Overview of General Banking of Shahajalal Islami Bank Ltd.
Introduction of SJIBL:
Shahjalal Islami Bank Limited (SJIBL) commenced its commercial operation in accordance with principle of Islamic Shariah on the 10th May 2001 under the Bank Companies Act, 1991. During last seven years SJIBL has diversified its service coverage by opening new branches at different strategically important locations across the country offering various service products both investment & deposit. Islamic Banking, in essence, is not only INTEREST-FREE banking business, it carries deal wise business product thereby generating real income and thus boosting GDP of the economy. Board of Directors enjoys high credential in the business arena of the country, Management Team is strong and supportive equipped with excellent professional knowledge under leadership of a veteran Banker Mr. Muhammad Ali.
Shahjalal Islami Bank believes in moral and material development simultaneously. Interest or Usury has not been appreciated and accepted by The Tawrat of Prophet Moses, The Bible of Prophet Jesus and The Quran of Hazrat Muhammad (sm). Efforts are there to do banking without interest Shahjalal Islami Bank Limited avoids interest in all its transactions and provides all available modern banking services to its clients and want to contribute in both moral and material development of human being. Other objectives of Shahjalal Islami Bank includes: To establish interest-free and welfare oriented banking system, To help in poverty alleviation and employment generations, To contribute in sustainable economic growth.
Shahjalal Islami Bank Limited is a commercial Bank and its play a very important role in our country; in fact it is difficult imaging how our economy system would function efficiently without the help of commercial Bank. They are heart of our financial structure since they have the ability and co-operation with the Bangladesh Bank to add to the money supply of the ‘nation’ and thus create additional purchasing power. These chrematistics set commercial banks apart from other financial institution. In addition to issuing deposits payable on demand they accept time deposit. By lending and investing these resources and by transferring funds throughout the nation and even between countries, they make possible a more complete utilization of resources facilitate the economic process of production, distribution and consumption. There are mainly three sections in SJIBL via General Banking Division, Investment Division and Foreign Exchange Division. These Divisions have small departments or units under them.
General Banking Division:
There are four sections working together to fulfill the target of the organization.
Account opening Department
Remittance Department
Cash Department
Accounts Department
Accepts Deposits:
The first primary function of bank is to accept deposits of money from the public or wives group. The total deposits held by the banker are broadly classified as-
a) Demand Deposit: Demand deposits are withdrawn able on demand and thus on prior notice is needed. Deposit in Current Accounts fails in this category.
b) Time Deposit: Time deposits are repayable on the expiry of a fixed period on time only. Fixed Deposit Accounts, recurring Deposit Accounts and deposit payable at Specified notice fall in this category
Deposit Mobilization of SJIBL:
Bank account is a contractual relationship between a bank and the customers. It is the best way for a customer to build relationship with the bank. Like interest-based conventional banks, the main function of Shahjalal Islami Bank Limited (SJIIBL) is to mobilize saving and provide financial support to the entrepreneurs. Depositors receive interest in a predetermined rate for their deposits make with an interest based banks, where SJTBL neither pay not receive interest and mobilizes saving of the common people in line with Islamic Shariah.
Deposit account can take in a various forms such as:
Al – Wadiah Current Deposit (ACD)
Mudarabah Savings Deposit (MSD)
Mudaraba Term Deposits (MTD)
Mudarabah Short Notice Deposit (MSND)
Average 70% of profit earned by the bank is distributed proportionately among depositors annually.
Al-wadisah current deposit (ACD):
Shahjalal Islami Bank Limited receives deposits in its Al – Wadiah Current Account It has some similarity with the current account of conventional bank. The term Al – Wadiah Current Deposit means deposit of money allowing somebody to sue it Banks being trustee preserves and keeps or in safe custody of what is deposited. Depositors feel safe keeping their money and take transaction facilities with the bank. Bank provides assurance of returning money to the depositors on demand. In the process of opening Al-Wadiah Current Deposit, the bank gets approval of the depositors regarding the use of the deposited money and earns profit out of their development any losses incurred by way of such investment are totally borne by the bank. Thus, the depositors don’t take the risk of losses with Al-Wadiah Current Deposit; they also don’t expect any profit from it Depositors are provided with cheque book. They can withdraw or deposit any amount as and when they like. Bank may charge a fee in the account AI-Wadiah Current Deposit is short terms and very uncertain, thus banks have to be very useful in the investment of money from this account.
