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DHANAMITRAM CASH DEPARTMENT GUIDE

DHANAMITRA GUIDE FOR CASH DEPARTMENT

STATE BANK LEARNING CENTRE CHITTOOR ROAD, ERNAKULAM

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INDEX

Sl.No. Topic Page

1. ROLES OF CASH IN CHARGE 5

2. RESPONSIBILITIES OF CASH IN CHARGE 5

3. IMPORTANT REGISTERS TO BE MAINTAINED 6

4. WORKFLOW RELATING TO CASH AT BRANCHES 7

5. CASH VERIFICATION BY CASH IN CHARGE 11

6. CUSTODY OF DUPLICATE KEYS OF CASH BOX 11

7. CASH COMPARE UTILITY-TO ELIMINATE CASH GLIF 12

8. CASH RETENTION LIMIT 15

9. FORMAT FOR ARRIVING CASH RETENTION LIMIT 16

10. GOLD RETENTION LIMIT 17

11. FORMAT FOR ARRIVING GOLD RETENTION LIMIT 18

12. PETTY CASH PAYMENTS 19

13. REMITTANCES ON RBI ACCOUNT 20

14. SECURITY ARRANGEMENTS 20

15. AGRICULTURAL GOLD LOAN SCHEME (INTEREST SUBVENTION)

28

16. MULTI PURPOSE AGRI GOLD LOANS (NON-INTEREST SUBVENTION)

36

17. PERSONAL SEGMENT GOLD LOAN 38

18. FEATURES OF GENUINE NOTE 39

19. DETECTION AND IMPOUNDING OF COUNTERFEIT NOTES 40

20. COUNTERFEIT CURRENCY REPORTING (CCR) APPLICATION 46

21. FACILITY FOR EXCHANGE OF NOTES AND COINS AT BANK BRANCHES

48

22. STANDARD OPERATING PROCEDURE - ACCOUNTING PROCESS- ATM

58

23. ATM RECONCILIATION 63

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ROLES OF CASH IN CHARGE i. Joint custodian of Cash and other valuables like Gold, Gold ornaments, Safe Deposit Articles and Security Forms other than cheque books.

ii. Supply cash/ cash boxes to SWOs in the morning. Take possession of excess/ surplus cash or deliver/ supply cash from/ to SWOs and bulk cashier(s), as and when required during the day. Complete EOD exercise for cash after completion of business hours

iii. Carry out surprise verification of the cash holding in the cash boxes of SWOs and carry out intraday cash verification at the SWO Counters.

iv. Ensure that all the notes received are shroffed and sorted into issuable and non- issuable notes. Arrange for sorting out ATM fit notes for delivery to CAC and Nodal Officer and remit Soiled Notes to the CAC/Nodal Branch, with the help of SWOs from time to time.

v. Ensure that the non-issuable note bundles prepared are pasted with note slips duly signed by the SWOs on the top and bottom of the bundles confirming the quantity and quality of the notes.

vi. Liaise with CAC/Nodal branch to manage cash inventory at the Branch, arrange for inward/ outward cash remittances from them.

vii. Arrange for receipt/ payment of bulk cash from important customers.

viii. Verify the purity and the weight of Gold offered as security by Gold loan customers and to keep Gold/ Gold ornaments after sanction in joint custody as per instructions

ix. Generate and check relevant reports. (Annexure)

x. Ensure Weighing Balances Certificate are current and in order

xi. Ensure operation of the vault as per norms.

xiii. Keep the Gun licenses current and diarise for timely renewal.

xiv. Save the Cash related reports daily and keep a hard copy of all the reports properly filed for future reference.

RESPONSIBILITIES OF CASH IN CHARGE

i. Responsible for the correctness of the Branch Cash, Currency Chest and small coin depot balances. A bin card bearing details of daily deposit and withdrawal into/from the bin should be kept in each bin.

ii. Responsible for the Cash balance held in his custody. iii. Responsibility for the custody and safety of all cash

a. From the strong room until distribution while withdrawing.

b. From the point of collection from SWOs until deposit in the strong room

c. Held in the strong room jointly with the joint custodian.

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iv. Responsible for ensuring that each packet of notes of all denominations up to Rs.100/- turned into the vault bears a note slip with date duly signed by the employee who prepared the note. The coin bag contained a similar slip prepared by the employee who prepared it.

v. Responsible for ensuring that each packets of notes of Rs.500/- and above bears a note slip with date on the packets with the signature of the SWO who prepared it.

vi. Responsible for the quantity & quality in each packet of Rs.500/- and above. He should ensure that the quantities in each packet is 100 of the same denomination and affix his signature on the note slip for having recounted the packets.

vii. Responsible for the quantity and quality of notes turned into the vault without the signature of SWOs on the note slips.

viii. Responsible for proper conduct of work in the cash dept. and adequate safety measures for handling cash at the Branch.

IMPORTANT REGISTERS TO BE MAINTAINED: 1. Strong room access Register. It is to be maintained to record the time of entry into/exit from the strong room of all persons, including staff members attached to the chest. The entries therein should be authenticated by the persons concerned and the Chest-in-Charge. 2. Vault Register . The Register is maintained in duplicate, one copy is kept with the Cash in charge and the other is kept in the Vault. The balance in this register should tally with that in the Vault Register at all times. 3. Small Coins Depot Registers. The Register is maintained in duplicate, one copy is kept with the Cash in charge and the other is kept in the Vault. 4. Passing Powers Register . The signature of every official/staff in the Branch together with his passing powers should be circulated to the Cash Department Staff so that they would be able to know the genuineness of the signature and their powers before making payment. 5. Intra-day Cash Verification Register A surprise check and verification of cash of SWOs should be carried out during the business hours and a record of the same has to be maintained for having carried out the Intra-day Cash Verification duly scrutinized by the Branch Head at monthly intervals. Evidence of verification has to be recorded. 6. Register for Verification of Contents of Cash Boxes of SWOs The verification of contents of cash boxes on the basis of system generated random list, should be carried out at the end of the day and a standard register to be maintained for this purpose. Further, the Cash in charge should verify the cash of all SWOs on Friday of each week without fail.

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7. Register for Verification of Physical Cash Balance by Joint Custodian Fortnightly The physical verification of currency chest balance should be carried out fortnightly and tallied with. A separate standard register should be maintained for this purpose which should be perused by the Branch Head at regular intervals. Burglar Alarm Test Check Register: The testing of burglar alarm on daily basis should be recorded in a standard register. The test check should be conducted at different counters on different dates at different times and recorded in detail with date, counter number and time. Cash Sorting Machine Register: A standard register has to be maintained for recording number of sections sorted in the Sorting Machine and to verify the optimum usage of the machine for supplying quality notes to the general public. Other Registers: Branch Cash Balance Register Gold Loan sanction Register Head Cashier Cash Jotting Book Gold Loans In & Out Register Cash Receipt Delivery Book Cash Remittance Register Vault Register LSC/LBC/BBR Register Petty Cash Register Key handing over/ taking over Register Cash Shortage/excess Register Branch Cash Balance Book

WORKFLOW RELATING TO CASH AT BRANCHES

Beginning of the Day At least 15 minutes before the start of business, security Systems are to be set for opening of Strong Room/Safe. The Cash boxes of SWOs to be taken out from the Strong Room/ Safe by the Joint Custodians. Depending on the branch scenario, required Cash will be taken out from Strong Room/Safe and kept in a secure box and Cash in charge to ensure that the box is duly locked. The locked Cash box and SWOs Cash boxes to be brought from Strong Room / Safe to Cash in charge desk & ensure Cash Strong Room/Safe is locked atleast 10 minutes before start of business. Cash Boxes will be taken out by Cash in charge and handed over to SWOs. SWOs have to ensure that when the boxes are handed over to them, they have not been tampered

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with. In case the box is tampered, it has to be brought to the notice of the Cash in charge immediately. Necessary entry will be made in the SWO Cash Boxes Receipt/ Delivery Register to record handing over of Cash Box by Cash in charge to SWOs. Entry in the register will be signed by SWOs. SWO will take the Cash Box to his counter, tally the Cash in the Cash box with the System and keep the entire Cash in his desk drawer. The Cash Box should be completely emptied and kept locked during the day IN CBS…..

The Accountant verifies that the opening balance of cash is equal to the closing balance of cash as recorded from BGL Account No.98903BBBBBC + 98912BBBBBC as at the previous evening.

The Vault Custodian, Cash in charge and SWOs login and open their Cash drawers.

Vault Custodian transfers Cash to Cash in charge.

Cash in charge verifies and acknowledges receipt of cash.

Cash in charge distributes the Cash to the SWOs who handle Cash transactions at the Branch. The receiving Teller verifies the Cash and acknowledges the same.

End of the Day A uniform overnight retention limit is to be fixed for all SWOs at the branch as decided by the Bank (usually less than Rs.1 lac). At day-end when all Cash transactions have been put through in the System and authorized, CO will view the Cash Drawer Summary in the System and decide to what extent each SWO will retain overnight Cash in his single custody considering the amount of remittance required to be sent to the Link Currency Chest Branch as per instructions of Currency Administration Cell. He will accordingly instruct each of them to hand over surplus Cash to him in duly prepared packets, before closing his individual System Cash Drawer. However, it must be ensured that the Cash held overnight by the SWO does not exceed the overnight retention limit. In case of any of the SWO holding insufficient Cash which may require him to demand additional Cash from Cash in charge at the start of the next day before opening his Counter, Cash in charge will deliver him sufficient Cash before he closes his Cash drawer so that the SWO can open his Counter next day morning without waiting for receiving additional Cash at the start of the day.

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At the close of business each day, the SWO will retain the Cash with him/her, subject to the overnight Cash retention limit fixed for this purpose. If the Cash held exceeds the day-end retention limit fixed for the SWO, he/she will not close his/her Cash drawer in the System. The SWO should not keep any soiled/mutilated notes in the Cash box overnight. SWO will tally his/her physical Cash on hand, denomination-wise, with the System. The SWO will count/sort the notes and prepare note packets as per the extant instructions and shall hand over surplus Cash to Cash in charge or to another SWO, as directed by the Cash in charge. SWO will keep the remaining Cash balance in his/her Cash box. If physical Cash does not tally with System Cash, efforts are to be made to locate the difference by cross checking the vouchers, etc and the position rectified. If the difference is not traced, this is to be immediately reported to Cash in charge and his assistance taken to locate the shortfall. If physical Cash is short, the shortfall is to be recovered from the SWO concerned in notes of appropriate denominations, so as to tally the physical Cash denomination-wise with the Cash as per the System Cash Drawer. However, if the shortfall cannot be recovered immediately and the amount involved is substantial, the same may be debited to Suspense Account after seeking necessary approval from the Controller over telephone. If physical Cash is in excess, the excess notes are to be taken out and the amount thereof credited to Sundry Deposits Account. The Cash on hand (after transferring surplus) will be kept in Cash Box which is then locked and taken to CO.SWO will also close and lock the System Cash drawer.CO will generate in the System the list of SWOs/Tellers on random basis, whose Cash is required to be verified by Cash in charge during handover of Cash Box at the end of the day. Cash in charge is to ensure that every box is checked at least once during the week. SWO whose name is generated by the System will open the Cash Box in the presence of CO. Cash in charge will verify the contents thereof and tally details of denomination with the System details for the SWO. After Cash in charge has satisfied himself about correctness of Cash in Cash box, SWO will lock the box in the presence of CO. In case of any difference in Physical Cash and System Cash (shortage / excess in Cash), the matter is to be reported to the Branch Manager, necessary record will be made and adjustments i.e. recovery / credit to Sundry Deposits Account be done as per the extant instructions. Cash in charge is to mark the Cash Drawer as verified in the System so that the respective SWO can start transactions in the Cash drawer on the next morning. The SWO will keep the Cash in the Cash Box provided, which will be duly locked by him/her. Each SWO will be responsible for the contents of his/her respective Cash Box and the contents should tally with the details appearing in the system. The locked Cash Boxes will be deposited with the Cash in charge for safe keeping in the Strong Room/Safe under joint custody. Cash in charge will verify the Cash Box to ensure that it is properly locked and not tampered with. The locked Cash Boxes will be deposited in the Strong Room/Safe in the presence of the Joint Custodians. The Joint Custodians will ensure that the Cash Boxes relating to all Cash drawers showing closing Cash balances are received by them and actually lodged in the Strong Room/Safe. Necessary entry will be made in the Cash Box Receipt/Delivery Register to record deposit of Cash Box by SWO. Entry in the Cash Box Receipt/Delivery Register will be signed by Cash in charge and Vault Teller. Although the Cash Box will remain overnight in the joint

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custody of Cash in charge& Vault Teller, the Cash in the drawer will continue to remain in the single custody of SWOs as the key of Cash Box will remain with SWOs. At the end of the day or at any time during the day when accumulation of cash is in excess of the requirements, Cash in charge will take over custody of the cash from the employees (i.e. assistants, Senior Assistants, Tellers, SWOs, etc.) and will arrange to turn it into the vault in the manner stated below: i. The note packets, for which the recounting responsibility rests with the Cash in charge / Special Assistant (i.e. note packets of Rs.500 and above), will be taken over by him after recounting and signing on the note slips in the manner detailed here before. ii. Cash in charge will ensure that the packets received from the employee bear the note slips signed by that employee and which are bearing the current day’s date. iii. He will ensure that the seals on note packets of all denominations taken over by him are intact. Special care must be taken to scrutinize the portion of the note slip immediately below the transparent seals. There should be no tear or any mark of tampering on any of the note slips. If he finds that the seal on any of the note packets has been tampered with or the note slip is torn, he will not accept such packet unless a fresh packet is properly prepared and duly signed on its covering note slip. iv. If the note slip on the packet has not been signed by an employee, he will cause it to be signed by the concerned employee or any other employee, after doing the needful. If any note packet is turned into the vault without an employee’s signature thereon, the Cash in charge will be deemed to have prepared the packet himself and will be held responsible for quality and quantity of notes contained in such packets. v. The Cash in charge will ensure that each complete bundle of note packets to be lodged into the vault contains ten note packets. The fractional bundles of soil / non-issuable note packets need to be stored separately and converted into complete bundles at the earliest opportunity. IN CBS

SWOs after tallying the cash generate cash reports and hand over the balance of cash/cash kept in the cash box along with the report to Cash in charge and Cash in charge acknowledges.

