INTERNSHIPINTERNSHIP REPORTREPORT

ONON

GENERAL BANKINGGENERAL BANKING ACTIVITIESACTIVITIES

OFOF

RUPALI BANK LTDRUPALI BANK LTD (GANDARIA BR.)(GANDARIA BR.)

1

“GENERAL BANKING ACTIVITIES OF “GENERAL BANKING ACTIVITIES OFRUPALI BANK Limited (GANDARIA BR.)”RUPALI BANK Limited (GANDARIA BR.)”

Prepared By:NameNameId: Id:

Prepared For:Prof. ChairmanDepartment of Business AdministrationUniversity

2

Submission Date: 24/02/2015

AcknowledgementAt first , I would like to express my deepest grati tude to Almighty Allah

for giving me the strength to finish the task within the schedule time.

I would like to give my deep gratitude, compliments and thanks from the

core of my heart to internship supervisor Prof. ----------------- whose

constant supervision and guidance enabled me to prepare this report. I am

indebted to him for his excellent support and guidance through out the

study.

I would like to thank Mr. M. Farid Uddin Ahmed, Managing Director of

Rupali Bank Ltd. for giving me the opportunity to work as an intern in

Rupali Bank Ltd. (Corp. Br.). Then Mr. Kazi Md. Neyamat Ullah, General

Manager of Rupali Bank Ltd.

I am also thankful to Mrs. Hosne Ara Begum (General Manager of Head

Office), MR. Md. Shawkat Ali Khan (Manager of Corp. Br.), and Mr.

Moniruzzaman. Chowdhury (SO of Corp. Br). They are never let me think

that I am internee in this branch. They are always treated me as employee

of the bank what make to do my work with more responsibly.

I am ever grateful to some of my friends who have helped me to complete

this report . They were Mizanur Rahman, Md .Monirul Haque (Masud). and

Abul Kashem. Also my younger brother M. A. Nasher Rono helped me to

accomplish my mission.

3

Finally, a silent stream of grati tude is for our most adorned parents whose

blessings are always with us in this windy world.

LETTER OF TRANSMITTALFebruary 24, 2015.

Prof., Internship Supervisor,

Faculty of Business Administration, Victoria University of Bangladesh.

Dhaka-1204.

Subject: Submission of Internship Report on “GENERAL BANKING

ACTIVITIES OF RUPALI BANK LTD. (Gandaria Corp. Br.)”

Dear Sir,

With due respect, I would like to inform you that I have completed my

internship report on “GENERAL BANKING ACTIVITIES OF RUPALI

BANK LTD. (Manikgonj Corp. Br.)”.

I made every endeavor to prepare this report & tried my level best to

gather relevant & insightful information about general banking of Rupali

Bank.Ltd. It is a great experience for me to work with this report . I have

tried to make the report vivid & comprehensive within the scheduled time

& limited sources.

I shall be obliged to clarify any matter or to provide any further

information regarding this report.

Thanking you

Sincerely yours

Name

ID: 000000

Program: BBA

4

University

EXECUTIVE SUMMERY

Banks are the pillars of the financial system. Specially, in Bangladesh,

proper banking system is very important. As a first -generation

commercial bank, Rupali Bank public limited(Corporate Branch)

established a landmark in the banking community in Bangladesh .The bank

expand its activities by offering diversified product & quality service to

their customer. Their product & quality service brought them a continuous

growth in their success during the last Forty years.

I have done my internship in an important branch of Rupali Bank Ltd.,

Corporate Branch (Gandaria Corp. Br). My internship report is based on

the General Banking Activities of Rupali Bank Ltd. . For this reason, I

have worked in the several departments of that branch.

In the introduction part, I have described the origin of the report,

objectives of the study, methodology of the study and constraints of the

study. The main objective of Rupali Bank Ltd. is to maximize profit by

util izing its resources at the optimum level & minimiging cost..

In organization part, I am tried to explain about the historical background

of Rupali Bank Ltd.. The bank doing their operation through its Head

office & Local office at Dhaka and 492 branches all over the Bangladesh.

The bank doing their works all over the world more than 492 branches and

also their one overseas branch. Rupali Bank Ltd. introduced different kind

of service such as Q-CAS service, Locker service, and different kind of

deposit schemes such as Monthly, Yearly savings scheme, Pension savings

scheme, Educational savings scheme, Marriage savings scheme , and many

5

other human welfare services , . .They are also providing different kind of

loan scheme such as: Agriculture Scheme, Commercial Lending, House

Building, Small/ Cottage Industry, Large /Medium Scale Industry.

In learning part , I explain an overview of general banking activities of

Rupali Bank Ltd. (Corp. Branch), which includes Account opening and

closing procedure, Operational procedure of general banking such as:

Current account, Savings account, Short term deposit, Fixed deposits, .

What kinds of documents are required to open different kind of account.

Rupali Bank Ltd. provides three types of remittance such as: Pay Order,

Demand Draft , and Telegraphic Transfer. In the Clearing Department:

There are outward clearing and inward clearing .In the Bills for collection

department there are inward bil ls and outward bills and its procedure and

in Dispatch part: Outward and inward dispatch. I am explaining about the

Problems and Recommendations about the Rupali Bank Ltd. (Corp.

Branch).

At the end of the report , it is found that the branch provides all the

conventional banking services as well as some specialized financing

activit ies to the economy. Thus by providing this various services, Rupali

Bank Ltd. (Corporate Branch), is playing an important role in the banking

system of Bangladesh.

