General Banking and Financial Performance of UCBL (Part-3)

Cheque Issuing is Two Types:

Direct requisition slips Cheque Book’s requisition slip

Customers Service Officer receives these types of slip from the client’s and gives the cheque books under processing. Processing means Cheque Book’s collect from the VOLT and the put account number in the Cheque book; write down the serial number of the cheque book in the requisition slip and cheque book register, then Verified client signature. After all this things the Principal Officer sign in the cheque leaves and sent the cheque book to another Principal officer for sign, after his sign the client

Receive the cheque book. These things the Principal Officer for sign, after his sign the client receive the cheque book. Then Principal Officer posting that cheque books leaves number in the computer data processing system.

A cover file containing the requisition slip is effectively preserved as vouchers. If any defect is noticed by the ledger keeper, he makes a remark to that effect on the requisition slip and forward it to the cancellation officer to decide whether a new checkbook to be issued to the customer or not.

Account Closing:

For two reasons, one can be closed. One is by banker and other is by the customer.

By banker: If any customer doesn’t maintain any transaction within six years and the A/C balance becomes lower than the minimum balance, banker has the right to close an A/C.

By customer: If the customer wants to close his A/C, he writes an application to the manager urging him to close his A/C.

Different procedures are followed in cash of different types of A/C to close:

Fixed deposit A/C is closed after the termination of the period. Brick by Brick A/C is very easily closing if one of the clients didn’t pay his/her monthly installment at the bank three months one after one, in this way three months. Another account’s will be closed on the parties advice, if they want to close any one of the account clients must have to submit an A/C closing letter through des pass. Then the Sr. Principal Officer checks it out and closes the A/C.

Closing process for current & savings A/C:

After receiving customer’s application the officer verifies the balance of the A/C. He then calculates interest and other charges accumulated on the A/C. If it bears a credit balance, the officer writes advice voucher. He gives necessary accounting entries post to accounts section. The balance is returned to the customer. And lastly the A/C is closed. But in practice, normally the customers don’t close A/C willingly. At times, customers don’t maintain any transaction for long time. Is this situation at first, the A/C becomes dormant and ultimately it is closed by the bank.

Remittance, Main instruments, Payment Order & Demand Draft Issue, Cancellation, Charges

Remittance:

Remittance of funds is ancillary services of UCBL. It aids to remit fund from one place to another place on behalf of its customers as well as non- customers of Bank. UCB has its branches in the major cities of the country and therefore, it serves as one of the best mediums for remittance of funds from one place to another.

The main instruments used by UCBL, Savar Branch for remittance of funds.

• Payment Order Issue/Collection
• Demand Draft Issue/Collection
• T.T. Issue/Collection
• Endorsements
• Travelers Cheque Issuance
•  IBC/OBC Collection.

Payment Order Issue/Collection:

The pay order is an instrument issued by bank, instructing itself a certain amount of money mentioned in the instrument taking amount of money and commission when it is presented in bank. Only the branch of the bank that has issued it will make the payment of pay order.

Issuing of Pay Order:

The procedures for issuing a Pay Order are as follows:

• Deposit money by the customer along with application form.
• Give necessary entry in the bills payable (Pay Order) register where payee’s name, date, PO no, etc is mentioned.
• Prepared the instrument.
• After scrutinizing and approval of the instrument by the authority, it is delivered to customer. Signature of customer is taken on the counterpart.

Demand Draft Issue/Collection;

The person intending to remit the money through a Demand Draft (DD) has to deposit the money to be remitted with the commission which the banker charges for its services. The amount of commission depends on the amount to be remitted. On issue of the DD, the remitter does not remain a party to the instrument: i) Drawer branch ii) Drawee branch iii) Payee. This is treated as the current liability of the bank as the banker on the presentation of the instrument should pay the money. The banker event on receiving instructions from the remitter cannot stop the payment of the instrument. Stop payment can be done in the following cases:

Loss of draft before endorsement: In this case, “Draft reported to be lost, payee’s endorsement requires verification” is marked.

Loss of draft after endorsement: In this case, the branch first satisfies itself about the claimant and the endorsement in his favor.

Issuing of Duplicate DD:

If the customer wants to issue a duplicate DD, than customer is asked to do the following formalities:

Making a general diary (GD) in the nearest Policed Station. Furnishing an Indemnity Bond in Tk.50/= stamp

The banker immediately marks “stop payment” in the register after receiving the application from the customer and a duplicate DD is issued.

