g-cash cash-in/cash-out (cico) service training internal process procedures

RBAP Confidential and Proprietary

G-CASH CASH-IN/CASH-OUT (CICO) Service Training

INTERNAL PROCESS PROCEDURES

Rural Bankers Association of the Philippines& Micro enterprise Access to Banking Services

G-Cash 101

TRAINING FRAMEWORK

TAP &TAD

CICO


To provide the requirements for the bank’s personnel and customers in cashing-in and cashing out G-Cash value to/from the recipient/sender’s mobile phone, emphasizing on the “KYC” rule;

To provide detailed policy and procedure for the bank’s personnel to follow in accepting G-Cash transactions;

To provide detailed roles and responsibilities of bank personnel before;

To provide detailed procedures of securing G-Cash transactions through menu-driven interface.

Objectives


Pre-requisites Security and Internal Control Customer Verification Requirement Procedures:

• Cash-in • Cash-out • Posting/Recording • Consolidation• Settlement• Reconciliation

Topics


Pre-requisite

In order for the client to avail of the CICO service through the Rural Banks:

1) The client should have a cellphone with active Globe or Touch Mobile SIM;

1) The client needs to register with Globe G-Cash or G-Cash account is already activated.


Security and Internal Control

1) The custodian of the mobile phone must be an officer of the bank (Cashier/Manager/any Designated Officer of the Bank)

2) M-PIN (Mobile Personal ID No.) and security code of the mobile phone must be secured and should not be known to anyone other than the designated custodian of the mobile phone.

3) It is required that G-Cash Menu-Driven Interface must be used. To access Menu-Driven Interface in your cellphone, go to Globe Services (Globe Svcs+) then click on myFavorites>G-Cash


Security and Internal Control

5) The bank’s mobile phone must be used only for purely G-Cash related activities.

6) Branch’s Mobile Phone Phonebook/SIM must contain Head Office’s Cellphone Number (2882+10-digit Head Office Cellphone Number)

7) Phone-to-Phone (P2P) Fund Transfer transactions must be supported by receipts and recordings in the Logsheet and/or G-Cash Journal

8) Any internal/security control violations should not be tolerated and must be reported immediately for proper action (Please see information security policy manual).


Customer Identification Requirement

KYC

“Know Your Customer”


Customer Identification Requirement - “KYC”

Republic Act No. 9160 Anti-Money Laundering Act of 2001

“Money laundering is an act or series of acts whereby proceeds of an unlawful activity, whether cash, property or other assets, are converted, concealed or disguised to make them appear to have originated from legitimate sources. One way of laundering money is thorough the financial system.”


Customer Identification Requirement - “KYC”

Covered Institutions (Rural Bank) shall:1. Establish and record the true identity of

their clients based on official documents;2. In case of individual clients, maintain a system of

verifying the true identity of their clients;3. In case of corporate clients, require a system

verifying their legal existence and organizational structure, as well as the authority and identification of all persons purporting to act in their behalf;

4. Establish appropriate systems and methods based on internationally compliant standards and adequate internal controls for verifying and recording the true and full identity of their customers.

PROCESS FLOW


Cash-in Procedure (Client)

1) Clients (existing or walk-in) must accomplish the G-Cash Service Form;

2) Client must submit valid ID for Bank’s verification;

3) If not G-Cash registered, must register “OTA”

NOTE: If client is not able to provide the appropriate documentation as required, the transaction will not be processed and the client will be informed about the required information that needs to be complied with. All documents submitted by the client will be returned except the filled-up G-Cash Service form. The bank shall keep this form for future reference.


Cash-in Procedure (Client)

4) Client pays the cash equivalent of the cash-in amount and the corresponding cash-in fee;

5) Client waits for the confirmation message as the cashier completes the P2P transaction to the client’s mobile phone;

6) Client checks on correctness of the amount transferred to his mobile phone.


Cash-in Procedure (Bank)

1) The bank teller (or any personnel designated to handle G-Cash transactions e.g. new accounts clerk) must use the G-Cash Service Form in all Cash-in transactions;

2) The teller checks the completeness of the G-Cash Service Form, and further performs verification procedure based on the accomplished form and ID(s);

3) The teller receives cash payment from the client, posts and validates the transaction;

NOTE: If client is unregistered, the bank personnel shall advise the non-registered Globe and TM subscriber to register using the G-Cash menu driven interface;



4) The teller forwards the copies of validated documents to the cashier for the P2P transactions, making reference to the information on provided by the client in the G-Cash Service Form;

Options

Send G-CashCash OutBalanceLast Txn

Using G-Cash menu, find the Send G-Cash option and

Click it.