6

CONTENTS

Part PageAcknowledgement 3

LETTER OF TRANSMITTAL 4Executive Summary 5&6

INTRODUCTION PART 10

1.0 Introduction 11

1.1 Origin of the report 11

1.2 Rationale of the study 11

1.3 Objectives of the report 11

1.5 Methodology of the study 12

1.6 Constraints of the study 12

ORGANIZATION PART 13

2.0 Origin of Rupali Bank 14

2.1 Location of the bank 14

2.2 Foreign corresponding Banks. 15

2.3 Diary of events & brief profile of Rupali Bank 16

2.4 Hierarchy of the Rupali Bank 17

2.5 Vision 18

2.6 Mission 19

2.7 Core values 20

2.8 Strategic Objectives of Rupali Bank Ltd. 21

2.9 Ethical Principles of Rupali Bank Ltd. 22 & 23

7

2.10 Core strengths 24

2.11 Services & Products 24

2.11.1 Services

24

2.11.2 Products 25

2.12. Loan schemes

25 &26

LARNING PART 27

3.0 Operational producers of General Banking 29

3.1 Account opening department 29

3.1.1 Who can open A/c 29

3.1.2 Account transfer 30

3.2 Deposit Section 30

3.2.1 Types of deposit account 30

3.2.1.1 Current account 31

3.2.1.2 Savings account 32

3.2.1.3 Short term deposit account 33

3.2.1.4 Fixed deposit account 34

3.3 Kinds of depositors accounts 34-35

3.4 Formalities for opening different types of A/C 36

3.4.1 Documents for savings accounts 36

3.4.2 Documents for current accounts 36-38

3.4.3 Documents for short term deposit A/C 39

3.4.4 Documents for fixed deposit 39

3.5 Issue cheque book& payment of cheque 39

3.5.1 Issue cheque of book 39

3.5.2 How cheque book is processed 40

8

3.6 Closing of account 41

Local Remittance Department 424.0 Pay Order 43

4.1. Issuance of pay order 43

4.2. Payment of pay order 44

4.3. Issuance of duplicate pay order 44

4.4. Cancellation of pay order 45

5.0 Telegraphic Transfer 45

5.1 Steps of issuance of T.T 46

5.2 Cancellation of T.T 46

6.0 Demand Draft 46

6.1 Issuance of DD 47

6.2 Payment of DD 48

6.3 Cancellation of DD 48

Clearing Department 49

7.0 Clearing Department 50

7.1 Types of clearing 50

8.0 Bills Collection 52

8.1 Types of bil ls for collection 52

8.1.1 Outward bills collection 52

8.1.2 Inwards bills for collection 53

Dispatch Department 54

9.0 Dispatch 55

9.1 Inward Dispatch 55

9.2 Outward Dispatch 56

9.3 What kind of things will be dispatched 56

Findings and Recommendation 57

10.1 Problems identification 58

9

10.2 Recommendations 59

11.0 Conclusion 60

12.0 References 61

Introduction Part

10

AN INTRODUCTION

The internship program of BBA is a partial requirement to take a taste of

real life challenge conducted by the intern. It is an important part of the

BBA program. This program is for 3 months duration. The period for this

program was from January 01, 2015 to March 31, 2015. During this period

I have worked closely with the employees of Rupali Bank in Corporate

Branch. This report presents the outcomes of the study during the

internship – Rupali Bank Ltd. I was assigned a topic- General Banking

Activities of Rupali Bank Ltd.

1.1 ORIGIN OF THE REPORT

To full fill the BBA degree requirement under the-------University Of

Bangladesh, this report is done. This is an individual assignment, which is

to be prepared on the basis of the practical working experiences and

working at least three month under an organization as a internship.

1.2 RATIONALE OF THE STUDY

Theoretical knowledge is not enough for a student. It is a far difference

between theoretical knowledge and practical field. Main purpose that may

11

be to know about the rules, regulations, and environment of an

organization before getting a job.

1.3 OBJECTIVES OF THE REPORT

Every repot has its objectives. The main focus of the report is to know

about the Rupali Bank Ltd. and get an overall idea about this bank. The

objective of the report is “General Banking Activities of Rupali Bank

Ltd.”.

1.4 METHODOLOGY OF THE STUDY

During the t ime of internship period, I spent my time in the different

department of the bank as a rule of internship. I worked with the different

department officer’s desk and acquired knowledge. To prepare this report

I have collected data or information from different sources of the bank.

The sources of data / information can be divided into two parts:

1.4.1 Primary sources

Primary sources of data means are those data what we get from the

practical work & through interview of the customer of the Bank:

Discussion with the banking officer in-charge of Rupali Bank Ltd.

Direct conversation with the customer.

Discussion with the expert person.

1.4.2 Secondary sources

The secondary sources of data are given below:

Annual Report of the Rupali Bank Ltd.

Different web site that are related to this bank

12

1.5 Constraints of the study

In the study field I face some problems or constraints of the study. They

are as follows:

All kinds of documents or paper related with my study are not

sufficient.

The Bankers do not provide all the information which are very

confidential.

Most of the time up to date information is provided by the banker.

ORGANIZATION PART

13

2.0 ORIGIN OF RUPALI BANK LTD.

Rupali means people. This is a progressive bank. It has been operating since

it 's inception in 1972 both in Bangladesh and overseas. Rupali Bank ltd. has

been playing a significant role in the economic development of the country

by mobilizing savings and challenging funds into different productive

sectors. It is also a major player in the fields of micro-credit and software

development.

Rupali Bank ltd. is a nationalized commercial bank established under the

Bangladesh Banks (Nationalization) order 1972. The bank was created by

taking over the branches of Three abandoned Pakistani banks the Muslim

Commercial Bank Ltd. Australasia Bank Ltd. and Standard Bank Ltd.; the

bank started its operations with an initial authorized capital of TK. 50

14

million and paid up capital of TK 50 million and later amount of paid up

capital was raised to TK.10.5 million. The authorized capital was raised to

TK 30 million in 1973. Since then the authorized and paid up capital

remained unchanged till December 1983. Later, both were increased from

time to time and their amount stood at TK. 8 billion and TK. 2.594 billion

respectively on 30 September 2010. The reserve funds of the bank on that

date were TK. 367 million.