All the SWOs reconcile currency and close their respective Cash Drawers in the system.

Cash in charge prints cash-related reports, tallies the cash and transfer cash to Vault Custodian and Vault Custodian verifies and acknowledges in the system.

Cash in charge reconciles currency and closes his Cash Drawer after ensuring that all the SWOs’ cash drawers are closed.

Vault Custodian reconciles the currency and closes his Cash Drawer.

Cash Reports are printed and saved by the Cash in charge every day without fail.

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CASH VERIFICATION BY CASH IN CHARGE At the end of day, Cash in charge will invoke the option for generation of random Cash drawer for verification. Balances of all the Cash drawers to be in turn verified by the Cash in charge on any working day during the week as per the order generated by the System randomly. Once a Cash drawer is marked for verification (either for random verification or full verification), the System will not permit transactions (no physical Cash transaction) till the time the Cash drawer is marked as verified by the Cash in charge. Cash Box will be opened by the SWO in presence of the Cash in charge. Cash in charge will verify the contents thereof by counting piece–by-piece all notes in the Cash box and tally them with the details of the concerned SWO’s System Cashdrawer. If there are any sealed packets, he must break open the sealed packets and count the notes to confirm that each packet contains 100 notes of the relative denomination. After verification of Cash is over and the physical Cash tallies with the System Cash for the SWO, the Cash Box will be locked by the SWO. In case of any difference in physical Cash and System Cash (shortage / excess in Cash), necessary record made and adjustments done i.e shortage shall be recovered from SWO or debited to Suspense A/C and excess Cash credited to Sundry Deposits A/C. After verification of Cash Box, Cash in charge will mark the Cash Box as verified in the System so that the respective SWO can start transaction in the Cash drawer on the next morning. In case the Cash box marked for verification is not verified due to absence of the concerned SWO, such absence will be marked in the System by CO. Such Cash box will continue to figure in the list of Cash drawer marked for verification on subsequent days also till the time it is verified and marked in the System as verified.

CUSTODY OF DUPLICATE KEYS OF CASH BOX

As per the circular instructions ‘The duplicate keys of the Cash Box shall be lodged, in a packet duly sealed by the SWO, in the joint custody of two officials in joint charge of Cash, valuable etc., at the Branch. A separate section in the key Register shall be opened for the purpose and details of the keys shall be entered on the lines as is in vogue for the Joint Custodians’ keys. Relative entries are to be signed by the SWO along with the authorized officials. When the SWO proceeds on leave, Cash in charge will take over the Cash and transfer the same to his Cash drawer.

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When SWO is transferred/ promoted, Cash in charge will take over the Cash and transfer the same to his Cash drawer and allot the Cash Box to some other SWO. If SWO remains on leave without prior approval or has to proceed on sick leave without handing over the Cash, when his absence is indeterminate, his Cash Box shall be opened on the following/subsequent day (in case of urgency of Cash) or latest on 3rd day of his absence, with duplicate key, recording the circumstances under which the duplicate key was used, in a special Register maintained for this purpose. The witnesses should authenticate the recording in the register. Duplicate Key to the said Cash Box will be withdrawn. Cash in charge will invoke the ‘Open Cash drawer’ option in the System and note the System Cash position of the Cash drawer. Cash Box will be opened and physical Cash counted by Cash in charge in the presence of Vault Teller and one SWO to act as witness. The physical Cash is to be tallied with the System Cash both for amount and denominations. In case of any difference in physical Cash & System Cash (short / excess) the same will be adjusted/recovered as per existing instructions after making necessary recording i.e. excess Cash is to be credited to Sundry Deposits A/c and shortage to be debited to Suspense A/c and reported to BM as per extant instructions. After verification of Cash Box, Cash in charge will transfer the System balance of Cash drawer to his Cash drawer. Also the physical Cash will be taken over by Cash in charge. In case SWO has sent the original keys on account of his sudden indisposition, the Cash box should be opened as stated above in the presence of Vault Teller and one SWO. The original key should be handed over to SWO to whom Cash box has been allotted. The duplicate key should also be taken out after recording the circumstances/reasons as per extant instructions. The SWO will keep the duplicate keys in a sealed cover under his signatures and deposit the same with Vault Teller. In case the original keys have not been sent by SWO, the Cash box opened with the duplicate keys should not be used. Instead a new Cash box with two sets of keys should be allotted to SWO. The procedure laid down should be adopted to keep the duplicate keys with the Vault Teller. No Cash box with one set of keys will be used under any circumstances. If the Original key of the Cash Box is lost by SWO, The duplicate key will be given to SWO to open the Cash Box and the reason for withdrawing the key noted in the key register. A new padlock with two keys will be used to lock the Cash box and the charges will be borne by the Bank, if the circumstances which led to the loss of the key by SWO are beyond his control and found to be genuine, otherwise by SWO, who lost the key.

CASH COMPARE UTILITY-TO ELIMINATE CASH GLIF Differences in CGL-BGL Branch Cash balance is reported in GLCOMP report on next day of transaction. To reconcile BGL & CGL entries on the Day of transaction itself, conventionally Teller has to locate mismatch entries by manually ticking CDC Cash Report sent by DCOG with Teller Cash Report generated at the branch. However, Cash Balance Generation Utility eliminates this manual ticking and reports only mismatch entries.

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The Cash Compare menu (Screen No. 00669) in Bancs24 is available to Cash in charge & Accountant. The menu is Reports…>Cash related reports….>Cash report compare If there is a mismatch then the report by the name of “Cash_Balancing_Utility_Report_DDMMYYY-1729 is generated and kept in E:\CBBranch4.0\Saved Reports\DDMMYYYY\

Fig1.1 Enter the date and click on Generate Cash balancing Report

Fig1.2 :In case of no difference, the above message is displayed

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Fig1.3: In case of any difference, it is displayed in the following report. The report should be generated after the completion of all the branch cash transactions and the CDC Cash report has been received .The report is categorised in to two: Status 1) where cash drawer updated but account not posted Status 2) Transaction posted in account successfully but cash drawer not updated The branch should do rectification after verifying cash vouchers. Methods for rectification:

Account is debited/credited but cash drawer is not updated

Cash Correction

Account is not debited/credited Repost the voucher

Account was debited/credited twice and Cash drawer also updated twice

Correction [not cash correction/only status correction]

Account was debited/credited with wrong amount and cash drawer also updated

Correction [not cash correction/status correction]

*Cash correction can be done for committed/referred transaction where cash drawer is not updated. Referred status if posted in a/c have to be converted as committed and then corrected.

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CASH RETENTION LIMIT (Sl.No.: 863/2017 – 18 dated 27/10/2017.) Cash available at the branches, beyond a prefixed retention limit, is required to be remitted to the linked Currency Chest branch. This prefixed limit is called Cash Retention Limit of the branch. Cash balances at branches are idle assets and have opportunity loss, if kept at the branch beyond the optimal level required for normal banking at those locations. Besides this, all such branches are required to pay Central Office interest for the balances maintained as per Transfer Price Mechanism. Cash Retention Limit of Branches may be reviewed in the months of May/June every year to make it applicable w.e.f.1st July every year. The process will be taken up at RBO level by calling for recommendations from branches and considered by Chief Manager (C & R) based on the following:

Average of Peak level requirement of the branch during last three years.

Cost of remittance to / from the branch / link branch during the last year.

Number of occasions the branch exceeded the retention limit in the last one year and the reasons thereof.

Central Office interest paid on the actual Cash Balance vis-à-vis interest at applicable rate on Cash Retention Limit.

Hand Balance at Currency Chest branches is to be kept at minimum level not exceeding Rs.5.00 lakhs on any day. The balance held in Single Window Operator’s Overnight Cash Box may be regulated and reduced from present ceiling of Rs.1.00 lakh to Rs.50,000/-. CASH RETENTION LIMIT OF BRANCHES NOT LINKED TO CAC: Cash Retention Limit of a Rural branch (not serviced by CAC) will be fixed maximum up to Rs.10 lakhs depending upon the business requirement. For Semi Urban, Urban and Metro branches, the Controller may fix Cash Retention Limit of Rs.20 lakhs and above, depending upon their business requirement. CASH RETENTION LIMIT OF BRANCHES LINKED TO CAC: Cash Retention Limit of a rural branch will be fixed maximum up to Rs.5 lakhs depending upon the business requirement. Cash Retention Limit of Semi Urban, Urban and Metro branches may be fixed by the Controller in the range of Rs.5 lakhs to Rs.10 lakhs. Cash Retention Limit for all Hand Balance Branches will be fixed for Peak level and Non-peak level in the following manner a) Branches with agriculture/seasonal business: The period of busy/peak season is to be identified and the data for Cash receipts and payments during peak season is to be obtained for arriving at the Cash Retention Limit for peak and non-peak season respectively.

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b) Branches with Personal Segment/Salary Payments etc: Heavy rush takes place for payment during the first 10 days every month and therefore higher limits may be fixed as peak limit with appropriate reduction for non-peak limit. c) Other Branches: Where no specific trend is visible, uniform Cash Retention Limit may be fixed. d) The Ratio between Peak and non-peak limit may be at 2:1. Any deviation is to be explained in the recommendations. Branches with Cash Retention Limit up to Rs.10 lakhs will be categorised as “Small” Retention limits. Limits beyond Rs.10 lakhs and up to Rs.20 lakhs will be termed as “Medium” Cash Retention Limit and above Rs.20 lakhs as “Large” Cash Retention Limit. Fixing up of Cash retention Limit should normally be based on past trends and increase, if any, beyond 25% of the limit last sanctioned should go to the next higher authority i.e. RM in case of RBO or DGM (B&O) in case of direct controlled branches. In other words, renewal of limits at existing level should vest with CMs. All Hand Balance branches will make efforts to ensure holding of Cash within retention limit and to ensure remittance of surplus Cash on the following day. In case, any branch continues to hold Cash in excess of Retention Limit on second consecutive day, he has to report the matter to his Controller, detailing the reasons. All branches will have to submit Monthly Statement of Cash Holding (MSCH) within 3 days, furnishing reasons for excess holding for each day, if any. The Controller will review the matter and initiate appropriate steps for either revision of Cash Retention Limit or administrative steps with the branch and its linked Currency Chest branch. Retention of Cash in SWO’s Overnight Cash Box may be regulated vis-à-vis transactions handled by them, restricting the retention to Rs.50,000/- and/or Cash in all such Cash boxes not to exceed Rs.5.00 lakh, the retention limit for Hand Balance at Currency Chest branches. SWO proceeding on leave will be required to hand over entire Cash to Cash in charge / Cash In charge before proceeding on leave except in case of casual leave for emergency. FORMAT FOR ARRIVING CASH RETENTION LIMIT

A Branch Name

B Address of the Branch

C Whether linked with CAC

D Distance from CAC

E Time taken in arrival of Cash from CAC

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F Type of Storage

G Categorisation as per Security Risk Matrix

H Business level of the branch over the last three years (Average)

I Future business potential (Budget/Estimate)

J Average Cash Balance

K Highest Cash Balance

L Lowest Cash Balance

M Existing Cash Retention Limit

N Proposed Cash Retention Limit

Remarks/Recommendations

BRANCH:: SIGNATUE OF THE BRANCH HEAD DATE ::

GOLD RETENTION LIMIT (e circular Sl.No.: 1275/2017 – 18 dated 24 Jan 2018)

The proposal for fixing of Gold Retention Limit of individual branches will be put up by the Chief Manager (Compliance & Risk) to the Regional Manager for his recommendation to the Dy. General Manager (B & O) for approval. For the direct controlled Branches, the proposal will be put up by the branch head to the Chief Manager (GB) for his recommendation to the Dy. General Manager (B&O). The recommendation will be vetted by the Module Security Officer in all cases. Gold Retention Limit may be fixed for all branches in the RBO & AO based on the business of loan against Gold ornaments (Limits sanctioned) as on 31st March after adding 50% for margin and business growth. These limits for RBO & AO may be reviewed at quarterly intervals. Insurance cover for gold (included in Cash & Valuables) is taken by Insurance Cell at BOD, Corporate Centre, Mumbai with effective date of Policy from 1st July. The value of Gold ornaments held as security is covered under the Banker’s Indemnity policy.