123

MPIN?

Enter 4-digit MPIN of the bank branch and

Click OK.

123

MPIN?

****

You will see masked characters

represented by asterisks (*)



Enter 11-digit Mobile Phone Number of the client and Click OK.

The bank will receive a confirmation message. The client who receives the G-Cash transfer will also receive a confirmation

message with the same Reference Number

You have sent 1,000.00 of G-

Cash to ABC Rural Bank, Inc. on 03/14/05 09:21AM. Your new balance is 992.00. Ref. no. 4434334.

123

Enter 11 digit Mobile #:

09174446000

abc

Amount?

Enter the AMOUNT of G-Cash Value

equivalent to the Cash-in amount

1000



5) The teller shall collect service fee on top of the Cash–in amount received, and only CASH shall be accepted for the cash-in amount and service fee;

6) Acknowledgement receipt equivalent to the amount sent shall be issued by the teller to the client to document the transaction;

7) An official receipt shall be issued by the teller to the client for the service fee paid by latter;

8) The teller should ensure that the bank keeps the original copy of the G-Cash Service Form, copy of the client’s ID and the acknowledgement receipt. Transaction trace number shall be indicated in the G-Cash Service Form;

PROCESS FLOW


Cash-out Service

Cash-out transaction means deducting G-Cash Value from the client’s mobile phone in exchange of cash, credit to account, payment of loans or payment of other services and transactions of the bank


Cash-out Procedure (Client)

1) Clients (existing or walk-in) must accomplish the G-Cash Service Form;

2) Client must submit valid ID for Bank’s verification;

NOTE: If client cannot provide the appropriate documentation as required, the transaction will not be processed and the client will be informed about the requirement that needs to be complied with. All documents submitted by the client will be returned except the filled-up G-Cash Service form. The bank shall keep this form for future reference.


Cash-out Procedure (Client)

3) Upon instruction of the bank cashier, the client performs P2P to effect the transfer of electronic cash to the bank;

4) Client verifies the correctness of the transaction via the confirmation message;

5) The client also pays the corresponding cash-out fee to the bank;


Cash-out Procedure (Bank)

1) The bank teller (or any personnel designated to handle G-Cash transactions e.g. new accounts clerk) must use the G-Cash Service Form in all Cash-out transactions;

2) The teller checks the completeness of the G-Cash Service Form, and further performs verification procedure based on the accomplished form and ID(s);

3) The teller post and validates the transaction;

4) The teller shall collect service fee equivalent to 1% of the Cash–out amount received, and only CASH shall be accepted for the service fee.



5) The teller shall forward the completed G-Cash Service Form together with ID(s) to the cashier;

6) The cashier shall give the G-Cash mobile phone number of the bank to the client and instruct the client to perform P2P using the G-Cash menu driven interface;

Options

Send G-CashCash OutBalanceLast Txn

for Send G-Cash Click it.

123

MPIN?

Enter 4-digit MPIN and Click OK.

123

MPIN?

****

MPIN and you will see a masked characters represented by an

asterisk (*)



Enter the 11-digit Mobile Phone Number

of the Bank-Branch and Click OK.

Wait for confirmation message, and record

its corresponding reference or trace number

You have sent 1,000.00 of G-

Cash to ABC Rural Bank, Inc. on 03/14/05 09:21AM. Your new balance is 992.00. Ref. no. 4434334.

123

Enter 11 digit Mobile #:

09174446000

abc

Amount?

Enter the AMOUNT of G-Cash Value

equivalent to the amount of loan to pay

1000



7) Acknowledgement receipt equivalent to the amount cashed out shall be issued by the teller;

8) The teller shall issue an official receipt for the service fee paid;9) The teller should ensure that the bank keeps the original copy of

the G-Cash Service Form, copy of client’s ID and the acknowledgement receipt. Transaction trace number should be written on the G-Cash Service Form;

10) If the Cash-out transaction is drawn for deposit to the client’s accounts, the Teller shall require the client to fill up and signs a deposit slip. This document will also be filed together with the G-Cash form.