2.1 LOCATION

NAME OF THE BRANCHES AT DHAKA ZONE:

1. Dhaka Divisional Office34, Motijheel Commercial Area, Dhaka-1000Phone : 9552214, 9551840, 9552746Fax : 880-2-956414

2.2 FOREGIN CORRESPONDANCE:

Rupali bank has already established a worldwide network and relationship with international banking through its four (4) overseas Barnacles in U.A.E, subsidiaries .

OVERSEAS BRANCHES:

Name of overseas branches is given below :

ABU DHABI : SHARJAH :

Rupali bank Rupali Bank

Abu dhabi bank Sharjah Branch

Obied Sayah Al-Mansuri Building Al Qassim Building

Abu dhabi, UAE Sharjah, UAE

DUBAI : Al-AIN :

Rupali bank Rupali Bank

15

Dubai Branch Al-Ain Branch

Baniyas complex Al-Nahyan Building

Deira Dubai, UAE . Al-Ain, UAE

2.3 DIARY OF EVENTS &BRIEF PROFILE OF RUPALI BANK:

GENERAL INFORMATION

Certif icate of incorporation March, 12,1972

Certificate of comment of business March, 12,1972

Bangladesh bank licence March, 23,1972

First branch opened May, 25,1972

Number of branch 492(present)

Number of employees More than 5000

Global Corresponding More than 183

Listing of share DSE &CSE

FINANCIAL STABILITY

INFORMATIONAuthorized capital In Dec. 30, 2010 700.00 Crore

Paid- up capital In Dec. 30, 2010 125.00 Crore

Paid- up capital& reserve In Dec. 30, 2010 570.78 Crore

Deposit In Dec. 30, 2010 9112.63 Crore

Loan and advance In Dec. 30, 2010 6605.49 Crore

16

Investment In Dec. 30, 2010 1476.25 Crore

Operating profit In Dec. 30, 2010 250.00 Crore

CHAIRMAN OF THE BANK

Mr. Dr. Ahmed Al-Kabir Chairman, Rupali Bank Ltd.

MANAGING DIRECTOR (MD) OF THE BANKMr. Md. Farid Uddin Ahmed Managing Director, Rupali Bank Ltd.

DEPUTY MANAGING

DIRECTOR OF THE BANKMr. Jaglul Karim DMD, Rupali Bank Ltd.

Mr. Shaik Ahmed DMD, Rupali Bank Ltd.

2.4 HIERARCHY OF RUPALI BANK LIMITED

17

18

Managing Director (MD)

Deputy General Manager (DGM)

General Manager (GM)

Deputy Managing Director (DMD)

Senior Principal Officer (SPO)

Assistant General Manager (AGM)

Principal Officer (PO)

Senior Officer (SO)

Officer

Junior Officer

Assistant Officer

Office Assistant (CT)

Office Assistant (Gamader)

Office Assistant (Peon)

Office Assistant (Arms Guard)

2.5 Vision of Rupali Bank Ltd.:

Vision of Rupali Bank Ltd. to expand loyal customer base

by being known as the financial partner of choice that

constantly exceeds customer expectations.

2.6 Mission of Rupali Bank Ltd.:

19

Develop long-term relationships that help our

customers achieve financial success.

Offer rewarding career opportunities and cultivate

staff commitments.

Uphold ethical values and meet its customer’s

financial needs in the fastest and most appropriate

way and continue innovative works in order to

achieve human resource with superior qualities,

technological infrastructure and service packages.

2.7 Core values of Rupali Bank Ltd: Social Responsibility-we care for and

contribute to our communities

20

Performance-we measure results and reward

achievements

Integrity-we uphold trustworthiness and

business ethics

Respect-we cherish every individual

Innovation-we encourage creativity

Teamwork-we work together to succeed

The first letters of the initial words form

“SPIRIT” and carry equal importance

2.8 Strategic Objectives of Rupali Bank Ltd

Develop a customer oriented service culture with special emphasis on customer care and convenience.

21

Increase our market share by following a disciplined growth strategy.

Achieve a significant share of deposit and credits from the existing and niche markets.

Leverage our technology platform and pen scalable systems to achieve cost-effective operations, efficient MIS, improved delivery capability and high service standards.

Develop innovative products and services that attract our targeted customers and market segments.

Maintain a high quality assets portfolio to achieve strong and sustainable returns and to continuously build shareholders’ value.

Explore new avenues for growth and profitability, particularly by diversifying loan portfolio through structured finance and expansion of retail and SME financing.

Strengthen the bank’s brand recognition.

2.9 Ethical Principles of Rupali Bank Ltd. :

Customer Focus and Fairness: At RBL, our prime focus is to achieve perfection in our customer service.

22

Customers are our first priority and driving force. We wish to gain customer confidence and be their trusted partner. We believe in fair treatment to all customers, depositors, borrowers and clients without any discrimination.

Quality; Quality service experience is a paramount to our customers and we are strongly committed to fulfilling this ideal. We have a culture of timely compliance of regulatory requirements. Honesty and Integrity: We ensure the highest level of integrity to our customers, creating an ongoing relationship of trust and confidence. We treat our customers with honesty, fairness and respect.

Belief in our People: We recognize that employees are our most valuable asset and our competitive strength. We respect the worth and dignity of individual employees who devote their careers for the progress of the bank. We trust in equal treatment to all shareholders irrespective of their individual size of shareholdings.

Teamwork : We are a firm believer in team work and feel that loyal and motivated teams can produce extraordinary results. We are driven by a performance culture where recognition and rewards are based on individual merit and demonstrated track record.

Good Corporate Governance: Effective corporate governance procedures are essential to achieve and maintain public trust and confidence in any company, more so in a banking company. At RBL, we are committed to following best practices resulting in good corporate governance.

23

Corporate Social Responsibility: As a responsible corporate , we consider it important to act in a responsible manner towards the environment and society. Our commitment has always been to behave ethically and contribute towards the improvement of quality of life of our people, the community and greatly the society, of which we are an integral part.