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FORMAT FOR ARRIVING GOLD RETENTION LIMIT

A Branch Name

B Address of the Branch

C Type of Storage FBR embedded / Strong Room

D Categorisation as per Security Risk Matrix

E Gold Loan Business level of the branch over the last three years (Average)

2014-15 2015-16 2016-17

F Value of Gold Ornaments held at the branch as security as on 31st March

2014-15 2015-16 2016-17

G Future business potential (Budget/Estimate) 2017-18 2018-19 2019-20

H Average amount of Gold Loans sanctioned during a month

I Highest and lowest Balance in Gold Loan portfolio of the Branch during the previous year

J Existing Gold Retention Limit

K Proposed Gold Retention Limit

L Whether linked with HUB (If applicable)

M Distance from HUB (If applicable)

N Time taken in arriving HUB (If applicable)

Remarks/Recommendations :

BRANCH:: DATE ::

SIGNATUE OF THE BRANCH HEAD Appraisal and recommendation at RBO CHIEF MANAGER (C & R) Recommended for Retention Limit of Gold Ornaments at Rs.___________ Approved REGIONAL MANAGER. Deputy General Manager (B&O)

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PETTY CASH PAYMENTS A suitable amount for incurring petty expenses will be advanced to the cash officer at the beginning of each month by debit to suspense account and the amount must be kept by him separate from the other moneys in his hands. He will maintain the standard petty cash register, in which he will record all advances received and payments made therefrom. The expenses will be classified under different sub heads of charges account. The entries in the register will be initialed by the Branch Manager/Managers of divisions within their respective areas of control. No payment will be made unless it has been duly authorized on the bill/cash memo by the Branch Manager/Managers of division/any other designated authorized official. The present ceiling for petty cash payments is Rs.200/-.the petty cash expenses normally comprise of expenditure on purchase of articles against cash memos. Where cash memos are not available, authenticated vouchers will be prepared for reimbursing such expenses, which are normally incurred by staff members. A rubber stamp reading “The expenses incurred have been paid” will be affixed on each such voucher/cash memo and authenticated by the person receiving the money and the cash officer who makes the payment. After money is paid, all bills/memos will be branded with the day’s ‘cash paid’ date stamp. The unspent balance with the cash officer will be verified once in a month at irregular intervals by an officer of MMGS II and above .At the end of the month, the suspense account entry will be adjusted by debiting the amount spent to the charges account under the appropriate subheads and refunding the balance in cash.

REMITTANCES ON RBI ACCOUNT

The rules regarding remittances on RBI account as set forth in part Xi of the central governments treasury rules, the rules specifically applicable to SBI being 730 &731.Branch managers and the supervising officials concerned must see that these rules are strictly followed at all times to ensure that under no circumstances the Bank is held responsible for losses due to non-observance of any rule. Assistance accompanied remittances must be fully aware of their duties and responsibilities under the rules. Before dispatching remittances, branch managers will give timely notice to the consignees and must see that all remittances are promptly acknowledged by them. Every box containing notes and coins must be packed in the presence of cash assistant accompanying the remittance who will sing the “content memo” to be placed inside the box after prima facie satisfying himself of the contents. Particulars of remittance should also be recorded in a separate opening in the vault register. All boxes must be weighed in the presence of the cash officer or any other supervising official before dispatch and weights recorded on the invoice.

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Remittances received must be acknowledged and taken into account on the day of receipt and should be examined the same day, if practicable, or thereafter with the least possible delay. If there is any deficiency or any irregularity, such as mismatch or forged notes or spurious notes, the amount should, as a rule, be recovered from the representative accompanying the remittance under advice to the remitting office. Any remittance, or portion thereof, remain unshroffed/unexamined at the end of the day must be entered in an unexamined remittances register. Suitable entries be made therein whenever notes and coins are withdrawn therefrom for shroffing/examination. The Reserve Bank of India bears the following expenditure incurred on account of inter chest remittances or remittances from any chest to Reserve Bank of India effected under instructions from the currency officer.

i. Freight charges for remittance boxes by Road / Air / Railway ii. Police escort charges

Where two places are connected by rail, the railway transport should be used as far as possible. If due to extraordinary circumstances, the road transport has to be resorted to even of rail link exists, prior permission of the currency officer should be obtained in writing. The police van or state transport buses will have to be used to carry the remittance. The currency officer may permit private lorry services only if the former services or not available. Railway authorities claim their charges directly from Reserve Bank of India on the basis of the credit notes issued by our remitting branches. The police escort charges in each case, and the freight charges, if remittances sent by road / air, will be first paid by the remitting chest branch by debit to its suspense account. For obtaining reimbursement of expenses incurred, the chest branches will submit the bills along with all the necessary documents, bills, money receipts, etc. to the concerned issue office of RBI which has issued the remittance/diversion order to them through their respective link office/FSLO. Out of pocket expenses, other than above charges should be debited to the branch charges account.

SECURITY ARRANGEMENTS

LAYOUT AND ACCESS CONTROL:

Cash Department should be located farthest from the entrance/ exit and preferably it

should be located adjacent to the strong room/ cash room.

Cash Manager’s cubicle should preferably have two entrances, one from inside the cash

department and the other from the banking hall.

Where necessary and feasible, separate cubicles having independent access maybe

provided to parties depositing/withdrawing large amounts.

Access to outsiders must be strictly prohibited. A notice reading “No Admission without

Permission” should be prominently displayed outside the entrance to the cash department.

Any window in the cash department, if opens outside the premises, must be permanently

sealed with brick work.

Smoke detectors must be installed in Strong / Safe room, Cash department, Shroffing

area.

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Night vision CCTV Cameras (Infra-Red) must be installed in the Strong room/ Safe room

(so as to cover all the cash bins/ embedded cash safes). CCTV should cover the cash

counting/note sorting area.

Security alarm presser switches should also be suitably installed so as to be easily

accessible in case of any contingency.

The following are the structural designs which are required in Cash Counters/ SWO

cubicles:

i. All cashiers/tellers/SWO should be provided with individual cubicles as per Bank’s

ambience policy, with an entry/exit (having automatic latch) in the rear of the cubicle.

ii. The height of the cash Cabins/ SWO Cubicles should be adequate to prevent a person

standing outside from reaching the counter level.

iii. CCTV should be installed in such a way so as to cover the Single Window Operator’s

area of operation and also the faces/ activities of the customers.

iv. Emergency Presser switches for security alarm should be so positioned below the cash

counter as to make it easily approachable by foot or knee of the cash assistant/ SWO.

v. The SWO/ Assistants (Cash) should not entertain any queries from the public. Such

customers should be directed to the “Enquiry Counter” /any other competent official.

A Notice containing the following message/ instructions should be displayed at a place

inside each cash cabin that the message is constantly before the assistants (cash)/SWO.

CAUTION NOTICE

(i) Have you locked your cubicle securely? Please do so before you commence your work

(ii) Please do not keep large denomination notes/large sums exposed to public gaze.

(iii) Do not leave the cash counter unattended. All cash must at the earliest be deposited

inside the cash drawers/ boxes and locked.

(iv) Lock your cash drawers before leaving your cubicle, even for a moment, and also keep

them always locked when there is no business to transact.

(v) Do not let your concentration/ attention to be diverted while at work. Remember not to

allow outsiders to engage you in prolonged conversations

(vi) In Emergency, do not hesitate to activate the alarm switch.

Adequate insurance cover for cash, pledged gold should be ensured.

The cash retention limit for each branch should be reviewed and fixed realistically.

Intimation regarding remittance of excess cash should be sent to the link branch well

before the cash retention limit is exceeded.

Absolute minimum cash required to meet the day’s requirement should be drawn from the

Strong Room. For bulk/ heavy payments the required cash should be taken out of the

Strong Room just before making the payment.

During a temporary change in the incumbency of the joint custodians, particularly the

Manager (Cash)/ Officer, the officiating incumbent and the other joint custodian must

exercise more vigilance and care in handling cash. The prescribed norms must be

followed with the spirit of maintaining a proper control than of mere observance.

No cashier should be allowed to receive/pay cash amongst them-selves without entering it

into the books as per the procedures laid down and under proper authentication.

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No exchange of notes/coins will be permitted without complying with the instructions

prescribed.

The special protective arrangements to be taken with regard to strong room/safe room

(housing portable strong rooms/other safes) are:

i. They should be generally on the ground floor and normally never located higher than

the first floor of the premises.

ii. Basements should be avoided for locating Strong Rooms/Safe Rooms in flood prone

areas.

iii. When the Strong room is located in any floor other than the ground floor, it should be

ensured that the areas above and below the strong room in other floors are not only in

Banks possession but are also in the regular use of the bank.

iv. The Strong room walls should not be exposed to the building periphery.

v. In case of large currency chests receiving huge volumes of remittances regularly, the

layout of the branch should be such that as far as possible, the cash van should reach

very close to the entrance of the strong room. The parking place of the van should be

in the enclosed space kept normally locked to ensure that it is protected and no

outsider or unauthorised persons enter the area of loading/ unloading. The loading /

unloading area of cash area should be covered by night vision CCTV cameras.

vi. There should be a separate enclosure for counting / sorting of cash received from the

Branches/ other Bank’s / RBI and it should be in an area outside the strong room

covered by CCTV. This should be in an enclosed space fully covered with grill,

curtains/ reflective sun films to obviate direct view of public gaze.

vii. Time Lock should be invariably installed on the Currency Chest door.

viii. Fire Extinguishers of adequate quantity (Min 1x 3Kg CO2 and 2x 9 Kg Water CO2)

should always be placed just outside the vault

ix. The Strong Room/Safe Room should be so located that they are not exposed to public

viewing. In case they are visible to the public from inside/outside the branch, a

portable screen/ curtain should be placed in front of the Strong Room/ Safe Room

door.

x. A “NO Smoking” board should be displayed prominently outside the Strong

Room/Safe Room/Locker Room and it should be ensured that no one smokes inside

these places.

xi. Before opening the Strong Room, all entrances to the Branch should be closed/

locked and the armed guard should position himself in front of the Strong Room.

xii. One of the joint custodians should not leave the cash open in the care of the other

joint custodian and go out under any circumstances.

xiii. The Strong Room/Safe Room should be closed immediately on hearing an emergency

alarm.

xiv. Books, Stationery records, etc. should not be kept along with cash in the Strong

Room.

xv. A Strong room fitness certificate, as per the approved format, should be obtained from

the competent authority before any strong room is put to use for the first time in terms

of Rule no 113(ii) of the Central Treasury Rules.

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xvi. The strong Room must be under the double lock of the cash officer and the

supervising official jointly in charge of the cash.

SECURITY FEATURES IN HIGH VALUE BRANCHES:

All Currency Chest Branches and Cash Balance branches holding cash retention limit and

gold both pledged and coins together worth over Rupees One Crore are termed as High

Value Branches. For these branches Some of the important instructions are as under:

All FBR safes should invariably be placed inside the cash rooms, which should preferably

be separate to the locker room and must have a reinforced iron door.

IR cameras sited inside the strong room should be connected to a separate DVR, which

should be located inside the Currency Chest Strong Room itself, with a monitor being

made available to the BM/Cash Officer/Joint custodians. It should be separate and should

not form a part of the Central Monitoring Station entrusted to an outsourced third party.

All the six surfaces of the strong room/cash room, along with the door, should be installed

with seismic/vibration sensors. Besides, all the strong room/cash room doors should also

be installed with thermal sensors to thwart attacks using oxyacetylene torch and laser

beams. These sensors (unlike the cameras inside the strong room) when triggered would

send an alarm to the central monitoring station.

Storage of gold (pledged and coins) will invariably be done in FBR safes, even when there

is a strong room in the branch. Such FBR safes, when not placed in proper RCC strong

room, should be embedded by RCC.

Bank officials carry out the surprise visits, to check on the alertness of the currency chest

guards as well as the security of the treasure in non chest branches.

MAINTENANCE OF CURRENCY CHESTS AND STRONG ROOMS:

The joint custodians of vault should carry out at regular intervals, preferably once a week,

without fail, an intelligent check of the contents of the chest, to ascertain correctness of

balances.

Bins/ Steel Almirah’s inside the strong room containing currency balances must be under

the double lock of cash officer and supervising official having joint charge of the cash.

Vault register should be signed by both authorised officials.

Any inspecting official visiting the vault should necessarily make an entry in the register

meant for the purpose.

Strong room should not be used for storage of old records, stationery and other items.

The contents of gold ornaments under pledge to bank, safe deposit articles, security

forms, cash credit and branch documents, stamps and stamped forms must be retained in

separate safe/ almirahs as far as possible and pasted with a notice “Non Chest items”.

Regular and periodic pest control and anti-termite treatment should be done in the chest.

EMBEDDING OF SAFE:

Embedding of safe in the Safe room in Non-Chest Branches/ Cash Balance Branches

needs to be done all around the cash safe by RCC.

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CASH IN TRANSIT-REMITTANCES:

Remittance operation consists of the following elements, viz.: (a) Withdrawal of valuables

from the parent entity.

(b) Carrying and Loading it on to the vehicle.

(c) Carriage to receiving entity.

(d) Unloading and depositing at the receiving entity

Some of the important instructions are as under:

The communications regarding remittances should be confidential and between the

officials responsible for making them.

Paper based communication should be shunned completely. This shall apply only to the

crucial aspects of remittance like, value, route and timing. Non-crucial records could

continue to be maintained on paper as hither-to-fore.

All correspondence regarding cash remittances should be treated as “Strictly Private &

Confidential”.

The staff dealing with cash remittances should be earmarked. It should be impressed upon

them that they should not discuss any matter relating to remittances with any unauthorised

person(s). In fact, the discussion should be restricted only between the dealing staff and

the supervising official concerned.

Security guards must be instructed to be extremely alert and vigilant while cash boxes are

moved out of cash department and loaded into the vehicle.

Passage is free of obstructions and the movement of cash box from the Strong Room/

Safe Room should be unhindered.

The guard should accompany the cash box from the cash department, walking behind and

keeping the cash box in his view. His gun should be loaded and ready for use. He should

position himself next to the door of the vehicle with his back against the vehicle to

eliminate being attacked from behind while the cash box is being loaded.

Guards should carry adequate number of cartridges.

The keys of the locks of the box(s) containing cash/valuables should under no

circumstances be carried by the employees accompanying remittances. Normally, one set

of keys should be held at the branch despatching the remittance and the other set with the

branch receiving the remittance. This instruction is not applicable for cash being loaded in

ATM.

