Sr No Topic Page number1 Account Opening 22 Account Operations 103 Payment and Remittances 284 Collection Services 355 Service Channels 39

Foundations of Banking Blended course

Student Workbook Module 2Table of Contents

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ACCOUNT OPENING - STUDENT WORKBOOK

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Suman, a young college graduate, had joined XYZ Bank and was asked to report at KR Nagar branch which was yet to be opened. She found that KR Nagar was a residential locality with a few shops and one or two schools.

Suman walked in to the branch to find only the branch manager Mr.Ranga and a senior officer Mr.Jagan. There were no customers at all!After a brief introduction, Suman learnt that the branch would be opened in a week’s time and they need to bring in new customers and open accounts for them.Suman: What is my role Sir?Ranga: We would like you to meet prospective customers and help them open accounts.We have advertised in newspapers and also sent our sales people to the housing societies to invite the residents to our branch inauguration. You can meet the walk in clients as well as go out and meet our neighbours.Suman: What are the forms and formalities for opening accounts? How do I know whether a client is eligible to open an account with us?Ranga: Please read this chapter on Account Opening from the book “Banking Principles and Operations”. The most important points you need to understand are:Know Your Customer Guidelines (KYC) and Anti Money Laundering Perspective

Well friends, would you like to join Suman in the journey of understanding how banks open accounts for customers? Go on and take up the learning activities in this chapter.

Objective:

At the end of this session you will be able to:

Explain the KYC requirements to customers for opening accounts Apply the KYC principles in letter and spirit while opening accounts Scrutinize account opening forms and KYC documents with speed and accuracy

Sub Topics:

KYC and AML guidelines, KYC Policy - KYC documents Opening Accounts of Individuals - Opening accounts of firms, companies, societies,

trusts General precaution - Annexure -Fiduciary accounts, other types of accounts.

Gaming module AOF

Training sequence:

Activity Duration (in hours)

E-learning E-learning modules to be completed 1.Know Your customer for retail branch banking2.Retail Branch Operations Account Opening

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Pre Classroom activity

1.Visit a Bank branch and check the formalities for account opening, collect an account opening form for the Role play .Check out the KYC 2.Prepare a Role play on Account opening

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Classroom activity

Role playFacilitation, Case study & SummaryCheck your understanding

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Gaming module on Account opening form-Advanced Outbreak force

Post classroom

1Banking Principles and Operations by Mr.M.N.GopinathReference

books

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CLASS ACTIVITY

Role play

Form four groups.

You are a banker and would be required to address customers who walk into the branch with their queries pertaining to account opening

Each group need to take any one of the following type of customers and enact a role play. Some customers can be favourable customers i.e. fulfilling the required norms and some unfavourable. How would you deal with an unfavourable customer?

Type of customers – Individuals

Housewife (not having relevant documents) Student Salaried individual An HNI Blind / Illiterate person Senior citizen Parent wants to open account for his child An army / navy personnel

Groups should keep the following points in mind while preparing the role play

To practice the role of a banker Recall the customer service skills Ensure compliance to regulations while handling different situations You would be required to make relevant and logical assumptions To understand the emotions and expectations of a customer To display customer service skills as well as provide correct solutions to

customers in compliance with rules and regulations

Hint: You are Mr. Govind Tukaram Pendse and you with your sister Ms Kusum Tukaram Pendse have come to the branch to open a joint SB Account operable by “E or S”. Chalk out a role play in and around this situation which you as a banker will face in the branch

Participants to make a note of the learning from each role play

Note Customer service skills of the banker and response of customer

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Whether correct or incorrect information/ guidance is given to the customer Emotional behaviour of banker and customer Timelines for the activity

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Discuss your learning

What is KYC?

Why is KYC required?

How does it benefit the Bank and the customer?

How does it build relationship between the customer and the bank?

CHECK YOUR UNDERSTANDING

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1. The objective of KYC requirement as stated in RBI guidelines are:a. To be aware of the identity of the customerb. To be aware of the communication address of the customerc. Manage risks associated with customersd. Prevent account opening by anti social/criminal elements

2. Which of the following can be taken as an identity proof for opening an account.a. Driving licenceb. Telephone billc. PAN cardd. Voter ID card

3. Which of the following can be taken as address proofa. Telephone billb. Gas connection cardc. LIC premium receiptd. Letter from employer

4. Which of the following can be taken as both identity and address proofa. Passportb. Printed ration cardc. Driving licenced. PAN card

Match the followingA B

a) Certification from municipal ward 1 Low Risk, Medium Risk and High Risk and non-acceptable categories

b) Pension payment order 2 Certificate of Incorporation

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c) Customer Acceptance Policy 3 Only address proof

d) Partnership Firms 4 Decision to be taken at a senior level

e) Private and Public Limited Companies 5 Not permitted to operate in India

f) Accounts of Politically Exposed Persons 6 Partnership letter on firm’s letterheadg) Shell banks 7 Identity and address proof

Case scenarios ( can be used for your role plays)Here are a few customers who would like to open accounts with the bank. You must help Suman decide whether they satisfy the KYC requirements.

Arul, a business man who is travelling most of the year. He has a Passport with Delhi address. He currently lives in chennai and has a telephone bill as proof for the current address.

Jenifer, a housewife. She has no documents in her name. She lives with her husband George in government staff quarters. George is a state government employee.

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Mr.Gupta, a senior citizen, lives with his grand daughter. He has a voter id card. He does not have any telephone bill or electricity bill in his name. He however, has a pension payment order.