2.10 Core strengths:

Quick decision making

Efficient team performance

Satisfied customer

24

Internal control

2.11 SERVICES AND PRODUCTS

Services and products are given below:

2.11.1 Services:

ATM SERVICES

LOCKER SERVICES

Locker servicesYearly charge

Security deposit Name of Branch

Small Tk.1000 Tk.3000 Corporate branch

Medium Tk.1500 Tk.2500 Corporate branch

Large Tk.2000 Tk.2000 Corporate branch

Security deposits are refundable when lockers surrender to the bank.

2.11 .2 Products:

Deposit schemesRevised interest rate on deposit

Current (CD) 0.00%

Savings (SB) 4.50%

25

Short Term Deposit (STD) 3.50%

Fixed deposit

3 (three) month FDR 7.50%

6 (six) month FDR 7.75%

1year FDR 8.00%

2 year FDR 8.50%

But the rate of interest may be change at the condition of bank and

economy.

2.10 Loan schemes:

Rupali Bank Ltd. is a Govt. oriented bank. So they are always be with the people. They

provide loan to every sector. But at the moment following major loan schemes are

provided by the Bank.

LOAN SCHEME LENDING CATAGORIES

LENDING

RATES

Agriculture Scheme Loan to primary producers 10.00%

Loan to agriculture input traders

and fertilizer dealers/distributors

10.00%

Commercial Lending Jute Trading 10.00%

Other commercial Lending 13.00%

Working Capital Jute 12.00%

Other than jute 13.00%

House Building Real State Developers 12.00%

Individual/Housing Finance co. 12.00%

26

Other Loans For NBFIs/NGOs (non banking

financial institution)

10.00%

Consumer Credit scheme 13.00%

Others 13.00%

Small/ Cottage Industry Term Loan 11.50%

Large /Medium Scale

Industry

Term Loan 12.00%

Loan against Export Jute Goods Exports 11.00% fixed

27

LEARNING PARTBased on General Banking (GB)

28

OPERATIONAL PROCEDURE

OFGENERAL

BANKINGS

29

3.0 GENERAL BANKING

General banking department is the heart of all banking activit ies. This is the busiest and important department of a branch, because funds are mobilized, cash transactions are made; clearing, remittance and accounting activities are done here.

Since bank is confined to provide the services everyday, general banking is also known as ‘retail banking’. In Rupali Bank ltd. , Corporate Branch, the following departments are under general banking section:

Account opening section Deposit Section Cash Section Remittance section Clearing section Dispatch

3.1 Account opening department

3.1.1 Who Can Open A/C?

Persons over 18 years (except some restricted persons)

Account of Club

Association

Agent

Govt. & Semi Govt. Organization

Liquidators

Married Women

Pordanshil Women

Illiterate Persons

30

3.1.2 Account Transfer

Customer has to submit an application mentioning that he/she wants to

transfer his/her A/C to their desired branch and the officer will verify

the signature. Customer has to be certified by different department of

bank that he/she has no liabilities to the bank. Then total particulars of

A/C holder will be prepared and sent to the customer's desired branch.

3.2 Deposit Section

3.2.1 DIFFERENT TYPES OF DEPOSIT ACCOUNT A deposit account is an account at a banking insti tution that allows money

to be held on behalf of the account holder. Some banks charge a fee for

this service, while others may pay the client interest on the funds

deposited.

The account holder retains rights to their deposit, al though restrictions

placed on access depend upon the terms and conditions of the account and

the provider.

The Rupali Bank ltd. offers the following types of accounts to its various

customers:

a. Current account.

Individual current account

Proprietorship current account

LTD. Company current account

Club, Society current account

b. Savings account

c. Short term deposit

d. Fixed deposits

e. Rupali Pension Schem

31

3.2.1.1 CURRENT ACCOUNT:

Current account is purely a demand deposit account. There is no

restriction on withdrawing money from the account. It is basically

justified when funds are to be collected and money is to be paid at

frequent interval. Some important points have been discussed in the

project part .

Rules:

The primary rules for opening current account are given below:

Current account can be opened for individuals and individuals and

business concerns including non-profit organizations.

A Current Account shall be opened with a minimum balance of

tk.10000.00 at Rupali Bank ltd.: Corporate Branch.

A Current A/C shall be opened with an initial cash deposit .

Cheque book shall be issued to the account holder having a

minimum balance of tk.5000.00.

A current account holder can draw cheque on their accounts for any

amount and any number of t imes in a day subject to the availabili ty

of balance.

No interest should be allowed on current accounts.

The bank reserve the right to refuse or close any account without

assigning any reason thereof.

”Notice, “Stopping payment of any cheque shall be made by the

account in writ ing, which shall be recorded.

3.2.1.2 SAVINGS ACCOUNT:

This deposit is primarily for small-scale savers. Hence, there is a

restriction on withdrawals in a month. Heavy withdrawals are permitted

32

only against prior notice. Some Important Points have been discussed in

project part .

Rules:

The primary rules for opening saving account are given below:

Savings bank account shall be open in the name of adult individual

or jointly in the names of two or more person payable either or both

all of them or clubs, associations, and similar types of institutions.

Saving A/C shall be opened with an init ial minimum cash deposit

Tk. 10000 and depositors always have to maintain t ill account

closed.

No person should be allowed to open more than one account in

his /her name. .

Cheque book shall be issued to the A/C holder having a minimum

balance Tk.5000 in the account.

A savings A/C holder shall deposits money as often as he wishes.

Rate of interest shall be altered from time to time.

Interest shall be allowed only on accounts bearing a minimum

balance

tk 5000.00-per calendar month.

The reserve the right to stop issuance of new cheque book to any

customer.

Saving account shall not be allowed to be conducted as current

account.

A saving account shall not allow being overdrawn.

” Notice, “Stopping payment of any cheque shall be made by the

account holder in writing, which shall be recorded.

33

3.2.1.3 SHORT TERM/SHORT NOTICE DEPOSIT A/C (STD/SND)

Normally various big companies, organizations, Government Departments

keep money in STD/SND account. Frequent withdrawal is discouraged and

requires prior notice. The deposit should be kept for at least seven days

to get interest. The interest offered for STD/SND is less than that of

savings deposit . Interest is calculated based on daily minimum product

and paid two times in a year .