An audible/ visible alarm, automatically activated when tampered with should be fitted to

the vehicle.

The vehicle should be GPS tracking enabled. GPS parameters should be so fixed that any

deviation from planned route, scheduled stops, over-speeding etc. should trigger an alarm

at the monitoring base.

CCTV System with cameras covering front, rear and internal areas to record events in the

vicinity and inside vehicle may be considered for forensic purposes. Such record may be

kept for a week or so. The system should have the capability to upload footage to the base

station as and when required.

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PRECAUTIONS - In case a taxi is used for remittances, it must be arranged in advance,

without disclosing the destination.

i) Registered or known taxi service provider may be contacted for this purpose.

ii) The cash box should be secured to the body of the taxi with a padlock and chain.

iii) Cash box should not be kept in the luggage boot/carrier.

iv) After loading the cash box, the taxi should not be left unescorted and the driver should

be present with the taxi at all times.

v) The registration number of the taxi should invariably be noted down at the branch and

also to be verified with vehicle registration documents which must be available with the

driver Name of the driver and particulars of his licence should also be noted down

from his driving licence.

vi) The cash box should be loaded in the presence of the cashier and the Bank guard.

o PRECAUTIONS - In case train is used for remittances,

i) As far as possible, armed police should escort remittances by train

ii) Within the realms of possibility, the seats farthest away from the doors should be

occupied.

iii) In case police guard is not available, two Bank’s employees, one of whom must be an

armed guard, to accompany remittances.

iv) The cash box must be secured to the seat by means of double locks and chains.

o PRECAUTIONS - In case bus is used for remittances,

i) The seats farthest away from the door should be occupied.

ii) The cash box must be secured to the seat by means of double locks and chains.

iii) The guard/employee must be seated in such a way that they are not taken by surprise.

Rickshaw should not normally be used for cash remittances as this mode of transport is

most prone to hold up/robbery. If unavoidable, the cash box must be secured to the foot

board with padlock and chain and the cashier and one guard must travel in it. The second

guard/employee if available should follow in a second rickshaw at a reasonable distance

with a view to giving coverage to the first rickshaw in an emergency.

In case no mode of transport is possible, cash remittances may be sent on foot with an

armed escort. The distance to be covered should be short. The escort should walk a few

paces behind the carrier. They should walk on that side of the road which faces oncoming

traffic; in our country it is the right side of the street/road with reference to the direction of

travel

The accompanying staff must have means of communication like Mobile phones with

emergency numbers on ‘speed-dialing’ for fast communications.

The size of the box may be standardized to the following dimensions:

Length : 19” (Nineteen Inch)

Breadth : 13” (Thirteen Inch)

Height : 13” (Thirteen Inch)

During transit, the guard is responsible for the physical protection of cash box. He will take

action on his own to meet a situation in an emergency. e.g. hold-up/robbery, etc.

Guards must never be used for carrying the cash boxes.

No unauthorised person, who is not officially detailed on the remittance, be permitted to

travel in the remittance vehicle.

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Special watch should be kept on vehicle(s) following the cash van. If in doubt, slow down

and allow it to overtake at a suitable place (crowded area). If it does not overtake and

persists in following the cash van, the cash carrying vehicle must be driven as fast as

possible to the nearest police station/branch, or to a crowded place for additional

protection. On return to the parent branch, a detailed report of the incident must be made

to the Branch Manager or the controller, by head of the remittance party.

Routes and timings of the remittance should be varied to the maximum extent possible. A

proper record of routes used should also be maintained.

The driver and the accompanying cashier should be on their guard for fake accidents,

bogus police officers, unexpected traffic diversions and unusual road blocks and inform

the base station of any such event.

Whenever there is reasonable ground to believe out-break of a civil unrest/ riots or risk of

attack by anti-social elements/miscreants in the area through which the remittances is to

pass, an alternative route may be taken or the remittances be postponed for a future date.

Additional arrangements must be made to take Insurance cover against ‘riots’ through the

Banking Operations Department at the respective LHO.

In case of an accident/break down to the remittance vehicle, the controlling office must be

informed, and if permitted, an alternative transport- preferably a public transport may be

taken to continue the remittance. The driver may be left behind with the vehicle. On

reaching the destination branch, necessary assistance may be arranged to repair/ recover

the vehicle.

In case of a serious accident resulting in injuries, the prime focus must be on saving lives

and to that end assistance may be taken from the local populace to reach the nearest

hospital/nursing home and police station. Information on the accident must be quickly

conveyed to the originating and destination branches. The un-injured member(s) of the

remittance party must remain with the vehicle till properly relieved. The controlling office,

too, must act with utmost alacrity to bring succour and support to the affected personnel

and security for the valuables.

The guards and the drivers must never be permitted to continue to ply on any route

continuously for long periods. Their routes must be changed frequently at irregular

intervals.

Threshold limit for remittances are as under:- Security arrangements under normal

Circumstances (states other than sensitive areas/ areas affected by Maoist/ extremists)

i) Remittance between Branches:

a) Upto Rs. 50 lacs - 1 Bank Armed Guard b) 50 to 100 lacs - 2 Bank Armed Guards c) Above Rs. 100 lacs - Minimum 2 Armed Police Guards

ii) Remittance between CAC and Branches linked to CAC:

a) Upto Rs. 50 lacs - 1 Bank Armed Guard b) 50 to 300 lacs - 2 Bank Armed Guards c) Above Rs. 300 lacs - Minimum 2 Armed Police Guards

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Threshold limit for remittances are as under:- Security arrangement for sensitive areas/

states affected by Maoist/ extremists (Orissa, Bihar, Jharkhand, North Eastern and Jammu

& Kashmir States)

i) Remittance between Branches:

a) Upto Rs. 20 lacs - 1 Bank Armed Guard b) 20 to 50 lacs - 2 Bank Armed Guard c) Above Rs.50 lacs - Minimum 02 Armed Police Guards

ii) Remittance between CAC and Branches linked to CAC:

a) Upto Rs. 50 lacs - 1 Bank Armed Guard b) 50 to 300 lacs - 2 Bank Armed Guard c) Above Rs. 300 lacs - Minimum 02 Armed Police Guards

SAFE CUSTODY OF KEYS

The particulars of important keys, such as those pertaining to cash, valuables, Lockers,

Strong Room, Cash Safe and the room in which these are kept, etc. must be entered in

the standard Key Register.

The keys held by each officer will be listed on a separate folio in section (a) of the register

giving their identification marks / numbers, the separate key register may be maintained, if

considered necessary, for recording particulars of the keys held by the officials in a

particular division / segment.

The duplicates of the keys held by the Officer-in-Charge and the Cashier-in-Charge will be

packed in a box and deposited with the parent branch.

Whenever there is a change in the incumbency of a particular post handling the set of

keys, the incoming official will initial against each entry and also record the date of his

taking over the custody of the respective key(s). He will verify the original keys taken over

by him as also the duplicate keys relating to those keys, kept with the designated branch

for safe custody along with other duplicate keys of the branch.

The keys (other than the important keys mentioned above) of other receptacles /

cupboards, drawers etc. handled by different members of the staff should be entered in a

separate register for general record and control, and these keys need not be verified by

the Inspecting Officials.

When the keys of the strong room and other keys are kept in the personal safe of the

Branch Manager (or of the supervising official jointly in charge of the cash), keys of the

safe in which they are lodged must not leave his custody. The above instructions apply

with equal force to the Cash Officer, who is responsible for the custody of keys and for the

arrangements made (subject to the Branch Manager’s approval) in the event of his

absence from office.

The supervising official jointly in charge of the cash, who is ordinarily provided with a Fire

and Burglar Resistance (FBR) safe outside the strong room, should always keep his keys

of the strong room doors (i.e. grille and the outer door) and of the receptacles inside the

strong room in the drawer of his safe and carry on his person only the keys of the safe and

the drawer. Where he has not been provided with a safe, he should keep the above

mentioned keys locked in one of the drawers of the safe provided to the Branch Manager

and retain the key of that drawer in his personal custody.

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The Senior Assistant (Cash) or any other member in the Cash Dept. rendering assistance

to the Cash Officer must not be allowed to handle Cash Officer’s set of keys when the

Cash Officer is on duty.

If any safe which was earlier handled by some other officials is to be brought into use for

keeping Strong Room Keys, then the wards of the lock thereof should be changed with the

approval of the controlling authority.

In Currency Chest branches one key will be kept with the armed guard on duty and the

duplicate key kept with the Branch Manager. In cash balance branches where day-time

armed guard has been posted, one key of the gun box will be with the Branch Manager

and the duplicate key kept with the other duplicate keys of the Branch.

All officials to whom the Bank‘s keys are entrusted should preferably secure the keys by

means of a chain at one end, with the other end thereof being fastened to their dress.

AGRICULTURAL GOLD LOAN SCHEME (INTEREST SUBVENTION)

Particulars Details

Product Agri gold loan (Agri Interest Subvention)

Product Codes

6431-6002 Br-DL Quick Gold loan Agri –Demand Loan 6530-1010 MC- Gold loan for agri product –KCC 6531-1001 MC- Gold Loan for Agri Product –Demand Loan

Credit Facilities

Demand Loan, Cash Credit and Overdraft

Purpose To meet the short-term crop production needs of farmers

Eligibility -individuals who are owner cultivators.

in activities permitted by RBI to be classified under agriculture. Evidence of land holding record and agri activities is must

Loan can be granted against the security of specially minted gold coins sold

by SBI/e-ABs weighing up to 50 grams per customer only.

Application and appraisal

a. Application cum appraisal, (SIM- GL/1) b. Gold ornaments take delivery letter (SIM-GL /2) duly signed by the applicant. Each ornament or a group of ornaments of similar type / fineness should be entered separately in the Take Delivery Letter. c. A Witness Letter (SIM-GL/3:) should be obtained in case of illiterate applicant and be signed by the witnesses who were present while illiterate borrower executes the various loan documents including Take Delivery Letter. d. Acknowledgement of the ornaments offered as security for the loan (issued to the borrower) (SIM-GL / 8 )

Ornaments bearing initials/ marks:

When accepting gold ornaments bearing names, initials or other marks, which are prima-facie, not those of the borrowers, Cash in charge / Cash in Charge should satisfy himself / herself through discrete enquiries that the borrowers have full title to the ornaments despite existence of initials or marks thereon.

Letters confirming the ownership of the borrowers and furnishing reasons for such description should be obtained from them

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A note to this effect made against the relative accounts in the gold loan ledgers.

Requests for loans should be tactfully denied in case there is even the slightest doubt regarding the ownership of the ornaments.

Hallmarking A hallmark consists of five components 1. BIS Mark, 2. Purity in carat &Fineness Number 3. Assaying and Hallmarking Centre’s Mark. 4. Jeweller’s Mark 5. year of making, denoted by a code letter and decided by BIS (e.g. Code letter ‘A’ was approved by BIS for year 2000, ‘B’ for the year 2001 and ‘C’ for 2012). The marking is done either using punches or laser marking machine. Although BIS Certification Scheme for Hallmarking of Gold Jewellery is not mandatory yet, the BIS Hallmark, a mark of conformity widely accepted by the consumer bestows the additional confidence to the consumer on the purity of gold jewellery.

Gold loan ledger

Branches should maintain the gold loan ledger account-wise, as per the specimen given as SIM- GL /9. This will facilitate obtention of acknowledgement of the borrower at the time of delivery of ornaments. The particulars (including details /descriptions of the gold ornaments) of every loan granted, whether by way of Demand Loan or Overdraft, should be entered in the standard Gold Loan Ledger and the particulars of the gold ornaments should be initialed by the two authorized officials in whose joint custody the ornaments are to be held. The accounts should be serially numbered and the number of each account recorded on the demand promissory note and other relative documents. The relevant account number followed by customer number of the borrower should also be noted in these documents.

Advance Value

Advance value of gold ornaments per gram of different level of purity (24/22/20/18 carats) is computed by keeping a margin of 25% on the market value by Precious Metal Department, Corporate Centre, Mumbai and advised to Circles by issuing a circular on first of every month. The advance value of gold ornaments per gram is input in the system by GITC, Belapur whenever the rates are revised to avoid any errors in arriving gold advance value. It is monitored on a daily basis and in the event of the current value on any day is 5% more or less than the prescribed rate, fresh market and advance value of gold ornaments, determined by Precious Metal Department, Corporate Centre, Mumbai and is advised to Circles accordingly. Advance value of the gold is made available by Precious Metal Department on SB Times>> Department 2>> Precious Metal.

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While calculating the loan amount, no separate margin is required as the advance value includes margin also.

Loan To Value

The LTV ratio should be computed against the total outstanding in the account including accrued interest, and current value of gold jewellery accepted as security /collateral. Once the LTV 75% is breached, the gold loan account would become NPA in terms of IRAC norms applicable to agri segment.

On the day when LTV is above 75%, 1st notice to be sent.

2nd notice is to be sent after 15 days from the 1st notice if the overdue persists.

3rd notice is to be sent after 30 days from the 1st notice if the position continuous.

The soft copy of the notices shall be generated by IT and sent to the branches under the head “Daily Report’. The branches have to take a print out of the same and after verifying the actual position of the account they have to send it to the borrower.

A report will be made available to the branches on the under noted format. List of gold loan accounts where margin is breached.

A/c Name

limit O/S Sec value

Margin Amt to be recovered

Assess-ment and Security valuation

In Thiruvananthapuram Circle, assessment by an appraiser has to be done for loans above Rs.1,00,000. However, the responsibility towards the a. quality/purity of gold ornaments rests with Cash in charge b. Weight & no of items of ornaments rest with Joint custodian.