PROCESS FLOW


Recording Procedure at the Bank

In the absence of an automated recording system, the teller or bookkeeper or whoever is the one in-charge shall record the Trace/Reference Number, transaction date and time, amount, G-Cash name, whether the transaction was initiated by the bank or client, into the G-Cash Journal-CICO ;

All inter-office transfers shall be recorded in the G-Cash Journal – Inter-Office Fund Transfer

NEXT PHASE:AUTOMATED RECORDING


Consolidation Procedure (Branch Level)

1) At cut-off time, the branch must initiate the (phone-2-phone) fund transfer to Head OfficeMenu-Driven:

To start G-Cash fund transfer, Go to Globe Services Menu (Globe Svcs+)>myFavorites>G-Cash>Send G-Cash (then Click OK)

• Enter your M-PIN (then click OK)

• Enter the 11-digit of the Head Office G-Cash cellphone number (then Click OK)

• Enter the total amount of G-Cash to Transfer to Head Office (then Click OK)


Consolidation Procedure(Branch Level)

2) Record/Log (in your G-Cash Inter-Office Journal) the Amount, Date, Time and Trace Number to indicate transfer of transaction;

3) Fax or email G-Cash Journal to Head Office;

4) Entire amount in the G-Cash Wallet of the branch should be transferred to Head Office not later than 3:30 p.m. Branch G-Cash Wallet balance should be Zero (0) at the end of the day. Except when the bank specifically instructed GXI to maintain a wallet “threshold” in specified amount.


Consolidation Procedure(Head Office Level)

Accounting Section to wait for the SMS confirmation for the Branch initiated transactions, record/log (in your G-Cash Journal - Inter-Office Fund Transfer) the Branch Name, Amount, Date, Time and Trace Number/Reference No.


Settlement Procedure(G-Xchange)

At 4:00 p.m., GXI shall ‘initialize’ or reduce Rural Bank’s electronic G-Cash wallet corresponding to the amount to be credited to Rural Bank’s settlement bank account.

Before midnight daily, G-Xchange, Inc. (GXI) shall initiate a fund transfer from GXI account to Rural Bank’s Settlement Account.


Settlement Procedure(Head Office)

Head Office may be able to verify the fund transfer through the on-line/internet banking facility of the settlement bank on the following business day.

GXI shall send via email a report containing the daily summary of transactions of all branches enrolled under the program to the Head Office on the following business day.

FINANCIAL ILLUSTRATION


Reconciliation(Branch Level)

1) Perform balance Inquiry of the G-Cash wallet by using G-Cash Menu.

Menu-Driven

Go to Globe Services (Globe Svcs+)>myFavorites>G-Cash>Balance

Enter M-PIN


Reconciliation(Branch Level)

2) Wait for the reply message from Globe

3) Compare G-Cash wallet balance against Total Collection found in the G-Cash Journal

4) In case of difference in the two balances, raise an incident report and submit to the Head Office accounting department for Reconciliation. Through the Transaction List which is available through email, Head Office will be able to reconcile balances.


Reconciliation(Head Office Level)

1) Always establish Beginning and Ending of the Day balances for easy reconciliation on a daily basis.

2) To get Ending Balance #1 - Add G-Cash Wallet Beginning Balance of the day (as recorded in the G-Cash Journal) and P2P (phone-to-phone) Fund Transfer transactions during the day.

3) To get Ending Balance # 2 - Add G-Cash Wallet Beginning Balance of the day and the Total Transactions in the Logsheets (Faxed by the branches).



4)To get Ending Balance # 3 - Perform Balance Inquiry of the G-Cash Wallet Balance using:

Menu-Driven

Globe Services (Globe Svcs+)>myFavorites>G-Cash>Balance

then Enter your M-PIN and click OK.



5) Compare End Balance #1, End Balance #2 and End Balance #3. These balances should be of the same amount.

6) If there is a difference in any of the ending balances, check the Daily List of Transactions from Globe, Text Messages of the P2P Fund Transfer (if text messages are still available in the cellphone) and Transaction Entries in the Logsheet.


Accounting Entry (Head Office Level – Part I)

Entry #1A/R – G-Cash XXX

Due from Banks XXXTo record pre-funding of G-Cash value to the Head

Office G-Cash Wallet

Entry #2Due from HO/Branches XXX

A/R G-Cash XXXTo record transfer of G-Cash value to the

branches


Accounting Entry (Branch Level)

Entry #1A/R – G-Cash XXX

Due to HO/Branches XXXTo record G-Cash value received from

Head Office

Entry #2Cash In Vault XXX

A/R G-Cash XXX

To record total Cash-in transaction for the day



Entry #3G-Cash Fund XXX

Due from Bank’s/Cashiers CheckXXX

To record establishment of G-Cash fund to accommodate Cash-out transactions in lieu of Cashier’s Check for disbursement