IBC & OBC, Locker Service

IBC/OBC:

By OBC, we mean that those cheques drawn on other banks which are not within the same clearing house. Officer gives OBC seal on this type of cheques and later sends a letter to the manager of the branch of the some Bank located in the branch on which cheque has been drawn. After collection of that bill branch advises the concerned branch in which cheques has been presented to credit the customer account through Inter Branch Credit Advice (IBCA).

In absence of the branch of the same bank, officer sends letter to manager of the bank on which the cheques is drawn. That bank will send pay order in the name of the branch. This is the procedure of OBC mechanism.

Actually OBC comes from the out side bank’s branch, or inter branches. Suppose AGRANI Bank, Jatrabari Branch sent a Cheque, which no: 012536, Tk. 5,00,0007- to United Commercial Bank Limited against AGRANI Bank Motijheel Corp. Branch. So this cheque could be an OBC. Now what United Commercial Bank Limited has to do? UCBL tries to collect this cheque through Bangladesh Bank Clearing House, and credited clients account.

OBC Collection Process:

Create a Voucher against OBC: S/D A/C   OBC Tk. 5,00,000/-

10% Cut off as Commission on OBC   Tk. 500

15% Cut off as Vat on Others               Tk. 75

Tk. 20/- Cut off as Postage Recovery    Tk. 20

Total                                                    Tk. 595/-

In this condition UCBL got the cheque amount of Tk. 5,00,0007-, but after cut off the commission, vat and postage recovery UCBL will be credited the amount Tk. (5,00,000 -595)= Tk. 4,99,4057- in party account.

Bangladesh Bank Circulation about OBC:

Bangladesh Bank has circulated some things about OBC. These are given below: If the cheque amount will be under Tk. 1,00,000/- then bank’s OBC commission will be charged at .15%.

If the cheque amount will be above Tk. 1,00,000/- to Tk. 5,00,0007- then Bank’s OBC commission will be charged at .10%.

If the cheque amount will be above Tk. 5,00,000/- then Bank’s OBC commission will be charged at .5%. Against the OBC the Government Tax will be realized on 15% on Commission.

Amount. Postage Recovery will be realized Tk. 20/- for each OBC.

Locker Service :

UCBL Savar Branch is providing facility of locker service for the purpose of safeguarding the valuable property of customers. The person or organization that has any account in bank branch can enjoy this service. They keep their valuable assets in banker’s custody. Customers have right to look after with a key of their individual locker provided by bank. UCBL maintains the following types of lockers:

• Large locker.
• Medium locker.
• Small locker.

For enjoying this service, clients have to give charge yearly Tk.2500/-, Tk.2000/- and Tk.1500/- for large, medium and small locker respectively.

Accounts Department of a bank branch – Cash, Gearing & Transfer, deposit slip Accounts Department

Accounts Department is play most vital role in Banking. Accounts Department is a department with which each and every department is related. It records the profit &

loss A/C and statement of assets and liabilities by applying “Golden Rules” of book-keeping. The functions of it are theoretical & computerized based. UCBL Savar Branch records its accounts daily, weekly, and monthly every record. UCBL Savar Branch Accounts Department in Charge: Mr. Keshob lal sarker, Officer Cash (having 13 years of experience in banking sector). Another officer’s are: Mr. Md. Rashedul Islam, (Senior Officer), Mr. Md. Nurul Islam Talukder (S.E.O).

This entire executive’s helps me a lot in my internship program at UCBL. They didn’t guide me as an Internee; they guide me as a training officer of UCBL to gather practical knowledge about Banking. They tried there best to inform me every thing about accounts department. I hope I knew every thing that gave me as a new comer in banking sector.

Basically Accounts Department is not alone. Accounts department is a mix of as follows:

1. Cash

2. Transfer

3. Clearing

CASH

Mr. keshob lal sarker (OC) and Md. Kamal Hossain (ACO) are the cash in charge. Both of the two senior executives help’s me lot to get practical knowledge and prepare this report.