General Documentation requires for opening an Al-Wadiah Current Deposit (ACD):
a) For an Individual Customer
Copy the passports if available or Employer’s Certificate or Commissioner’s Certificate or Letter of Introduction by a person accepted to the Bank.
TIN Certificate, if applicable.
Two recent passport size photographs duly attested by the Introducer.
b) For Sole Proprietorship:
Copy of Trade License.
Two recent passport size photographs of the proprietor/Signatory duly attested by the Introducer.
Copy of the passport the proprietor/Signatory, if available Commissioner’s / Chairman’s Certificate or Letter of Introduction by a person accepted to the Bank.
TIN certificate.
c) For Partnership:
Copy of Partnership Deed of the Firm.
List of Partners with their address and phone number.
Copy of Trade License.
Extract of Resolution of the Partners of the Firm for opening the account and authorization for its operation duly certified by the managing Partner of the Firm.
For Registered Partnership, Certificate of Registration of the Firm along with duly certified copy of the Partnership Deed.
Two recent passport size photographs of each Partner/Signatory duly attested by the Introducer.
Copy of Passport of each Partner/Signatory, if available or Commissioner’s /Chairman’s Certificate or Letter of Introduction by a person acceptable to the Bank
TIN Certificate.
d) Private & Public Limited Company:
Certified true copy of the Memorandum and Article Association of the Company.
Certified true copy of Certificate of Incorporation of the Company.
Certificate true copy of Certificate of Commencement of Business of the Company in case of Public Limited Company.
Latest list of Directors with address and phone number along with Form XII.
Extracts of duly adopted Resolution of the Board of Directors of the Company for opening the Account and authorization for its operation duly certified by the Chairman/Managing Director of the Company.
Copy of Trade License.
Two recent size photographs of each signatory duly attested by the introducer.
Copy of the passport of each signatory, if available or Commissioner’s /Chairman’s
Certificate or Letter of Introduction by a person acceptable to the Bank
TIN Certificate.
Opening a Mudaraba Saving Deposit (MSD):
Mudaraba Saving Deposit (MSD) is open by the lower and middle people who wish to save a part of their incomes to meet their future need intend to earn an income from their savings. It aims at encouraging savings of non-trading persons(s), institution(s), society, etc. by depositing small amount of money in the bank.
A visual representation may dearly describe the whole procedure of a savings Account: Diagram: Opening a Mudaraba Saving Deposit (MSD)
Restriction on withdrawals and deposit:
The number of withdrawals over a period of time is limited. Two withdrawals per week are permitted. But more than, then no interest will be paid on rest amount for that month.
The total amount of one or more withdrawal on any date should not exceed 25% of the in the accounts unless 7 (seven) days advance notice is given.
The customer may deposit any amount in the savings bank account subject to a minimum of Tk.2000/- in the account.
Payment of profit:
Shahjalal Islami Bank Limited is proving 4.0% profit on Mudaraba Saving Deposit.
Opening a saving account
For Operating a Mudaraba Saving Deposit following documentation are required
Two copies of passport size photographs.
Introductory reference.
Commissioner’s/Chairman Certificate.
General Precautions of Opening an Mudaraba Savings Deposit (MSD) Account:
After opening an account and before issuing a Cheque book the authorized officer should check the account operating form for the complete information, which is given by the customers.
Name of the account holder.
Photos of the account holder.
Date of opening
Types of account
Present and permanent address
Name of the nominee and their address.
Initial deposit
Specimen signature in the form in the “Specimen signature card”.
Name, address and the account number of the introducer.
