Overall Banking System of JBL Bank Limited
1.2 Objective of the Report.
The primary objective of the report is:
· To fulfill the partial requirement of the internship program as a full credit subject of the BBA program.
· To know about the banking sector of Bangladesh.
· To be accustom with the management policy or process of JBL in Bangladesh.
· To get an overall idea about the management policy of JBL as well as commercial Bank.
The secondary objectives of the report are as follows:
· To know the operation of commercial banks in Bangladesh.
· To describe the customer service process of JBL Bank Limited.
· To analyze the barriers faced by the banks in Bangladesh.
· To suggest a supportive role in the progress of banking system in financial sector.
· To know about the objectives and planning of JBL.
· To know how the branches are efficiently controlled.
· To identify whether all process are perfectly and effectively practiced or not.
· To find out the sectors in which such types of problems exist.
· To make an opinion on the reports.
1.3 Scope of Report.
This report covered the overall banking system of JBL Bank Limited and also includes the relationship of the customers with the bank as well as the principals covered by the bank as a general banking system.
a) Primary Sources:
- Direct interviews with relevant personnel.
- Experts opinion
- Official records of JBL.
b) Secondary Sources:
- Relevant paper and publications
- Annual reports of JBL.
- Relevant books and references.
1.6. Data Analysis Method.
Quantitative data and based on this data analysis the final report was prepared.
Instruments are used: a) Questionnaire.
b) Interview.
1.7 Limitation of the Report.
It is an uphill task to study the on the management so the report was completed under certain constrains which were:
- Difficulty in gaining accesses to financial sector.
- Non-availability of the most recent statistical data.
· As I am student it is not possible for me to collect all the necessary information.
· I had to complete this report within a very short span of time that was not sufficient for investigation.
· Lake of Experience.
ABOUT JBL, THE BANK
Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its head office at Printers Building (2nd floor and 8th floor), 5, Rajuk Avenue, Dhaka-1000. The Bank started its operation from 3rd June 2001.
Jamuna Bank Limited is a highly capitalized new generation Bank started its operation with an authorized capital of Tk.1600.00 million and paid up capital of Tk.390.00 million, as of December 2006 Paid up capital of the Bank raised to Tk.1072.5 million and number of branches raised to 29 (Twenty nine).
JBL undertakes all type of banking transactions to support the development of trade and commerce in the country. JBL’s services are also available for the entrepreneurs to set up new ventures and BMRE for industrial units. The Bank gives special emphasis on Export, Import, Trade Finance, SME Finance, Retail Credit and Finance to Women Entrepreneurs.
To provide clientele services in respect of International Trade it has established wide correspondent banking relationship with local and foreign banks covering major trade and financial centre at home and abroad.
VISION
To become a leading banking institution and to play a pivotal role in the development of the country.
MISSION
The Bank is committed to satisfying diverse needs of its customers through an collection of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work-force.
SPONSORS
The sponsors of Jamuna Bank Limited are successful leading entrepreneurs of the country having stakes in different segments of the national economy. They are eminent industrialist and businessman having wide business reputation both at home and abroad.
MANAGEMENT
JBL is managed by highly professional people. The present Managing Director of the Bank is a forward looking senior banker having decades of experience and multi discipline of knowledge to his credit both at home and abroad. He is supported by an educated and skilled professional team with diversified experience in finance and banking. The management of the bank constantly focuses on the understanding and anticipating customers’ needs and offer solution thereof. Jamuna Bank Limited has already achieved tremendous progress with in a short period of its operation. The Bank is already ranked as one of the quality service providers and known for its reputation.
STRUCTURE OF JAMUNA BANK LIMITED:
JBL CORPORATE CULTURE
Employees of JBL share certain common values, which helps to create a JBL culture.
- The client comes first.
- Search for professional excellence.
- Openness to new ideas & new methods to encourage creativity.
- Quick decision-making.
- Flexibility and prompt response.
- A sense of professional ethics.
OBJECTIVES
- To earn and maintain CAMEL rating strong.
- To establish relationship banking and service quality through development of Strategic Marketing Plan.
- To remain one of the best bank in Bangladesh in terms of profitability and asset quality.
- To introduce fully automated systems through integration of Information Technology.
- To ensure an adequate rate of return on investment.
- To keep risk position at an acceptable range (including any off balance sheet risks)
- To maintain adequate liquidity to meet maturity obligations and commitments.
· To maintain a healthy growth of business with desired image.
- To maintain adequate control systems and transparency in procedures.
- To develop and retain a quality work force through an effective Human Resources Management System.
· To ensue optimum utilization of all available resources.
- To pursue an effective system of Management by ensuring compliance to ethical norms, transparency and accountability at all levels.
STRATEGIES
- To manage and operate the bank in the most efficient manner to enhance financial performance and to control cost of fund.
