Tellers
Introduction
This section deals with
the policies relating to the cash department. The cash department is major
point of contact between the bank and the customer and the required customer
service standards must be maintained.
In large branches where
volumes warrant an officer will responsible for the running of the cash
department. Otherwise the head teller will be made responsible. In the latter
case the branch manager will designate an officer who will be the joint
custodian of cash along with the head teller and will be responsible for
ensuring that all the reviews stated in this section are carried
out. Staff members other than tellers are not authorized to handle cash
transaction with the customers. Instruments approved for payment should not
be handed to customer except for endorsement in front of the teller. Where
the customer deposits cash in respect of transaction originating in another
department i.e. draft being issued against payment in cash, the receiving
teller should ensure that the amount of cash received is advised to the
department concerned through inter departmental ticket.
Types of Accounts
Customer bank account
can be of two types; current account and savings account.
All current accounts
are called ‘demand deposits’ because they are subject to immediate withdrawal
by cheque. There is no interest given in this account. Each current account
customer is provided with a supply of cheque and deposit tickets. The deposit
tickets are used when the customer wishes to deposit cash and/ or cheques to
his account.
Saving account
is normally meant for individual person and non-profit making organization
entity. The bank provides interest on the deposit maintained in this account.
Normally money is deposited in small amounts periodically over a long period of
time. The depositor is required to fill in the deposit ticket upon making a
deposit and cheques are used for withdrawal.
Signature Cards
Signature card also
called specimen card is the card where record of customer signature along with other
information like account number and name etc. and instructions is maintained
for honoring the customer cheque for payment.
This card is executed
in two sets by the customer at the time of opening account. One card is stored
in vault and second card is kept in the signature tray for payment purpose.
Whenever an account is opened a new card is placed in the tray.
Signature cards are
always filed in numerical order according to account number as well as
alphabetical order.
In order to provide
efficient services to the customer and avoid inconveniences of the teller to
move away to signature card tray for each cheque payment now signature and
instruction of the account holder is scanned into computer system which records
signature and payment instruction of the customer. At the time of cheque
payment when teller enters account number for debiting the cheque amount,
signature is automatically displayed in the monitor/screen by the system. The
teller can further access other signature in case there is more than one
signature in account or any payment instructions.
Cheque
A person who wishes to
withdraw funds from his account must give his bank a written order called a
cheque. Therefore a cheque is instruction to a bank to pay specified amount to
the beneficiary mentioned in the cheque. It is a form of negotiable
instrument. When an account holder signs a cheque he is called drawer
because he is drawing the money deposited in his account. The signature on the
cheque must tally with the signature on the signature card, which he executed
while opening the account. The person or party whom cheque is made payable
is called payee and a cheque must bear the name of payee. The amount of
cheque is written both in words and figures. For honoring a cheque for payment
it is essential that amount in both word and figure agree. A cheque must
have date. The date on the cheque is the date when the cheque is signed.
Cheque, which has future date, is called post-dated cheque and is not accepted
for payment.
A cheque must bear account
number.
Cheque can be of two
types, Corporate cheque and Personal cheque. Corporate cheques are
issued by registered entities like Company, Firm, Association to pay off their
obligation. Whereas personal cheque is issued by an individual in his individual
capacity.
A Manager’s cheque
is drawn by the bank on itself and signed by an authorized bank employee. It is
a direct obligation of the Bank. Although the Bank does not encourage the
practice, customers sometimes request Manager’s cheque when their own personal
cheques are not acceptable.
Travelers cheque is
designed for travellers or vacationers to protect them from loss that could
result from carrying cash on trips. Travellers’ cheque can be cashed in most
places with adequate signature identification. The cheques are pre in black and
white in various denominations. Upon purchase, the travellers sign the cheque
in the upper left hand corner. When he presents the cheque for payment, he
again signs his name in the presence of the person who is cashing it. The two
signatures are compared for similarity.
Crossing of cheque
In order to ensure the
safe transmission of the money to the receiver, a cheque may crossed by two
parallel transverse lines across its face with or without the words ‘And
Company’ and/or ‘Not Negotiable’. A crossed cheque should be accepted for
deposit only and must not be paid over the counter.
A crossing may be
written, stamped, printed or perforated and it is a material part of the
cheque.