Mr.Mehta has lots of cash and offers to deposit Rs.1 crore cash on the branch opening day. He has a driving licence and a telephone bill for proof. He says he is working as a manager in a School.

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Pen down your learnings from this session :

GAMING ZONE

Time now for some exciting and fun packed game. Go through our gaming module of Advance Outbreak Force. A game that will test and enhance your identification skills. Find out the various defects in an account opening form.

Storyline: The AOF’s are under attack by bugs. Your mission is to trace the bugs and stop the infestation. You will assess the infestation rate by checking the meter and identifying bugs in the forms. You can get rid of the bugs by selecting error instances in the form from the panel. The Robot Helper will spray the bugs. If you make an error, the bug will attack more forms and increase the game time.

Functionality: The game is for learners to practice scrutiny of account opening forms along with KYC documents. The Account Opening Form (AOF) verification process is central to this game. The learner has to identify the missing entries or errors in the form and the supporting KYC documents.

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ACCOUNT OPERATIONS - STUDENT WORKBOOKObjective:

This session will enable you to

1. Explain the important regulations of NI act relating to account operations. 2. Ensure compliance and customer service while handling transactions

Sub Topics

Negotiable Instruments Payment and collection of cheques Special Requests Special Situations - Anti Money Laundering Gaming Module - Cheque Mate and Rad Alert

Training Schedule

Activity Duration (in hours)

E learning Retail Branch Operations- Cash Negotiable Instruments ActSpecial Requests and Special SituationsAnti Money Laundering IndiaFinacle – IntroductionFinacle – cash receipts and paymentsFinacle – Issue of DDFinacle- Transactions and processes

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Classroom activity

Role play 3PresentationGroup discussionCheck your understanding

Post classroom Gaming-Cash detectives & RAD Alert 4

Reference: Banking Principles and Operations by Mr.M.N.Gopinath

Role Play:

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Enact role plays as advised by the faculty

Topics for role play:

1. Wrongful dishonour of cheques 2. Criminal liability of customer for cheque return 3. Importance of KYC - case of a collecting banker 4. Cash Receipt

Hint Situation - You are Mr. Hegde, owner of a petrol pump and hold an account no. xxxxxxxxxxxx. You wish to deposit Rs.10,000 in the account of mix denominations as below 100*50 = 500050*50 = 250025*100 = 2500Total= 10, 000

Mr. Hegde hands only Rs.9900 to the cashier. Notes are not tendered denomination wise but in a jumbled way. Two of 100 rupee notes are soiled and non-issuable. Pay-in-slip not signed by you and it also does not have the denomination wise break up.

Develop a similar situation for cash payments also.

Groups should keep the following points in mind while preparing the role play - To practice the role of a banker - Recall the customer service skills- Ensure compliance to regulations while handling different situations - You would be required to make relevant and logical assumptions - To understand the emotions and expectations of a customer - To display customer service skills as well as provide correct solutions to

customers in compliance with rules and regulations

List your learning and observations on the role play below

Presentation

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Present on the following topics as allotted by the facilitator

- Bank's responsibility to honour cheques of customers- Reasons for rejection of cheques- Cases of cheques dishonoured by customers- Protection available to a collecting banker

List down your learning from the presentation

Be ready to discuss on the following questions with your facilitator

- How is the Bank's responsibility to honour cheques related to the concept of trust?- When should a Bank return the customer's cheques?- Can returning customer's cheques lead to trust and good customer service?- Discuss the legal implications in payment of cheques.

Make points for discussion

List down your learning from this session

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CHECK YOUR UNDERSTANDING

Session: Cheques

1. A cheque presented for cash payment has no date written on it. Who, from the following, can insert a date ?

a) The holderb) The bankerc) The original payee only in case of an endorsed chequed) Only the drawer

2. What is the period after which a cheque becomes stale?

a) 1 monthb) 2 monthsc) 4 monthsd) 6 months

3. Why should a bank not pay a post dated cheque?

a) Payment of a post dated cheque has the effect of accelerating the paymentb) It is a refusal by the drawer to pay debtc) Post dated cheque does not confer any right to debit the customer’s account

till the arrival of the date mentioned on the chequed) Post dated cheque has no legal effect

4. A cheque for Rs 18000 has been presented for payment. The amount stated in words is Rs.1800/-.

a) Pay the lesser of the two figuresb) Ask the presenter to get the cheque correctedc) Though payment of the amount stated in words will discharge the bank, in

terms of the practice followed, the cheque will be returnedd) I will get in touch with the drawer of the cheque, apprise him about the

cheque and take appropriate action.

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5. Which one of the following methods of signature on a cheque will bind the Company?

a) For ABC Ltd

B BajeraManaging Director

b) Balraj BajeraManaging Director

c) B BajeraManaging DirectorABC Ltd

d) B Bajera

6. A cheque has been presented to you in clearing which is crossed to two banks – i.e. Modern Bank and Central Bank of India. The cheque has been presented in clearing by the Central Bank of India. What are your views?

a) The cheque can be paid to either of the two banks on whom it is crossedb) As per law, cheques crossed to two banks should not be paidc) As per law, cheques crossed to two banks should not be paid and if one of

the banks is acting as an agent for collection, then it could be paidd) Educate the drawer of the cheque on drawing a cheque

7. Why the return of an unpaid cheque to the lodger assumes importance?

1. The cheque is the property of lodger2. The Bank will be unable to balance its book if it is not returned3. With the lapse of time, the cheque may get misplaced4. To enable the lodger of the cheque to pursue his legal remedies on the

dishonoured cheque.