- To strive for customer satisfaction through quality control and delivery of timely services.
- To identify customers credits and other banking needs and monitor their perception towards our performance in meeting those requirements.
- To revive and update policies, procedures and practices to enhance the ability to extend better services to customers.
- To train and develop all employees and provide them adequate resources so that customers’ needs can be responsibly addressed.
- To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to all employees in a timely fashion.
- To cultivate a working environment that fosters positive motivation for improved performance.
· To diversify portfolio both in the retail and wholesale market.
- To increase direct contact with customers in order to cultivate a closer relationship between the bank and its customers.
Schemes offered by Jamuna Bank Limited
- Monthly Benefit Scheme
- Monthly Saving Scheme
- Education Saving Scheme
- Marriage Deposit Scheme
- Double Growth Deposit Scheme
- Triple Growth Saving Scheme
- Lakhpoti Deposit Scheme
- Kotipati Deposit Scheme
- Millionaire Deposit Scheme
Branches of Jamuna Bank Limited
| Code | Name of Branch |
| 0001 | Mohakhali |
| 0002 | Sonargaon Road |
| 0003 | Moulvi Bazar |
| 0004 | Goala Bazar |
| 0005 | Agrabad |
| 0006 | Dilkusha |
| 0007 | Beanie Bazar |
| 0008 | Sylhet |
| 0009 | Shantinagar |
| 0010 | Gulshan |
| 0011 | Dhanmondi |
| 0012 | Nayabazar Islami Banking Branch |
| 0013 | Mohadevpur |
| 0014 | Naogaon |
| 0015 | Khatungonj |
| 0016 | Konabari |
| 0017 | Bhatiyari |
| 0018 | Foreign Exchange |
| 0019 | Jubliee Road Islami Banking Branch |
| 0020 | Chistia Market Branch |
| 0021 | Bogra |
| 0022 | Baligaon Bazar Branch |
| 0023 | Narayangonj |
| 0024 | Motijheel |
| 0025 | Rajshahi |
| 0026 | Basurhat |
| 0027 | Dholaikhal |
| 0028 | Bahaddarhat |
| 0029 | Sirajgonj |
3.1. DEPOSITS.
Types of Deposit Accounts:
The branches may accept deposits from the public in the following accounts:
a. Current Deposits
b. Savings Bank Deposits
c. Fixed Deposits (Term Deposit)
d. Short Term Deposits
e. Monthly Term Deposits
f. Any other deposits as may be approved/ advised by Head Office.
3.1 Procedures for Opening Accounts.
Opening account with a bank is the way of creating a banker customer relationship. In other words, it is a contract between banker and customer. With this contract, bankers enter into certain obligations and responsibilities.
Proper introduction serves as a precaution against fraud and forgeries and safeguard against inadvertent overdraft to bank. Obtaining proper introduction may absolve the banker from the charges of negligence for conversion. So, while opening a new account, emphasis would be given without exception to introductory reference and inquiry. The following instruction to be followed while opening account: –
I. Introduction of Account to be obtained from a respectable client acceptable to bank.
II. The introduction shall be obtained in writing in the respective column of Account opening form.
III. For opening savings bank account of individual either singly or jointly, passports and identity cards may be accepted for introduction, but subsequently proper introduction may be obtained.
IV. Introduction of Current Account by members of the staff may be allowed but shall be discouraged as far as possible.
V. Current Account shall preferably be introduced by another Current Account holder acceptable to bank.
VI. Introduction of Account holder of other branch may be accepted with caution. In that case the introducer’s signature must be verified by authorized officer of that branch and authenticated by a forwarding letter.
VII. Photographs of account holder must be attested by the introducer.
VIII. Letter of thanks be issued to introducer in Bank’s standard specimen.
3.1.1Current Deposit Account
I. A Current Deposit Account may be opened by individual, firm, company and club, association, body corporate etc.
II. Funds in the Current Deposit Account is payable on demand.
III. No interest is payable on balances of Current Deposit Accounts.
IV. Current Deposit Account may be opened with a minimum initial balance of Tk.5,000/-
V. Minimum balance to be maintained in the account is Tk.1,000/-
VI. Customer willing to open Current Deposit Account shall fill up the Account Opening Form (AOF) applicable to him/ her and Specimen Signature Card (SS Card). The customer will sign in the space provided under “Yours faithfully” and on the specimen signature cards.
VII. In case of proprietorship and partnership firms the relevant account opening form is to be filled in and signed by the proprietor/ partner in their individual capacity in the space provided under “Yours faithfully” and on the specimen signature card in their official capacity.
VIII. In all other cases including companies etc. the persons opening the account shall fill in the relevant Account Opening Form and sign the Form in the space provided under “Yours faithfully” and in the specimen Signature Card in their official capacity.
