Patwa Sir Ppt

8/3/2019 Patwa Sir Ppt

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Payment and Remittance

In this session, you will be able to:

Understand the process for issuing a Pay Order (PO)

Understand the process for cancelling a PO

Understand the process for issuing a Demand Draft (DD)

Understand the process for issuing a duplicate POUnderstand the process for issuing a duplicate DD

Process a request for intra branch and inter branch transfers

Objectives


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Customer pays by cash or cheque to the bank

Customer gives a requisition for issue of PO

Bank issues PO to the customer after receiving funds

Customer submits PO to the payee instead of paying cash

Process for Issuing a PO


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1. Pays by cash / cheque

2. Issue of POCustomer

3.POsubmittedfor feespayment

4.PO sent forcollection

Bank A

Bank BCollege

Process for Issuing a PO


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Requisition slip to be filled in by customer

Pay by cash or cheque

Entry in Finacle

Debit cash or customer account

Credit funds payable accountPrinting of PO on security stationery

Verification of instrument and signing by customer service manager

Handover PO to customer against counterfoil

Customer acknowledges receiving of PO

Process for Issuing a PO (Contd.)


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Points to note:

POs to be issued only if the drawee and issuing branches are same.

Relevant charges as per Directory of service charges to be collected.

Prescribed stationery has to be issued for printing the PO, and shouldbe kept under double lock.

POs by cash can be issued only for an amount less than Rs 50,000 asper Income Tax guidelines.

Requisition slip to be scrutinised for date, PO amount, exchangeamount, beneficiary name, cash or cheque details, and signature ofapplicant.

SOX Process for Issuing a PO


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INPUTS PROCESS OUTPUTS

A

CSO-Cash

Inform Pay Order

cannot be issued in

cash for Rs.50000 &

above as per Income

Tax guidelines

Requisition for

Pay Order

Applicant

Accept requisition and

cash

Is theamount >

Rs

50000?

No YesRejected

requisition

Applicant

Scrutinise the requisition

for being correct and

complete

Is it OK? Returnrequest for

rectification

Discrepantapplication

ApplicantCount cash and check for

correctnessC

W1

Process for Issue of PO by Cash


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Acknowledge the counterfoil.

Inform TAT and ask to collect

the Pay Order from the CSO at

front office

Counterfoil

Pass and post the entryDr CS.Teller a/c

Cr FP.01

Cr EXBCHQ

Cr SL/TAX

B

Applicant

A

Finacle

CSM Cash

Scrutinise and Verify entryFinacle

W3

C2

W2

Process for Issue of PO by Cash (Contd.)


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B

CSO

C

Print the PO Finacle

Hand over PO (and voucher)

for signature

CSM

Send the voucher to CSO in front

Office for printing PO



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C

Verify the physical PO and purchase

order and sign them

Return the PO alongwith the voucher

Pay OrderHandover the PO against

acknowledgement on the voucher

CSO

Spike the voucherApplicant

END



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Points to be considered while issuing PO by cheque:Cheque should be favouring Yourselves for PO favouring

__________________________________________

Cheque should be for the total amount including the PO,exchange, and service tax amount

If the cheque is only for PO amount, the customers accounthas to be debited towards the exchange and service tax

Issuing PO by Cheque


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Specimen of Printed PO (Contd.)


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Issuing branch and drawee branch are the same

Bankers cheque number is printed on the top

Security crossing from 0 to 9 appears on the right. Bankers

cross the first digit of the amount

Abbreviations OT, TT, OL, or TL, which represent onethousand, ten thousand, one lakh, or ten lakhs respectively,

appear on the left of the PO

Specimen of Printed PO (Contd.)


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Cancellation Request:

Customer to sign on the reverse of the PO on a revenue stamp.

In case the customer does not come in person, the customer signs arequest for cancellation of PO.

In the request, the customer must specify that the PO should be

cancelled and the proceeds credited to the customers account.The banker verifies the name and account number of the customer.

The banker confirms the status of the PO.

The banker confirms the signature on the request for cancellation withthe request for issue of the PO.

The banker debits the PO account.

The banker credits the proceeds of cancellation to the customersaccount or the banker issues a PO favouring the customer. The bankercannot pay the proceeds in cash to the customer.

The banker recovers the cancellation charges from the customer.

Process for Cancelling a PO


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Cancellation request

and the PO1

Applicant CSO

A

2

NO

Accept the request

Customer

Is the request in Order?Return the

requestDiscrepant request

Is instruction for payments or cashYes

Check if PO is paid and

verify the signature of the

client Finacle

W1

W2

C

C

Verify applicants signature

3

Yes

NO

Process for Cancelling a PO (Contd.)


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A

Inform the applicant

about the charges

Draw two transverse parallel

lines across the face of PO and write the words

Cancelled between them.

Pass the entry

for cancellation

and recover the charges.

Finacle

W4W3

C

CSM

Handover the voucher

for verification

Scrutinise the request

4

C



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C

Verify the entries

Spike the voucher

Inform the applicant

amount is credited

END

Dr. FP.01

Cr. Applicant

Finacle

Dr Applicants A/cCr CN/Others

Cr SL/Tax



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Cash/cheque

DD onMumbai

Fundscredited

DD couriered

DDdepositedforclearing

Bank AChennai

Bank AMumbai

Bank B

Mumbai

MagazineOfficeinMumbai

Process for Issuing a DD


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DD is to be issued if the drawee and issuing branches are indifferent centres.

Relevant charges according to the Directory of Service chargesto be collected for DD issuance.

Cash cannot be paid for purchase of DD for Rs 50000 and

above.Prescribed stationery has to be issued for printing the DD andshould be kept under double lock.

SOX process for issue of DD similar to issue of POs.

