General Banking Department of National Cradit and Commerce Bank Limited

Deposit Section

In fact, a bank operates with the people’s money. The banking activity of a person starts with the opening of an account. NCCBL generally gives facility to open the following accounts:

  Current Deposit (CD)

  Savings Deposit (SB)

  Short Term Deposit (STD)

  Fixed Deposit (FDR)

  Bearer Certificate of Deposit (BCD)

 Different Deposit of NCCBL

a)      Current Deposit Account:

NCCBL opens current accounts for its clients to facilitate their day-to-day operations. The amount deposited in the current account can be withdrawn at any time. No interest is given on the current account. In certain cases, however, interest is available at an agreed rate where withdrawals are subject to a written notice for a specified period. The minimum balance requirement for this account is TK. 1000/- and TK.250/-is deducted from the account in case of closing the current account.

    b)  Savings Account:

The bank provides savings account services for the ease of its clients. It offers both personal and corporate Savings account to its clients in every branch. The current rate on the deposit amount is 6% and the minimum balance requirement is TK.5000/-. The bank requires no other service charge for this account is TK.250/-.

c)      Short Term Deposit (STD):

 According to characteristics, short-term deposit is similar to current deposit except interest. Though it is C/D account but bearing some interest. Currently this interest rate is 5.50%.

Rules and Regulation for opening Short Term Deposit (STD) Account:

STD account rules and regulation are just like current deposit account except following rules:

STD Account Holder enjoys interest by following cases:

 d)     Fixed Deposit:

Fixed Deposit is very much important for its contribution to the bank’s deposit creation process, because the highest amount of Bank fund from its direct customers comes in the form of Fixed Deposit. For increasing the deposit base every commercial bank offers its customers various rates according to the amount of deposit. NCCBL also offers its valuable customers some significant rates for different amounts. Those are:

Table

 e)      Bearer Certificate of Deposit:

It is an instrument of deposit, where depositors name and address is not mentioned; only a receipt number is there. Just two of three years ago Government of Bangladesh ruled in this type of deposit. They are discouraging about bearer certificate of deposit. As a result bearer certificate of deposit of every bank is declining. Some amount of bearer certificate of deposit is keeping by the banks, which are not yet matured.

f)       Sundry Deposit:

It is a non-interest bearing deposit. Any sort of non-interest bearing deposit is good for the institution. Though it is a liability, but bank doesn’t pay any interest against this deposit. So the sundry deposit of any bank’s increase that will be a good part for the concern bank.

 Rates of Different Deposit A/C of NCCBL

Table:

 Necessary papers/documents for opening of an account:

Individual/Joint Account:

For any individual/joint account the-following papers/documents are required:

a)      Two copies of photograph of the account holder(s) who will operate A/C.

b)      Introducer-attested by current/savings account holder.

c)      Service paper photocopy or Nationality certificate by commissioner or photocopy of Passport.

“Any balance to the credit of the account is and shall be owned by us as joint depositors. Any liability whatsoever incurred in respect of this account shall be joint and several.”

Proprietorship Firm

The following documents have to be submitted for preparing an account of a Proprietorship firm:

a)      Name of the firm.

b)      Name of the proprietor.

c)      Copy of Trade License.

d)     Shell of Proprietorship firm.

Partnership Firm 

The following documents have to be submitted for preparing an account of a partnership firm:

a)      Partnership deed.

(1)   If the partnership firm is a registered one, then one copy of registration forms.

(2)   If not, then a copy of certificate from the notary public.

b)      Certified copy of valid trade license.

c)      Trade seal.

d)     Partnership account agreement (Draft enclosed)

Limited Company:

For the opening of an account of a limited company, following documents have to be submitted:

a)      A copy of resolution of the company that the company decided to open an account in the NCCBL.

b)      Certified true copy of the Memorandum & Articles of Association of the Company.

c)      Certificate of Incorporation of the company for inspection and return along with a duly certified Photocopy for Bank’s records.

d)     Certificate from the Register of Joint Stock Companies that the company is entitled to commence business (in case of Public Ltd. C for inspection and return) along with a duly certified Photocopy for Bank’s records.

e)       Latest copy of balance sheet.

f)        Extract of Resolution of the Board / General Meeting of the company for opening the account and authorization for its operation duly certified by the Chairman / Managing director of the company.

g)       List of Directors with address (a latest certified copy of Form-12).

Cooperative Society:

Following documents have to be obtained in case of the account of Cooperative Society:

a)      Copy of Byelaw duly certified by the Co-operative Officer.

b)      Up to date list of office bearers.

c)      Resolution of the Executive Committee as regard of the account.

d)     Certified copy of Certificate of registration issued by the registrar, Co-operative societies.