IX. Introduction of acceptable clients to be obtained as per guidelines.
X. The Manager’s approval for opening account shall be obtained by the concerned staff member.
XI. Signatures of the account holder shall be admitted by affixing the stamp “Signature admitted” and signing by the authorized officer. The introducer’s signature shall be verified by affixing the stamp “Signature verified” near the signature by authorized officer.
XII. Blank space of the Specimen Signature Card should be closed by drawing parallel lines.
XIII. The particulars of the Account Opening Form shall be entered in the Account Opened and Closed Register as per sequence provided by the computer system.
XIV. The customer shall be provided with Deposit Slip in corporating the Account Number and be advised to make the initial deposit in the account. The amount of initial deposit shall be entered in the Account Opening Form.
XV. Cheque Book shall be issued on request on completion of all formalities including initial deposit. Cheque series to be entered in the Account Opening Form at the bottom right and authenticated by authorized officer.
XVI. After posting of all particulars of the account including cheque series, one authorized officer shall check/ verify the same in the computer screen and record it in the form with signature.
XVII. Manager/ Authorized Officer shall apply sufficient intelligence and common sense to ascertain genuineness of the account holder. No account shall be opened without approval of the Manager.
XVIII. Clear instruction regarding operation of the account shall be noted on the Account Opening Form and Specimen Signature Card especially in respect of death of inability of the account holders, or the person operating the account. The account holder shall confirm the instructions under specimen signature.
XIX. An indemnity shall be obtained from the customer if he/ she signs in language other than English/ Bengali.
XX. Illiterate persons shall be discouraged to open Current Account. If opened withdrawal shall be allowed on personal appearance of the account holder.
XXI. The account opening form shall be sent to the respective computer terminal for posting and S.S. Card shall be retained serially in the S.S. Card Box under custody of Cheque Passing Officer.
XXII. One of the photographs of the Account Holder is to be pasted with AOF and another one with S.S. Card. AOF to be retained in serial order in Pasting File.
XXIII. A letter of thanks to be sent to the account holder as well as to the introducer.
XXIV. All new accounts opened during the day shall be personally checked by the Manager at the close of business of each day.
XXV. Checking officer shall particularly see the introduction, initial deposit in cash or cheque, nature of business of the account holder, Trade License, Partnership Deed/ Memorandum of Articles of Association, Resolution etc.
XXVI. Similar Accounts should be noted in the AOF and care should be taken while making posting of transactions in such accounts.
XXVII. The Computer Program used by bank shall provide reference of clients. Branch Manager must ensure that their computer system provides reference of client.
XXVIII. Classified Deposit Ownership Program to be maintained in the Computer System for facilitating periodical returns to Bangladesh Bank.
XXIX. Bank shall provide monthly statement of account to clients as per computer system of the branch.
XXX. If minimum balance of the account falls below Tk.2,000/- once during the half-year, incidental charge will be recovered as per Head Office Circular.
XXXI. Bank at its discretion may close any account with prior notice to the account holder.
XXXII. In case of closure of account by the account holder, branch shall recover closing charges as per schedule of charges.
3.1.2 Savings Bank Deposit Account.
I. Savings Bank Account may be opened in the name of adult individual who are mentally sound and also jointly in the names of two or more persons payable to either or both or all of them or to the survivor or survivors.
II. Savings Bank Account may be opened in the name of a minor also.
III. Saving Bank Account may be opened in the names of clubs, societies, association and similar institutions and even by government and semi-government offices.
IV. Account shall be opened with at-least a minimum initial deposit of Tk.1,000/-.
V. Interest at the rates fixed by Head Office from time to time is applied half-yearly on the balances held on daily product basis.
VI. Not more than one account is allowed to be opened in the same name. But this will not be applicable to parents willing to open more than one account in his/ her name in respect of each minor child.
VII. Savings Bank Account shall not be allowed to be overdrawn under any circumstances.
VIII. Account opening formalities like Current Account should be followed.
IX. Savings Bank Account should not be allowed to be operated like Current Account
X. Not more than 25% of the balance can be withdrawn without 7 days notice. Withdrawals in the account shall be allowed twice in a week.
XI. No interest shall be paid to such accounts in the month for violation of the above rules.
XII. Bank shall provide monthly-computerized statement of accounts to account holders instead of passbook.
XIII. Bank may at its discretion close any account with prior notice for repeated return of cheques due to insufficient balance.
