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1. ACTIVITY ON CASH HANDLING OPERATIONS - FACULTY LED
Activity through cue card or questionsto POs
in groups and presentationby them.
What are the procedure tobe followedwhile
openingthe vaultbykeyholders?
 Before opening the vault for the day alert the
guard.
 Ensure that the front gate is closed before
opening vault.
 Joint key holders to be present together 15
minutes before commencement of business
hours as per Goiporia committee
recommendations. Before opening the vault
change alarm from night mode to day mode.
 VerifyPreviousdays closingbalance whichshall
be the opening balance of the day and
physicallytallythe same before taking out cash
to cashiers.
 Ensure that nothing has been tampered inside
the vault room
 Ensure only Minimum required amount to be
taken out in a trunk duly locked and one key
withcash officerandthe otherwiththe cashier.
 Ensure that Guard is present while cash is
transmitted from vault to cash cabin.
 Ensure Double lock register signed by both the
key holders for having taken out cash and
tallied with the outstanding cash in D/L
 See that the grill gate is closed at all times so
that no unauthorised person enters the vault.
 Ensure that the cash is handed over to the
cashiers with their signature in the cash
movement register.
What ismeantby Retentionlimitandinwhat
wayit helpsthe Bank?
 Retention limit or standard Cash Limit is the
limit up to which the branch can hold cash at
the end of the day fixed by CO
 After going through the no. and amount of
receipt and payments made in a day.
 Idle cashat branchmeanslossof profit to bank.
 Hence it is prudent on the branch to work
withinthe Retentionlimitandexcesscashif any
continuously to be remitted to currency chest
 It will act as a margin for CRR and SLR.
 Working within Retention limit will ensure
safetyof the branch and covered by insurance.
What happensif a keyholderiscomesto
branch withdelaydue toreasonsbeyondhis
control?(Facultytocreate situationwhere
one of the keyholderisunable tocome on
time openthe vault)
 Key holders have to be present in the branch
and open the vault 15 minutes in advance
before commencement of business as per
Goiporia committee report.
 If any one of the joint custodian is delayed
beyondthe control of the officerdue tomedical

2. or other reasons the BM or any other officer
jointly with one more officer will take out the
duplicate set of keys from the nearby branch
where it is lodged for safe custody and start
operation of the branch.
 On returnof the officerthe keys are exchanged
and kept back in the nearby branch under safe
custody with joint operation clause.
 The safe custody receipt to be kept with the
Manager.
What procedure tobe followedif the key
holderwantstogo on leave orout door
duties?
 If the keyholderhasto proceedonleave he has
to inform in advance make arrangement for
handing over the keys to next incumbent by
recording the same in key movement register.
What isthe difference betweenasoilednote
and mutilatednote?
 Soiled notes are the notes which have become
dirty due to handling and cut in to 2 pieces and
joined together and no portion is missing.
 Where as a mutilated note is a note cut in to
more than 2 pieces or a portion of the note is
missing to the extent as stipulated by RBI note
refund policy 2009 for notes up to the value of
Rs. 20 or Rs. 50 and above.
It isobservedbyyouthat the vault door is
keptopenduringthe dayafter cash
operations.Whatisyouradvise tokeyholders
and why?
 Ensure that the Vault door kept closed during
the day.
 Howeverforoperational convenience the inner
grill gate has to be kept closed and locked
always to prevent unauthorised entry of
persons as a safety measure.
 Cash and securities are sensitive in nature and
any deviationof norms inhandling will resultin
loss to the Bank for which key holders will be
held responsible
 Hence it is the responsibility of the key holder
to lockthe grill gate of the vault and follow the
laid down procedure.
It isobservedthatthe cashier/Tellerwhile
movingoutof cash cabindoesnot lockthe
door andjust closesthe dooras the lockis not
proper.What isthe procedure inthis
connection
 Branch cash officerhas to ensure that locks are
in perfect working condition in cash cabins.
 Cashier has to close the cash cabin while
working inside duly locked to avoid
unauthorised entry.
 Simultaneously while moving out temporarily
he has to ensure closure of the cabin duly
locked.
 If any deviation of norms by the cashier to be
correctedand ensure thatthe cabin is locked at
all times while working or while moving out by
the cashier.
 No unauthorisedpersonexceptthe cash officer
or the Branch manager for surprise check to be
allowed.