Mudaraba Term Deposit (MTD):
It is like a fixed deposit in the conventional banking system but it does not receive or accept interest father, this account give profit and collect deposits. In this mode less than that Tk.1 corer or Tk.1 corer and above can be deposited against client will get non-transferable instrument of equal amount. If a customer withdraw his/her money before one month than he/she will not get any kind of profit On the other hand, after the matured if client don’t withdraw his/her money than it will be auto renewed with imposed profit for the next days. If a depositor would like to withdraw his profit after six months he/she will get the profit accordance with previous year’s profit rate. After the announced yearly profit or loss, if bank felt in loss posting then the depositor bound k incur the loss. In absence of account holder the selected nominee will get the money. Account holder bound to bear any kind of tax or excise duty according to government circular.
Mudaraba Short Notice Deposit (MSND):
Shahjalal Islami Bank Limited also receives term deposit from the clients. The SND account is different from the interest-based banks. It is also a Time Deposit account The formalities for opening of this account are similar to those required for Ai- Wadiah Current Account The only difference is that seven (7) days notice is required for withdrawal of any sum and profit is paid. The rate of profit for this account is 3.5%. If the withdrawal on demand is desired, it may be paid subject to the for-feature for the period of notice or the expired of notice.
Different Types Of Deposit Scheme:
The Shahjalal Islami Bank Limited (SJIBL) is containing some Deposit Scheme, which are the really profitable for bank and customer. The Bank maintains Shariah -based transaction with their customer by different Scheme those are:
- Monthly Deposit Scheme (MDS).
- Monthly Income Scheme (MIS).
- Double Profit Mudaraba Saving Scheme (DPMSS).
- Millionaire Scheme.
- Hajj Plan Scheme.
- Special Term Deposit.
- Lakhpoti Deposit Scheme.
- Mohor Deposit Scheme.
- Education Deposit Scheme.
- Marriage Deposit Scheme.
Monthly Deposit Scheme (MDS)
This account open very easy and there are no fixed day to open. Account holders do not need any savings account if he/she directly pays their monthly installment Account holders carefully complete the MDS form and attests two copies passport size photograph one nominee and other own with form. Account holders can pay advance to continue their installment or can give permanent instruction from his/her savings account In this term, the account holders are bound to pay Tk.50/- for transferred and Tk.5/- for service charge. If the account is close before the maturity then profit will be calculate according to saving rates. If a depositor fails to pay calculate as Savings rate. But for the first six-month no profit will be calculate. Nominee will enjoy the profit will in absence of the accountholder.
Table: Monthly Deposit Scheme
| Installment / Period | Tk. 500 | Tk. 1,000 | Tk. 2,000 | Tk. 5,000 | Tk. 10,000 | Tk. 25,000 | Tk. 50,000 |
| 5 Years | 37,025 | 74,050 | 1,48,100 | 3,70,250 | 7,40,500 | 18,51,250 | 37,02,500 |
| 8 Years | 67,975 | 1,35,950 | 2,71,900 | 6,79,750 | 13,59,500 | 33,98,750 | 67,97,500 |
| 10 years | 93,400 | 1,86,800 | 3,73,600 | 9,34,000 | 18,68,000 | 46,70,000 | 93,40,000 |
Monthly Income Scheme (MIS):This scheme is very popular in our country, job retreat people opens this scheme. And which people are not able to do business than they want to safe from risky open it. It is the scheme for profit earning. In this account depositor can deposit Minimum of Tk. 50,000/- and above. Depositor will get Tk. 500/- against Tk. 50,000)/-And it is the fixed deposit for 5 (five) years. If the accountholder to want to close his/her account before maturity date then he/she will get profit accordance with & savings rate. Also Tk.100/- will be payable for service charge. In the absence of accountholder, the specified nominee will get the whole benefit.
Double Profit Mudaraba Savings Scheme (DPMSS):The Shahjalal Islami Bank gives the facility to the client by the Islamic Shariah Mudaraba rules and regulations. In this scheme depositors can deposit more than Tk. 10,000 for 6 or 9.6 years and after the maturity date accountholder will receive double or triple benefit then his/her deposited amount. Depositor will get 80% investment facility by deposit receipt Bank can invest this amount any sector by the Islamic Shariah rules a regulations. Accountholder are bound to pay any government tax. For opening this Account applicant need recent one copy photograph and one copy of nominee’s photograph.