XIV. Bank may recover charges up to a maximum of Tk.100/- per instances of cheque return.
3.1.3 Short Term Deposit Account (STD)
Deposits held in this account are payable on short notice. Normally corporate bodies, bank and financial organizations invest their funds temporarily. Now-a-days, private individuals having sound financial means also open this type of deposit accounts. The following rules shall apply:
I. Deposits held in STD Account are payable in 7 (Seven) days notice.
II. Cheque books may be issued to account holders for withdrawal of funds.
III. Repeated withdrawal without notice shall be discouraged.
IV. Interest is payable on balance held on daily product basis as per computer program used by bank.
V. For opening STD Account, AOF used for Current Deposit Account shall be used.
VI. Other formalities are similar to Current Deposit Accounts.
VII. Minimum balance requirement for accruing interest is Tk.100,000 (Taka one lac) only.
3.1.4 Fixed Deposit Account.
I. Fixed Deposit is neither transferable nor negotiable.
II. Fixed Deposit Account may be opened by individuals, firms, companies, corporate body etc.
III. Fixed Deposit Account shall be opened for a fixed period ranging from 3 months to 36 months or above as determined by Head Office from time to time.
IV. Rate of interest payable to Fixed Deposit Accounts shall be approved/ advised by Head Office from time to time.
V. Interest on deposits shall normally be payable on maturity along with principal.
VI. Customers may however, have the option of withdrawing interest accrued after every six months provided that the account is for more than 24 months period.
VII. Interest ceases to accrue on overdue Fixed Deposit Account. Branch may, however, allow interest to exceptionally valued clients on deserving cases with concurrence of Head Office.
VIII. FDR may be encased before maturity on written request of the depositor. For payment of interest, branch shall follow Head Office instruction in this regard from time to time.
IX. In case of FDR in joint names, written consent of all holders shall be obtained before premature encashment, irrespective of instruction provided for operation of the account.
X. Duplicate FDR may be issued in case of loss of FDR reported by the holder. An indemnity bond executed by the depositor(s) shall be obtained on Bank’s standard form. A remark “DUPLICATE ISSUED IN LIEU OF ORIGINAL REPORTED LOST” is to be typed on top of the duplicate FDR. The original number should be used and comments to this effect be recorded in AOF, S.S. Card and FD Issue Register.
XI. Extra care shall be taken in case duplicate FDR is proposed for lien to any bank.
XII. Each FDR of the same depositor will be treated as separate contract.
XIII. Account Opening Form for Fixed Deposit Account contains relevant columns for mentioning all terms including rate and term of deposit and operational instruction. The bottom part of the form shall be used as credit voucher for the deposit. Specimen Signature Card duly signed by the depositor to be obtained with clear instruction for operation of the account.
XIV. Nominee form may be obtained if the depositor desires to nominate any body to receive the proceeds of his account in case of his death. Nominee’s Signature and one copy of photograph duly attested by the depositor to be obtained.
XV. The signature of the depositor is to be admitted by authorized officer both in AOF and S.S. Card.
XVI. Particulars of the account shall be entered in the FD Account Opening Register and a control number be allotted in computer sequence order with oblique against the printed number of FDR. The complete number shall be quoted/ mentioned in all references.
XVII. On completion of all formalities, including deposit of fund, FDR shall be issued and signed by two authorized officers. The FDR shall be delivered to depositor against acknowledgement on the reverse of the counter foil.
XVIII. The AOF will be retained in file and the S.S. Card shall be kept in S.S. Card Box under custody of the concerned authorized officer.
XIX. The particulars of the account shall be posted in the computer system on completion of all formalities including receipt of deposit. One authorized officer shall check/ verify the particulars in the computer screen and record his comments on the AOF to this effect with signature.
XX. Renewal of Fixed Deposit Account shall be allowed on written request of the depositor, if no intimation is received, the account shall be deemed to have renewed under the existing terms and conditions automatically.
XXI. FDR can be accepted as security against credit facility.
XXII. Offer of special interest rate on deposits is subject to Head Office approval.
The following documents duly completed shall be obtained from the customer at the time of opening different types of accounts as applicable:
a. Individual/ joint.
I. Account opening form as applicable duly filled in.
II. Specimen Signature Card.
III. Two photographs duly attested by introducer.
IV. Nominee Form (if nomination given by the account holder).
V. Mandate or Authority Form (if a third person is authorized to operate the account).
b. Proprietorship Firm
I. Account Opening Form.
II. Specimen Signature Card.
III. Copy of Trade License
IV. Two photographs duly attested by introducer.
V. Proprietorship Rubber Stamp against all signatures of the proprietor.
c. Partnership Concern
I. Account Opening Form.
II. Specimen Signature Card.
III. Copy of Trade License
IV. Partnerships Deed
V. Two photographs of each partner duly attested by introducer.
VI. Partnership Rubber Stamp against all signatures of partners operating the accounts.
VII. Partnership letter.
d. Private Limited Company.