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8. A cheque originally issued for Rs,40000/- has been altered in words and figures to Rs.4,40000/- .The drawer has initialled the alteration.Cheque is presented by a bearer

a) The cheque can be paidb) Cheque cannot be paid as material alteration requires drawer’s full signaturec) Cheque can be paid if bearer signs on the reverse, and submits an id proofd) Cheque cannot be paid as the amount is large

Session: Payment of Cheques

1) Which of the following payments are in due course?

Bearer Cheque for Rs 1000 issued favouring Krishna, Cash paid to bearer Ram. Crossed cheque for Rs 5000 favouring Radha, Cash paid across the counter. Bank branch works from 8 a.m to 8 p.m. Cash payment of Rs 12000 for a cheque

favouring Sita, paid to bearer at 9 p.m for an emergency. Cash cheque of Rs 200000 paid to the bearer. Cheque shows alteration in five

places, but with signature of the drawer. Bearer did not furnish ID proof. Cheque for Rs 100000, torn at the left corner. Cash paid to Payee Ashok, a

nineteen year old. Company ID card given as ID proof. Photo not clear in the ID card.

2) Multiple Choice Questions

1) Cheque presented for payment should not be:

Undated Post dated Dated more than six months old All the above

2) A cheque crossed generally can be paid:

Only at cash counter Only through a bank account Only to the payee Only through clearing

3) Special crossing on a cheque is an instruction to:

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Pay only to the banker mentioned in the crossingPay only to special customersPay only through clearingPay only to the customers of the bank

4) Sec 31 of the NI Act defines responsibility of

a. Undatedb. Post datedc. Dated more than six months oldd. All the above

5) Payment in due course means payment

According to apparent tenor of the instrument In good faith and without negligence To the person in possession of the instrument Under circumstances that do not give any ground for suspicion All the above

6) If amount in words and figures in a cheque differ

a. Amount in figures can be paidb. Amount in words can be paidc. In practice, cheque is returnedd. Both b and c

7) A bearer cheque favouring Ram is paid to Sita

a. Bank is responsible if there is a problemb. Bank is liable to compensate the drawer for the mistakec. Bank can make payment if Ram has endorsed the chequed. Bank can pay bearer cheque to anyone who presents the cheque

8) Bearer cheque is transferred by

a. Endorsement and deliveryb. Endorsementc. Deliveryd. None of the above

9) Order cheque can be paid only

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a. To the payeeb. To the payee after identificationc. Can be paid with endorsement by drawerd. Cash cannot be paid to order chequese. Both b and c

10) When a bank pays a cheque after banking hours it is

a. Excellent customer serviceb. Special service to important customersc. Not a payment in due coursed. Payment in due course

11) Sec 85 of the NI Act gives protection to paying bank relating to

a. Endorsement of bearer and order chequesb. Payment of crossed cheques at counter for emergencyc. Payment to third partiesd. Exceptional payments not as per rule

12) Signature should be verified

a. For high value chequesb. Cheques for Rs 5000 and abovec. For all chequesd. Only for cheques presented for cash payment

13) Customer can stop payment of a cheque

a. By giving a letter mentioning the account number and cheque number to be stopped

b. By giving a letter for stopping a series of cheques in an accountc. Calling up the branch d. Both a and be. Both a and c

14) If the signature of the customer is forged

a. Bank gets protection if payment is in due courseb. Bank gets protection if forgery is cleverly done and payment is in due coursec. Bank cannot get protection as they are supposed to know their customer’s

signature, even if the forgery is not easily detectable d. Bank cannot debit the account as the cheque with a forged signature is a

nullitye. Both c and d

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15) If the bank dishonours a cheque by mistake, when there are sufficient funds in the drawer’s account, Bank is liable

a. To the holder of the chequeb. To the drawer and the payee of the chequec. Only to the collecting bankd. Only to the drawer for loss or damage suffered due to dishonour

16) Protection to paying banker is given if payment is in due course:

a. Under Sec 85 for payment of bearer and order cheques with endorsementb. Under sec 89 if the material alteration is not apparent c. Under Sec 89 for cash payment of a cheque which did not appear to be

crossed or had a crossing which was removedd. All of the above

17) Payment in due course is payment

a. In accordance with apparent tenor of the instrumentb. In good faith and without negligencec. To the person in possession of the chequed. Under circumstances which did not give rise to suspicione. All the above

18) Protection to collecting banker is given under Sec 131 of NI act for collection of

a. Crossed chequesb. On behalf of a customerc. In good faith and without negligenced. All the above

19) Ashok had issued a bearer cheque favouring Ram for Rs 5000. Ram had signed behind the cheque and given it to Krishna. Krishna did not sign on the reverse. The cheque was encashed by Radha.

a. Bearer cheque can be paid to anyone who presents the chequeb. Bank gets protection under Sec 85 of NI Actc. Once a bearer, always a bearer, irrespective of subsequent endorsementd. All the above

20) Duty of the collecting banker to exercise diligence

a. At the time of account opening

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b. Monitoring operations in the accountc. Scrutiny of instruments presented for collectiond. All the above

Session: Collection of Cheques - CaseletsAce Bank has received queries from the internal audit department regarding the following five cheques collected in the last one month. Read the caselets relating to the five cheques and specify whether the bank has taken the necessary precautions to get protection as a collecting banker

1) Cheque favouring Rathna Bai for Rs. 1000000/- collected and credited to the account of B.Rathna. Rathna had opened an account three days back with cash Rs.1000/- as she did not have any other bank account. Rathna is 18 years old and is working as a nurse in a small private hospital. She had submitted her voter’s id card and gas connection book for identity and address proof.