Millionaire Scheme:
It maturity is long than other scheme. Generally this account is designed for children. Here, applicants are the selected people for operating the account on behalf of the accountholder. The depositor should to deposit the account within first 25 days of the month; neither will he/she be designated as debtor to the bank. If 25 dates is the off day then the next working day will be schedule date. Accountholder can open one more account this Branch. Depositor will get 80% loan facility against the deposit money. No cheque book will be issued for this account; but the bank will provide deposit book.
Table: Millionaire Scheme
| Time | Amount Per Month | Total Amount |
| 12 years | Tk. 3280/= | Tk.10 Lac |
| 15 years | Tk. 2120/= | Tk.10 Lac |
| 20 years | Tk. 1080/= | Tk.10 Lac |
| 25 years | Tk. 575/= | Tk.10 Lac |
Different Types of Products & Services:
Shahjalal Islami Bank is computerized and provides the following services some of these services will be introduced soon. Different types of products and services of SJIBL included such as balance inquiry, cheque book request, cheque leaf status, FC rate information, cheque stop payment instruction, statement request by courier/post, statement request by e-mail, last three transaction statement, help inquiry and PIN change. Shahjalal Islami Bank Limited introduced a few products and services, which are very popular. These are given below:
Online services
Automation in Banking Operation
ATM / POS Service
SMS / Push Pull Services
Personal Management Information System (PMIS)
SWIFT
REUTERS
Signature Verification
Any Branch Banking
Other Delivery Channel Services (to be implemented
Cheque Book Issue:
Cheque Book is a material to withdraw money from the bank. It is a very convenient to transact money from one place to another without any accident If anyone an account then she/he will apply for a Cheque book on requisition slip. After verifying the signature of the account holder by the officer issues Cheque. Then we will assign numbers to the leaves of the Cheque Book and account number in the register book. The account number and branch seal will also be written on every leaf of the Cheque book. Two officers initialize the account number and leaf numbers the issuing officer will also check the register book and initializes it also. Then the Cheque book is delivered to the party after taking the signature on the register book from the party.
Duplicate Cheque Book Issue:
When a party looses his/her Cheque book, then he/she applies for duplicate Cheque book Bank stop payment order for that lost Cheque book series in the respective ledger. Then client needs guarantor’s certificate and guarantor must be an account holder of that branch with sufficient balance. In this case, the party will apply to the branch manager for duplicate Cheque book. The party must give indemnity bondage referring that he/she will liable for any fraud-forgery by the lost Cheque. After the formalities Bank issue of new Cheque book for client
Return of the Cheque:
A Cheque may be returned by the following reason:
Account Closed.
Insufficient funds.
Payment stopped.
Refer to drawer.
Drawn against uncollected funds.
Amount in words and figure differ.
Drawer’s signature differs.
Alternation requires draw’s full signature.
Cheque postdated.
Date incomplete/missing.
Clearing house stamp missing.
Examined of the Cheque:
The Passing official must examine the followings:
Whether the instrument presented is related to the branch.
The instrument is not undated/anti-dated/post-dated.
The instrument is not crossed since crossed instruments are not payable over the counter.
The amounts is words and figures are written and do not differ.
There is no alternation anywhere on the instrument
In case of order Cheque the proper identification of the payee ensure to the satisfaction of the Bank.
The instrument bears the signature of the drawer.
The number of the instrument along with preceding series if any, conform to the number/series issued and recorded in the relative account particulars.
The instrument bearing similar number was not been paid earlier.
Transfer of an account:
An account holder can transfer his or her current deposit, saving deposit, short term deposit, monthly saving scheme & Hajj account from one branch to another branch of the Shahjalal Islami Bank. For this he or she has to be applied to the bank. Bank will apply his or her profit. After that, bank will provide the statement. Then they will mark rate of profit based on their statement. Then the bank will transfer his or her account through the IBCA (inter branch credit account) to another branch where the account holder wants to transfer their account.