Gold Purity testing

Branch Cash in charge is responsible for ensuring genuineness and purity of gold ornaments by using the following purity testing methods:

1. Touch Stone Method: 2. Nitric Acid Test Method 3. Specific Gravity Test Method 4. Assaying Machines

Weight of the gold ornaments

The weight of all extraneous matters such as wax, string, fastening etc as well as precious stones must be allowed for, on liberal scale, and must be entirely ignored when ornaments containing them are being valued.

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Quantum of loan

a. Crop loan requirement: SOF (Scale of Finance)*

S.N Crop grown

acreage SOF Total

Crop I II I X II = ‘X’

1

2

3

b.Net weight of Gold ornaments X Advance value of Gold ornaments( As advised by Precious Metal Department, Mumbai time to time) = ‘ Y’ c. Loan amount : =Lower of ‘X’ / ‘Y’ *SOF is issued by the district level technical committee and issued \District wise for each crop. The details of SOF is available at https://lhotri.statebanktimes.in/ABU...> Quick links 2…>Scale of Finance

Interest rate The rate of interest will be linked to One Year MCLR (Marginal Cost of Funds Lending Rate) of the Bank. 1) Rate of interest for raising short term crop loans up to Rs.3.00 lacs per season / per farmer will be charged @7% p.a (fixed) as per Government of India (GoI) directives. It is subject to GoI providing 2% p.a interest subvention to Bank on such advances. 2) Additional subvention of 3 per cent per annum for prompt/timely repayment farmers as per GoI directive reduces the effective interest rate charged to farmers @ 4 per cent per annum. 3)Rate of interest for raising short term crop loans above Rs.3.00 lakhs is determined by the Bank from time to time which is linked to One Year MCLR rate + applicable spread. 4) If loan is not repaid on due date, the interest rate will be linked to One Year MCLR + Spread as determined by Bank from time.

Income leakage

Agri Gold loans carrying incorrect interest rates are to be rectified on an ongoing basis to plug income leakage.

Card rates as determined by Bank from time to time, will be applicable to all loans sanctioned against the pledge of gold ornaments after the expiry of 12 months or due date whichever is earlier

Short Term Production Credit loan will be charged applicable interest rates linked to One Year MCLR rate + applicable spread, as determined by Bank from time to time beyond due date.

Branches are advised to reset the applicable card rate manually in al loan accounts carrying incorrect interest rates from the date of expiry of interest subvention period to plug income leakage, if any.

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End use of credit

Evidence required for post sanction and pre-sanction inspection should be held on record to ensure the end use of funds. The crop loans sanctioned are eligible for Agri Interest Subvention only when they satisfy the following criteria: i. The borrower should be an agriculturist ii. Rate of interest charged should not exceed the rate stipulated by the Govt, of India iii. The amount of loan is fixed according to the prescribed Scale of Finance (SOF) for agricultural loans and the loan is used for stated purpose. iv. Seasonality is observed regarding both disbursement and delivery. v. To ensure hassle free benefits to farmers under Interest Subvention Scheme, the branches are advised to make Aadhar lining mandatory for availing short term crop loans against the pledge of gold ornaments vi. To avoid multiple loaning and to ensure that only genuine farmers avail concessional crop loan from the mechanism of gold loans, branches may conduct due diligence and ensure proper documentation including land details even the farmer avails gold loans for such purposes.

Repayment period

a. Cash Credit / Over Draft: Like KCC, it is a running account for a period of 3 years subject to review (outstanding vis a vis advances value of the ornaments pledged) at annual intervals. It should always be ensured that the outstanding in the loan account should not exceed the market value of the ornaments pledged. b.Demand Loan: The repayment period of the loan should be fixed synchronizing with harvesting and marketing season, allowing 2 or 3 months after harvesting to market the produce and realize the proceeds. However, the total period should not exceed one year form the disbursement of the loan. It should always be ensured that the outstanding in the loan account should not exceed the market value of the ornaments pledged. In such an event, the borrower should be advised to regularize the position.

Loan Processing fee

a. Up to Rs.25,000 : NIL b. Above Rs.25,000 to up to Rs.2.00 lakhs : Rs.500 + GST c. Above Rs.2.00 lakhs: 0.30% of loan limit. d. Processing charges will be determined by Bank from time to time.

Discretion-ary Powers

As per the Delegation of Financial Powers vested with Sanctioning Authority by the respective Circles. Control of the Gold loans is to be submitted to the next higher authority.

Document-ation

a. KYC documents b. DP Note and DP Note Take Delivery Letter c. Application, appraisal and Acknowledgement letter : SIMGL/1 d. Two copies of photograph of the borrower e. Gold Ornaments Take Delivery Letter ( SIM-GL /2) f. Witness letter in case of illiterate borrowers ( SIM-GL / 3) g. Memorandum in respect of Gold ornament(s) deposited as security (SIM-GL / 9)

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Delivery of Ornaments

On repayment of a loan, 1. The ornaments held as security for it together with the demand

promissory note duly discharged should be returned to the borrower(s) against his / their acknowledgement in the Gold Loan Ledger.

2. The acknowledgement should state that the ornament received by him/them

are complete and in order.

3. Where it becomes necessary to retain the ornaments pertaining to a closed account, these should be kept in the joint custody of the official in charge of gold ornaments and the Cash in charge / Cash in Charge as an article in the Safe Deposit.

4. The full particulars of the relative loan account should be entered and

authenticated by both the officers in the Safe Deposit Register. The borrower’s acknowledgement for subsequent delivery of the ornaments should be obtained in the Gold Loan Ledger and the fact noted in the Safe Deposit Register.

Part Delivery of ornaments

On written request of the borrower(s), part delivery of ornaments may be given against part repayment of the loan, provided the advance value of the ornaments still in the Bank’s possession fully cover the outstanding in the account. The borrower’s acknowledgement for receipt of ornaments delivered to him / she/they should be obtained in the Gold Loan Ledger.

Delivery of ornaments to a third party

Delivery of ornaments to a third party, who must be identified, may be made on complete repayment of loan only in very exceptional circumstances and on undoubted authority of the borrower. 1. The letter of authority (SIM-GL/5) contains an undertaking by the borrower absolving the Bank from responsibility in the event of dispute or loss arising from the delivery of ornaments to the party named therein. If necessary, the undertaking may be taken in the form of letter of Indemnity as per SIM-GL/9 . 2. The receipt of the third party will be taken on the letter of authority as well as the Gold Loan. Ledger. 3. The borrower should be advised separately of the delivery of the ornaments to the third party and requested to send to the bank an acknowledgement on form COS 49 which should be sent to him along with the request letter. 4. On receipt of the COS 49 necessary remarks should be made in the Gold Loan Ledger. The letter of authority / indemnity Bond and the acknowledgement on COS 49, when received, should be filed in a separate file and retained in the strong room.

Deceased Borrower

a. Interest in the account of deceased borrower should be charged as per the contracted rate in the usual manner. b. If the legal heir / near relatives wish to liquidate the outstanding in the gold loan account, they can be permitted to do so by giving them clear understanding that the ornaments would be delivered to the legal heirs on production of legal representation in the proper way only and that the amount so deposited would not be refunded to them in case they fall to

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obtain legal representation in their favour. A letter of understanding to this effect must be obtained and kept on record. c. The ornaments will be delivered to the legal heirs on production of the legal representation or on completing the Bank’ formalities with regard to delivery of the ornaments in lieu of the proper legal representation. In the latter case, the person(s) liquidating the loan account should be made to sign the letter of indemnity as one the sureties. d. Pending completion of the formalities / production of the legal representation and delivery, the gold ornaments should be held as safe deposit article.

Calling up of advances

a. Advance will be called up, when (i) The value of gold is less than the outstanding or (ii) The account becomes irregular i.e Principal and /or interest remains unpaid on due date. b. If the account is irregular, a letter should be sent to the borrower as per SIM-GL/7 requesting him / her to deposit the amount /regularize the account within 15 days. c. If the borrower fails to regularize the account and if continue to be irregular , a notice as per SIM-GL /8 should be sent advising that the ornaments will be sold by public auction, if the loan and interest are not paid within 15 days from the date of notice. The notice (English and Vernacular) must be dispatched to the borrower under Registered Post with acknowledgement due. d. Whenever any of the notices described above is sent the date of dispatch should be noted in the relative ledger account under the initials of the official signing the notice.

Auction of gold ornaments

Branches should put in a system to declare every 3rd Friday of the month for conducting monthly auction for sale of gold ornaments to realize and recover the dues of NPA. 1 ) First Notice – A registered post with Ack due has to be sent to the borrower as per the Annexure I to regularize account within 15 days, immediately after the account becomes irregular. 2) Final Notice – If the account is not regularized within 15 days, a final notice (registered post with Ack due) as per Annexure II has to be sent to the borrower, advising that the relative gold ornaments will be sold by public auction without further reference if the loan account is not closed within 30 days from the date of notice. Hence, the total auction process should be completed in 45 days by giving above two notices. (E - Circular Sl. No: 1581/2017-18 dated 31.03.2018.)

The procedure for auction of gold loans are as under: (i) In the event of the registered letter being refused, it must be kept unopened preferably on a separate file after making appropriate remark in the ledger account.

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(ii) The branch should satisfy itself before advising the borrower or his legal claimants, if he is dead, that in the event of a forced sale, gold ornaments sufficient to cover the dues only need to be auctioned. The gold ornaments to be auctioned should be examined by a reliable local goldsmith and his valuation of each ornaments ascertained in writing. (iv) The proposed auction and auction dates should be publicized by ‘tom-tom’ in the local bazaar on three consecutive days prior to the date of auction. (all charges to be equally debited to all the defaulting borrowers account.) However, while doing so the borrower’s name should not be divulged. The Cash in charge may arrange for some of the local merchants to witness the proceedings and, if they choose, take part in the bidding. (v) The auction should be held in the Bank’s premises. (vi) Every effort should be made to realize the full market value of the security pledged. A reasonable minimum price must be fixed for each ornament depending on the valuer’s report and the current market price and the bidding must start form this amount. (vii) While conducting the auction, each item of the ornaments must be auctioned separately. When the total amount realized is sufficient to liquidate the outstanding plus interest in full, the auction shall be stopped. A Banker’s cheque in the name of the borrower should be issued for the surplus amount, if any, after liquidating, the loan account. The cheque should be held in Safe Custody, pending disposal of the claim from the borrower or his accredited legal representatives. (viii) The unsold items of the gold ornaments, if any, must be held as Safe Deposit article in the name of the borrower and held in the joint custody of the Branch Manager / Accountant and Cash in charge/ Cash in Charge. (ix) A summary of the circumstances leading to the sale, details of the auction proceedings, the name of the highest bidder, the amount realized and the manner in which it has been disposed of, should be recorded in duplicate and witnessed by as many of the disinterested persons present at the auction as possible. A Copy of the recorded note should be forwarded to the Controlling Authority for information. (x) A receipt for the ornaments sold should be obtained from the successful bidder in the Gold Loan Ledger as also on a separate sheet of paper and preserved along with other documents / papers of the account. (xi) Ornaments may also be sold through private treaty inviting offers from the local jewellers, members of public for each item or for smaller lots, enough to discharge the borrower’s obligations.

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What to do in case of failure of recovery process through auction

Gold Appraiser’s Value (A): When the auction of gold ornaments is not successful, each item of gold ornaments pledged to the bank (Which could not be sold during the auction) has to be valued afresh for each gold loan account with the assistance of an independent gold appraiser; his valuation has to be obtained in writing. The fee is to be debited to the Gold Loan a/c of the borrower. Market value computed by Branch (B): The present market value of each item of gold ornaments pledged with the bank (which could not be sold during the auction) has to be computed by the Cash in charge of the branch. Reserve Price for re-auction: The reserve price of each item of gold ornaments pledged with the bank is the higher of Gold Appraiser (A) / Market value computed by Branch (B) which will be taken as basis for conducting a fresh auction.

Agricultural gold loan safe keeping charges

Gold loan safe keeping charges have to be recovered from all agricultural gold loans.

Charges to be recovered 30 days after the expiry of the prescribed tenure of gold loan, presently 12 months.

Applicable charges are to be recovered including service charges which will be determined by Bank from time to time.

Appraiser charges

@ 0.05% to 0.10% of loan amount (with a minimum of Rs.50/and maximum of Rs.300/- in Rural/Semi Urban branches & a minimum of Rs.50/and maximum of Rs.600/- in Urban/Metros) The charges are to be paid by the borrower directly to appraiser

MULTI PURPOSE AGRI GOLD LOANS (NON-INTEREST SUBVENTION)

Particulars Details

Product Multi-Purpose Agri gold loan (Non- Interest Subvention)

Product Codes 6431-4158 DL Gold loan DL 6530-1112 GL for agri prod needs KCC 6531-1140 OD Gold loan OD 6430-4155 ATL Gold loan DL

Credit Facilities

Demand Loan, Cash Credit ,Overdraft Term Loan

Purpose To meet the short term production / investment credit needs of a. the farmers, engaged in agriculture, cultivating own and /or leased land or engaged in cultivation of crops b. Farmers in allied activities like Dairy, Poultry, Fisheries, Piggery, Sheep etc. c. Entrepreneurs and famers who needs investment credit for acquiring farm mechanization, undertaking land development, irrigation, horticulture, transportation of agri produce etc.. All other farming activities which are permitted to be classified under agriculture as per RBI/GoI/NABARD guidelines and not covered under the Agri interest subvention scheme.