2) Cheque for Rs.600/- favouring Suresh Kumar credited to the account of K Suresh.K.Suresh has an account with the bank for the past five years and maintains a balance of Rs.50000/- in his savings account. Suresh has given an explanation that the drawer of the cheque has issued the cheque in his full name, “Kumar Suresh” being expansion of his initials.

3) Cheque favouring Catherine Arul for Rs.200000/- credited to the account of Katherine Vijaykumar.The account was opened one year back with Rs,5000 and the entire amount was withdrawn in a week’s time.There have been no other transactions in the account for the past one year.

4) Salman Ahmed has a savings account with the Bank for the past two years. He is employed in a small restaurant in the locality as a supervisor.He has maintained an average balance of Rs.6000 in his account. He has deposited a cheque for Rs.20 lakhs favouring Salman Mohammed into his account. The cheque bears an “Account Payee” crossing

5) Sukhbir Singh has deposited a cheque for Rs.1000/- in his account. The cheque is favouring Sukhvir Singh.He maintains a balance of Rs.2 lakhs in his account which he has been holding with the bank for the past two years. He also has fixed deposits

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amounting to Rs.5 lakhs in the names of his children.

Special Requests and Situations

CHECK YOUR UNDERSTANDING Choose the correct answer (s)

1) Gita has a savings account with ABC Bank, at the Chennai Main branch. She has got transferred to Mumbai recently.

a. Gita has to close the Chennai account and open a new savings account at Mumbaib. Gita can continue to operate her Chennai account subject to limitationsc. Gita can get the Chennai account transferred to Mumbai,she will get a new account number d. Gita can continue to use her existing debit card as the new account will be linked to the card

2) On transfer of savings account, customer will get a newa. Account numberb. Cheque bookc. Debit card, infinity user id and passwordd. Nominee

3) The following formalities are required for adding a name to an existing account in the single name of a customer.

a. Fresh account opening form signed by both the applicantsb. KYC documents for the second applicantc. Consent letter from the nominee in the single accountd. Letter of request for addition of name signed by both applicants

4) State whether the following statements are true or false, with respect to deletion of name in savings account

a. Deletion of name in an E or S account can be done at the request of either of

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the account holdersb. Deletion of name cannot be done in overdraft/loan accountsc. Deletion of name cannot be done for NRI accountsd. The applicant whose name is being deleted must surrender his ATM card

5) A closure can be initiated by the Bank in the following cases:a. Customer frequently requests for stop payment of his chequesb. Cheques issued by the customer are dishonoured due to insufficient fundsc. Customer does not maintain minimum balance in the account even after

repeatedd. reminderse. Customer is guilty of committing fraud

6) On the death of a single account holder, balance in the account is paid to the: Nominee, after proper identification In case nominee is a minor, to the guardian named in the nomination form Legal heirs , in case there is no nomination None of the above

7) Anil and Sunil are partners in a textile firm operating the current account jointly.They have an average balance of Rs.5 lakhs in their account.The Bank has received a cheque in clearing for Rs.50000/- favouring a Travels and tours company. On scrutiny they find that the signature of Sunil does not match as per the records. Bank passes the cheque as the signature of Anil matches perfectly.

a. The Bank will be liable if Sunil claims that he had not signed the chequeb. Bank cannot make payment even if one of the signatures does not tallyc. Bank is right in making payment as one of the partner’s signature is perfect.d. Sunil has to sort out the issue with Anil and cannot claim against the Bank

8) Transactions in dormant accounts have to be passed with caution because:a. Fraudsters might try to withdraw money, knowing that the customer is not

operating the account/checking his statement

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b. Credits into dormant accounts may also be part of fraud to divert large amount of funds from another account for subsequent withdrawal

c. Change of address, request for cheque book, change in signature request should also be verified with caution to prevent subsequent frauds

d. Accounts could be used for money laundering transactions for a specific period and allowed to remain dormant. Any subsequent transaction in such accounts could be to revive the deals.

9) Suman has a current account with your branch for the past two years. There have been several instances of cheque returns in his account and the average balance is very low. Shekhar, an advocate, who also holds a savings account with you, inquires about the nature and background of Suman’s account with the Bank. He tells you that the information is required by the local police inspector

a. No information can be shared with the advocateb. The inspector needs to send a written communication under his seal, requesting

for specific informationc. The branch has to refer the query to Regional office and give the reply in

consultation with legal/regional office expertsd. The Bank has to ensure that the legal rights of the customer are not violated

10) The income tax officer has visited you with a letter requesting for attachment of the savings accounts of one of your high net worth customers for an amount of Rs.10 lakhs. Steps to be taken are:

a. Inward the attachment letter with date, time and seal b. Customer should be informed about the Income-tax noticec. Amounts due to the Bank from the customer need to be recovered d. From the balance amount, amount attached should be remitted to IT authorities

under intimation to the customer.

CASELET

Anti Money LaunderingShivik was the Branch Head of a new branch opened in a residential cum commercial area. The branch was just twenty days old and there was a huge campaign by the sales team to invite people in the neighbourhood to open accounts with the Bank.Shivik had a target of garnering 1000 accounts/ deposit business of Rs.5 crores in the first month. Shivik has received a query from Corporate Office regarding the following accounts to confirm that there is no money laundering.