Although a cheque may
be crossed by drawer, payees, or holder, it can be cancelled or opened by the
drawer or maker of the cheque by placing his full signature near such opening
with or without the words crossing cancelled. In this case, the cheque is no
longer crossed and may be cashed.
Endorsements
A person’s signature at
the back of a cheque is called an endorsement. It serves a threefold purpose;
to transfer title to the cheque, to constitute a receipt if the cheque is
cashed, to identify the person who received the cash or whose account was credited
in case the cheque is returned by the drawee for any reason. Blank
endorsement is nothing more than the signature of the party negotiating the
item. The example is beneficiary or payee of a cheque just signing at the back
of the cheque, frequently seen in the bank deposit or payment
transaction. Special endorsement indicates the person or persons to whom
the cheque is transferred. An instrument so endorsed may be further negotiated
only by the party to whom it was transferred. Cheque payable to the order
of cash or bearer are usually negotiable without endorsement however Nabil bank
requires endorsements on all items whether cash or deposited.
Cheque Encashment
It is very important to
know the endorser while en-cashing a cheque for payment as correct payment and
location in case of problem in future on the payment depend upon this
compliance. Identifying the endorser can be done in two ways; by means of
signature card and credential presented by the customer.
Identifying an endorser
by means of personal credentials involves the greater element of risk. Teller
must always assure himself/herself that the person receiving the proceeds of
cheque is who he purports to be so that he can be readily located in case of
problem with the payment.
When a cheque is
presented for en casement or deposit in the account teller must carefully
examine the cheque to ensure and decide that the same can be processed for
payment or deposit.
The teller should
browse through the cheque and confirm that all required information’s are
mentioned correctly and n proper place. The information may be:
Date of cheque:
The cheque should not be postdated (future date) or stale (crossed six month
from the date of the cheque.
- Amount in figure and word must agree.
- Alteration or correction must be authenticated by drawer’s full signature.
- Name of payee, name and account number of drawer must be mentioned.
- Required endorsement present if the cheque is order or crossed.
- Currency in the cheque is clearly mentioned.
After teller is satisfied with the cheque for encashment in terms examining the above information’s next process is to verify the signature of the drawer and other instructions in the specimen card or in the computer system. The signature is displayed automatically when debit account number is inserted. The teller has to carefully verify the signature in the screen with the cheque along with name and account number of the account holder. If more than one signature is required the same should be checked and verified for existence and correctness with cheque and as shown by the system in the monitor. In case of company cheque company seal or stamp may be required if instructed by the customer which can be checked in the monitor. Similarly there can be various other instruction of the customer like authority of single operator or joint operator etc. The teller has to be very careful to study the signature and the instruction of the customer in the account and must tally the signature and confirm that instruction if any is compiled in the cheque.
When the teller is
confirmed about correctness of the signature in the cheque and compliance of
other instruction where applicable he/she should sign along the signature of
the drawer and put signature verified stamp acknowledging signature verification.
The transaction is then entered into the system by the teller.
There are limitations
on the cheque amount a teller can cash/approve transaction in the system for
depositors or non-depositors. For the purpose of approving a transaction there
are limits given to Teller, Head teller, Customer service officer, Operation in
charge etc. Head Office shall notify limits for approval of transaction for
cheque payment to all concerned.
If the transaction
falls within the limit of the teller it can be posted and approved by the
teller. After approval the transaction must be validated on the cheque by
inserting it through slip printer which will print validating information like
date, amount, transaction code and id, transaction time etc.
The teller then should
take out the money as mentioned in the cheque, count it and write denomination
of the money at the backside of the cheque. The beneficiary should be asked to
sign at the back of the cheque below the denomination note and handed over the
cheque amount. He / She should always be politely told to count the cash and
confirm with the cheque amount. The purpose of getting final payee’s signature
below denomination note is three fold; transfer title to the cheque, constitute
receipt of the money in the specific denomination and identify the person who
has received the cash.
If the transaction
exceeds the authority of the teller it goes on stack and the teller should take
the cheque to head teller/CSO/Operation in charge depending upon the amount of
the cheque. After approval of the transaction by appropriate authority the
process of paying cash is same as explained above.
In Nasby’s a
transaction will go on stack for various reason and requires approval of
appropriate authority In order to post or validate the transaction. The number
of stack and reason for the same is explained below.