I. Account Opening Form.
II. Specimen Signature Card.
III. Copy of Trade License.
IV. Copy of Memorandum and Articles of Association duly attested by the Managing Director/ Chairman of the Co.
V. Certificate of Incorporation.
VI. List of Director as per return of Joint Stock Company with signature.
VII. Resolution of the Board for opening account with the bank.
VIII. Photographs of each of the authorized signatories.
e. Public Limited Company
I. Account Opening Form.
II. Specimen Signature Card.
III. Copy of Trade License.
IV. Photograph of Directors and account operators other than Director.
V. Certified copy of Memorandum and Articles of Association.
VI. Certificate of commencement of business.
VII. List of Directors as per returns of Joint Stock Company with their signature.
VIII. Resolution of the Board for opening account with the Bank.
IX. Certification of incorporation.
f. Clubs/ Association/ Society etc. (Non-Trading Concerns)
I. Account opening Form for current account or SB accounts.
II. Specimen Signature Card.
III. Certified copy of Bye laws/ constitution of the organization.
IV. List of the Executives of Managing Committee with their signature and present and permanent address.
V. Resolution of the Committee for opening account with the bank.
VI. 2 Photographs of each operator of the account.
g. Corporation/ Autonomous Bodies/ Govt. Organization
I. Account Opening Form as applicable.
II. Specimen Signature Card.
III. Copy of the Act or Ordinance Showing authority to open account.
IV. Letter from the authorized persons in absence of the Board.
h. Account Of Constituted Attorney
I. Account Opening Form (As applicable)
II. Specimen Signature Card
III. Power of Attorney
A copy of Power of Attorney shall be taken and entered in the Power of Attorney Register in serial order. The serial number is to be noted along with Banks name on the Power of Attorney. Original may be returned and the copy to be attached with Account Opening Form.
3.3 Instructions for Handling Account Holders.
3.3.1 Individual Account.
Most of the accounts of a branch are individual. As such they deserve regular attention of the members of the staff of a branch. An individual account holder may nominate his near and dear ones to inherit his deposit in case of his death. He/ she can also give mandate or authority to operate his account in his short absence.
3.3.2 Joint Accounts.
- At the time of opening accounts in the name of two or more persons, clear and specific instructions shall be obtained regarding operation of the account and payment of balance to the survivor(s) or surviving members in the event of death of one or more joint account holders.
I. The instructions as far as possible shall be obtained in the handwriting of the parties concerned, under the signatures of all the joint account holders.
II. Instructions in the Either or Survivorship form may be taken in the following manner.
III. If the account is opened in the name of two persons instruction may be: Either or Survivor or singly or jointly.
IV. If the account is in the names of more then two persons instructions may be: By either or Survivor singly or by any two or more of them or by all of them.
V. Incase of death of any joint account holders, if the specific instructions are either a or b, the balance will be payable to the survivor(s).
VI. In the absence of specific instructions in the “Either or Survivorship” form, balance of the joint account will be payable to the survivors and the legal representatives of the deceased joint account holders.
VII. In the event of any of the Joint Account holders becoming bankrupts, all operation in the joint account shall be stopped until fresh instructions are given by the remaining solvent account holders jointly under their signature and the official assignee.
VIII. In the event of death of any joint account holders, the survivor or survivors shall be requested to close the old account and open a new account in the name of surviving account holders.
IX. No overdraft shall be allowed in a joint account unless it is operated jointly by all the parties of the account and charge documents in respect of advance are also signed by all of them.
X. Account payee cheque in the name of one of the account holders may be deposited in their joint name account for collection.
3.3.3 Account of Proprietorship Concern.
I. While opening accounts in the names of proprietorship concern care should be exercised that the person opening account is the proprietor of the firm. Obtaining trade license issued by Municipal Authority/ Union Parishad can be a proof. On specific instruction the account may be operated by persons authorized by the proprietor.
II. In case of death of proprietor, all operations in the account shall be stopped. Procedure laid down in Para (r) may be followed. On the death of the proprietor authority given by him ceases and the authority holder can not be allowed to operate the account.
3.3.4 Accounts of Partnership Firm.
I. A partnership account shall be allowed to be opened and operated by any one partner of the firm under his signature provided a partnership letter has been signed by all the partners of the firm in their individual capacity.
II. Partnership Deed or Partnership Letter should be thoroughly studied to know the names and address of all the partners. Nature of business, names of partners authorized to operate the account including authority to draw, endorse, accept bills, mortgage and sell property belonging to firm. It should also be ascertained about the position of the firm on retirement of any partner, death or insolvency of any partner.
III. In case of death of partner, if the deceased partner was operating the account singly, the balance shall be paid to the heirs of the deceased and the surviving partners as per orders of the Court agreement or arrived at between the surviving partners and heirs of the deceased. In the later case, the recipient shall execute indemnity bond as explained in para ® regarding deceased account.