The Cash Counter Section

We know that Bank is the Dealer of Money; it receives money and pay money. Where cash counter should be the heart of any commercial bank’s branch office as it receives and pay cash every moment at its working time. Cash Counter also does a very important work by managing the Bank’s flow of Fund. All the money of any Bank Business enters & exits through the cash counter. This section is the major part of Bank that words as the customer service oriented section. The efficiency of this section of a Bank crates the good image of that Bank to the all type of customers. If the officials can serves at once the customer than it proves the strong human resources of that Bank and increases customer satisfactions, which improve the overall position of that Bank in the market. It must be mentioned that NCCBL has a very strong group of employees, especially in the elephant road Branch, Whom all the time serves the customers satisfactorily. Generally followings are some tasks done by the cash counter of Prime Bank:

• Cash Receive
• Cash Payment
• Receiving Current Bill, TNT& AkTEL Bill
• Working as Agent at the time of issuing IPO of different companies.
• Fund Management by maintaining sufficient amount of cash each day. Because if the amount of cash receives of any day is more than that of estimated, the bank has to pay mere to the Insurance Company as premium of that excess amount. On the other hand if for any reason the amount of cash is less than the estimated amount, the Bank can’t satisfy the customers’ demand.

• Payment of ATM cards.
• Payment of Money Gram.
• Payment of Express Money.

The Account Department:

This is the mist confidential department of a bank. Recording all kinds of transactions of the branch, confirming their accuracy and preparing statements are the main job of this department. Now a day under computerized banking system, the jobs of accounts department become very easy. Now the computer directly prepares the clean cash statement on party ledger vouchers. The function of the accounts department can be divided into two parts:

a)      Daily function

b)      Periodical functions

Daily functions: 

• The routine daily tasks of the accounts departments are as follows:
• Record the daily transactions in the cash book.
• Record the daily transactions in general and subsidiary ledger.
• Prepare the daily position of the branch comprising of deposit and cash.
• Prepare the daily statement of affairs showing at the assets and liability of the branch as per ledger and subsidiary ledger separately.
• Pay all expenditure on behalf of the branch.
• Make salary statement and pay salary.
• Checking whether all the vouchers are correctly passed to ensure the conformity with the ‘Activity Report’; if otherwise making it correct by calling the respective official to rectify the voucher.
• Records inter branch fund transfer and providing accounting treatment in this regard.

Periodical Tasks:

• The routine periodical tasked performed by the department are as follows:
• Prepare the monthly salary statements for the employees. Publish the basic data of the branch.
• Prepare the weekly position for the branch, which is sent to the Head Office to maintain Cash Reserve Requirement.
• Prepare the monthly position for the branch, which is sent to the Head Office to maintain liquidity requirement.
• Prepare the weekly position for the branch comprising of the break up of sector-wise deposit, credit etc.
• Prepare the weekly position for the branch comprising of the denomination wise statement of cash in tills.
• Preparing the budget for the branch by fixing the target regarding profit and deposit so as to take necessary steps to generate and mobilize deposit.

Cheque Clearing Section:

In Clearing Section cheque, dividend warrants and other forms of financial instruments, which are easy for encashment, are received. The clearing department sends these instruments to the Clearing House of the Bangladesh Bank for collection. As soon as cash is received the amount is deposited in the client’s account. Collection of cheques, drafts etc. on behalf of its customers in one behalf of its customers in one behalf of its customers in one of basic function of a commercial Bank. Clearing stands for mutual settlement of claims made in between member banks at an agreed time and place in respect of instruments drawn on each other. Negotiable instrument Law provides protection to a banker who collects a cheque or a draft if the banker fulfills the following conditions:

• He collects the instrument for customer
• The instrument be crossed
• The banker acts in good faith and without negligence

Types of Clearing:

• Outward clearing: Outward clearing means when a particular branch receive instruments drawn on the other bank within the clearing zone and those instruments for collection through the clearing arrangement is considered as outward clearing for that particular branch.

• Inward Clearing: The bank provides the instruments to other banks through Clearing House which have been collected from different clients. It performs this king of service for its clients without requiring any charge or the remittance.

OBC (Outward Bill Collection)

If a party gives a check to a branch of NCCBL to collect money from a branch of another bank which is not situated in the clearing house then the NCCBL collect money through OBC. In case of OBC two ways exist to collect money from another bank.

• In the first way, the receiving branch of NCCBL send the check with forwarding letter to the branch of another bank which name are included in the check. After receiving the check that branch of the bank send a D.D. to another branch of their bank which are situated in the same clearing house of payee’s branch of NCCBL. After that they issue pay order to the name of payee’s branch name and send the check to the clearing house and NCCBL collect this check through clearing house and credit the payee’s account.

• In the second way, NCCBL, payee’s branch sent the check to another branch of NCCBL which are situated in the same area of another bank’s branch (which name are included in the check). Then the receiving branch of NCCBL collect the amount of check through outward clearing by clearing house of those areas and issue a credit advise to the payees’ branch. After that, payee’s branch credits the payee’s account.