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1) Mr.Santhosh Raj savings account number 987801000012 – balance Rs.5100002) Mr.Raj Kant - SB 987801000024 - balance Rs. 7 lakhs3) Ms.Apoorva - SB 987801000018 - balance Rs.15 lakhs4) Mr.Akbar Ali - SB 987801000002 - balance Rs.12 lakhs5) Akbar Ali Trust - SB 987801000013 - balance Rs.26 lakhs

Shivik checked with his sales team and operations manager and got the following information about the accounts.

1) Mr.Santhosh RajMr.Santhosh had walked into the branch on the inauguration day and opened a savings account with cash Rs.40000/-. He had submitted his passport and telephone bill as id and address proof. He had signed form 60 stating that he had applied for a PAN number but had not received the card/number. He had introduced himself as a businessman who had come recently to the city to set up a new hotel. He had been depositing cash Rs.95000/- into his savings account every alternate day. Shivik could not reach the customer on phone, so he sent his sales person to the customer’s residence. The door was locked.Make your note –

2) Mr.Raj Kant Mr.Raj had opened his savings account with a cheque issued on ABC Bank account for Rs.1 lakh. He had submitted his PAN card and telephone bill for id and address proof. After 4 days, he had deposited another cheque for Rs.6 lakhs issued by LIC of India in his name. He has given a request for creating a fixed deposit of Rs.5 lakhs for a period of 5 years with interest payout every month into his savings account. After 2 days he has submitted another cheque for Rs.8 lakhs from XYZ Bank.The cheque had the legend “Privileged Banking” on top. He has mentioned to the CSO that this was the maturity proceeds of his fixed deposit and he wanted to consolidate all his funds at

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this branch.Make your note -

3) Ms.Apoorva Ms. Apoorva had submitted her voter id card and electricity bill as KYC documents. She had also submitted a cheque for Rs.50000/- drawn on her Bank account with FJK Bank. The communication address given in the form was in a locality considered unsafe .Her date of birth mentioned in the form was 1.4.1987. It was a single account in her name and she had not given any nomination. There was no other information about Apoorva in the account opening form.After a week, she had deposited a cheque in her name for Rs,10 lakhs issued by Contact Foundation Trust There were subsequent cash deposits of Rs.2 lakhs, Rs.1 lakh , Rs.50000/-, Rs.50000/- and Rs.1 lakh into her account on consecutive dates .The cash deposit slips were signed by a different person on each day, Shivik called the mobile number given in the form and got a message that it had been disconnected.The sales manager visited the communication address and found the door locked. He checked with the neighbours and found that Apoorva was working in a small textile shop at the other end of the city.

Make your note -

4) Mr.Akbar Ali Mr. Akbar Ali is the partner of a big textile store in the city. The store has 12 branches all over the city, one store being the next door neighbour to the bank branch. Mr.Akbar Ali’s great grand father had started the business 100 years ago and the entire family is into this business. Mr.Akbar Ali has five brothers and all of them are partners in the textile business. Mr.AkbarAli had a Private Banking account with

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another branch of the bank from which he had transferred the money to this branch. Shivik had met him personally and got his account opening form and documents.Make your note -

5) Akbar Ali TrustThe Trust account had been opened with all the necessary KYC documents. Mr.Akbar Ali, a Private Banking customer, is the managing trustee of the Trust and also the authorised signatory. The communication address of the trust and the managing trustee are the same. The opening cheque was issued from the Trust’s account with XYZ Bank for Rs.1 lakh. Subsequently there was a remittance of Rs 25 lakhs from Dubai directly into the account.

Make your note -

Discuss what precuations, inquiries and stand needs to be taken regarding each of the accounts and which of these accounts can be confirmed to corporate office that the transactions are genuine.Your final decision

Time now for some fun filled games!!

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CASH DETECTIVEStoryline: The Counter Strike Initiative (CSI) has alerted Interpol that a consignment of counterfeit currency notes has landed in India to fund terror. Currency note samples have been collected from across the country. You have to use the Advance Tracking System – Super Computer to detect fake currency notes. CSI supercomputer has been closely monitoring occurrences of counterfeit notes across the country. You play a role of an intelligence operative responsible for tracking down the outfit. You would identify and trace recurring instances of a particular security feature error. The goal is to narrow down the search to a specific locality of a city in three levels within a stipulated time. You will receive a series of messages about the movement of the outfit’s mission, and each fake note detected takes you closer to the source of terror.

Functionality:

This game is for cashiers at branches. This game enables learners to test their awareness of the security aspects of currency notes. Security features that need to be checked, while accepting currency notes (Rs.100 and Rs. 500 denominations), are shown to the learner.

RAD Alert

Storyline :

The main nuclear reactor in India’s space city – ‘Robocity’ is damaged. Deadly radiation is pouring out. Your mission is to save Robocity. To repair the radiation leak, you have to build a bridge across the chasm. To build the bridge, you need to review the key fields in the cheque, and decide whether to pay, reject or refer it. Accurate assessment of the key fields gives you an Indimium coated pillar. Inaccurate decisions and taking more than the stipulated time for a cheque costs you a life (robot) and you have only 5 of them! There are two gameover conditions - the pillar strength being lower than the threshold defined (inaccurate assessment) or you losing all 5 robots (incorrect decisions) during the course of the game. To win, you will have to ensure Robocity’s fate, which depends upon your ability to take judicious decisions that will enable the last surviving robot to cross over to repair the leak!