IV. If a partnership Deed is submitted the same should be accepted and recorded with the bank.
V. In case of death of a partner who was not operating the account the surviving partners shall be advised to close the partnership account and open a new account.
VI. An operating partner may give mandate to a third person to operate the account in place of him.
3.3.5 Accounts of Joint Stock Companies.
I. A Joint Stock Company is a separate legal entity. The shareholders may die or become insolvent. The company shall continue to exist unless the number of share holders falls below the minimum number of members.
II. The minimum number of members is two and maximum is 50 excluding employees and ex-employees. Private Limited Company cannot invite public to subscribe to its shares and therefore, not required to issue a prospect us. Right to transfer share is restricted. It can commence business as soon as it receives certificate of incorporation. It need not obtain “Certificate of Commencement of Business”.
III. Public Limited Company must have minimum of seven members. There is no restriction on maximum number though it is always advisable to keep it within manageable limit. A public Limited Company raises its capital generally through public issues and therefore, a prospectus is required to be issued. Share of public Limited Company can be transferred. It however cannot commence business until and unless “Certificate of Commencement of Business” has been obtained.
IV. Approval of Head Office to be obtained for opening account in the name of a New Public Limited Company for the deposit of share money.
V. No cheque book shall be issued or withdrawals allowed from the account of the newly floated companies unless a certified copy of commencement of business is produced by the company.
VI. If the company fails to produce such certificate as mentioned at para (v), the deposits accepted by the bank on their behalf representing share money, received in anticipation of the commencement of business, shall be refunded in lump sum to the Directors of the company obtaining a joint receipt from all of them subject to prior approval of Head Office.
VII. Account of Limited Companies operated by the Managing Agents of the company shall not be opened or allowed to be operated unless a certified copy of the Managing Agent’s, Agreement is obtained and the authority of the persons signing on behalf of the firm or company or the Managing Agent is verified.
VIII. No advance shall be allowed to any company unless it is ascertained that Memorandum and Articles of Association of the Company authorize the company in that behalf. And it is authorized to secure the advance against securities offered by it.
Accounts of Clubs/ Societies/ Associations.
I. No overdraft shall be allowed in the accounts of clubs. Societies and Associations without prior approval of Head Office.
II. No cheque drawn on the accounts of Clubs and Societies shall be collected for credit to private account of the office bearers of the societies and clubs.
III. In case of transfer or death of any of the office bearer of the club/ society operating the account, all operation shall be stopped until such time that a fresh resolution is passed in future by The Executive/ Managing Committee determining the method of its operation and delegation of powers to the new office bears, and advised to the Bank.
3.4 Inter Branch Transfer of Account.
In case of transfer of Savings or Current account to another branch, a letter of request should be obtained and action be taken after verification of the signature and taking proper approval of the Manager. The request of the account holder desiring the transfer of the account shall be taken an application.
I. When the application is received Manager of the branch will check up the same and if found in order will approve transfer of the account. The relative specimen signature cards and account opening form shall then be taken out from file for transfer by the concerned department.
II. The following entries shall be passed by the branch transferring the account.
III. Debit : Party’s account.
IV. Credit : JBL General Account {Transferee branch (IBCA to be issued)}.
V. The transferring branch should not recover any charges from the account holder for transfer of the account.
VI. The forwarding letter as per the following specimen shall be singed by the Manager.
VII. At the time of transferring the account the branch may retain photocopy of AOF and SS Card together the application and preserve in Account transfer file.
VIII. Entries shall be made in the Account opened and Closed Register and a note to this effect “Account Transferred to ………….. Branch on…………. shall be made therein.
IX. The Account Opening Form, SS Card and the IBCA shall be dispatched under cover of the forwarding letter as per specimen to the transferred branch under registered A/D/ Courier Mail.
X. Ordinarily a newly opened account should not be transferred to another branch. The holder should better be advised to close the account.
XI. It must be carefully noted that no overdraft, cash credit, demand loans or any other account representing party’s liability or obligation shall be transferred from one branch to another without prior Head Office approval.
XII. Measures to be taken by the Transferred Branch.
a. The transferred branch send a letter of acknowledgement to the transferee branch on receipt of the papers/ documents of the account.
b. All the enclosures to be checked and verified in terms of number and contents.
c. An intimation shall be sent to the account holder by post/ courier mail requesting him to call on the manager with the intimation letter sent to him.
d. A new account number shall be allocated and IBCA is responded in the following manner.
Debit : JBL General Account (Transferee Branch).
Credit : New Account (Under advice to the holder).
e. New cheque book against the account opened shall not be issued to the account holder unless:
v The Local Address of the party is properly tallied with the same mentioned in the transfer-forwarding letter.
v The party calls on personally and signs the cheque requisition slip with acknowledgement.
v Fresh Set of Account Opening Form and SS Card with fresh introduction is obtained and formalities completed as required for opening Account.