Rules:

The primary rules for opening short term account (STD/SND) are given

below:

Short-term/Short Notice deposit a/c (STD/SND) special notice

deposit accounts are opened usually by corporations, banks,

financials institutions, public l imited companies etc.

The rate of interest on such deposit is subject to change to be fixed

by Head office from time to time.

Interest shall be paid in the client’s account on daily product basis

to be calculated at the end of each calendar year.

Statements of account shall be dispatched to all account holders by

the bank on a monthly/ quarterly /half yearly as per desire of the

customers to be specified in the A/C opening form while opening an

A/C.

3.2.1.4 FIXED DEPOSITS A/C:

Fixed deposits account is a kind of a/c where any one can open FDR. This

accounts is basically periodical a/c. Maturity period of this account is

3months, 6 months, 1 year and above, and two year and above.

34

Rules

Fixed deposits are neither transferable nor negotiable.

Fixed deposits shall be opened singly or jointly.

Fixed deposits shall be opened in the name of a minor jointly with

the guardian.

Fixed deposits shall be opened for a period of one month and above.

Interest on fixed deposits shall be payable at the rates fixed by

Head Office from time to t ime, depending on the period of maturity.

Interest on accrued on FDR shall be paid on maturity of instrument.

The FDR shall be paid before the expiry of the maturity period at

request of the party. For payment of interest of premature FDR that

case Head Office circular issued from time to time is to be

followed.

If an FDR is issued to one individual, additional name shall be

included in the FDR ay his request.

3.3 KINDS OF DEPOSITORS ACCOUNTS:

Branches shall open accounts for the following categories of depositors:

Individuals: Any adult competent to enter into contracts

can open an individual account. Individual accounts can be

opened for adults (i.e. over 18 yeas of age) who are

competent to enter into contracts.

Joint Account: More than one adult jointly or adult with

minor(s) shall constitute joint accounts.

Sole proprietorship Concerns: A business or trading

concern owed by a single adult person is a sole

proprietorship concern.

35

Partnership firms: A business concern owned and managed

by more than one person whether registered or not is a

partnership firm.

Private Limited Company: A corporate body formed and

registered under Companies Act, 1913 with limited

liabili ty having a Certificate of Incorporation give y

Registrar of Joint Stock Companies.

Public Limited Company: A corporate body formed and

registered under Companies Act, 1d913 with limited

liabili ty of the shareholders and with no upper ceiling on

the number of shareholders. It shall have the following

valid documents:

Clubs/Associations/Societies: These organizations shall be

created and registered under Societies Registration Act.

They may not be registered organizations. Some of them

shall be registered under Companies Act.

Co-operatives: These are corporate bodies registered under

Societies Act.

Non-Government Organizations: Non-Government

Organizations (NGOs) are voluntary organizations created

& registered under Societies, Registration Act or Co-

operative Societies Act.

Non-trading Concerns: These are organizations registered

under Societies Registration Act or Companies Act or Co-

operative Societies Act.

3.4 Formalities for Opening Different Types of A/C

The following documents duly completed shall be obtained from the

customer at the time of opening of:

36

3.4.1DOCUMENTS REQUIRED FOR SAVINGS ACCOUNTS:

Documents that are require for opening saving account given below:

Two copy Passport Size Photo.

Account Opening From

Mandate or authority shall be obtained in case the

customer wants to authorize another person to

operate the account.

Copy of Passport/Nationality Certificate/Voter ID

of the persons operating the account.

KYC (Know your Customer) Form.

3.4.2 DOCUMENTS REQUIRED FOR CURRENT ACCOUNT:

There have different categories of current account. That are in following

and documents that are require for that categories are given below:

Current Individual/joint A/c

Current Partnership A/c

Current Proprietorship A/c

Limited company A/c

Societies, Clubs, Associations A/c

Current Individual / Joint Account

1. Introducer of the account.

2. Two photographs of the signatories duly attested by the introducer.

3. Identity (copy of passport).

4. Joint Declaration Form (For joint a/c only).

5. Employee’s Certificate (in case of service holder).

6. KYC (Know your Customer) Form.

37

Current Partnership account

1. Introduction of the account.

2. Two photographs of the signatories duly attested by the introducer.

3. Partnership letter duly signed by all partners (Sign should be

similar as stated in Partnership Deed).

4. Partnership Deed duly certified by Notary public.

5. Registration (If any).

6. Updated Trade license.

7. KYC (Know your Customer) Form.

Current Proprietorship account

1. Introduction of the account.

2. Two photographs of the signatories duly attested by the

introducer.

3. Valid copy of Trade License.

4. Rubber stamp.

5. TIN number certificate.

6. Identity (Copy of passport).

7. Permission letter from DC/ Magistrate (in case of newspaper)

8. KYC (Know your Customer) Form.

Limited company

1. Introducer of the account.

2. Two photographs of the signatories duly attested by the Introducer.

3. Valid copy of Trade License.

4. Board resolution of opening A/C duly certified by the

Chairman/Managing Director.

5. Certificate of Incorporation.

6. Certificate of Commencement (In case of Public limited company).

7. Memorandum article of association.

38

8. List of directors along with designation & specimen signature.

9. Latest certified copy of Form – xii (to be certified by register of

joint stock companies) (In case of Directorship change).

10. Rubber Stamp (Seal with designation of each person)

11. Certificate of registration (In case of Insurance Company –

Obtained from department of Insurance from the Peoples Republic

of BD)

12. KYC (Know your Customer) Form.

Club / societies account

1. Introduction of the account.

2. Two photographs of the Signatories duly attested by the introducer.

3. Board Resolution for Opening A/C duly certified by President/

Secretary.

4. List of Existing Managing Committee.

5. Registration (if any).

6. Rubber Stamp.

7. Permission letter from Bureau of N.G.O. (In case of N.G.O. A/C).

8. KYC (Know your Customer) Form.

In case of foreign person:

1. The person who want to open a/c he/she must have the

permission latter from the Govt.

