Resolution & Visiting Card Of The Signatory(S)
2 Copies Of Photographs Of Each Signatory (Attested By Introducer)
Photocopy Of National ID Card/Passport/Citizenship Certificate With The Original Copy For Verification Purpose
Signature And 1 Copy Of Photograph Of Each Nominee (Attested By The Account Holder)
Membership Certificate Of TRADE ASSOCIATION ,Chamber Of Commerce And Industry (If Applicable)
Tenancy Agreement Copy In Between The Firm And The Landlord (If Applicable)

Limited company

Request Letter/Application In Company‟s Letter-Head Pad for Account Opening Purpose.
Up-To-Date Trade License, Tin, Vat Copies Of The Firm
The Certificate Copy Of Memorandum And Articles Of Association By Register Of Joint Stock Companies & Firms
Up-To-Date Trade License, Tin, Vat Copies Of The Firm(If Applicable)
Resolution Regarding Operation Of Bank Account And Signing Of Bank‟s Charge Documents With Execution Of Mortgage Deeds And Other Bank‟s Papers & Documents Etc. As Per Memorandum And Articles Of Association
Seal As Per Resolution
2 Copies of Photographs of Each Signatory (Attested By Introducer/Chairman of the Company & Visiting Card of the Signatories.)
Photocopy Of National ID Card/Passport/Citizenship Certificate With The Original Copy For Verification Purpose
Complete Bio-Data With Passport Size Photographs Of All The Directors Of The Company Duly Singed By Them.
Certified Copy Of Form No XII & XX Duly Issued By The Register Of Joint Stock Companies & Firms For Bank‟s Records
Membership Certificate Of Chamber Of Commerce And Industry, Trade Association, Stock Exchange (If Applicable)
Tenancy Agreement Copy In Between The Firm And The Landlord (If Applicable)
List Of Directors With Complete Present And Permanent Address With Signature & Telephone Nos. On Letter-Head Pad Of The Company

School/college/educational institution

Request Letter/Application in Institution‟s Letter-Head Pad for Account Opening Purpose.
2 Copies Of Photographs Of Each Signatory (Attested By Introducer)
List Of Members Of The Managing Committee
Resolution Of The Managing Committee Regarding Opening And Operation Of Bank Account

Club/association/society/religious institution

Request Letter/Application in Institution‟s Letter-Head Pad for Account Opening Purpose.
2 Copies Of Photographs Of Each Signatory (Attested By Introducer)
List Of Members Of The Executive / Managing Committee
Resolution Of The Executive /Managing Committee Regarding Opening And Operation Of Bank Account
Certified Copy Of Bye-Laws /Rules And Regulations/ Constitutions

Trust

Request Letter/Application in Institution‟s Letter-Head Pad for Account Opening Purpose.
2 Copies Of Photographs Of Each Signatory (Attested By Introducer)
Attested Copy Of Trust Deed
Resolution Of The Committee Regarding Opening And Operation Of Bank Account
Head Office Approval For Opening Trust Account

After the above formalities are over, the banker opens an account in the name of the applicant. It is essential that the applicant deposit some amount at the time of opening the account. General the minimum amount to be deposited initially is TK.500/- in case of savings bank account and TK.1000/- in case of a current account. It may vary from bank to bank.

The bank then provides the customer with

a) A pay-in-slip

b) A cheque book

c) Statement of account

Current Account

Current account is purely demand deposit account because the bank is bound to pay the amount to the account holder on demand at any time. It is running and active account, which may be operated upon any number of times during a working day. There is no restriction on the number and the amount of withdrawals from a current account.

If the amount of deposit is below taka 1,000 on an average the bank has authority to cut taka 50 from each account as subsidiary charge after every six months. Against this account loan facility can be ensured. Usually one can open this account with taka 500. One can open this sort of account through cash or check/bill. All the banks follow almost the same rules for opening current account.

Savings account:

Usually customers open this sort of account at a low interest for only security. This is also an initiative to create people’s savings tendency. Generally, this account is to be opened at taka 1000. Interest is to be paid in June and December after every six months. If money is withdrawn twice a week or more than taka 10,000 is withdrawn (if 25% more compared to total deposit) then interest is not paid.

This account guarantees loan. Almost all the banks follow the same rules in the field of savings account, except foreign banks for varying deposit. On an average, all the banks give around six percent interest.

Short Term Deposit Account (STD):

Customers deposit money for a shorter period of time. STD account can be treated as semi-term deposit STD should be kept for at least thirty days to get interest. The interest offered for STD is less than that of savings deposit. In practice, NRB GLOBAL offers 5.00% rate of interest (half yearly compounding) for STD account. It may increase depending on the fund. Volume of STD A/C is generally high.