3.5 Issuance of Cheque Books.
General Service Division of Head Office will supply required Cheque Books to branches against their requisition from time to time. On receipt of these cheque books/ other security stationery, the branch shall record the stock in the Security Stationery Stock Register. While recording the stock, the Prefix number shall invariably be mentioned.
I. A few Cheque Books required for current consumption of the Deposit Department shall be taken out from the main stock under control of an authorized officer. The concerned issuing officer will keep these cheque books in a box under lock and key and issue the same to the clients during the day. The Cheque Books will be entered in the Cheque Book Issue Register and be issued to clients against their acknowledgement in the register.
II. Separate folios will be opened in the Cheque Book issue Register for CD/ SB/ STD account cheque books.
III. When a cheque book is required by a new customer, the cheque requisition slip pasted on top of each cheque book is to be got signed by him. The officer responsible for issuing cheque book shall get the signature of the account holder verified from the officer in-charge of the Deposit Department and issue the cheque book to the customer after putting his initial in the cage of cheque series subject to the condition that account opening form is complete in all respects and otherwise in-order.
IV. The requisition slip shall be sent to the respective Computer Terminal for posting in the respective account.
V. All subsequent Cheque Books shall be issued against Cheque Requisition Slips extracted from the previous cheque books issued to the customer, However, the requisition slip pasted with subsequent cheque book on its first page shall be destroyed.
VI. The cheque requisition slip duly filled in by the customer shall be forwarded to cheque posting Terminal to ascertain:
· The average balance maintained by the customer.
· Whether previous cheque leaves are properly consumed.
· Cheques are not frequently returned for insufficient funds in the account.
· Payment of Cheque is not frequently stopped.
· The manner in which the account is operated.
· The account is not dormant.
If any of the defect is noticed by posting officer, he/ she shall make remark on the requisition slip and forward it to Cancellation Officer who will decide whether cheque book should be issued to the customer.
VII. In cases, where the account is found in order and the party is known, the cancellation officer shall verify the signature on the slip and send it back to cheque book issuing officer for issuance of the same.
VIII. In case of a Dormant Account, the party shall call on the Manager personally for identification purpose. The Manager on being satisfied about the bonafides of the applicant shall allow issuance of cheque book.
IX. In case of slightest difference in signature or suspicion aroused about the bonafides of the person presenting the cheque requisition slip, proper inquiries shall be made by contacting the account holder. The officer must be satisfied before finally issuing the cheque book.
X. In case where requisition slip extracted from a previous cheque book is not presented, every possible care shall be exercised to establish the bonafides of the case, particularly when address of a constituent has been recently changed and/ or a simultaneous request to change the address is made.
XI. If the cheque book/ cheque requisition slip is reported lost, the branch shall take extra care in issuing fresh cheque book and take the following extra steps :
· An Indemnity on bank’s standard form shall be obtained from the client counter signed by another customer of the branch having reasonable balance in the account.
· Stop payment shall be made for the unutilized cheque leaves (Detailed procedure in relevant chapter).
· On completion of the formalities, fresh cheque book shall be issued to the client. The client shall personally receive the cheque book against acknowledgement.
XII. If the cheque book is issued through bearer, his signature must be attested by the account holder on the request letter. The requisition will however be filled in/ signed by the account holder. The bearer will receive the cheque book against his acknowledgement on the reverse of requisition slip and Cheque Book Issued Register.
The party’s acknowledgement may be obtained by sending him a letter through bearer.
XIII. The issuance of the cheque book will be processed as under:
v It should be ensured that all the leaves and blank requisition slip are intact and the printed serial numbers are in-order.
v The name and account number of the customer shall be written in the cheque books cover and the cheque requisition slip.
v The account number shall be affixed on all the leaves of the cheque book including the cheque requisition slip under the signature of the issuing officer, whose signature should be recorded in the deposit department.
XIV. Cheque Books shall be delivered to the customer over the counter after obtaining his acknowledgement in the cheque requisition slip as well as cheque book issue register.
XV. In special circumstances, cheque book may be delivered through bank messenger. But in that case similar acknowledgement or subsequent confirmation shall be obtained from the client.
XVI. Cheque Book sent by post, shall be despatched to client under cover of a latter in a sealed envelope under Registered A/D. The client shall be asked to confirm receipt of the cheque book. The A/D on return together with the confirmation be tagged with the requisition slip.
XVII. The cheque requisition slips against which cheque books have been issued, shall be stitched together with vouchers of the day.
XVIII. At the close of the day, the Security Box containing the cheque books shall be placed in safe or inside the Strong Room under the supervision of the authorized officers.