2. Permission from Board of Investment.

3.4.3 DOCUMENTS REQUIRED FOR SHORT TERM DEPOSIT ACCOUNT:Short Term Deposit Account (STD) shall be opened in the Account

Opening Forms used for Current Deposit Account and the documents

required for current A/c should be equally applicable for STD. In case of a

39

STD A/c on the top of current deposit A/c opening form the word-"Short

Term Deposit Account” shall be written in block letters and the notice

period shall be noted on the serial Instructions column.

3.4.4 DOCUMENTS REQUIRED FOR FIXED DEPOSIT ACCOUNT (FDR):For open fixed deposit account (FDR) no other papers are require. Any

one can open this a/c by depositing cash or cheque. After the end of

maturity depositor get interest based on contract. Here have tow option

at the end of maturity. That’s are depositors may withdraw the FDR

amount or he/she can renew his FDR account.

3.5 ISSUE CHEQUE BOOK AND PAYMENT OF CHEQUE

3.5.1 ISSUE OF CHEQUE BOOK:

Cheque books required for current use shall be taken out from the

main stock after necessary entry in the register.

Separate folios of register shall be allocated for current account

cheque books of 20 and 50 leaves and savings bank account cheque

book of 10leaves.

The cheque books taken out from the main stock for daily

consumption shall be kept in a security box under lock and the

dealing officer shall be responsible for safe custody.

At the t ime of opening account, the customer shall require to sign a

cheque book requisition slip. If the account openings form if found

complete in all respect, then the cheque book is issue to the

customer.

All subsequent cheque book shall be issued to the account holder

against the cheque book requisition slip extracted from a previous

cheque book issued to him /her.

40

Upon receipt of the requisition slip duly fi lled and signed, the

dealing officer shall get the signature of the A/C holder verified by

the deposit in change/ Authorized officer.

In case if the requisition slip is lost, then the in charge officer will

saw all kind of previous report of the customer and depend that the

cheque book is issued.

3.5.2 How cheque book is processed?

The leaves of the chequebook under issue shall be counted to ensure

that all leaves and the requisition slip are intact.

The name and the account number shall be written on the cheque

book cover and its requisit ion slip.

The account number shall be entered on all leaves on the cheque

book with initial of the cheque book officer.

The name and the account number of the customer shall be entered

in the cheque book issue requisition against the particular cheque

book series.

Cheque book shall be delivered to the customer at him counter

against their acknowledgement on the requisition.

After issuing cheque book the requisition slip shall sent to the

system for recording the cheque series.

41

3.6 CLOSING OF ACCOUNTS

The formal ways of closing of accounts are following:

A customer may close his/her account at any time by submitting an

application to the branch manager.

Unused cheque page have to submit with Application.

Verification of signature of applicant that he or she signed for

opening and closing A/C form.

Access duty fee will applied if deposit is above Tk.10, 000.

Verification of loan that the A/C holder has on the bank if have then

the A/C cannot be close.

The interest rate will provide if the A/C exist to June. If he or she

closes A/C before June or December then A/C holder won’t get any

kind of interest if A/C holder has huge number of money in that

case he can claim for interest .

Closing charges are taken for the A/C closing. Whatever the amount

that depositor has i t make no effect at the closing charge.

The amount that depositor has after closing the A/C. The amount

will pay to the depositor by using pay slip.

At last, depositor will receive the pay slip and submit the pay slip

to the cash counter of that Bank. Finally the depositor will receive

his or her rest of amount.

For Ltd. Company the A/C holder is behalf of the company, cannot

close the A/C. He or she has to submit the decision of Board of

director (BOD) that A/C should be closed.

42

REMITTANCE DEPARTMENT

43

4.0 ISSUANCE AND PAYMENT OF PAYORDER

Definit ion of pay order:A pay order is a written order, issued by a branch of bank, to pay a

certain sum of money to a specific person or a bank. It is also termed as a

banker’s cheque as the bank drawn upon and payable issues i t by itself. A

pay order is issued and paid by the same branch of the bank and such as;

the drawer and drawee are same. The person or the organization in whose

favor it is issued is known as payee or beneficiary. It is some times sold

to an individual on payment of issued who may not be a customer and is

called the purchaser. Pay order part:

The actual pay order.

The second counterfoil to be retained by the payee.

Another counterfoil to be retained by the issuing branch as record.

4.1 ISSUANCE OF PAY ORDER:

The purchaser shall signs the standard application from giving detail

particulars and request to issue of pay order. The payee or beneficiary

shall not to be ficti tious. His full name and address shall be written on the

application.

Steps of issuances of pay order:

Purchaser applies through bank’s prescribe payment order

application.

Purchasers deposit the money through the application from.

Bank official fill up the columns of the instrument with help the

application from.

Make necessary entry in the payment order register.

After joint order signatures in the instrument the payment order is

handed over to the purchaser and the purchaser put the signature on

44

the counter part of the instrument as acknowledgement of receipt of

the instrument.

4.2 PAYMENT OF PAY ORDER:

It shall be paid to payee or beneficiary after proper identification or

it may be credited to as account.

A pay order is transferable. As it is banker cheque payable to order

the payee/ beneficiary may transfer i t, by giving proper discharge

on its back, to some one else who receive as the transferee.

It is not generally collected for a person other that original payee

except in case the where the depositor is a valued client known to

the bank.

Before making payment the signature of issuing officers shall be

verified and the date pf payment shall be marked in the register.

4.3 ISSUANCE OF DUPLICATE PAY ORDER:

For issuance of duplicate pay order thus, may be made after observing the

following steps we have to follow:

Written request from the purchaser, in case of loss from custody of

the purchaser along with the copy of GD entry.

Written request from the purchaser.

Head office approval of issuance of duplicate pay order.

45

4.4 CANCELLATION OF PAY ORDER: If the purchaser request for cancellation of pay order after i ts issue

and before it is passed to payee. The same can be done after

obtaining a writ ten request from him and verifying his signature on

the letter of request.