Entry #4A/R G-Cash XXX

G-Cash Fund XXX

To record total Cash-out transactions during

the day



Entry #5

G-Cash Fund XXX

Due from Bank’s/Cashiers Check

XXX To record replenishment of G-Cash fund

Entry #6

Due from HO/Branches XXX

A/R G-Cash XXX

To record transfer of G-Cash Value to HO for

consolidation and settlement


Accounting Entry (Head Office Level – Part II)

Entry #1A/R G-Cash XXX

Due to/from HO/Branches XXX

To record G-Cash Value received from the branches for consolidation

Entry #2Due from Banks XXX

A/R G-Cash XXX

To record G-Cash Value settled by GXI through

the settlement bank


Accounting Entry (Head Office Level)

Entry #3 A/R – G-Cash Account XXX

Due To/From Head Office/Branches XXX

To record the P2P Fund Transfer of G-Cash from branches

Entry #4Due From Banks (BPI) XXX

A/R G-Cash XXXTo record G-Cash Settlement with Globe

Entry #5Due To/From Head Office/Branches XXX

Due From Banks (Branch Depository) XXX

To record the payment of Head Office to branch’s loan collection through G-Cash


Thank you & God speed!


Bank Branch Mobile Phone Number

ABC Rural BankIntramuros Branch

G-Cash Cellphone No.

2882<10-digit Bank Branch G-Cash Cellphone Number>

Important NoticePlease use the cellphone number above whenever you make

transactions through G-Cash ----------------------------------------------------------------------------------Menu-Driven:To send payment using G-Cash Menu-Driven Interface:•Go to Globe Services (Globe Svcs+>myFavorites>G-Cash>Send G-Cash•Enter your M-PIN and the 11-digit of the bank-branch’s cellphone number•Wait for the confirmation message..


Automated Posting Process(Second Phase)

Download/Capture text messages from the Cellphone using the interface program

Check the downloaded/captured messages in transaction format (cellphone number, name, amount, trace number, date and time)

Update the captured messages banking system

Create appropriate reports


Illustrated Financial Figures for Settlement with GXI (Cash Out)

Rural Bank Head Office (G-Cash Wallet)

Date DR CR

Beg Bal. XXXXX.XX

12/01/2004 Fund Transfer Debit (Cash Out to RB’s Settlement Account)

500

Balance = XXXXX.XX

Date DR CR

Beg Bal. (w/o pre-funding)

0

12/01.2004 (Fund Transfer from Branch#1)

500

12/01/2004 (Cash Out Transfer initiated by G-Xchange)

500

Balance (after Cash Out) = 0

Date DR CR

Beg Balance 15,000

12/01/2004 (Fund Transfer – from G-Xchange Settlement Account for Cash Out Transfer)

500

Balance (after Cash Out) = 15,500

Rural Bank Head Office ( Settlement Bank Account) - BPI

G-Xchange Settlement Account (Settlement Bank Account) - BPI


These materials were made possible through the support provided by the U.S. Agency for International Development/Philippines under the terms of the contract no. 492-C-00-98-0008-00. The opinions expressed herein are those of the author(s) and do not necessarily reflect the views of the U.S. Agency for International Development.


CICO Workshop : Group Exercise

Requirement:1. CICO “over the counter” transaction documentation –

including “KYC”;2. CICO Branch Processing and documentation;3. Pre-funding and Consolidation to H.O.Players:1. Cash-in client2. Cash-out client3. Teller4. Cashier5. H.O.

GXI PHONE: 0915-9802178


Verification Process Flow

Bank Checks Forms &

Requirements

Client’s Identity Established?

KYC

NO

Deny

Client Accomplish Forms YES

Clerical Processes

Actual G-Cash Process

Bank’s Records

Client’s Copy


Cash-In Process Flow

Bank Checks Forms &

Requirements

Client Accomplish Forms

NAC/Teller (Documentation)

• Photocopies Forms• Prepares Receipts • Attach valid IDs to completed G-

Cash Form• Documents to Authorized Officer

NAC/Teller (Financial)

• Receives payment from client• Validate & Post to Tellering System • Forwards to Cashier for P2P

transaction

Cashier• Performs P2P transaction• Ask client to sign the confirmation

Bank’s Records

Client’s Copy


Cash-Out Process Flow

Bank Checks Forms &

Requirements

Client Accomplish Forms

NAC/Teller Photocopies Forms• Prepares Receipts • Attach valid IDs to completed G-

Cash Form• Documents to Cashier

Cashier

• Give Bank’s G-Cash number to client• Ask Client to perform P2P • Ask the client to sign documents• Forwards to Teller for Payout

Teller• Post & validate G-Cash transaction

to the system• Payouts (cash) to the client

Bank’s Records

Client’s Copy