Stack No
Reason
1
out of credit limit
2
out of debit limit
3
dormant
account
4
cheque stopped payment
5
wrong cheque number
6
blocked account
7
exceed debit balance
8
exceed credit balance
Accepting deposit
Tellers receive and
accept large number of customer account deposit each day. Establishing a set
pattern for handling deposit will help in simplifying the job. Tellers
should first see whether title of account and account number is correctly
filled in by the depositor. If the information is missing customer should be
politely asked to fill in the information. If the customer does not know the
account number then the teller should check the account number inform the
customer? Teller should also see if cash and cheque are listed in the proper
places in the deposit slip. Finally he must check whether the deposit is
totaled in the bottom of the deposit slip. If the total is missing the customer
should be asked to total the amount in the deposit slip.
Processing a cash
deposit
- Turn the deposit ticket face down. The back of the Bank’s copy will now be on top.
- Count notes and list the amount on the back of the bank’s copy in order of denomination starting with the lowest.
- Compare your listing with the cash amount the customer has shown on the face of deposit ticket.
- If amount does not tally to the customer’s listing recount.
- If still amount varies return the complete deposit amount to the customer for him to recount. Have him correct the cash amount on the deposit ticket.
- Any alteration on the deposit ticket must be initialed by the person making the deposit.
- Circle the cash amount entered by the customer on the face of the deposit ticket with pen and press hard so that the figure will appear on all copies.
- Based on the deposit slips enter the amount in the concerned account number of the customer in the nabsys and post the entries. If it goes on stack obtain necessary approval for posting the transaction. When posting is complete validate the deposit ticket through slip printer and return the customer’s copy.
- Place the cash in the cash drawer if no change is to be given.
- If there is a large deposit involving numerous notes of various denominations, verifies the customer’s amount by listing it on the back of the Bank’s copy as previously described. This listing, besides verifying the amount, provides a record of the denominations you receive during the day.
- If the deposit is small or involves only a few notes simply count the cash. This amount need not be listed on the back of the teller’s copy.
- Always inform the Head Teller if there are unusually large deposits both cash and cheque.
- Before accepting a cheque for deposit it is essential to examine the cheque in order to ensure that the cheque is acceptable to the bank .The way of examining the cheque is the same as explained in the cheque encashment. Similarly checking endorsement on the cheque(s) also very important. In absence of proper endorsement deposit or payment cannot be made against a cheque.
- After ensuring correctness in cheque and endorsement the cheque(s) should be verified with deposit slip for correct filling of amount and total amount at the bottom. Teller should make the entries debiting the various cheques account and amount for credit to the depositor account. The process of debiting a cheque account and amount is also explained in cheque encasement section however the difference here is instead of paying customer cash the account of the customer is credited. After approval and posting the cheque deposit transaction the deposit slip should be validated through slip printer and customer copy of the slip should be returned.
Cash Holding
- All local currency cash held by the branch should be reflected in the general subsidiary ledger under the head.
- Cash- local currency reserve cash/ teller’s cash
- Cash will be held overnight under joint custody of the designated official and head teller in a separate cabinet inside the vault.
- Cash held can be split up into two parts, one part being the reserve cash representing cash that is not required for the day’s operation, the balance being cash taken to the counters i.e. the working supply known as teller’s cash.
- Reserve cash should be held separately in a safe in the vault under joint custody of the designated official and head teller i.e. it should be segregated from the working supply.
- A separate register/ file should be maintained to show the break up by denomination of the reserve cash. Whenever there is a movement in the reserve cash, the details should be entered in the register and signed by the joint custodians.
- Each bundle will be strapped with a note strap bearing the date, initial of the preparer and checker. A few bundles must be randomly checked on a daily basis. However all bundles held in reserve cash must bear evidence of having been checked.
- In order to keep the cost of holding cash to a minimum, every effort must be made to hold cash at optimum levels at the branch. To achieve this branch should study the pattern of cash deposits and withdrawals over a period of time and plan their cash drawings from /deposits with central bank accordingly. It may be found useful to request customers to provide advance notice of large withdrawals. Branch managers will fix the maximum limit of cash that may be held by the branch and will advise the amount to the Personnel Department for the purpose of obtaining insurance cover. Where the limit is exceeded due to unforeseen circumstances the amount in excess will be reported to the Branch Manager/Head Office.
Handling of cash
Cash may not be handled
other than in the vault and in enclosures earmarked for the same. Such
enclosures will be provided with lockable devices and doors will be kept locked
at all times when cash is kept there. Only authorized personnel will be allowed
to enter a cash enclosure.