But if the purchaser request for cancellation and refund the amount

after laps of some time, the consent of the payee for cancellation of

pay order shall be required to b produce red by the purchaser.

If the purchaser is a valued customer of pay order may cancelled as

very special case, in the absence of written consent from the payee

after obtaining sufficient indemnity from the purchaser.

5.0 ISSUANCE AND PAYMENT OF TELEGRAPHFIC TRANFERTelegraphic Transfer (T.T) may be affected at the writ ten request of any

person and against value received from him. A written application on our

prescribed from duly signed by the purchaser shall be obtained .If the

application for issue of (T.T) contains instruction to debit the account of

purchaser his signature shall be verified.

The application from shall be invariably checked on the following points:

That we have a branch in the place on which telegraphic transfer

will be issued.

The amount of T.T commission and telex/fax charge shall be

received from the purchaser.

A cost memo has to be correctly prepared by the officer concerned

as to the account, name of beneficiary, instruction regarding mode

of payment and the place of payment.

The concerned officer shall correctly prepare the test.

T.T over telephone may be transmitted on account of valued clients

of the bank. Branches with teleprinter/fax facili ties shall transmit

T.T massage through telex/fax.

46

5.1 STEPS OF ISSUANCE OF T.T:

A customer applies through banks prescribed application from.

Amount of T.T +commission+ Telegram charge is recovered in

cash /transfer voucher.

Separate folio in T.T register is maintained branch wise.

A cost memo is given to the client.

Massage transmitted –to drawee branch over Telex/ Telephone/ Fax

and Internet etc

5.2 CANCELLATION OF T.T:

Whenever a T.T massage has been duly transmitted, payment

thereof cannot be stopped, no

Matter whether the amount has been paid to the beneficiary or not.

However, the applicant of a T.T may asked for stopping the T.T

and for refund the amount

Only if the massage has not been transmitted.

In such case, care must be taken to see that entries made in books

/register as well as the

Vouchers are cancelled immediately.

6.0 ISSUANCE AND PAYMENT OF DEMAND DRAFT

Definit ion of demand draft (DD)

Demand Draft is an instrument containing an order of the issuing branch

upon known as drawee branch, for payment of a certain some of money to

the payee.

47

The following are the essential feature of demand draft issued by the

bank.

It is drawn by one branch of the bank upon some other branch of the

bank.

It is payable on demand.

Its payment is to be made to the person whose name is mentioned .

6.1 ISSUANCE OF DEMAND DRAFT

The customer has to complete the form, which is treated as an

application from. The application from shall be checked the

following points:

The place of payment shall be such where the bank has a

branch.

Full name of the payee.

The amount in words and figures is the same.

The purchaser signs the application.

If the purchaser is not an account holder he his address on the

application.

The voucher is given to the customer to deposit the cash.

The cashier receives the cash and delivers the voucher to the

remittance department.

Draft shall be prepared and entered in DD issue register.

6.2 PAYMENT OF DEMAND DRAFTS

48

The branch shall exercise proper care while paying drafts:

When the demand draft is present for payment, the particulars of the

draft are cheeked with the advice and signatures therein verified.

Payment of the DD has not stopped is to be ensured.

In case the advice is not received when the demand is presented, the

bank will st ill pay the draft after satisfying itself that the

instrument is in order.

On payment draft in the absence of the relative advice the drawee

branch shall inform the issuing branch and obtained confirmation

about the payment.

The drawee branch shall ensure that the payment of the instrument

is made in due course.

6.3 CANCELIATION OF DEMAND DRAFT

To cancel the DD the bank has to do following things:

Receiving the written application along with the original draft by

the issuing branch from the purchaser.

Confirmation to be obtained from the drawee branch regarding non-

payment of the DD.

Taking two signatures with revenue stamp on the reserve side of the

DD.

After completing the entire things bank can cancel the DD.

49

CLEARINGDEPARTMENT

50

7.0 Clearing Department:

The amount of Cheques, Pay Order (P.O), and Demand Draft (D.D)

Collection from other banks on behalf of its customer is a basic function

of a Clearing Department.

Clearing: Clearing is a system by which a bank can collect

customers fund from one bank to another through clearing house.

Clearing House: Clearing House is a place where the

representatives of different banks get together to receive and deliver

Cheques with another banks.

Normally, Bangladesh Bank performs the Clearing House in Dhaka,

Chittagong, Rajshahi, Khulna & Bogra. Where there is no branch of

Bangladesh Bank, Sonali bank arranges this function.

Member of Clearing House: NCC BANK limited is a scheduled

Bank. According to the Article 37(2) of Bangladesh Bank Order,

1972, the banks which are the member of the clearinghouse are

called as Scheduled Banks. The scheduled banks clear the cheque

drawn upon one another through the clearinghouse.

7.1 Types of Clearing

A) Outward Clearing: When the Branches of a Bank receive cheques

from its customers drawn on the other Banks within the local

clearing zone for collection through Clearing House, i t is Outward

Clearing.

B) Inward Clearing: When the Banks receive cheque drawn on them

from other Banks in the Clearing House, i t is Inward Clearing.

51

Bills for Collection

52

8.0 Bills Collection

In modern banking the mechanism has become complex as far as smooth

transaction and safety is concerned. Customer does pay and receive bill

from their counterpart as a result of transaction. Commercial bank’s duty

is to collect bil ls on behalf of their customer.

8.1Types of Bills for Collection

Outward Bills for Collection (OBC).

Inward Bills for Collection (IBC).

8.1.1 Outward bills collection (OBC)

OBC means Outward Bills for Collection .OBC exists with different

branches of different banks outside the local clearinghouse. Normally two

types of OBC:

OBC with different branches of other banks

OBC with different branches of the same bank

Procedure of OBC:

Entry in the OBC register.

Put OBC number in the cheque.