3.6 Stop Payment Order and their Revocation.
I. Instruction for stopping payment of any cheque shall be obtained from the account holder in writing.
II. If stop payment instructions are received over telephone or Telex a provisional note in respect thereof shall be kept with cancellation officer, pending receipt of written instructions from the account holder. Should the cheque be presented in the meantime, the same should be returned with objection “drawers confirmation required”.
III. The date and time on which those instructions received shall be marked on the letter and signed by an authorized officer.
IV. The signature of the account holder shall be verified on the letter and accordingly the cancellation officer/ posting officer will be asked to insert the cheque number and stop payment in the computer terminal.
V. Meanwhile if the cheque is already paid the account holder shall be informed immediately.
VI. An acknowledgement Memo in Bank’s printed format may be issued to the account holder as to the actions regarding stop payment.
VII. The stop payment letters received from the party shall be filed in the “stop payment file”.
VIII. When a stopped cheque is presented for payment, the remark “Payment Stopped by drawer should be written in bold letter in red ink across the face thereof and returned to the payee with return memo under usual manner.
IX. Revocation instruction regarding “Stop Payment” shall be obtained from the account holders in writing. The signature of the account holder shall be verified with the signature on the previous letter.
X. The Stop Payment instruction shall be revoked from the account by withdrawing the cheque number from computer system and note to this effect shall be made on the letter for reference.
XI. The revocation letter shall be filed with the previous letter which contained “Stop Payment” instructions.
XII. The revocation instruction shall be acknowledged by sending a letter to the account holder.
3.7 Payment of Instrument, Dishonor of Instrument.
Scrutiny of cheques/ voucher.
Before posting in the computer system, the cheque/ vouchers are to be checked by the concerned officer with reference to the following:
3.7.1 Cash Cheques.
I. The cheque is drawn on the bank and branch where it is presented for payment.
II. The cheque is an open cheque i.e. uncrossed.
III. In case it is an order cheque (Payable in cash) the payee is identified to satisfaction.
IV. It is not post-dated, undated or stale.
V. The words and figures tally.
VI. The cheque is duly signed by the drawers.
VII. Cuttings and alteration have been authenticated under full signature of the drawer.
VIII. There is no over writing whatsoever.
IX. Any material part of the cheque is not mutilated.
X. The cheque is not unusually of huge amount and also with-drawl is not rare and sudden. In such cases the matter should be brought to the notice of the Manager by the posting officer.
XI. The cheque leave bears the initial of cheque book issuing officer.
3.7.2 Cash Debit Voucher.
In case of cash debit voucher, the following points should be checked:
I. It is signed by the authorized officer alongwith the Manager.
II. It is signed by the payee on the reverse and payee’s signature is verified.
III. It bears the Stamp “Pay Cash”.
3.7.3 Clearing Cheques.
In case of clearing cheque, it is checked that: –
I. Collecting Bank’s Clearing Stamp bearing correct date is affixed on the face of the cheque and the cheque is presented in the 1st or 2nd clearing as stamped.
II. The collecting bank’s discharge is correct.
III. Other points similar to those as explained above are followed.
3.7.4 Transfer Delivery.
The following points to be checked:-
I. The Transfer Delivery Stamp is affixed on the face of the cheque and bears correct date.
II. The collecting bank’s discharge is correct.
III. Other points similar to those explained above are followed.
3.7.5 Cash Transfer.
It shall be checked that: –
I. The Cash Transfer Stamp is affixed on the face of the cheque.
II. Branch discharge is correct.
III. Branch crossing seal is applied.
IV. Other points similar to explain above are followed.
3.7.6 Voucher.
It shall be checked that: –
I. It is correctly written and dated.
II. Two attorney holders sign it jointly.
III. Amount in words and figures tallies.
IV. Appropriate head of account is given together with computer number.
3.7.7 Cancellation of Cheques.
I. The cancellation officer should be an authorized officer of the bank/ branch.
II. He/ She shall keep all Specimen Signature Card under his effective control during transaction hours.
III. The cancellation officer shall retain only the signature cards admitted by the authorized officer in serial order.
IV. Before passing any cheque, the signature of the drawer must be verified. In case, signature of the drawer differs, cheques shall not be passed unless the drawers confirmation is obtained or a reference is made to Manager for his instruction.
V. The cancellation officer shall not pass any cheque unless cheque is posted in the computer system.
VI. He/ she should check the irregularities of the cheque if any.
VII. The cheque series number with Prefix should be checked to safeguard fraud and forgeries.
VIII. The cancellation shall be done by drawing a redline across the signature of the drawer of the cheque. He/ She shall sign in full in red ink near the drawer’s signature.
IX. Cheques over Tk.50,000/- shall be cancelled by two authorized officers joint