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Eligibility a. All farmers: Individuals who are owner cultivators, agri entrepreneurs. b. Tenant farmers, Oral lessees & Share croppers c. Any person engaged in agriculture or allied activities and who wants to repay loans availed from non-institutional lenders as well as persons engaged in activities permitted by RBI to be classified under agriculture d. Evidence of land holding record and agri activities. e. KYC compliance is to be ensured. f. Loan can be granted against the security of specially minted gold coins sold by SBI/e-ABs weighing up to 50 grams per customer only

Quantum of loan

+Loan availed from non-institutional lenders……………….……………(A) +Allied Agri activities (Dairy, Goat Farming, Poultry, Fisheries, Bee-keeping, etc.) if applicable…………………….(B) +Investment Credit needs (Land Development, Minor Irrigation, Drip Irrigation, Fencing, Construction of contour wall/ bunding, Purchase of- agricultural implements, etc.) if applicable…………………….………..(C) +Crop loan, if applicable……………………………………………………(D) +Total loan amount required ( A+B+C)……………………….…………..(D) +Net weight of Gold ornaments X Advance value of Gold ornaments ( As advised by Precious Metal Department, Mumbai time to time)………………………………………(E) +Eligible loan amount ( Lower of D or E)

Interest rate a. Interest subvention is not eligible b. Interest rate is linked to One Year MVLR +applicable spread which is determined by Bank from time to time c. At present, interest rate is One Year MCLR + 1.25% i.e 9.20%p.a

Penal rate of interest

Not applicable as interest will be serviced along with Principal at the end of term.

Repayment period

a. Cash Credit/ Over Draft: It is a running account for a period of 3 years subject to review at annual intervals. b. Demand Loan: 12 months from the date of disbursement of the loan in case of short term loan/production loan. c. Term Loan: 36 Months. It should be activity based and as per income generation cycle.

Processing fee a. Up to Rs.25,000 : NIL b. Above Rs.25,000/- but up to Rs. 2 lac: Rs. 500+ GST c. Above Rs. 2 lacs : 0.30% loan amount . d. Processing charges will be determined by Bank from time to time.

Documentation a. DP Note and DP Note Take Delivery Letter b. Application, appraisal and Acknowledgement letter : SIMGL/1 c. Two copies of photograph of the borrower d. Gold Ornaments Take Delivery Letter ( SIM-GL /2) e. Witness letter in case of illiterate borrowers ( SIM-GL / 3 ) f. Memorandum -Gold ornament(s) deposited as security (SIM-GL/ 8)

Application, Gold loan Ledger, Advance Value, Loan To Value, Assessment and Security valuation, Purity testing, Weight of the gold ornaments, Delivery of ornaments, part delivery of ornaments, delivery of ornaments to third party, settlement of deceased borrower’s gold ornaments, calling up of advances, auction of gold ornaments are as applicable to Agri Gold Loan(Interest Subvention)

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PERSONAL SEGMENT GOLD LOAN

Parameter SBI Personal Gold Loan (DL)

SBI Personal Liquid Gold Loan(OD)

SBI Gold Loan (Bullet Repayment)

Minimum Loan Limit

20,000/-

Maximum 20 Lacs

Maximum Repayment Period (in months)

36 36 12

Margin 25% 25% 35%

Repayment Mode

Equated Monthly Instalment(EMI)

Interest to be serviced on monthly basis. Principal to be paid at the end of the term.

Both Interest and Principal to be paid at the end of the term

Processing Fee

0.50% of the Loan amount + applicable Service Tax or Rs.500 + applicable service Tax whichever is higher.

Rate of Interest 1 Yr MCLR + Spread of 200 bps

Appraiser charges @ 0.05% to 0.10% of loan amount (with a minimum of Rs.50/and maximum of Rs.300/- in Rural/ Semi Urban branches & a minimum of Rs.50/and maximum of Rs.600/- in Urban/Metros) The charges are to be paid by the borrower/borrowers directly to appraiser

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DETECTION AND IMPOUNDING OF COUNTERFEIT NOTES The Counterfeit Notes can be impounded by- (i) All Banks (ii) All Treasuries and Sub-Treasuries. (iii) Issue Offices of Reserve Bank of India. Detection of counterfeit notes Banknotes tendered over the counter / received directly at the back office / currency chest through bulk tenders should be examined for authenticity through machines. No credit to customer’s account is to be given for counterfeit notes, if any, detected in the tender received over the counter or at the back-office / currency chest. In no case, the counterfeit notes should be returned to the tenderer or destroyed by the bank branches / treasuries. Failure of the banks to impound counterfeit notes detected at their end will be construed as willful involvement of the bank concerned in circulating counterfeit notes and penalty will be imposed. Impounding of counterfeit notes Each banknote, which, on examination of various security features / parameters, is determined as a counterfeit one, shall be branded with a stamp "COUNTERFEIT BANKNOTE". For this purpose, a stamp with a uniform size of 5 cm x 5 cm with the following inscription may be used.

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COUNTERFEIT BANKNOTE IMPOUNDED BANK / TREASURY/ SUB-TREASURY BRANCH / CURRENCY CHEST SIGNATURE DATE

Each such impounded note shall be recorded under authentication, in a separate register. Issue of Receipt to Tenderer When a banknote tendered at the counter of a bank branch/back office and currency chest or treasury is found to be counterfeit, an acknowledgement receipt in the following prescribed format must be issued to the tenderer, after stamping the note as "COUNTERFEIT BANK NOTE". Acknowledgement Receipt to be issued to the tenderer of counterfeit notes Name of the Bank / Treasury/ Sub-treasury: Address: Serial Number of the Receipt: Date: The note (s) described below received from…………………………….(Name and Address of the tenderer) is/are counterfeit and has/have therefore been impounded and stamped accordingly.

Serial number of the note deemed as counterfeit

Denomination

Parameter on which the note is deemed as counterfeit

Total number of counterfeit notes: (Signature of the Tenderer) (Signature of the counter staff) The receipt, in running serial numbers, should be authenticated by the cashier and tenderer. Notice to this effect should be displayed prominently at the offices / branches for information of the public. The receipt is to be issued even in cases where the tenderer is unwilling to countersign it. Detection of Counterfeit Notes - Reporting to Police and other bodies The following procedure should be followed while reporting incidence of detection of counterfeit note to the Police: For cases of detection of counterfeit notes upto 4 pieces, in a single transaction, a consolidated report in the prescribed format should be sent by the Nodal Bank Officer to

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the police authorities or the Nodal Police Station, along with the suspect counterfeit notes, at the end of the month. The details of the nodal branches and the police stations are published in https://lhotri.statebanktimes.in/MBPM....>Utilities....>Downloads Consolidated Monthly Reporting for the month of ________

1. Name of the Bank / District: 2. Name and Address of the Nodal Officer:

3. Detail of counterfeit notes:

Date of detection

Name of branch / currency chest

Details of tenderer

Denominations / pieces / serial numbers

Security features breached

4. The counterfeit notes are enclosed.

5. Kindly acknowledge receipt. (Authorised signatory) Encl: For cases of detection of counterfeit notes of 5 or more pieces, in a single transaction, the counterfeit notes should be forwarded immediately by the Nodal Bank Officer to the local police authorities or the Nodal Police Station for investigation by filing FIR in the following format Name of the Bank: District: Name and Address of the Nodal Bank Officer: Ref. No. Date: The Sr. Inspector of Police ___________Police Station, Dear Sir, Detection of counterfeit note/s – Request for investigation

1. We enclose the following counterfeit notes detected in our office on ________. The details of the counterfeit notes are furnished below.

2. As the printing and/or circulation of forged Indian Currency Notes is an offence

under Sections 489A to 489E of the Indian Penal Code, we request you to lodge FIR and conduct the necessary investigation. In case it is decided to file criminal proceedings in the court of law, you may first arrange to send the notes to any of

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the Note Printing Presses, Forensic Science Laboratories etc. in terms of the provisions of Section 292(1) and 292(3) of the Code of Criminal Procedure) for examination. The expert opinion furnished may be produced in the court as evidence under Section 292 of the Criminal Procedure Code. The forged notes may please be returned to us after the completion of the investigation and/or proceedings in the court of law along with the detailed report of the investigation / decision of the court.

Denominations/ Number of pieces

Serial No.

Notional Value

Details of tenderer

Name & address of the branch / currency Chest where detection took place

Bank’s Entry No.

3. The counterfeit notes are enclosed. 4. Please acknowledge receipt. Yours faithfully, Authorised Signatory Encl : A copy of the monthly consolidated report / FIR shall be sent to the Forged Note Vigilance Cell constituted at the Head Office of the bank (only in the case of banks) and in the case of the treasury, it should be sent to the Issue Office of the Reserve Bank concerned. Acknowledgement of the police authorities concerned has to be obtained for note/s forwarded to them both as consolidated monthly statement and FIR. If the counterfeit notes are sent to the police by insured post, acknowledgement of receipt thereof by the police should be invariably obtained and kept on record. A proper follow-up of receipt of acknowledgement from the police authorities is necessary. In case, any difficulty is faced by the Offices / Branches due to reluctance of the police to receive monthly consolidate statement / file FIRs, the matter may be sorted out in consultation with the Nodal Officer of the police authority designated to coordinate matters relating to investigation of counterfeit banknotes cases. The list of Nodal Police Station may be obtained from the respective Regional Office of Reserve Bank. In order to facilitate identification of people abetting circulation of counterfeit notes, banks are advised to cover the banking hall/ area and counter under CCTV surveillance and recording and preserve the recording. Banks should also monitor the patterns / trends of such detection and suspicious trends/patterns should be brought to the notice of RBI/Police authorities immediately. The progress made by banks in detection and reporting of counterfeit notes to Police, RBI, etc. and problems thereof, should be discussed regularly in the meetings of various State Level Committees viz. State Level Bankers’ Committee (SLBC), Standing Committee on Currency Management (SCCM), State Level Security Committee (SLSC), etc.

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The data on detection of counterfeit Indian notes at bank branches should be included in the monthly Returns forwarded to the Reserve Bank Issue Offices. The definition of 'counterfeiting' in the Indian Penal Code covers currency notes issued by a foreign government authority as well. In case of suspected foreign currency note received for opinion from the police and government agencies, etc., they should be advised to forward the case to the Interpol Wing of the CBI, New Delhi after prior consultation with them. The Government of India has framed Investigation of High Quality Counterfeit Indian Currency Offences Rules, 2013 under Unlawful Activities (Prevention) Act (UAPA), 1967. The Third Schedule of the Act defines High Quality Counterfeit Indian Currency Note. Activity of production, smuggling or circulation of High Quality Counterfeit Indian Notes has been brought under the ambit of UAPA, 1967. Examination of the Banknotes before Issuing over Counters, Feeding ATMs and Remitting to Issue Offices of the Reserve Bank The banks should re-align their cash management in such a manner so as to ensure that cash receipts in the denominations of ₹ 100 and above are not put into recirculation without the notes being machine processed for authenticity. The said instructions shall be applicable to all bank branches, irrespective of the volume of daily cash receipt. Any non-compliance will be construed as violation of the Directive No.3158/09.39.00 (Policy)/2009-10 dated November 19, 2009 issued by the Reserve Bank. In order to obviate complaints regarding receipt of counterfeit notes through ATMs, and to curb circulation of counterfeits, it is imperative to put in place adequate safeguards / checks before loading ATMs with notes. Dispensation of counterfeit notes through the ATMs would be construed as an attempt to circulate the counterfeit notes by the bank concerned. Detection of counterfeits in chest remittances is also liable to be construed as willful involvement of the chest branches concerned in circulating Counterfeit Notes and may attract special investigation by police authorities, and other action like suspending the operation of the chest concerned. Penalty at 100% of the notional value of counterfeit notes, in addition to the recovery of loss to the extent of the notional value of such notes, will be imposed under the following circumstances: a) When counterfeit notes are detected in the soiled note remittance of the bank. b) If counterfeit notes are detected in the currency chest balance of a bank during Inspection / Audit by RBI in terms of circular No.DPSS.CO.PD2298/02.10.002/2011-12 dated June 20, 2012, the responsibility of ensuring the quality and genuineness of cash loaded at White Label ATMs would be that of the Sponsor Bank.

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Designating Nodal Bank Officer Each bank should designate Nodal Bank Officer, district-wise and notify the same to the concerned Regional Office of RBI and Police Authorities. All cases of reporting of counterfeit note detection should be through the Nodal Bank Officer. The Nodal Bank Officer will also serve as the contact point for all counterfeit note detection related activities. Provision of Ultra-Violet Lamp and Other Infrastructure With a view to facilitating the detection of counterfeit notes, all bank branches /identified back offices should be equipped with ultra-violet lamps / other appropriate banknote sorting / detection machines. In addition, all currency chest branches should be equipped with verification, processing and sorting machines and should be used to their optimum capacity. Such machines should conform to the guidelines on 'Note Authentication and Fitness Sorting Parameters' prescribed by the Reserve Bank in May 2010. The banks shall maintain a daily record of the notes processed through the Note Sorting machines, including the number of counterfeits detected. The banks should also consider providing at least one counting machine (with dual display facility) for public use at the counter. Reporting of Data to RBI A statement in the following format, showing the details of counterfeit notes detected in the bank branches during the month shall be compiled and forwarded to the Issue Office of Reserve Bank concerned so as to reach them by 7th of the next month. Name of the bank /District: Statement showing the details of counterfeit banknotes detected in the _____________ during the month of _______________

A. Details of counterfeit notes detected:

Name of branch / Currency chest

Type of detection

Denomination-wise Details in pieces Total pieces

10 20 50 100 500 500 1000 2000

FIR

Non-FIR

Pieces of notes processed

B) Details of cases filed with police:

Pending with Police at the beginning of the month

Sent to Police during the month under report

Returned by the Police

Pending with the Police at the end of the month

No. of cases

No. of pieces

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NB: Each FIR lodged comprises one case. The total number of forged notes covered by the FIR may be indicated in each of the columns above. Forwarded to: - 1. The General Manager/Deputy General Manager, Reserve Bank of India, Issue Department, ____________ (Signature) Name & Designation of the Authorised Official A “nil “report may be sent in case no counterfeit has been detected during the month.