“Crossing seal” on the left corner of the cheque & “payees

account” will be credited on realization “seal” on the back of the

cheque with signature of the concerned officer.

53

Despatch the OBC cheque with forwarding.

Reserve the photocopy of the cheque, carbon copy of the

forwarding and deposit slip of the cheque in the OBC file.

8.1.2 Inward bills for collection (IBC)

When the banks collect bills as an agent of the collecting branch, the

system is known as IBC. In this case the bank will work as an agent of the

collection bank. The branch receives a forwarding letter and the bil l.

Procedure of IBC:

IBC against OBC: To receive the OBC cheque first we have to

give entry in the IBC Register .The IBC number should put on

the forwarding of the OBC with date.

Deposit of OBC amount: OBC cheque amount is put into the

“sundry deposit-sundry Creditors account”, prepare debit &

credit voucher of i t. If the OBC cheque is honored, send credit

advice (IBCA) with signature & advice number of the concern

branch for the OBC amount.

If the OBC cheque is dishonored, the concerned branch is

informed about i t.

Again place in the clearing house or send the OBC cheque with

Return Memo to the issuing branch according to their

information.

54

DISPATCHDEPARTMENT

55

9.0 DISPATCH:

The dispatch department of Rupali bank is so much effective. This

department is mainly known as the mail transaction of the bank with

other. This department is divided into two parts. Those are given below:

Inward dispatch

Outward dispatch.

Transaction systems of inward and outward dispatch are given below:

9.1 INWARD DISPATCH:

Dispatch seal, date, signature, and endorsement are given on letter

and documents received from courier, special messenger.

All letters and documents are recorded in the inward dispatch

register.

All mails are placed to the Head of Branch.

Manager assigns all mails to respective officials through

endorsement.

It is properly field and recorded.

Fax / Telex etc, received shall be placed before the Head Office

Branch/ Divisional Head Office and marked by the concerned

officer and subsequently all those entered in the inward mail

register.

56

9.2 OUTWARD DISPATCH:

All the outgoing letters documents with covering letters etc, are

received in duplicate from various department.

Acknowledgement is given on the duplicate copies and the original

lit ters.

All letters and documents are signed and given dispatch number.

All letters and documents are recorded in the outward dispatch

number.

All offices copies, master copies are properly filed and recorded.

9.3 What kind of things will be dispatch?

CIBT (Computerized inter Banking Transaction).

Pay order

Latter of credit (LC)

Local Payment.

Corresponded Letter.

Demand Draft Advice.

Mail Transfer Advice.

OBC (Other Banking Collection).

Foreign Telegraphy Transfer advice

Foreign Demand Draft advice

Swift massage

Foreign Document etc.

57

FINDINGSAND

RECOMMENDATION

58

10.1 Problems Identification

Each and every problem identification here is only related to Rupali Bank

ltd., Corporate Branch.

The first problem of this bank is that the employees are not

punctual.

They have no uniform. For that reason some customers find i t,

difficult to identify the bank employee.

Some superior officers of this bank are not available sometime. For

that some of the depositors have to suffer.

The cash counter of this bank is l itt le bit congested and the

procedure of handling cash is also traditional.

In general banking department they follow the traditional banking

system. The entire general banking procedure is not fully

computerized. Even now they are using type writer which is very

much time consuming.

Account Opening form is in English which many people are unable

to understand.

They have lacking in marketing activities and they are not providing

necessary advertisement of their product service to the general

people.

59

They are using so many employees in General Banking section as a

result i t is becomes more expensive.

Now a day computer leads every sphere of lives effective including

general banking activities, But Rupali Bank ltd. does not have

experts in computer.

10.2 Recommendations:

Management of the bank should pressurize employees for being

punctual.

Rupali Bank ltd. should arrange uniform for the employees.

If for some reason superior officer can not be at his/her desk.

During that time bank should arrange different ways to perform

his/her duties for the help of customers.

Cash payment section and cash received section should be separated

by using data based software.

Nearly every bank follow traditional system in general banking

activit ies but bank should introduce computerized system, it will

reduce time, labor and cost also.

Our mother language is Bengali . So the bank should arrange form in

Bengali. The people who are not able to understand English they

can use this form.

To increase their have the employees service they need more

marketing activities. Marketing department should be more aware

on this problem.

Head office of Rupali Bank ltd. should decide to reduce some

employee from General Banking section of corporate branch.

60

The bank waste enough time of their clients in providing services as

it lacks in expert computer operators. To remove this problems, I

think, bank should arrange some sort of training programs in this

sector.

ConclusionDuring the three months internship program at Rupali Bank ltd.

(Corporate Branch), almost all the desks have been observed more or less.

This internship program, at first , has been arranged for gaining knowledge

of practical banking and to compare this theoretical knowledge with

practical knowledge. Comparing practical knowledge with theoretical,

involves identification of weakness in the branch activit ies and making

recommendations for solving the weakness identified. Though most of the

departments and sections are covered in the internship program, it is not

possible to go to the depth of each activities of branch because of some

internal l imitation. Highest effort has been given to achieve the objectives

of the internship program.

During the internship, i t is found that the branch provides all the

conventional banking services as well as some specialized financing

activit ies to the economy. Thus by providing this various services, Rupali

Bank (Corporate Branch), is playing an important role in the banking

system and economic development of Bangladesh.

61

ReferencesTHE followings Sources have been used from Rupali Bank Head Office

and Corporate Branch:

Prospectus of Rupali Bank ltd .

Annual Report of RUPALI BANK LTD. (2003)

Annual Report of RUPALI BANK LTD. (2004)

Annual Report of RUPALI BANK LTD. (2005)

Annual Report of RUPALI BANK LTD. (2006)

Documents that they provide for employee training.

Some documents are taken from Rupali Bank Ltd. web site and other

source by using internet. The web site addresses are followings:

www.rupali-bank.com

www.banglapedia.search.com

www.google.com

62

Search names are following:

History of Rupali Bank Ltd.

Rules of Rupali Bank Ltd.

PDF. Files about loan

63