Closing of an account:
A client can close his or her account anytime by submitting an application to the branch. There must be a signature of the client in the application and the account opening officer will verify it. The account then checks the clients account position. The client then ask to draw a final cheque for the credit amount in the account excluding account close charge Tk. 50 plus VAT 7.50 and other incidental charges. The closing charge of current deposit account (Tk. 200), closing charge of savings account 200 + VAT 30 (Tk. 230), and the closing charge of short term deposit account is 200 + VAT 30(Tk. 230). To close the account the cheque book is to be returned to the bank. Vouchers are then issued with debiting the particular account and crediting incidental charges account. In case of joint account the application for closing the account should be signed by the joint account holder, even if the account is operated by either of them. The last cheque for withdrawal of the available balance in the account should also be signed by the joint account holder.
The closing of an account may happen,
If the customer/client is desirous to close the account
If Shahjalal Islami Bank finds that the account is inoperative for a long duration
If the court on Shahjalal Islami Bank issues garnishee, order.
Local Remittance:
Carrying cash money is troublesome and risky. That’s why money can be transferred from one place to another through banking channel. This is called remittance. Remittances of funds are one of the most important aspects of the Commercial Banks in rendering services to its customers.
Local Remittance means sending money from one place to another through banking channel. It is very important service system in our country. Shahjalal Islami Bank Limited, Foreign Exchange Branch provide this service for beneficial to the clients. These are:
1. Demand Draft (DD)
2. Pay Order (P0)
3. Telegraphic Transfer (TT)
Demand Draft (DD):
Demand Draft is an order of issuing bank in another branch of the same bank specified sum of money to the payee on demand. It is generally issued when customer wants to remit money in any place which is out of the clearinghouse area 1 branch payee can be purchaser himself or another. Bearing money may be risky. It’s a negotiable instrument and it can be crossed or not. For payment of DD, paying bank first has to be confirmed that the DD is not forged one.
First bank Cheques the “Test Code” mentioned on the draft. If “Taste Code” then believes that DD is not forged and makes payments. For further confirmation issuing bank sends an advice about the DD to the paying branch. For Demand Draft, commission is taken in the following way:
| Particulars | Changes |
| Issuance | @ 0.15% Minimum Tk. 25.00 |
| Telex Charge | At actual / Minimum Tk. 50.00 |
| Issuance of Duplicate | Tk. 150.00 |
Table: Demand Draft Commission
Pay Order (P0):
This is very important instrument of the Bank. Pay Order gives the payee the right to claim payment from the issuing bank. It can be en-cashed from issuing bank only. Unlikely Cheque, there is no possibility of dishonoring pay order because before issuing pay order banks takes out the money of the pay order in advance. Pay order cannot be endorsed or crossed and so it is not negotiable instrument. Pay order commission is like:
| Pay Order Amount (Taka) | Commission (Taka) |
| Up to 1.00 Lac | 50 |
| Up to 5.00 Lac | 100 |
| Above 5.00 Lac | 150 |
Table: Pay Order Commission
Foreign Remittance:
Foreign Remittance means sending money from one country to another country for the customers and it’s very important service system in our country. Some of the instrument that Shahjalal Islami Bank Limited, Foreign Exchange Branch provides are immense beneficial to the clients. These are:
- Kushiara
- Western Union
- SWIFT
Activities of Clearing Department:
Clearing Section
According to the article 37(2) of Bangladesh Bank Order, 1972, the banks which are a member of the clearing house are called as Scheduled Bank. The Scheduled Banks clear the cheque drawn upon one another through the clearing house. This is an arrangement by the central bank where everybody the representative of the member banks sits to clear the cheques. For clearing there is a department in every bank. This department receives cheques, drafts & like instruments from its client for the purpose of collection with a deposit slip over the counter crediting their accounts. Clearing of cheque is done through the clearing house in Bangladesh Bank. Every day the first hour starts at 10.30 am. and returns house at 5.00 pm.