SOX process cancellation of DD is similar to cancellation of PO.

Process for Issuing a DD (Contd.)


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Specimen of Printed DD


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The banker advises the customer to give a request letter to thebank for issuing a duplicate PO against the original PO, which hasbeen lost. He is advised to give all the details of the original PO.The banker verifies the correctness of the details regarding thedate of issue, amount, and payees name from the banks record.

The banker verifies the signature of the applicant.The banker verifies the books to ensure that the PO is stilloutstanding before issuing a duplicate PO.The customer is required to execute a stamped Indemnity on thebanks standard format.After verifying the Indemnity for correctness, the banker issues a

fresh PO and the number of the PO, which is lost, is cancelled inthe system.The banker writes or stamps Duplicate prominently on the freshPO.

Process for Issuing a Duplicate PO


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The bank keeps the Indemnity as an important branch documentafter entering the information in the Branch Document Register.

Process for Issuing a Duplicate PO (Contd.)


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The process of issue of duplicate DD is similar to the

process of issue of duplicate PO.

However instead of crediting FP.01 A/c, the credit goes to

IB.DD A/c.

In the case of issue of a duplicate DD on CorrespondentBank (BOI) similar transaction takes place.

However instead of crediting IB.DD A/c, the credit goes to

SL.DDBOI A/c.

Process for Issuing a Duplicate DD


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Duplicate DD on Correspondent Bank


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Duplicate DD on Correspondent Bank (Contd.)

P d R i


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P t d R itt


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P t d R itt


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P t d R itt


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Pa ment and Remittance


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Transfer of funds between two accounts in the same branch.Steps for Intra-Branch transfer are:

Cheque issued by customer for payment to beneficiary

Cheque deposited by beneficiary with pay-in-slip

Scrutiny of cheque and pay-in-slip for correctness

Debit drawers account and credit beneficiary account

Intra-Branch Transfer



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INPUTS

PROCES

SOUTPUTS

A

CSO

Scrutinise request for

completeness and correctness

Transfer

requisition

Is it okfor

processi

ng

further?

N

o

Discrepant

requisition

Customer

Customer

Customer

Brand counter foil with

Transfer , stamp,initial

Handover counter foil

Acknowledged

counter foil

Check drawers balance and

signature Finacle

SOX Process for Intra- Branch Transfer



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Prepare

Return

Memoand sign

CSM

Dr. Drawer A/c

Cr. Beneficiary A/c

Beneficiary

A

Is it ok for

processin

g further?

No

Attach

customer

requisition to

return memo

and

despatch to

beneficiary

Enter tran

Hand over voucher for

verification

Scrutinise correctness

of particulars

Return voucher to CSO for spiking

Verify Tran

Discrepant

requisition

M2

END

Yes

Finacle

Finacle

M1

SOX Process for Intra- Branch Transfer (Contd.)



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Ensure that date on cheque is not stale or post-dated.

Check amount in words and figures match on cheque.

It is signed by drawer.

Verify that beneficiarys name and amount on pay-in-slip matches

with that on cheque.Check particulars on counter foil are same as on pay-in-slip.

Scrutinise Transfer Request



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Enter Tran using the TM module in FinacleWrite Tran Id on voucherCheck mode of operation of the accountCancel customers signature and initial the chequeBrand the transfer stamp on the face of the pay-in-slip and cheque

Enter Transaction (Tran)



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Transfer of funds between accounts of customers at differentbranchesFor branches in same network transfer transaction as in samebranch transactionFor branches in different servers- Anywhere bankingModule anywhere transfer transactionCheques with pay-in-slips sent to regional processing CentreTransactions processed at RPC

Inter-Branch Transfer



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INPUTSPROCES

SOUTPUTS

CSO

Cheque and

Pay in slip

Customer

Ensure that dateon cheque is not

stale or post-dated.

Check amount in

words and figures

match on cheque

and it is signed by

drawer. Also verify

that beneficiarys

name and amount

on pay-in-slip

matches with that

on cheque. Check

particulars on

counter foil are

same as on pay-in-

slip

Scrutinise it for completeness

and correctness

Is it ok

for

processi

ng

further?

Discrepant

requisition

Customer

CustomerBrand counter foil with

Transfer , stamp,initial

Handover counter foilAcknowledged

counter foil

Check drawers balance and signature Finacle

A

1

NO

YES

Inter-Branch Transfer RPC Linked Branch



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A

Return the

request for

rectification

Customer

Discrepant requestIs the request

in order ?

NO

Prepare the forwarding

schedule for the RPC duly signed

Dispatch the schedule

and cheques to RPCSchedule with cheque

W1

C

RPCFile the copy of schedule in branch file

END

2

2 Fowarding schedule mustindicate the total number

of instruments sent to

RPC for processing

Inter-Branch Transfer RPC Linked Branch (Contd.)



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Payment and RemittancePoints to Check for Funds Transfer

Balance availability

Verification of specimen signature

Cheque is proper in all respects

Payee name in cheque matches with the name of customer

in Finacle

Points to Check for Funds Transfer



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Activity: Funds Transfer



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In this session, you learnt that:

A bankers cheque or PO is an instrument that a banker issues after

receiving funds from the customer.

The PO is printed on security stationery and issued to the customer.

A DD is similar to a PO in that it is issued after funds are received from

the customer.The main difference is that a PO is payable locally at the branch which

issues the PO or at the service branch whereas a DD is drawn and

payable on a branch located at another centre.

Account to account transfer within the branch is called Intra-Branch

transfer.Where customers have accounts in different branches of a bank,

request for transfer of funds from one account to another, is called

Inter-Branch transfer.

Summary

Documents

Patwa Sir Ppt