COUNTERFEIT CURRENCY REPORTING (CCR) APPLICATION

a. CCR is developed for real time reporting of counterfeit currency by branches and onward submission of the same by BOD department to FIU and RBI. b. Prerequisite: End User should use IE 11. c. URL : https://ccr.statebanktimes.in d. Authentication: For user authentication CCR is integrated with SBI Passport service (Single Sign On), so that users can use their ADS user id and password. Roles: Access to the System is role based. Six types of roles are present in the System. BOD Department: Business owner of the application. Two types of roles are assigned to BOD Department which are –

BOD Authoriser: DGM BOD, will create the users for daily operations in BOD Department.

BOD User: Identified users to manage daily operations of CCR application such as mapping of user roles for LHO Nodal Officer and CFO and also monitoring CCR entries up to branch level. Deletion of invalid/non-extracted data on request by branch.

AML / CFT Department: Extract the data for submission to RBI. Two types of roles are assigned to this department. Authoriser: DGM AML/CFT, will create the users for daily operations in AML/CFT Department. User: Identified users will be responsible for extracting data reported by branches for onward submission to RBI/FIU. Flow of Transaction a. Data Entry is done by Branch User. CCR Number is generated and sent to Checker for authorisation. b. Checker either authorise or reject the Transaction. Rejected Transaction is sent back to Maker for modification. c. If branch finds any transaction authorised by mistake on same day, then maker can delete the transaction, which has to be authorised by checker. If checker rejects the deleted transaction then it gets in authorised state and become available to BOD for onward submission.

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d. If branch find any erroneous transaction authorised previous working day, then they can contact BOD and request them to delete the transaction before data is extracted and sent to FIU. e. AML/CFT will extract the transactions reported by various branches for onward submission. Application Flow for Branch a. Access to the System is through Single Sign On. Use URLhttps://ccr.statebanktimes.in for accessing the application. After successful login Home Page is displayed according to the roles assigned to log in user.

b. Data Entry : i. In Menu select, Transaction : Data Entry.

ii. On the data entry screen three Options are available : New/Modify/Delete

iii. New: This Option allows user to do data entry for new Transaction. All the fields with red asterisk are compulsory fields.

iv. Fill in the details

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v. Clicking on submit, will create transaction and generates CCR Number which is the identifier of the transaction. Note it down for future reference. vi. Data Authorisation : Checker will need to authorise all the transaction for which data entry, modification or deletion is done by maker. Menu Navigation : Tra

For further guidance: refer to the user manual available in the CCR portal Preservation of Counterfeit Notes Received from Police Authorities All Counterfeit Notes received back from the police authorities/courts may be carefully preserved in the safe custody of the bank and a record thereof be maintained by the branch concerned. Forged Note Vigilance Cell of the bank shall also maintain a branch-wise consolidated record of such Counterfeit Notes. These Counterfeit Notes at branches should be subjected to verification on a half yearly basis (on 31st March and 30th September) by the Officer-in- Charge of the bank office concerned. They should be preserved for a period of three years from the date of receipt from the police authorities. They may thereafter be sent to the concerned Issue Office of Reserve Bank of India with full details. Counterfeit notes, which are the subject matter of litigation in the court of law should be preserved with the branch concerned for three years after conclusion of the court case. Ref : e-Circular Sl. No. : 468/2017 – 18 Date : Thursday - 27th July 2017.

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FACILITY FOR EXCHANGE OF NOTES AND COINS AT BANK BRANCHES All branches of banks in all parts of the country are mandated to provide the following customer services, more actively and vigorously to the members of public so that there is no need for them to approach the RBI Regional Offices for this purpose: (i) Issuing fresh / good quality notes and coins of all denominations on demand, (ii) Exchanging soiled / mutilated / defective notes, and (iii) Accepting coins and notes either for transactions or exchange. In terms of section 6 (1) of The Coinage Act, 2011, the coins issued under the authority of section 4 shall be a legal tender in payment or on account, in case of :- Coins of any denomination not lower than one rupee, for any sum not exceeding one thousand rupees; A half-rupee coin, for any sum not exceeding ten rupees, Provided that the coin has not been defaced and has not lost weight so as to be less than such weight as may be prescribed in its case. All branches should provide the above facilities to members of public without any discrimination on all working days. The scheme of providing exchange facility by a few select currency chest branches on one of the Sundays in a month will remain unchanged. The availability of the above-mentioned facilities at the bank branches should be given wide publicity for information of the public at large. None of the bank branches should refuse to accept small denomination notes and / or coins tendered at their counters. Reserve Bank of India (Note Refund) Rules, 2009 - Delegation of powers In terms of Section 28 read with Section 58 (2) of Reserve Bank of India Act, 1934, no person is entitled as a right to recover from the Government of India or RBI the value of any lost, stolen, mutilated or imperfect currency note of the GOI or banknote. However, with a view to mitigating the hardship to the public in genuine cases, it has been provided that the RBI may, with the previous sanction of the Central Government, prescribe the circumstances in, and the conditions and limitations subject to which, the value of such currency notes or banknotes may be refunded as a matter of grace. With a view to extending the facility for the benefit and convenience of public, all branches of banks have been delegated powers under Rule 2(j) of Reserve Bank of India (Note Refund) Rules, 2009 for exchange of mutilated / defective notes free of cost.

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Liberalized definition of a Soiled Note A ‘soiled note’ means a note which has become dirty due to normal wear and tear and also includes a two piece note pasted together wherein both the pieces presented belong to the same note and form the entire note with no essential feature missing. These notes should be accepted over bank counters in payment of Government dues and for credit to accounts of the public maintained with banks. However, in no case, these notes should be issued to the public as re-issuable notes and shall be deposited in currency chests for onward transmission to RBI offices as soiled note remittances for further processing.

Mutilated Notes – Presentation and Passing A mutilated note is a note of which a portion is missing or which is composed of more than two pieces. Mutilated notes may be presented at any of the bank branches. The notes so presented shall be accepted, exchanged and adjudicated in accordance with Reserve Bank of India (Note Refund) Rules 2009.

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Imperfect note :

Imperfect note means any note, which is wholly or partially, obliterated, shrunk, washed, altered or indecipherable but does not include a mutilated note;

Mismatched note : Mismatched note means a mutilated note which has been formed by joining a half note of any one note to a half note of another note:

Extremely brittle, burnt, charred, stuck up Notes Notes which have turned extremely brittle or are badly burnt, charred or inseparably stuck up together and, therefore, cannot withstand normal handling, shall not be accepted by the

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bank branches for exchange. Instead, the holders may be advised to tender these notes to the concerned Issue Office where they will be adjudicated under a Special Procedure. Procedure for exchange of soiled/ mutilated/ imperfect notes Exchange of soiled notes: Full value shall be payable Exchange of mutilated notes (1) The adjudication of claims in respect of notes of one rupee, two rupee, five rupee, ten rupee and twenty rupees denomination shall be made in the following manner,

(i) if the area of the single largest undivided piece of the note presented is more than 50 percent of the area of the respective denomination, rounded off to the next complete square centimeter, full value on mutilated notes of the above denominations shall be payable;

(ii) If the area of the largest undivided piece of the note presented is less than or equal to 50 percent of the area of the note, the claim shall be rejected.

The value of a mutilated note of one rupee, two rupee, five rupee, ten rupee and twenty rupees denomination may be refunded in full if the undivided area of the single largest piece of the note, as specified in the Table-1 below, presented is equal to or more than 31, 34, 38, 44, and 47 square centimeters (cms) respectively.

TABLE-1

Denomination Length (cm)

Width (cm)

Area (in cm2)

Minimum area (in cm2) required for payment*

1 9.7 6.3 61 31

2 10.7 6.3 67 34

5 11.7 6.3 74 38

10 13.7 6.3 86 44

20 14.7 6.3 93 47

(2) The payment of claim in respect of note of rupees fifty and above denominations shall be made in the following manner,

(i) Full value of the mutilated notes of the above denominations shall be payable if the area of the single largest undivided piece of the note presented is more than 65 percent of the area of the respective denomination rounded off to the next complete square centimeter;

(ii) if the undivided area of the single largest undivided piece of the note presented is equal to or more than 40 percent and less than or equal to 65 percent of the area of the respective denomination rounded off to the next complete square centimeter, half the

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value of the note is payable.

(iii) If the area of the single largest undivided piece of the note is less than 40 percent, no value shall be payable, and the claim shall be rejected.

(iv) if the claim of mutilated notes of rupees fifty and above denomination notes consists of a note composed of two pieces of the same note and the two pieces, individually, have an area equal to or more than 40 percent of the total area of the note in that denomination, then the claim may be refunded for full value and need not be treated as consisting of two tenders for half value.

If the area of the single largest undivided piece of the mutilated note of rupees fifty and rupees one hundred note presented is at least 70 and 75 square centimeters, respectively, as specified in Table-2 below, the same may be paid for full value;

The value of a mutilated bank note of rupees fifty and rupees one hundred may be paid for half value, if the area of the single largest undivided piece of the note presented is at least or more than 43 and 46 square centimeters, respectively, as specified in Table-2 below.

If the area of the single largest undivided piece is less than the above specification, the claim shall be rejected.

TABLE-2

Denomination Length (cm)

Width (cm)

Area (in cm2)

Minimum area (in cm2) required for payment of full value@

Minimum area (in cm2) required for payment of half value**

50 14.7 7.3 107 70 43

100 15.7 7.3 115 75 46

@ Rounded off to the next complete higher square centimeter of 65 % of the area of the note in a particular denomination. ** Rounded off to the next complete higher square centimeter of 40 %of the area of the notes or 40% area of the note in a particular denomination.

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For example:

Reserve Bank of India (Note Refund) Rules for new series notes issued after demonetization are awaited. Hence Branches are advised to deal accordingly.

Payment of claim in respect of mismatched note-

The payment of claim in respect of a mismatched note may be dealt with as follows,

In case of notes upto rupees twenty denomination notes, the area of the larger of the two pieces presented may be measured and adjudicated, ignoring the smaller half.

If the area of the larger piece of the note presented is more than 50 percent of the area of the respective denomination, rounded off to the next complete square centimetre, full value on mutilated notes of the above denominations shall be payable;

If none of the two pieces presented meets the minimum area (ie less than or equal to 50 percent of the area of the note) the claim shall be rejected.

In case of rupees fifty and above denominations, the two pieces may be treated as two separate claims and dealt with accordingly.

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Procedure for exchange of soiled/ mutilated/ imperfect notes Exchange of soiled notes Notes presented in small number: Where the number of notes presented by a person is up to 20 pieces with a maximum value of Rs.5000 per day, banks should exchange them over the counter, free of charge. Notes presented in bulk: Where the number of notes presented by a person exceeds 20 pieces or ` 5000 in value per day, banks may accept them, against receipt, for value to be credited later. Banks may levy service charges as permitted in Master Circular on Customer Service in Banks In case tendered value is above Rs.50000, banks are expected to take the usual precautions. Exchange of mutilated and imperfect notes While designated branches may continue to follow the procedure as laid down in Part III of NRR, 2009 (www.rbi.org.in → Publications→ Occasional) for exchanging mutilated and imperfect notes and issue receipt for the notes presented for adjudication, non-chest branches are required to follow the following procedure for notes presented in small numbers and in bulk. Notes presented in small number: Where the number of notes presented by a person is up to 5 pieces, non-chest branches should normally adjudicate the notes as per the procedure laid down in Part III of NRR, 2009 and pay the exchange value over the counter. If the non-chest branches are not able to adjudicate the mutilated notes, the notes may be received against a receipt and sent to the linked currency chest branch for adjudication. The probable date of payment should be informed to the tenderers on the receipt itself and the same should not exceed 30 days. Bank account details should be obtained from the tenderers for crediting the exchange value by electronic means. Notes presented in bulk: Where the number of notes presented by a person is more than 5 pieces not exceeding ` 5000 in value, should be advised to send such notes to nearby currency chest branch by insured post giving his / her bank account details (a/c no, branch name, IFSC, etc.) or get them exchanged thereat in person. All other persons tendering mutilated notes whose value exceeds ` 5000 should be advised to approach nearby currency chest branch. Currency chest branches receiving mutilated notes through insured post should credit the exchange value to the account of sender by electronic means within 30 days of receipt of notes.