3. Duringthe day endcash paidand cash
received sealsare keptinthe cashcabinand
whenan enquirythe cashierinformsthatitis
the practice followedinthe branchforlong.
What isyour viewonthe same?
 Ensure as an officer of the Bank, cash paid and
cash received seals are to be kept in safe vault
at the end of the day
 Bank will be held accountable in case of
complaint by any customer on producing the
counterfoil with the cash received seal, even
without the signature of the officer as per RBI
guidelines.
 All other seals are also to be kept under lock
and key.
What isthe importance of the signboardon
cut and mutilatednotesacceptedhere?
 As per the guidelines of RBI the exchange of
notesincludingsoiled andmutilatednoteshave
to be done by the branches of any scheduled
banks
 The customer may or may not have an account
with the branch.
 Hence the sign board is mandatorily displayed.
The cashierrequeststhe officertotake out
lumpsumcashof Rs.12,00,000 as he has to
oftenrequestthe officerforpaymentduring
the day. What are your opinion onthe above
request?
 Branch to ensure taking out Minimum required
cash in the morning while opening the vault to
be handed over to the cashier for making
payments early in the morning.
 However if the payment cashier request for
cash later the same has to be handed over as
and when required to avoid security risk
 Cash taken out every time has to be properly
recorded with the dual signature of the key
holder in the safe register and cashiers
signature in cash Register.
What isthe significanceof openingcash
balance andclosingcash balance ?
 Opening cash balance is the amount of cash
within the vault overnight and tallied with the
GL of the branch. Upon opening the vault the
key holders tally the opening cash balance and
then take out required amount of cash for
payments by recording in the vault register.
 Afterthe daystransactionthe cash is talliedand
receipt is added to the opening balance and
payments deducted from the opening balance
thus arriving at the closing balance.
 However the closing balance has to be
mandatorily tallied with the GL balance of the
branch as otherwise the key holders have to
findoutthe difference and arrive at the closing
balance as per General ledger cash balance
which is an Asset of the bank.

4. RBI has come out witha policyoncleannote
in1999. As a bankin whatway itis significant
to us to adhere tothese guidelines ?
 RBI has come out with a Clean note policy to
issue good notes to public and retain the
reputation of the country.
 Banks have to adhere to the clean note policy
invariably.
 The policy covers issue of good notes to public
across counter and in ATMs,
 Not to dirty the note,
 Not to staple the notes
 Not to write on the blank portion of the note
 Soiled notes and mutilated notes and notes
issued prior to 2005 have to be surrendered to
RBI for issue of new notes through currency
chest of the bank.
 Notes have to be segregated as issuable and
non-issuable and for the above purpose all
biggerbranchesand currency chests have to be
providedwith high speed sorter cum fake note
detector machines.
What procedure tobe followedif aforged
note detectedinthe cashremittedbya
customer?
Counterfeitnote remittedbyacustomer/ non
customerhas to be impounded,issuedwithareceiptto
the tenderer(withnote no.noted)
A counterfeitnote fake note when
determined/adjudicated/identifiedshall be stamped
“CounterfeitBankNote witharubberstampof uniform
size 5cm x 5 cm.
FIR has tobe filedif the numberof note exceeds4
immediately.
Whensuch notesreceivedislessthan4onlya
consolidatedstatementtobe sentto local police
stationat the endof month.
FIR lodgedtobe obtainedfromthe concernedPolice
station.
Copyof FIRforwardedtoForgednote vigilance cell of
the Head office.
Particularas to name,addressof tenderer,astatement
as to how he came in possessionshall be furnished to
Police authorities.
Counterfeitnote senttopolice byInsuredPostAck.due
an kepton record.
CounterfeitnotesreceivedbackfromPolice station
preservedinthe safe custodyfora periodof 3 years.
Vigilance cellshall alsomaintainabranchwise
consolidatedrecordof suchcounterfeitnotes.
Counterfeitnotesverificationhalf yearlydone on31st
March and 30 th Septemberbybranchofficial.
To whomthe reportinghasto be one incase
of detectionof aforgednote?
Reportingisdone toFIU-INDthroughSuspicious
transactionreportand RBI throughvigilance cell.
What are the functionsof Forgednote cell of
Vigilance cell?
Disseminationof instructionissuedbyRBI
Compilationof datasubmissiontoRBIand FIU-IND
SharinginformationwithBankCVOregarding

5. acceptance counterfeitacrosscountry
Ensure sorted,examinedbanknotesaspercleannote
policyfedinATM
Ensure adequate safe guard
Update record of addressof Forgednote Vigilancecell
to RBI.
Procedure tobe followedbythe branchwhile
remittingthe cashto chestor nearbybranch?
Excesscash beyondthe StandardCashLimithas to be
remittedtoCurrencychestof the bank.Evenwhenthe
branch requirescashforpaymentof large value
chequesindentscashfromcurrencychest.
At the time of remittance the branchhas to follow
certainguidelinesasunder;
Cash remittance uptoRs. 5000 – substaff mayremit.
Cash remittance above Rs.5000 up to 25000 one clerk.
Cash remittance above Rs.25000 upto Rs.20 lakhsa
Clerkandanotherstaff.
Cash remittance above Rs.20lakhsuptoRs. 50 lakhs- 2
employeeswithone armedguard.
Cash remittance above Rs.50 lakhs2 employeesand2
Armedguard.
The brancheshave to abide bythe normsof remittance
to avoidanyuntowardincidencesandforinsurance
cover.
How securitiesandcashinvaultand transitis
coveredincase of any mishap?
BankersindemnityInsurance policy coversthe Cash
and securitiesheldinbranchesetc.,(coveringFire,
burglary,theft,robbery) andsecuritiesintransitis
coveredbya Bankersindemnitypolicy