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Functionality : The game is for tellers handling cash payment at retail branches. Cheques are presented to the learner. The learner reviews the key fields in a cheque against Finacle details and anywhere banking. The learner needs to decide on whether to pay, reject or refer the cheque

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PAYMENT AND REMITTANCE SERVICES - STUDENT WORKBOOK

Objective:

To explain the different types of remittance transactions To offer the right solution to customers and ensure compliance and customer

service while executing customer requests

Sub Topics:

Pay orders Demand Drafts - Features, issue, payment, cancellation, issue of duplicate,

revalidation, legal aspects Electronic Funds transfer - Intra branch, inter branch, Interbank, NEFT, RTGS

Training Sequence

Activity Duration (in hours)

E Learning Retail Branch Operations-Remittances 2Classroom activity

Presentation 2Role PlayCaselets 2Check your understanding

Reference Books Banking Principles and Operations by Mr.M.N.Gopinath

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CLASSROOM ACTIVITY

Presentation:

Students to form groups discuss and present on the following lines as per their understanding from the learning

Remittances - Demand drafts Pay orders Instant funds transfers

List down your learning from each of the presentation below

Role Play:

Ask the participants to enact role plays for different types of remittances bringing out the benefits for the bank, customer and beneficiary, while ensuring compliance and customer service.

List down your observations and learning about the role play below

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CASELETS

1. Siddharth has approached the Bank for issue of a pay order for Rs.300000/- favouring Amarkant & Sons. He requests the pay order to be given urgently as he has to meet his client in an hour’s time. The Customer Service Officer processes the transaction and prints the pay order in a hurry, only to find that the printer is not aligned. He sets aside the badly printed pay order and prints a fresh pay order, takes it up for signature of his verifying officer. The Verifying officer signs the pay order and passes the same to the Branch Head for second signature as the amount is large. The Branch Head is in a hurry to go out to meet a client and signs the pay order in a hurry and delivers to Siddharth. Siddharth is so angry about the mess and delay that he expresses his disappointment to the Branch Head. The Branch Head calls the CSO to advise him to service customers’ promptly. The CSO comes back to his counter, but is not able to find the discarded pay order. In the meantime there are more customers waiting for pay orders so he gets on with his transactions.

The processing center calls up the branch the next day - they have received two pay orders for Rs.300000/- favouring Amarkant & Sons in inward clearing, while there is only one pay order for Rs.300000/- shown as issued by the branch. Which pay order should they pay ?

The Branch Head checks the transaction and finds that Siddharth had zero balance in his account and had deposited cash that morning towards the pay order and charges. Siddharth’s account is again in zero balance.

Discuss the caselet –What in your opinion were the gaps in the transaction. What are the precautions required to prevent such frauds.

2. Sajan has a balance of Rs 100000 in his account with ABC Bank, Pune. He has given a request at Pune Branch for transferring Rs 100000 to his father’s account at ABC Bank Mumbai. He wants the transfer to be done immediately, so that his father can withdraw the money at Mumbai.

a. What is the TAT for effecting this transaction?b. How beneficial is this facility to the customer and the Bank?c. What are the risks in this transaction and what precaution should the branch take?

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3. Access Ltd has a current account with ABC, Bank Baroda. They have sales managers working in various cities. They have given a cheque for Rs 12 lakhs for payment of salaries for 20 sales managers who have accounts with different branches of ABC Bank across India. What are the details to be given by Access Ltd for processing the transaction? Can the Bank process this request within a day?

4. Saket is a high net worth customer with a balance of Rs.12 lakhs in his account with Bank A in Mumbai. He needs to transfer Rs.2 lakhs urgently to his colleague who has an account with Bank B in Delhi. How can the Bank help him make the transfer? Discuss.

CHECK YOUR UNDERSTANDING

1. Who is the drawee in a PO issued by ICICI Bank, Chennai branch favouring University of Madras?

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2. What is the benefit to the bank in issuing POs?

a) It is a social serviceb) Bank gets float moneyc) Bank earns income- exchange on PO.d) Both a and be) Both b and c

3. What is the maximum amount up to which POs and DDs can be issued against cash?

500001000002000049999 i.e <50000

4. PO has to be surrendered for cancellation.

a) Trueb) False

5. For cancellation:

a) PO has to be discharged on the reverse over revenue stampb) Applicant of PO has to sign on the reversec) Signature on the reverse should match with signature of customer in credit

account.d) Signature should match with signature in the pay in slipe) All the above

6. DD is issued payable at:

a) The same branchb) At a different branch in the same cityc) At a branch in another cityd) At a correspondent bank branch in another citye) Both c and d

7. Accounting entry for issue of DD is: debit customer and credit

a) Funds payable account FP/b) Drafts payable account DP/c) Inter branch DDs IB/DDd) EX/DD and SL/Taxe) Both c and d

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8. Intra branch transfer means:

a) Transfer between accounts in the same branchb) Transfer between accounts in different branches of the same bank

9. The payee name on the cheque:

a) Should match exactly with customer’s name in finacle credit account.b) Should match with name written on payinslipc) Cannot differ even by one alphabet or initiald) All the above

10.Funds transfer within the bank can be done through infinity when:

a) Both remitter and beneficiary have an account with the bankb) Remitter has an internet banking user id and password c) Beneficiary is registered as a payeed) Both remitter and beneficiary have internet banking accesse) All the abovef) Options a, b and c

11.EFT through Reserve Bank of India offers:

a) Instant credit to beneficiaryb) Same day credit to beneficiaryc) Credit to beneficiary in two daysd) Credit within a week

12.NEFT can be done only through the bank’s Internet banking:

a) Trueb) False

13.Special facility under NEFT:

a) Credit to beneficiary account on the same dayb) No upper limit for individual transactionsc) Three clearing cycles in a day, including Saturdaysd) All the above.