Clearing:
Clearing is a system by which a bank can collect customers fund from one bank to another through clearing house.
Clearing House:
Clearing House is a place where the representatives of different banks get together to receive and deliver cheque with another banks.
Normally, Bangladesh Bank performs the Clearing House in Dhaka, Chittagong, Rajshahi, and Khulna & Bogra. Where there is no branch of Bangladesh Bank, Sonali bank arranges this function.
Return house:
Return House means 2nd house where the representatives of the Bank meet after 3 p.m. to receive and deliver dishonored cheque, which placed in the 1st Clearing House.
Cheque may be dishonored for any one of the following reasons:
1) Insufficient fund.
2) Amount in figure and word differs.
3) Cheque out of date/ post- dated.
4) Payment stopped by the drawer/ Payee’s endorsement irregular / illegible / required.
5) Drawer’s signature differs / required.
6) Crossed cheque to be presented through a bank.
7) Other specific reasons not mentioned above.
The dishonor cheque entry in the Return Register & the party is informed about it. Party‘s signature required in the return register to deliver the dishonor cheque. After duration, the return cheque is sent to the party’s mailing address with Return Memo.
If the cheque is dishonored due to insufficiency of funds than SIJBL charges Tk. 50/=as penalty.
Responsibility of the concerned officer for the Clearing Cheque:
1) Crossing of the cheque.
2) (Computer) posting of the cheque.
3) Clearing seal & proper endorsement of the cheque.
4) Separation of cheque from deposit slip.
5) Sorting of cheque 1st bank wise and then on branch wise.
6) Computer print 1st branch wise & then bank wise.
7) Preparation of 1st Clearing House computer validation sheet.
8) Examine computer validation sheet with the deposit slip to justify the computer posting
9) Copy of computer posting in the floppy disk.
Bills Collection:
In modern banking the mechanism has become complex as far as smooth transaction and safety is concerned. Customer does pay and receive bill from their counterpart as a result of transaction. Commercial bank’s duty is to collect bills on behalf of their customer.
Types of Bills for Collection
Outward Bills for Collection (OBC).
Inward Bills for Collection (IBC).
Outward Bills for Collection (OBC)
OBC means Outward Bills for Collection .OBC exists with different branches of different banks outside the local clearing house. Normally two types of OBC:
- OBC with different branches of other banks
- OBC with different branches of the same bank
Procedure of OBC:
Entry in the OBC register.
Put OBC number in the cheque.
“Crossing seal” on the left corner of the cheque & “payees account will be credited on realization “seal on the back of the cheque with signature of the concerned officer.
Despatch the OBC cheque with forwarding.
Reserve the photocopy of the cheque, carbon copy of the forwarding and deposit slip of the cheque in the OBC file.
Inward bills for collection (IBC)
When the banks collect bills as an agent of the collecting branch, the system is known as IBC. In this case the bank will work as an agent of the collection bank. The branch receives a forwarding letter and the bill.
Procedure of IBC:
IBC against OBC: To receive the OBC cheque first we have to give entry in the IBC Register .The IBC number should put on the forwarding of the OBC with date.
Deposit of OBC amount: OBC cheque amount is put into the “sundry deposit-sundry Creditors account”, prepare debit & credit voucher of it. If the OBC cheque is honored, send credit advice (IBCA) with signature & advice number of the concern branch for the OBC amount.
If the OBC cheque is dishonored, the concerned branch is informed about it.
Again place in the clearing house or send the OBC cheque with Return Memo to the issuing branch according to their information.
Activities of Cash Department:
Cash department is the most vital department of a bank and it is call blood of a bank. It is a platform to communicate with customers. Cash department receives & pays cash directly.
In the cash department there are following register:
Vault register
Cash receive register
Cash payment register
Cash balance register
Rough cash balance book
Cash remittance register
Key register
Cash position memo
There is a procedure of cash in and cash-out from the vault. Also a systematic procedure is maintained for receiving cash through different vouchers and payment against different cheques and vouchers.