Local Remittance Department

Remittance is significant part of the general Banking. The Bank receives and transfers various types of bills trough the remittance within the country. Obviously the bank charges commission on the basis on the basis of bills amount. NCCBL remittance is safe, swift inexpensive and simple.

Types of Remittance

a)      PO (Pay Order)

b)      DD (Demand Draft)

c)      TT (Telegraphic Transfer)

d)     MT (Mail Transfer)

e)      SP (Shanchaypotra)

Pay Order:

Pay order is an instrument that contains an order for payment to the payee only in case of local payment whether on behalf of the bank or its constitution. Unlike check there is no possibility of dishonoring pay order. NCCBL charges different amount of commission on the basis of play order amount.

DD (Demand Draft)

By DD any person can send money from one branch to another branch of NCC bank. To send the money he/she must fill up the NCCBL’s prescribed from of DD and paid charge commission and receive DD block. The following information is included in the DD Block:

• Name of the sender Branch
• Name and account of the party who receive the money
• For security purpose a confidential test number are included in the DD Block.
• Amount of money to be transferred.
• Name of receiver Branch

The senders send this block to the Receiver branch of DD. When this DD Block receive by the receiver branch. The authorized officer of the receiver branch tests the DD confidential number and if the test is proved then he/she give the money to the payee.

TT (Telegraphic Transfer)

• To send money urgently NCCBL may be requested for TT on payment of a nominal charge and telegram charges.

• Any person urgently sends money from one branch to another branch within NCCBL through TT.

• When a message of IT send through phone from one branch to another branch in that time the message received by the authorized officer who has a right of power of Attorney. After that, He/she fill up the IT form. Following things are included in the T.T from:

• T.T

• T.T. test number

• Name and Account number of the payee

• Power of attorney number of the sender and receiver of T.T

• The amount to be transferred.

• After fill up of T.T form he tests the Test number of T.T. If he/she ensured through testing the test number then he credit the account of the payee. On the other hand, if the Test number is not proved then he/she callback to the sending branch of T.T. and request to send a new T.T.

MT (Mail Transfer)

Money can be sent through mail transfers to any body who has an account in any other branch of the same bank for this purpose the sender shall have to furnish details like

• The name of the beneficiary and his/her account number
• The amount to be transferred
• The name of the branch where the account is maintained.

Attractive Charges on remittances

Issuance of pay Order Table-13

 Issuance of DD/TT/MT

Commission—————————————@ TK. 0.10%

Telephone/Telex Charge—————————-TK. 30/-

CONCLUSIONS

There are a number of Private Commercial Banks, Nationalized Commercial Bank’s and foreign Banks operating their activities in Bangladesh. The NCC Bank it is one of them. For the future planning and the successful operation for achieving its prime goal in this current competitive environment this report can be a helpful guideline.

From the practical point of view I can declare boldly that I really have enjoyed my internship at NCC Bank from the first day. Moreover, internship program that is mandatory for my BBA program, although it is obviously helpful for my further thinking about my career.

Banks always contribute towards the economic development of a country. Compared with other Banks NCC Bank is contributing more by investing most of its funds in fruitful projects leading to increase in production of the country. It is obvious that right channel of Banking establish a successful network over the country and increases resources; will be able to play a considerable role in the portfolio of development in developing country like ours.

NCC Bank playing its leading role in socio-economic development of the country. Since inception NCC Bank has been rendering its Banking services with the needs of the nation to cope with the demands of people in the country. By doing many other works for state & society, NCC Bank has emerged as the pioneer of playing key role in the country.

Recommendations

For the probable solutions of the identified problems ensure better progress to NCC Bank in future, some necessary steps are recommended bellow on the basis of collected data, observation, expert staffs opinion and my knowledge and judgment.

• If the entire banking system is fully online on computerized system then they satisfy the customer by providing fast service with minimum service charge.

• NCC Bank should give more attention to advertisement for creating more attraction among its customers, which is helpful to collect more deposits and increase investments scope. That’s why bank should give emphasis of advertisement in various media like TV, News Paper, Internet and Billboard.

• NCC Bank should ensure networking system with its branches then it could easily transfer data within short time.

• Job description should be clarified and proper training facilities should ensure to improve the performance of bottom line management.

• NCC Bank should develop online banking system to compete with other commercial banks. It was observed that the officers of NCC Bank have to spend more time in preparing vouchers; this can be avoided by the automation.

• Credit Card and Automated Teller Machine (ATM) should be introduced as soon as possible because of present market demand of the customer and the educated customer now wants technology based banking.

• Attractive incentives packages for the exporters will help to increase the export and accordingly it will diminish the balance of payment gap of NCC bank. NCC Bank is to be concentrating in always monitoring the performances of its competitors in the field of foreign trade.

• Branches of NCC Bank are not sufficient as per demand of the people. So NCC Bank should setup new branches. They should also focus on the marketing aspects by informing the customers about its products and offering services charges. NCC Bank Ltd. Should focuses in their promotional activities on its marketable products.

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