14.EFT is done through:

a) Upload of transfers in RBI EFT package by remitting bankb) Download from RBI site by beneficiary bankc) Transfer of files in encrypted formd) All the above

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15.Payment of DD is done at the drawee branch after:

a) Scrutiny of instrument for signature, date, amount in words and figuresb) Matching the date, amount, and payee name in Finacle for the DD numberc) Checking the security punches/crossings on left and right side of the DDd) Verification of signature of bank official on DD e) All of the above

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COLLECTION SERVICES - STUDENT WORKBOOKObjective

To explain the process of clearing and the precautions to safeguard the interests of the banker and customer

Sub Topics

Clearing of local cheques National Clearing ECS Upcountry Cheque Collection

Training sequence

Activity Duration (in hours)

E-learning Clearing 10Pre - classroom activity

Visit the processing center of a Bank, observe the clearing process, interact with team leaders to understand the important aspects of processing

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Classroom Activity Presentation Charts Match the following Questions for discussion

2

Post classroom Gaming Zone - Checkmate 1

CLASS ACTIVITY

The class will be divided in to 3 groups. Ask the groups to present on the following topics

Group 1 Local Cheque clearing

a. Instruments settled through Clearing House

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b. Service Branch or Processing Centrec. Clearing processd. Learning from the visit

Group 2

National Clearing

Electronic Clearing Services (ECS)

a. Credit ECSb. Debit ECSc. Learning from the visit

Group 3 Upcountry Cheque Collection

a. Immediate credit for collection cheques and compensation for delaysb. Cheque Purchasec. Learning from the visit

Summarise

Clearing process

Inward and outward Impact of technology on transaction processing Precautions to be taken by Bankers and Customers

Questions for facilitation- What are the technological changes that have improved the clearing process? - What is the role of RBI in clearing?- What is the impact of failure of one bank to honour payments under clearing?

CHECK YOUR UNDERSTANDING

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Complete the cheque clearing process

Match the following

A B1 Bank managing the Clearing house

operation a 9 digits - the paying bank and branch are

debited based on this code2 Cheque number b Amount Rs.100000 or above 3 Sort Code c Kite Flying4 High Value clearing d Inward clearing 5 ECS e Settlement bank6 Cheque purchase f Outward clearing 7 If cheque is issued by the customer it will g 6 digits- unique cheque number8 If cheque is deposited of other bank in

your then it ish Where clearing is managed by RBI

GAMING ZONE

Checkmate

Enter the magical land of Moolagadh , get the help of local tribals , take decisions based on their credentials and become the monarch.

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Storyline: You are transported to the magical land of Moolagadh. The last serving monarch had cast a spell making the palace grounds inaccessible. Your mission would be to gain entry into the palace of Moolagadh. The locals aid you in your mission - provided you   identify their credentials (cheque fields) correctly. You have the twin task to review the credentials (key fields in a cheque) and take the decision (pass, reject or refer). An accurate assessment (cheque fields) earns you a ruby. The locals reward you with metal needed to make the key to the palace for a correct decision. A wrong decision costs you a life.

Functionality: 

This game is for staff responsible for cheque clearance. Cheques are presented to the learner. The learner needs to decide whether to pass, reject or refer the cheque. This decision is based on review of certain key fields in the cheque. 

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SERVICE CHANNELS & CENTRALISED OPERATIONS PARTICIPANT WORKBOOK

Objective

a. To explain the benefits of different channels as well as the precautions to protect the customer's and the bank's interest.

b. To appreciate the importance of service delivery through multiple channels

Sub Topics

a. Introductionb. Alternate channels: ATM - Internet Banking - Phone Banking – POS - Branch

Bankingc. Centralised Operations

Training sequence -

Activity Duration (in hours)

E-learning 1. Service Channels & Operations Management 2. Currency Management

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Pre Classroom activity

Students are required Visit ATMS of different Banks. Check websites of Banks from the link in RBI website. Call up call centres of different banks asking for information. Check icicibank.com website for inputs on channels and safe banking

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Classroom activity

Presentation 4DiscussionExerciseCheck your understanding

Post Classroom Gaming Zone - Aero Command 1

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Presentation

Form groups and present your learning from the RBI web site and the visits made to various channels of banking on the lines of

Services offered at various channels and explain To bring out the security and the technological aspects involved in the channels.

Pen down the learning from the presentation

Presentation and discussion

Which is the most preferred channel?

Each group to take up one channel (ATM, Phone banking, Internet Banking, Mobile Banking) and prove that your channel is the best medium for banking. You can draw / prepare charts for a better presentation effect.

Others to pen down their learning and defend their own channel.

.

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EXERCISE

What are the services which are offered through each channel which you observed? List them down

ATM -

- What is the maximum no. of notes that can be dispensed by an ATM at a time ?

- What is the procedure to do a mobile TOP up through an ATM?

- How can we offer our donation to temples like Vaisnav Devi and Tirupati Balaji?

- How can we make payment of our bills through ATM?

Phone banking

- How can we place a request for the DD immediately?

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- What services are offered by the phone banking? List them down.

- Which is the option you need to select to place a request for bank@home service , Cheque book, Fund transfer and, Mobile registration?

- How is Debit card PIN generated through phone banking?

- Do you think the verifications taken at phone banking are valid and what is their purpose?

- What has been your good and bad experience about phone banking?

Internet Banking

- Locate the demo for Internet banking

- How will you locate an ATM/ Branch from the website?

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- How will you register for the Do not call list?

- Through which link will the youngstar account holders log in ?

- Which link will enable you to appreciate the service of ICICI Bank?