Vault Opening:
The vault opened with two different keys of two respective authorized officers. The officers are:
Manager of the Branch
Cash – in – charge Officer
Strong room has two keyholes opened by two officers respectively by two keys of cash. Generally sub-manager of the Branch bears authority absence of manager. Grill door one keyhole opened by – two keys of two officers and bring out following thing: Cash, Vault register, Receive register, Payment register, Balance Book, security station. Enter the amount of cash withdrawal from the vault register.
Cash Receive Procedure:
Cash is the life of a bank. Different types of from are use for cash deposits for different types of accounts. Cash may be received by the following ways:
Current of Savings account pay-in-slip
Credit voucher
Different types of instrument remittance (fT DO, P0 etc.) are received by respective forms.
Bills like National Life Insurance Co. Ltd.
share collection
Different types of scheme
Cash payment:
Cash is paid in payment counter against the following instrument
Cheques
Cash debit voucher
Pay-in-slip
Pay Order, DD etc.
Bank’s expense also paid to outsider through cash debit voucher.
Procedure:
Receive of the cheques with a signature behind it
1) Scrutinize it by an authorized officer.
2) Submit to computer to computer section for checking the available balance.
3) Cancelled & seal up “Pay in Cash” and cancellation through sign up.
4) Again submitted to computer section for debiting the party A/C and seal up “Posted”.
5) Send to cash counter – payment officer.
6) Cash officer checks the cancellation, seal and seal up “Cash Payment”
7) Entry the payments register.
8) Take another signature of payee behind the cheque and pay cash.
Cash Remittance:
Requisition letter, which must be authorized by the Manger, is sent to Principal Officer for Cash Remittance.
Inward Cash:
Counting the cash.
Prepare simple credit voucher
Prepare IBCA
Entry in the cash receipt Regis
Outward Cash:
Car requisition (Call through phone)
Taking counter part of forwarding (Including name & specimen) signature of authorized Officer and Guard.
Remit the cash Prepare simple debit voucher
Cash Balance:
At the end of the transaction:
Sum of total received
Sum up total payment
Total receiving ÷ Opening balance – Total payment = Closing balance for that day & opening balance for the next day.
Check it with computer sheet
Counting cash.
Entry the cash balance register.
Write cash position memo with denomination.
Position of the Cash Department:
The position of the cash department is very important the cash department should be at a safe place. It should be at the middle position of the branch. The cash position of the Foreign Exchange Branch is in the front side of the branch and its safe and vault is at the behind.
Counter Limit:
Everything has its limitation. Cash counter of a branch also has limitation. The casher should take cash within the limit of his counter. If the cash exceeds its counter limit, the cashier should take the excess cash to safe. Counter limit of the Gulshan branch is Tk. 80 (eighty) lack.
Vault limit:
Vault is the very secret place to keep money in the bank. Usually vault is made of very hard material like iron or steel, generally it is fire-proof, damp-proof. The vault has a fixed limit too. The limitation depends on the regular transaction of the branch. If the amount exceeds its limit, the extra money should be sent to the Bangladesh Bank. The vault limit of the Gulshan branch is Tk. 1.5 (one and half) core. If the amount exceeds its limitation and accident occur, then the branch will be liable and the insurance company will not compensate for that.
Sorting and Stitching:
Sorting:
At the end of the day, the amount of cash has to be sorted out in order to identify the different types of notes, say-Sot), 1000, 500, 100, 50, and 20,10,5 and so on. Hundred pieces of any type note create a packet and ten packets make a bundle. In this way, the cash is actually sorted out.
Stitching:
After sorting out the cash, packets are stitched along with a slip bearing the name of the bank, total number of notes and the signature of the cash-in-charge. Two round seals are given at both sides of the packet.
Vault Closing
Before vault closing concern officer will –
Cheque receives, Payment. Cash balance, Vault register signature.
Signature of the computer sheet
Count physical cash.
Keep cash in safe.
Bundle in safe.
Loose peak of the tray.
Loose cash notes & coins on the tray.
Keep different registers.
Keep security stationeries.
Close Safe.
Check the rifle & cartage.
Count cartage & entry in register.
Close Grill door & Vault room’s door.
