Patwa Sir Ppt
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Transcript of Patwa Sir Ppt
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8/3/2019 Patwa Sir Ppt
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Slide 1 of 48
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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Payment and Remittance
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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Payment and Remittance
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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Payment and Remittance
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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Payment and Remittance
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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Payment and Remittance
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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Payment and Remittance
INPUTS PROCESS OUTPUTS
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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Payment and Remittance
INPUTS PROCESS OUTPUTS
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
Process for Issue of PO by Cash (Contd.)
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Payment and Remittance
INPUTS PROCESS OUTPUTS
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
Process for Issue of PO by Cash (Contd.)
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Payment and Remittance
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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Payment and Remittance
Specimen of Printed PO (Contd.)
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Payment and Remittance
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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Payment and Remittance
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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Slide 14 of 48
Payment and Remittance
INPUTS PROCESS OUTPUTS
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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Slide 15 of 48
Payment and Remittance
INPUTS PROCESS OUTPUTS
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
Process for Cancelling a PO (Contd.)
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Payment and Remittance
INPUTS PROCESS OUTPUTS
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
Process for Cancelling a PO (Contd.)
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Slide 17 of 48
Payment and Remittance
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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Slide 18 of 48
Payment and Remittance
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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Payment and Remittance
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Payment and Remittance
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Payment and Remittance
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Payment and Remittance
Specimen of Printed DD
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Slide 24 of 48
Payment and Remittance
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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Payment and Remittance
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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Payment and Remittance
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Slide 27 of 48
Payment and Remittance
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Payment and Remittance
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Payment and Remittance
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Payment and Remittance
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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Payment and Remittance
Duplicate DD on Correspondent Bank
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Payment and Remittance
Duplicate DD on Correspondent Bank (Contd.)
P d R i
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Payment and Remittance
Duplicate DD on Correspondent Bank (Contd.)
P t d R itt
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Payment and Remittance
Duplicate DD on Correspondent Bank (Contd.)
P t d R itt
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Payment and Remittance
Duplicate DD on Correspondent Bank (Contd.)
P t d R itt
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Payment and Remittance
Duplicate DD on Correspondent Bank (Contd.)
Pa ment and Remittance
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Payment and Remittance
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
Payment and Remittance
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Slide 39 of 48
Payment and Remittance
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
Payment and Remittance
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Payment and Remittance
INPUTS PROCESS OUTPUTS
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.)
Payment and Remittance
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Slide 41 of 48
Payment and Remittance
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
Payment and Remittance
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Payment and Remittance
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)
Payment and Remittance
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Payment and Remittance
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
Payment and Remittance
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Payment and Remittance
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
Payment and Remittance
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Payment and Remittance
INPUTS PROCESS OUTPUTS
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.)
Payment and Remittance
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Slide 46 of 48
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
Payment and Remittance
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Payment and Remittance
Activity: Funds Transfer
Payment and Remittance
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Payment and Remittance
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