Safety of cash in the
custody of each teller must be ensured by providing him with the means to lock
up cash and other valuables at his counter position irrespective of whether
each teller is provide with a separate enclosure or not.
Unless absolutely
necessary tellers will not leave their counter positions while holding cash.
Those required to leave their positions, even if it is for a short duration,
will do so only after securing all the cash /valuables in the lockable area
provided to them. Even though all positions may be locked at least one tellers
must always remain in a common enclosure containing cash.
In branches where
tellers have been provided with individual portable steel boxes management have
authorized the tellers to retain the balance of cash of RS 50000 in the box
overnight, without transferring it to Head Teller cash provided the balance is
over the stipulated limit. In this case each teller would be required to
maintain a daily record of breakdown of the closing balance by denomination.
This record will be retained in the box itself. Separate subsidiary ledger
accounts will be opened to reflect the cash held by each teller overnight known
as tellers’ cash.
In branches where tellers
are allowed to retain cash overnight in their boxes, the cash in box will be
taken over and verified by the Head Teller in the presence of an officer
whenever the respective teller regardless of the reason fails to report for
duty. This take-over will be carried out not later than the second day of the
teller’s absence. To facilitate smooth functioning, in such branches the Branch
Manager may approve the maintenance of a spare box which can be taken over by
an employee designated to perform the duties of a teller who has failed to
report for duty. This will prevent the need for the hand over take-over of the
box for just one day. A hand over of boxes between tellers will be preceded by
a full cash count by the teller taking over in the presence of a witness and
will be documented. A detailed cash count will also be performed prior to a
teller going on leave.
The officer in charge
will be required to check the individual boxes on a random basis, at least
twice a month and agree the details as reflected in the denomination break down
form. He will sign the form in evidence of his check.
Each teller should hold
only the minimum cash that is necessary for smooth functioning through the day.
Any additional requirement of cash foreseen for the day, such as customer’s
payroll requirements etc. should preferably be held in the vault till
necessary. If this is inconvenient such cash should be held in a separate
enclosure under the control of the head teller.
Handling cash properly
is a fundamental part of the teller’ job. The emphasis is on accuracy rather
than speed. The speed will come naturally with practice.
As cash is accumulated
from taking in deposits during the day it should be packaged by the teller.
Packaging is done by placing a heavy strip of paper of Nabil strap around the
center of a group of notes. The strap should be picked up as per denomination
of the notes. Teller should sign in full and put date on the strap after
packaging.
In all other cases the
cash with the individual tellers at the end of the day should be delivered to
the head teller. The head teller will issue to the individual teller adequate
cash prior to the commencement of business the next working day.
All movement of cash
between tellers and head tellers should be entered into the Nasby’s.
Cash payment
The management will lay
down the respective individual payment limits up to which a designate employee,
designated signer or officer can approve cash, cheques for payment subject to
- The cheque being otherwise in order
- Availability of funds in the account
- The credit limit on the account not being exceeded
Any payment above the
individual limits established will required the joint approval of designated
employee/ designated signer and an officer. The authorization to pay must be
indicated on the cheque by the approvers signing thereon. The limits will be
reviewed by the management annually.
Prior to making payment
of a large amount in cash the paying teller should establish the identity of
the person encasing the cheque and if necessary the drawer of the cheque should
be contacted before payment is made. The management should lay down a limit for
such purposes.
With the prior approval
of the management branches may adopt the teller system for encashment of
customer’s cheques wherein tellers are authorized to make payment within
authorized limits against branch cheques. In this system the tellers will be
responsible for:
- Verification of the customer signature
- Examining the cheque to determine that it is in order
- Ensuring there is sufficient available balance in the account
- To enable them to do so the tellers will:
- Be provided with set of specimen signature cards and computer screen will also display signature.
- Maintain a list of accounts that have been closed which they will update from the closed account.
- Circulation memo. The list will show the account number and date account closed. Accounts can be deleted from the list after a lapse of three months from the date of closure.
- Every teller will be given a limit up to which they are authorized to encash a cheque without referring the same to CSO/Manager Operation.
- Date/Denomination Stamp
- Every teller will be provided with the following:
- Cash paid date stamp/slip printer
- Cash received date stamp/slip printer
Note stamps
The slip printers will bear
the identification of the bank, branch, individual teller’s number and
transaction reference so that when these slip printers are used all the details
will be displayed on the voucher. The stamp and slip printer will be given the
same protection as cash by the respective teller.