Accounts section:
Functions:
Asset & liability side adjustment
To maintain SJIBL general account
Depreciation
To maintain other side
Now describe briefly above functions:
Asset & liability side adjustment:
Bank will try to adjust balance of assets & liabilities sides at the end of the year.
To maintain SJIBL general account:
SJIBL general account is one of the main functions of Shahjalal Islami Bank Limited. It has particular advantages which Shahjalal Islami Bank executes. Some branches of Shahjalal Islami Bank have low deposit & high investment. Basically, high investment branches demand more liability. That’s why; head office charges @12.50 % from those investment branches. On the other side, some other branches have high deposit & low investment. For that reason, asset leads to liability of those high deposit branches. That’s why they get profit @12.25% from the head office. Special types of reconciliation A/C among the Shahjalal Islami Bank‘s Branches.
Depreciation:
Shahjalal Islami Bank Limited has some fixed assets & depreciation is charges for those assets (like furniture & fixture à 10%, equipment & machineries à 20%). Depreciation always holds on purchase value of fixed asset through the straight line method. The amount of each month depreciation comes from assets are preserved in accumulated depreciation account in balance sheet liability side. At the end of the year, those accumulated depreciation amounts wash out & then reduce it from asset side.
To maintain other side:
Mudaraba Sundry deposit:
Sundry creditors are one of special type account by which different fund are collected through it. Finally, Mudaraba Term Deposit, LDBC payment, OBC payment, CIB payment etc when fund are collected then sundry account debited & credited the respective account those are related with collection fund. It also serves banker as a collection account & various commission are realized by this account when funds are collected. Every month balancing is made on this account to calculate non reversing entries.
Income tax on profit, Excise duty, VAT(bill), VAT(L/C), IT on bill, VAT on banking services are collected at the end of the week in Govt. account. Shahjalal Islami Bank sends these deposits to head office.
Liabilities as per contra:
Liabilities as per contra remains until liability clean. When it will clean then goes to asset. One of Voucher is prepared for it. Asset as per contra is opposite to liabilities as per contra. Voucher is prepared for both contra & then reverses it by posting.
Maintaining Head Office Budget:
Every expense has a budget. Head office provide budget for each of head expenses. Voucher is prepared for it. Though these voucher expenses are shown from each area. On the other hand, income has also a budget & there is a voucher for it. Incomes send to head office as per area & a voucher is prepared for it.
Various statement of Bangladesh Bank:
Account section works with different statement of Bangladesh Bank. At the end of the month, various statements have to send to Bangladesh Bank. These statements are:
Schedule bank statistic(SBS-1)
Schedule bank statistic(SBS-3)
Large deposit statement
Other statement for bank
Other statement for bank:
Some statements are prepared for bank to realize the position of overall branch. These are:
Main:
Fax report on monthly position
Achievement of target report
Performance statistics
Others:
To prepare half yearly closing & yearly statement
Conclusion:
From the practical implementation of customer dealing producers during the whole period of my practical orientation in Shahjalal Islami Bank Limited, I have reached a firm and concrete conclusion in a very confident way. I believe that my realization will be in harmony with most of the banking thinkers. It is quite evident that to build up an effective and efficient considered as soon as possible. Besides, every bank has to survive amidst of a large number of banks including local and foreign. That’s why to keep with expected profit margin of the time being and for the future every bank should try heart and soul to please the customers in a smart and trusty way. But quit regretful to mention that most of our bank face decreasing profit trend due to switch over of their present customers to those foreign with higher customer service facilities. So, timely decision for introducing sophisticated banking instruments should be taken as early as possible. After taking effective and time defeating measures regarding efficient employees and instruments will help the local office of Shahjalai Islami Bank Limited to reach the pinnacle of success with high profit and productivity. A new- bank they should be in financial side because there is too much competition and new banks are growing up. If Shahjalal Islami Bank adopts professionalism within the framework of Shariah, they will be able to earn handsome “Halal” profit and pay higher return to the depositors and share holders. Ultimately, public will get more confidence on this type of banking.