The cash section of any branch plays very significant role in Accounts Department. Because, it deals with most liquid assets the UCBL Savar Branch has an equipped cash section. This section receives cash from depositors and pay cash against cheque, draft, PO, and pay in slip over the counter. Every Bank must have a cash counter where customer withdrawn and deposit there money. When the valued client’s deposit their money at the cash counter they must have to full fill the deposit slip his/her own, then they sing as the depositor option’s then they deposit their money through cash officer at the cash counter.

SEVERAL TYPES OF DEPOSIT SLIP

There are several types of deposit slip as follows: Current Deposit A/C Slip, Saving’s Deposit A/C Slip, Festival Deposit A/C Slip, UCB DPS PLUS Deposit A/C Slip, Pay order Slip, Demand Draft Slip.

After paying this kind’s of slip, the valued client waits for the deposit slip book out side of the cash counter. The cash officer deposit the money in there account through computer software, while the depositors account credited, then the cash officer put a seal in the deposit slip and return it to the client.

RECEIVING CASH:

Any people who want to deposit money will fill up the deposit slip and give the form along with the money to the cash officer over the counter. The cash officer counts the cash and compares with the figure written in the deposit slip. Then he put his signature on the slip along with the ‘cash received’ seal and records in the cash receive register book against A/C number.

At the end of the procedure, the cash officer passes the deposit slip to the counter section for posting purpose and delivers duplicate slip to the clients.

DISBURSING CASH:

The drawn who wants to receive money against cheque cornes to the payment counter and presents his cheque to the officer. He verifies the following information:

• Date of the cheque
• Signature of the A/C holder
• Material alteration
• Whether the cheque is crossed or not
• Whether the cheque is endorsed or not
• Whether the amount in figure and in word correspondent or not
• Then he checks the cheque from computer for further verification. Here the following information is checked.
• Whether there is sufficient balance or not
• Whether there is stop payment instruction or not
• Whether there is any legal obstruction (Garnishee Order) or not

After checking everything, if all are in order the cash officer gives amount to the holder and records in the paid register.

The cash section of UCBL deals with all types of negotiable instruments, cash and other instruments and treated as a sensitive section of the bank. It includes the vault which is used as the store of cash instruments. The vault is insured up to Tk. 80 lacs. If the cash stock goes beyond this limit, the excess cash is then transferred to Principle Branch Office. When the excess cash is transferred to UCBL Principle Branch Office the cash officer issues IBDA.

Account treatment:

UCBL General A/C  Dr.

Cash A/C Cr.

When cash is brought from UCBL Principle Branch Office.

Transfer, Clearing, Clearing House Process, types, Clearing Cheque

TRANSFER

Transfer is not a critical sector in banking but it is very important. Transfers play a vital role in banking sector. So now we have to know what transfer is: basically transfer is a type of register maintaining matter. In this register officer write down every day transactions in Debit and Credit side then the officer calculate both the side of the register if both side shown same amount, it means that the total day’s transaction is completely okay.

CLEARING

Clearing is one of the magical parts of banking. I really enjoyed this part of the accounts department and banking sector. In United Commercial Bank Limited clearing in charges Mr. Md. Nurul Amin Talukder (S.E.O), I did work with him.

What is Clearing House?

In Bangladesh Bank, there is a very large room, which contains fifty (50) or more tables for each bank that is called the clearing house.

Nature of clearing house:

1^st Clearing House

Return Clearing House

Clearing House Process:

Every bank has an officer of clearinghouse who is work with Bangladesh Bank clearing house. Actually most of major client deposit their account in different kinds of bank cheques. Clearing officer check all the cheques and deposit slip very carefully and then he received the cheque. After that the clearing officer posting all the cheques in computer software which is recognized through Bangladesh bank computer department. Then clearing officer seal all the cheques in advance date after that the officer endorsement all the cheques and sign all the cheques.

All the Cheques are posted in the computer by branch wise, then officer print the entire document and staple all the cheques by branch wise this is called schedule of clearing house. It is a very difficult job to staple all the cheques, because some time’s the cheques are huge in quantity, it may be 250 to 400, this is very vital job because every cheque must have to staple very carefully, it means cheque amount and the print sheet amount and cheque branch must have to be same. If the cheques staple in wrong direction, the cheque may be return from another bank, that’s why UCBL not to be able to credited party account.

Then the clearinghouse officer copying all the document in two floppy dist as per Bangladesh Bank requirement. When the clearing officers enter the clearinghouse, his first job is that the floppy delivered to the Bangladesh Bank computer department.