- How would NRI's be able to transfer funds do fund transfer from this website?

- Where will you get information about Wealth Management?.

- If you wish to apply for a new product, how can you do that through our website?

- What are the steps to do fund transfer through internet banking? (to self a/c in I-bank, to third party holding a/c in I-bank, to third party holding a/c in some other bank)

Mobile banking

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- What services can you avail through mobile banking? List them.

- Which are the mandatory requirements to avail a mobile banking facility?

- What is the exact procedure to do a fund transfer through mobile banking?

- What are the precautions one needs to take while transacting through mobile banking?

CASELET

Mr. Suresh calls up the call centre by entering the debit card number and the 4 digit pin number. His call is directed to lands up on the line of Ms. Anita. Anita greets the customer but identifies that the account belongs to someone by the name of Ms. Archana Gupta. Mr. Suresh, wants to know what has been the last transaction in her account and from where? Mr. Suresh insists that he wants to know the details as he has dialled her card and pin. Anita informs Mr. Suresh that even though they have received the authentication of Ms. Arachana, she has to speak to her. Mr. Suresh informs that he is her father. The conversation proceeds as below:

Mr. Suresh: Look madam, I am her father and have the full right to know about her account details. If you still feel doubtful, you can ask me any questions on her a/c?

Officer: Sir, I am extremely sorry, but the account information can be shared only with the account holder. May I speak to Ms. Archana?

Mr. Suresh: See madam, let me explain. My daughter has gone missing since the last two days and I need to trace her. I have already filed a police complaint in this regards.

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Hence, now at least can you tell me?

Officer: I am extremely sorry to hear that sir. In, in this case may I suggest you to visit our nearest branch with the FIR copy and to check if the branch can help you further.

Mr. Suresh: You fail to understand madam. I need the information. Do you understand my plight? Please for heaven’s sake, tell me! Tell me where is my daughter? Has she done any cash withdrawal lately? Has she paid any bill or swiped her card any where? Don’t tell me where she has done it but just let me know if she has done a transaction in the last two days. Just say YES or NO softly. I am sure no one, not even your neighbour will be able to hear it. I will also not let anyone know that you have given me this information.

Officer: I am very sorry Sir, but I am helpless and cannot provide you with the information on security grounds. You may kindly, visit our nearest bank branch and they will surely try to help you Sir.

Mr. Suresh: I am not satisfied with your services. I will complain to your manager about this. Definitely!

(Hangs up)

What is your learning from the above case-let?

What the officer did - was right or wrong? And why?

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What would you do if you were in a similar situation?

Tickle your brain

Five seconds, what's a two-word expression for this?

Answer - ?????

CHECK YOUR UNDERSTANDING

1. Match the following

1. ATM a) Helps to increase effectiveness in centralisation

2. POS transaction b )Sorting of cash into issuable & non-issuable 3. Workflow management c) PIN, Password, customer id4. Integrated Currency Management Centres

d) Fund transfer

5. Security e) Signature verification

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2. Drag and drop the correct answer.

1. Retail credit customers are encouraged to use----------- for queries and complaints.

2. Branches are service as well as ______________ channels.

3. Imaging helps in completing the centralised activities with a short ----- .

a) Use of alternate channels _______________ service efficiency and ____________costs

b) Frauds targeting customers using internet are called_______________

3. Multiple Choice Questions

1. Identify the type of notes that needs to be delivered to the branches.e. ATM usablef. Issuableg. Non-issuableh. Soiled

2. Facilitating implementation of clean note policy is the function of -------------. RBI Replenishment agency ICMC Zonal centres

3. Identify the currency note processing centres. Currency chests ICMC RBI Regional processing centre

4. Identify the first bank in India to start 8 to 8 banking. ICICI Bank HDFC Bank Nationalised bank Foreign bank

5. Identify the channel that has a provision for paying tips at restaurant. ATM POS

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Phone banking Mobile banking

6. Identify who recovers an interchange fee from the merchant for facilitating the transaction.

Acquiring bankIssuing bankVisa/MasterCardCustomer

7. Identify the electronic device that reads the information encoded in the magnetic stripe behind the card and transmit it to the acquiring bank.

e. ATMf. Mobileg. Credit cardh. POS terminal

8. Identify the term for making the customers reveal their internet banking id and password by tricking them with unauthorised mails.

a) Hackingb) Packingc) Phishingd) Fishing

9. The internet banking system is protected with ------- to prevent unauthorised access, hacking and virus infection.

a) Virusb) Firewallsc) Encryptiond) Security

10.Now India is one of the fastest growing --------------market in the world.e. Mobile bankingf. ATMg. Internet bankingh. Home banking

11.The ------- system is programmed to identify the callers by their category.e. Call centref. IVRg. Phone bankingh. Mobile banking

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12.With -------- and phone banking combined ,almost all the services provided at a branch can be provided through phone banking.

e. Mobile bankingf. Internet bankingg. Home bankingh. POS

13.All the value added services can be utilised by a customer when using the -----of his bank only.

a) Accountb) ATMc) Credit cardd) Debit card

14.For a value added transaction, the customer authorises transfer of funds from his account to the account of the -----.

f. Dealerg. Agenth. Service Provideri. Bank

15.Identify the number of pieces currency notes that majority of ATMs can dispense at one time.

f. 40g. 45h. 35i. 50

Pen down your learning from this session

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GAMING ZONE

AERO COMMAND - is a game which will tickle your brain and put you in charge of an aerodrome. Make arrangements to accommodate the different airways, keeping the profit of you aerodrome maximum. How will you do this? Check in the game!

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