Effective cancellation
of cash paid items shall be indicated by the use of cash paid date stamps. The
reverse side of the cheque denomination is pre-printed. When cash is paid
tellers are required to note down the denomination of cash being paid.
Withdrawal slip/Deposit
slip
Tellers must never be
involved in preparing or altering withdrawals slip. They should not accept the
withdrawal slip if:
They are incomplete and
important details such as customers account number etc have been omitted. They
are filled up in such a manner as to facilitate easy insertion of fictitious
details or alteration of amount. Te alteration/corrections on the slip have not
been properly authenticated by the customer.
Any error detected
after the deposit has been accepted will be brought to the attention of the
officer in charge/designated official for necessary action and advise to the
customer. Minor errors may be corrected by the officer in charge or the
designated official under his signature.
As far as possible
currency notes being paid in particularly foreign currency notes should be
checked in the presence of the customer before being accepted. This should act
as a deterrent to customers who knowingly tender in counterfeit currency notes.
The management will issue the guidelines on the procedure to be adopted when
counterfeit notes are presented.
Tellers scroll and
tellers proof
Each teller will
maintain proof sheet or will have a computer in which all transaction will be
entered and the print out of the transaction along with the instruments will be
sent to record room in charge.
At the close of
business each day each teller will summarize the cash transactions for the day
with the help of cash flow or proof sheet and reconcile the balance of cash on hand
with him. Each entry on the proof sheet or the transaction list will be
supported by an instrument. Where the balance is transferred to the head teller
it is entered in the computer or the proof sheet and initialed by the receiver.
The teller’s tape list
should also indicate the breakdown of the closing balance by denomination. The
closing balance on the tape list will be shown as the balance brought forward
day and the officer in charge will initial against these figures on both
sheets.
Verification of cash
balance
Daily, the head teller
must at the end of the day check the proof sheets/ cash flow. This check will
include foreign currency cash as well as a bundle count of reserve cash.
Once a fortnight or
monthly however the check will be conducted independent of the department by an
officer designated for this purposes by the Branch Manager.
The officers conducting
the check must agree the balance to the figure reflected for that day in the
general ledger under cash. All checks conducted will be properly documented.
Cash differences
Any differences in cash
detected at the end of the day or as a result of the checks will be debited or
credited as appropriate to over and short after obtaining necessary approval.
The vouchers relating to the entries must carry relevant details in brief,
should signed by the Head Tellers/Teller involved and be authorized by branch
manager or higher authority as applicable. Money found on the premise will be
credited to over and short.
Differences should be
investigated as quickly as possible. Immediately a difference occurs the branch
manager informs AGM OPERATIONS and seeks guidance regarding investigation. In
investigating cash shortages every aspect such the teller length of service and
experience, service record, previous history of shortages if any, whether or
not the shortage was incurred at a particularly busy or difficult or busy
period etc. should be taken into account.
If the cash shortage
exceeds RS 1000 or its equivalent the report of the investigation together with
branch manager comments/recommendations should be submitted to the AGM
OPERATIONS. If the difference is as result of fraud or a failure in the
operating system then irrespective of the amount the report must submitted by
branch to AGM OPERATIONS.
If an authentic claim
is made in respect of a cash surplus lying in over and short account payment
will be made from the over and short account. Such payments must be authorized
by the AGM OPERATIONS.
Insurance of cash
The personnel
department will arrange for the necessary insurance of cash to cover all
branches. Insurance of cash covered under the banker’s blanket Insurance. The
insurance should cover:
Cash both working
supply and reserve cash.
Cash held in the
departments of the bank where applicable eg .Petty cash held by administration.
Cash in transit to
cover both local currency and foreign currency notes Limits arrived at by
branches, on the basis of which the insurance is fixed, must be strictly
adhered to.
Transportation of cash
- When cash is being transported between branches or between a branch and central bank within a town or city the following precautions will be observed.
- The limit laid down by the management in respect cash in transit is not violated.
- Bank owned vehicles are used in preference to hired vehicles and the routes and timings varied as far as practical.
- The cash is held under the custody of a designated teller or employee and a guard employed at all time.
- Receipts for cash collected is duly signed by the custodians and receipts for cash delivered obtained from the respective authority.