All of the procedure the clearing in charge goes to the Bangladesh Bank clearing house before 10 am in the morning. The clearing officer check all the bank’s cheque

and he put all the cheques in bank wise, like as this another bank’s delivered there cheques in UBBL desk. Then the officers of UCBL have to calculate all the cheques by using calculator machine, Staple pin remover, and then he divided all the cheques as UCBL Branch wise.

Types of Clearing Cheque:

UCBL Savar Branch performs the bill clearing function through Bangladesh Bank. UCBL Savar Branch acts as the agent of all UCBL branches for the clearing house of the Bangladesh Bank. There are two types of cheque which are-

1. Inward clearing cheque

2. Outward clearing cheque.

INWARD CHEQUES:

Inward cheques are those ones drawn the respective branch which have been presented on other banks and will be cleared / honored through the clearing house of Bangladesh Bank. Then the cheque is called inward cheque of UCBL Savar Branch.

OUTWARD CHEQUES:

Outward cheques are those ones drawn on other bank branches which are presented on the concerned branch for collection through clearing house of Bangladesh Bank. These cheques are called outward clearing cheques.

RECOGNIZED BANK’S AS THE MEMBER OF BANGLADESH BANK CLEARING HOUSE WITH THEIR CLEARINGHOUSE CODE:

NRB Division Profile

United Commercial Bank Limited (UCB) is a private-commercial bank, based in Dhaka, Bangladesh. It is involved in full-service commercial banking services, making its presence felt throughout the nation, via a large branch network with diversified products and services enabled with state-of-the-art technology.

UCB is sponsored by leading and highly reputed entrepreneurs of the country. Over the past decade, the bank has grown exponentially in terms of the number of branches, as well as overall customer base. The bank has forty-two (110) branches, two (2) Small and Medium Enterprise (SME) business and remittance centers, as well as eight (8) dedicated securities trading and brokerage branches, spread across different districts of the country. The bank also has approximately BDT 9 billion funds (USD

129 million) under management in the form of interest earning assets, deposits, etc.

UCB provides banking services to a varied clientele, having over 200,000 accounts. It has a diversified array of products and services including:

•Corporate Banking
• Institutional Banking
• Off-Shore Banking (awaiting license)
• Leasing
• Agricultural, SME & Women Entrepreneur loans and services

• Primary Dealership in Government Securities (awaiting license)

• Securities Trading & Brokerage services
• Merchant Banking & Investment Services (awaiting license)
• Consumer Banking
• Card Services

• Services for Non-Resident Bangladeshis (NRBs)

United Commercial Bank’s vision and culture is based on a philosophy known as UCB3V. We envision UCB to be:
• One of the Best Performing Banks in Bangladesh
• The Bank of Choice
• A Truly World-class Bank

The essence of this philosophy is embedded in all our activities. Through the deployment of a highly motivated team of employees, the usage of cutting-edge technology as well as following a strict criterion of only providing exemplary customer service, we have been able to operate in a highly socially responsible and profitable manner. As of the past year, we have taken various initiatives, so as to become a leader amongst our peers. One such initiative has been the establishment of a separate and focused division for Non-Resident Bangladeshis (NRBs)
The NRB Division at UCB is the first focused division, on such a magnitude, in any bank in Bangladesh. It provides the Bangladeshi Diaspora access to UCB products and services. The main objectives of the Division are:
• To provide better, faster and convenient services by taking innovative technology to the doorsteps of the migrant families.

• To expand network to the migrant localities

• Creation of awareness amongst migrant communities to avoid using unofficial channels (Hundi)
• Remittance services
• Access to home and personal loans
• Cards services

Every branch within the UCB Network has a dedicated unit to provide the full range of services to the NRB customers. Over the past year, UCB has signed a number of agreements with leading exchange houses in Qatar, U.A.E. and Bahrain. This is in addition to arrangements with existing exchange houses.
The Division plans to expand further by setting up UCB Exchange Houses at prospective locations such as Malaysia, Italy, the United Kingdom, and the United States. UCB’s NRB Division is also the only private bank engaged in the sale of Diaspora Bonds to expatriates.