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Tenderers aggrieved with the service provided by the banks in this regard may approach Banking Ombudsman concerned, following the procedure as laid under Banking Ombudsman Scheme, 2006 with the bank /postal receipts as proof for necessary action. Notes bearing "PAY"/"PAID" "REJECT" stamps Every Officer-in-charge of the branch i.e. the Branch Manager and every Officer in- charge of the Accounts or Cash Wing of the Branch shall act as 'Prescribed Officer' in each branch to adjudicate the notes received at the branch for exchange in accordance with Reserve Bank of India (Note Refund) Rules, 2009. After adjudicating mutilated notes, the Prescribed Officer is required to record his order by subscribing his initials to the dated 'PAY'/ 'PAID'/ 'REJECT' stamp. The 'PAY' /'PAID' & 'REJECT' stamps should also carry the name of the bank and branch concerned and held under the custody of the 'Prescribed Officer' to avoid misuse. Mutilated / defective notes bearing 'PAY'/'PAID' (or 'REJECT') stamp of any RBI Issue Office or any bank branch, if presented for payment again at any of the bank branches should be rejected under Rule 6(2) of Reserve Bank of India (Note Refund) Rules, 2009 and the tenderer should be advised that the value of such note/s cannot be paid since the same has already been paid as is evident from the PAY/PAID stamps affixed on it/them. All bank branches have instructions not to issue notes bearing PAY/PAID stamps to the public even through oversight. The branches should caution their customers not to accept such notes from any bank or anybody else. Notes bearing slogans / political messages, etc Any note with slogans and message of a political nature written across it ceases to be a legal tender and the claim on such a note will be rejected under Rule 6(3) (iii) of Reserve Bank of India (Note Refund) Rules, 2009. Similarly, notes which are disfigured may also be rejected under Rule 6(3) (ii) of Reserve Bank of India (Note Refund) Rules, 2009 Deliberately cut notes The notes, which are found to be deliberately cut, torn, altered or tampered with, if presented for payment of exchange value should be rejected under Rule 6(3)(ii) of the Reserve Bank of India (Note Refund) Rules, 2009. Although it is not possible to precisely define deliberately cut notes, a close look at such notes will clearly reveal any deliberate fraudulent intention, as the manner in which such notes are mutilated will follow a broad uniformity in the shape/location of missing portions of the notes, especially when the notes are tendered in large numbers. The details of the case such as the name of the tenderer, the number of notes tendered and their denominations should be reported thereafter to the Deputy/General Manager, Issue Department, under whose jurisdiction the branch falls. The matter should also be reported to local police in case a large number of such notes are tendered. Display of Notice Board All bank branches are required to display at their branch premises, at a prominent place, a board indicating the availability of note exchange facility with the legend, "SOILED/MUTILATED NOTES ARE ACCEPTED AND EXCHANGED HERE" for information of general public. Banks should ensure that all their branches provide facility for exchange of notes and coins not only to their customers but also others. However, they should ensure that the note exchange facility is not cornered by money changers / dealers in defective notes.

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Disposal of notes adjudicated at bank branches Regarding audit of the notes adjudicated by bank branches, the full value paid notes have to be remitted by all branches to the chest branches with which they have been linked and there from to the Issue Offices concerned together with the next soiled note remittance in the manner already laid down. The half value paid notes and rejected notes, which are held by the chest branches in their cash balance, may either be remitted separately packed together with the full value paid notes or sent by registered and insured post as and when required. The full value paid notes will be treated as chest remittance by the Issue Office while the half value paid notes and rejected notes will be treated as notes tendered for adjudication and processed accordingly. All chest branches are required to submit to our Issue Offices a monthly statement showing the number of notes adjudicated during the month. Uncurrent Coins The coins of 25 paise and below, issued from time to time, ceased to be legal tender for payments as well as account with effect from June 30, 2011 in terms of Gazette Notification No. 2529 dated December 20, 2010 issued by the Government of India. The coins of 25 paise and below which ceased to be legal tender are required to be dispatched to Issue Offices of RBI concerned on receipt of advice from the Office and in the manner specified by the Office Monitoring and Control The Regional Managers / Zonal Managers of the banks may pay surprise visits to the branches and report the position of compliance in this regard to the Local Head Office which will review such reports and take prompt remedial action, wherever necessary. Any non-compliance in this regard shall be viewed as violation of instructions issued by the Reserve Bank of India. (Ref: e-Circular Sl. No.: 376/2017–18 dt.07.07.2017) Service charges for exchange of soiled/Imperfect notes Up to 20 pieces and value up to 5000-nil More than 20 pieces and /or value more than 5000 More than 20 pieces-2 per piece on entire tender +GST Value above 5000-2 per piece or5 per 1000 +GST whichever is higher on entire tender For example: 25 pieces of 500/-=value Rs.12,500/- tendered Charges 2/- per piece: 50+GST Chagres @ 5/- per 1000: 62.5+GST Amount to be charges: 62.5+GST

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STANDARD OPERATING PROCEDURE - ACCOUNTING PROCESS- ATM

ACCOUNTING ENTRIES

At the time of giving cash to custodians;

Dr : ATM Cash Intermediate Account (3199842bbbbbc)

Cr : Branch Cash balance account

While loading cash in ATMs (online posting);

Dr : BGL 3198 of respective ATM

Cr : ATM Cash Intermediate Account (3199842bbbbbc)

Entry of excess cash found on ATM (online posting);

Dr : ATM Excess Cash Found Account (3199845bbbbbc)

Cr : ATM Excess Cash Account (3199844bbbbbc)

When Excess cash is taken back at the Branch ;

Dr : Branch cash balance Account

Cr : ATM Excess Cash Found Account (3199845bbbbbc)

When Admin is decreased (online posting);

Dr : ATM Admin Decrease Account (3199843bbbbbc)

Reversal of wrong entry of cash replenishment by the Branch;

Dr : Branch Cash Balance Account

Cr : ATM Cash Intermediate Account (3199842bbbbbc)

Process at Branch

Branch has to post all entries related with ATM transactions through ATM menu only,

provided in CBS

DELIVERY OF CASH FOR REPLENISHMENT IN ATMs At the time of delivery of cash by branch to ATM Joint Custodians / CIT agency, branch will debit ATM cash Intermediate account (BGL No: 3199842) and give cash to them through “Cash Replenishment” option of ATM menu;

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Branch will select cash replenishing agency from the given drop down

Branch will enter the amount to be given to the ATM custodians / CIT agency

Debit account number and narration will be automatically picked up

While posting this entry in CBS a unique Reference number will be generated and given by the branch to CIT/ATM Joint custodian/CAC along with cash.

ATM Cash Replenishment Receipt

Date 12/06/2014

ATM Cash Loading Agency Name

CIT 1 NAVIMUMBAI

Amount (In Figures) 100

Amount (In Words) Rs. One Hundred Only.

Reference No. 00003601140015

INSTRUCTIONS FOR ATM CASH REPLENISHMENT: The custodians should use the Admin cards allotted to their branch for cash loading. The cash loading process at the ATMs must be in the following sequence: Cash verificati

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Cash verification should be performed prior to replenishing the cash in the ATM and the corresponding output should be entered into the “Short cash”, Excess cash” or “No difference” options under cash verification menu. This reference number will be valid for loading the cash only up to the amount of debit made in the “ATM CASH INTERMEDIATE ACCOUNT”. Amount entered in Admin increase/decrease should not be more than the cash loading capacity of the ATM cassette (generally maximum of 2500 notes). Physical cash should be loaded in the cassette only after receiving the successful response of the Admin increase entry from the switch and CBS. In case of the entry made in CBS but the response by the switch is shown as unsuccessful. GITC will reverse this entry (refer to Reconciliation circular for details). Branch has to give printout of this document to ATM Custodians / CIT agency for their

record.

Reversal of wrong entry of cash replenishment : If the Branch has erroneously posted wrong amount for giving cash to the Joint custodians / CIT agency, the entry has to be reversed and new entry of correct amount has to be done. Reversal of wrong entry will be done through “Cash Replenishment : Correction” option in ATM menu in CBS as under;

Credit account number will be auto populated and the branch has to enter the trace

number, reference number and amount on the screen. Reference number is the CBS

generated system reference number (SYS no.)

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Excess cash found in ATM: If custodians have reported excess cash found on an ATM,

this has to be deposited at the branch. Posting of excess cash entries will be done in CBS

through “Adjustment of ATM Excess Cash” option of ATM menu;

Credit account number will be auto populated

Reference number is the CBS generated system reference number (SYS no.)

ATM number is the last 3 digits of ATMID i.e. ATM serial number.

Date if transaction is the date on which the entry of excess cash was made on ATM

screen

Cash loading agency has to be selected from the drop down. It must be the same agency

to which cash has been given for replenishment.

Journal number is the CBS generated journal number appearing against the entry in ATM

Excess Cash Found Account.

Credit for excess cash will be posted in ATM Excess Cash Account through system which

will be used for resolution of customer complaint.

Short cash found in ATM : If custodians have reported excess cash found on an ATM, no

accounting entry will be passed in the books of the branch. The Branch has to lodge a

request of Short cash in Service Desk. A new category of ATM Short Cash is being added

in existing ATM option for the purpose. These requests will be directly escalated to GITC

and the same will be resolved at GITC level.

Monitoring and control : Branch will receive daily report of outstanding entries in all 4 new

accounts (3199842-3199845) opened for revised accounting process in the report "Audit

BGL - AGE WISE BREAKUP OF OUTSTANDING ENTRIES – gend0805.txt” under

“Adhoc_Audit_Reports” category in the report folder of the branch. Age wise details of

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outstanding entries in accounts used for revised process will also appear in the same

report. Branch has to peruse this report on a daily basis to have effective control over the

affairs of CIT agency.

Process at ATM

After taking cash and reference number from the branch, the joint custodians will go to

ATM for cash replenishment activity. Process for cash replenishment is as under;

Balance enquiry: Custodians will do balance enquiry through the Admin Menu => Balance

enquiry => Print Admin Total. This will give hopper wise admin balance as well as BGL

3198 balance.

Print Counters: In supervisory mode, custodians have to take counter balance of all

Hoppers.

Physical Cash Verification will be done by tallying physical cash with the counter

balance / admin balance. Difference, if any has to be noted down denomination

wise.

Cash Verification confirmation has to be entered on ATM screen through the Admin

Menu => Cash Verification.

If the cash is tallying, “No Difference” option has to be selected.

If excess cash is found, the hopper wise amount of excess cash has to be entered

on ATM screen through Admin Manu => Cash Verification => Excess cash. Excess

cash has to be taken out from ATM and returned back to the Branch.

If cash shortage is found, the hopper wise amount of short cash has to be entered

on ATM screen through Admin Manu => Cash Verification => Short cash. Details of

short cash has to be given to the branch.

Cash Replenishment.

Machine will ask for confirmation whether cash verification has been done? Option

“yes” has to be selected.

On next screen “Admin Increase” menu has to be selected and hopper wise amount

of admin increase has to be entered. Custodians have to enter last 8 digits of 14

digit reference number given by the branch along with the cash for replenishment,

when asked for, on ATM screen.

Custodians have to enter last 8 digits of reference number and amount two times

and thereafter confirmation screen will appear displaying hopper no, reference

number and amount. If all data is correct, custodians will select “Confirm” option,

otherwise, they will select “Cancel” option and re-enter correct data.

After confirmation given by the custodians, this entry will be posted in CBS and

receipt will be printed.

Same process (i-iv) has to be repeated for all hoppers where cash has to be

replenished.

After successful completion of admin increase transactions, physical has to be

loaded in cassettes, counters to be zeroised and increased to current position.

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Custodians will again do balance enquiry to confirm that all transactions undertaken

have been properly accounted for and after confirmation, they will make ATM

available for customers.

After coming back to the branch, the custodians will take xerox of all admin slips

generated on ATM and paste them in cash replenishment register.

If cash is being replenished by CIT agency, the CIT agency will provide these admin

slips along with their report to the branch.

Activities for CIT Agency

CIT agency has to take cash only against a particular reference number. Printout

given by the branch will contain name of CIT agency, date, reference number and

amount of cash given against that reference number.

CIT agency to add one column for reference number against which the cash is

loaded in an ATM, in their report.

CIT agency to keep track of cash taken from the branch against a particular

reference number and replenished in ATM against it.

Suggestive formats for revised report and reference number tracking sheet have

already been shared with MS vendors / CIT agencies through the Circles.

CIT should preferably first utilize the amount given against old reference number

rather than utilizing new reference number for replenishing the cash when amount

against old reference number is not fully utilized.

At any given point of time not more than 3 reference numbers should be

outstanding against any CIT agency at the branch which is giving cash to CIT

agency.

ATM RECONCILIATION

OUTSTNDING IN ATM CASH DISBURSED –CUSTOMER ACCOUNT NOT DEBITED ACCOUNT -BGL ACCOUNT NO. 98581 (E-Circular Sl. No.747/2012-13 [NBG/BOD-AC/70/2012-13 dt.17.10.2012) Many of the Branches are having substantial number of entries in the BGL A/c no. 98581- “ATM Cash disbursed – Customer A/c not debited”. Entries continuing to be in 98581, due to insufficient balance in customer account, if the branch is not able to effect recovery from the customer either because he has stopped transacting in the account or has left the bank/branch. Despite marking of lien / hold on the account, the customer can bypass the account .Even when recovery is made in 98581, interest for the period for which the Bank was out of funds was not recovered in many cases. The balance if continuing to lie in 98581 may draw adverse attention of auditors and provision would be required for all the debit entries outstanding for 90 days and beyond. In the light of the above, it has been decided by the competent authority that if the Customer’s account does not have sufficient balance, a clean overdraft account should to be opened by credit to 98581 a/c, linked with

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Customer’s deposit account after giving due notice. Auto sweep facility should be set up in the deposit account so that amount credited in the deposit account is automatically transferred to the OD account. By opening such Overdraft account the branches would be able to track the outstanding with the customers, recover interest, take legal action etc. If required in due course, they can even advise the names of such defaulting customers to CIBIL, so that the recalcitrant or delinquent customers are deprived of any financial support from other financial institutions. Further, it has also been decided by the Competent Authority to place following restrictions while opening of such Overdraft accounts:- i. Account should only be opened in the home branch of the customer and with same

CIF. ii. Branch should mark a lien for the amount involved on customer account in which the

excess payment has been made through ATM and also set up auto sweep for CA overdraft account so that money received in customer account is automatically transferred to OD account.

iii. The account should be opened only after giving due notice about the incident to the

customer, and if the recovery has not been forthcoming even after 30 days of notice. iv. In order to avoid too many small value accounts being opened, to begin with, current

accounts should be opened only when the dues from individual customers exceed Rs. 3000/= (Three thousand only) and only after 30 days of the incident