In NRB GLOBAL, various big companies, organizations, Government Departments keep money in STD accounts. Frequent withdrawal is discouraged and requires prior notice.

Term deposits:

The fixed deposit account is repayable after the expiry of a predetermined period fixed by the customer himself. The period varies from three months to three years. The customer may open his /her account for different time periods, which may be for three months, six months, one year, two years and three years. General Characteristics are:

Popularly, it is known as Fixed Deposit Receipt (FDR). Term deposits are made with the bank for a fixed period of time.
The bank needs not to maintain cash reserves against these deposits and therefore, the bank offers high rate of interest on such deposits.
In NRB GLOBAL, fixed deposit account is opened in customer choice time.

Fixed deposit:

Fixed deposit is one, which is repayable after the expiry of a predetermined period fixed by him. The period varies from 1 month to 1 year. These deposits are not repayable on demand but they are withdrawal subject to a period of notice. Hence, it is a popularly known as „Time Deposit‟ or „Time Liabilities”. Normally the money on a fixed deposit is not repayable before the expiry of a fixed period. The depositor has to fill an application form.

Before opening a Fixed Deposit Account a customer has to fill up an application form which contains Amount in figures, Beneficiary‟s name and address, Period, Rate of interest, Date of issue, Date of maturity, How the account will be operated ( singly or jointly), Signature(s), F.D.R. No., Special instructions (if any).

After fulfilling the above information and depositing the amount, FDR account is opened and a FDR receipt is issued and it is recorded in the FDR Register which contains FDR account no, FDR (Fixed Deposit Receipt) no, Name of the FDR holder with address, Maturity period, Maturity date, and Interest rate.

In case of Fixed Deposit Account the bank does not have to maintain a cash reserve. So NRB offers 7% interest rate in Fixed Deposit accounts.

Loss of F.D.R.:

In case of a lost FDR, the customer is asked to record a GD (General Diary) in the nearest Police Station. After that, the customer has to furnish an Indemnity Bond to NRB a duplicate FDR is then issued to the customer by the bank

Renewal of FDR:

The FDR becomes automatically renewed for like periods and amounts, unless this are withdrawn by the depositor or, the bank notifies the depositor in writing at least 15 days in advance of the original Or, any renewed maturity date (s) of its desire to terminate the account or change any term and condition of the account.

In case of a deposit in joint name; NRB GLOBAL also takes the instructions regarding payment of money on maturity of the deposit. The banker also takes the specimen signatures of the depositor(s).Necessary entries are given on the FDR registered on line. An FDR is then issued to the depositor acknowledging receipt of the sum of money mentioned therein. It also contains the rate of interest & the date on which the deposit will mature.

Recommendations:

It is really difficult to recommend NRBGB although this is new in banking industry. I tried to give some recommendations according to my findings from the study. Following are my recommendations:

Dealing with the clients of a bank is very important for the reputation of the bank. In case of any faulty submission of documents for opening or closing of account, they should be requested for filling the requirements as per regulation with lot of patience.
As this bank has been working for last one year, it has to draw attraction for more clients to pace with the competitive world of banking. Though it offers so many innovative products, it must advertise its banking activities so that more customers can come here for banking activities to meet their demand.
Scanner machine of cheque must be utilized everyday so that if anybody brings fraud cheque that can be caught immediately. Hence proper actions can be taken to stop authorization of cheque.
Cheque book must not be handed over to any person other than the account holder. Without the authorization by the account holder or accountable one it must not be handed over.
During account opening period the officers must inform each and every detail to open specific account so that no client faces any hurdle of further proceeds.

Conclusion:

Undoubtedly banks play crucial role in the economic development of a country. In addition, the popularity of banks is increasing day by day which leads to increase competition as well. The working experience is quite exciting at NRB Global Bank, Gulshan Corporate branch. I gathered the experience of actual professional environment. Retail banking, investment and also the foreign exchange operations is very convenient banking tool for the business world as the value of these service is vast. All these services have gathered such a position in the banking sector that people in developed and also developing counties are very much dependent on banking service.

In Bangladesh credit facilities or loans started to become very attractive in recent periods. But still lot of improvements in services and facilities has to be made in this department. NRBGB is engaged with general banking activities with a view to expand banking services to the clients.

All the employees of this bank are very qualified and dedicated, who are always trying to provide the best service to the customers. In this bank the employees are highly motivated due to their remunerations and other benefits. Here, all the employees are very much cooperative with their customers, colleagues and visitors. To sum up, I want to say that I am very lucky to join here as an internee because I always get support and motivation to assemble knowledge from NRB Global Bank.