4.1    Cash receipt & payment

The cash section of any branch plays very significant role in Accounts Department. Because, it deals with most liquid assets the UCBL has an equipped cash section. This section receives cash from depositors and pay cash against cheque, draft, PO, and pay in slip over the counter. Every bank must have a cash counter where customer withdrawn and deposit there money. When the valued client’s deposit their money at the cash counter they must have to full fill the deposit slip his/her own, then they sing as the depositor option’s then they deposit their money through cash officer at the cash counter.

Cash receipt

Any people who want to deposit money will fill up the deposit slip and give the form along with the money to the cash officer over the counter. The cash officer counts the cash and compares with the figure written in the deposit slip. Then he put his signature on the slip along with the ‘cash received’ seal and records in the cash receive register book against A/C number. The cash officer deposit the money in there account through computer software, while the depositors account credited, then the cash officer put a seal in the deposit slip and return it to the client There are several types of deposit slip as follows:

a.      Current Deposit A/C Slip

b.      Saving’s Deposit A/C Slip

c.      Festival Deposit A/C Slip

d.      Pay order Slip

e.      Demand Draft Slip

f.       T.T.Slip.

Legal requirements

a.      Account number

b.      Account name

c.      Amount

d.      Date

e.      Branch name

Cash payment

The drawn who wants to receive money against cheque comes to the payment counter and presents his cheque to the officer. He verifies the following information:

         a.      Date of the cheque

         b.      Signature of the A/C holder

         c.      Material alteration

         d.      Whether the cheque is crossed or not

         e.      Whether the cheque is endorsed or not

         f.       Whether the amount in figure and in word correspondent or not

Then he checks the cheque from computer for further verification. Here the following information is checked:

         a.      Whether there is sufficient balance or not

         b.      Whether there is stop payment instruction or not

         c.      Whether there is any legal obstruction (Garnishee Order) or not

After checking everything, if all are in order the cash officer gives amount to the holder and records in the paid register.

4.2     Transfer& clearing

TRANSFER

Transfer is not a critical sector in banking but it is very important. Transfers play a vital role in banking sector. So, basically transfer is a type of register maintaining matter. In this register officer write down every day transactions in Debit and Credit side then the officer calculate both the side of the register if both side shown same amount, it means that the total day’s transaction is completely okay.

CLEARING

Clearing is one of the magical parts of banking. Every bank has an officer of clearinghouse who is work with Bangladesh Bank clearing house. Actually most of major client deposit their account in different kinds of bank cheques. Clearing officer check all the cheques and deposit slip very carefully and then he received the cheque. After that, the clearing officer gives posting all the cheques in computer software, which is recognized through Bangladesh bank computer department. Then clearing officer seal all the cheques in advance date after that the officer endorsement all the cheques and sign all the cheques. All the cheques are posted in the computer by branch wise, then officer print the entire document and staple all the cheques by branch wise this is called schedule of clearing house. It is a very difficult job to staple all the cheques, because some time’s the cheques are huge in quantity, it may be 250 to 400, this is very vital job because every cheque must have to staple very carefully, it means cheque amount and the print sheet amount and cheque branch must have to be same. If the cheques staple in wrong direction, the cheque may be return from another bank, that’s why UCBL not to be able to credited party account.

Then the clearinghouse officer copies the entire document in two floppy disk as per Bangladesh Bank requirement. When the clearing officers enter the clearinghouse, his first job is that the floppy delivered to the Bangladesh Bank computer department. All of the procedure the clearing in charge goes to the Bangladesh Bank clearing house before 10 am in the morning.

The clearing officer checks all the bank’s cheque and he put all the cheques in bank wise, like as this another bank’s delivered their cheques in UCBL desk.

4.3 Foreign trade

UCB provides a wide range of banking services to all types of commercial concerns such as Import & Export Finance and Services, Investment Advice, Foreign Remittance and other specialized services as required. Although we are a private commercial Bank, they have a strong global network that helps them to undertake international trade smoothly and efficiently.

Import Business

United Commercial Bank supports its customers by providing facilities throughout the import process to ensure smooth running of their business. The facilities are:

a. Import Letter of Credit

b. Post Import Financing (LIM, LTR etc)

c. Import collection services & Shipping Guarantees

Export Business

United Commercial Bank offers extra cover to its customers for the entire export process to speed up Receipt Of proceeds. The Facilities are:

a. Export Letters of Credit advising

b. Pre-shipment Export Financing

c. Export documents negotiation

d. Letters of Credit confirmation