4. CASH OPERATIONS
Cash in Transit
Sorting of cash
ATM Replenishment
Call Back Confirmation (CBC)
Genuineness on instrument through IV marker
Type of cheques & crossing of cheques
SBP Clean Note Policy
SBP Currency Management Strategy
5. VAULT/KEYS OPERATION
Cash vault must be operated under
dual control (BOM & Teller)
Collateral/Gold vault must be
operated under triplicate control (BM,
BOM & Teller)
Keys must be in possession of key
holders during and after office hours
6. VAULT/KEYS OPERATION
Duplicate keys may be placed in
nearby branch of NRSP MFBL, if
available or with branch of any other
bank where banker account is
maintained
Keys must be rotated after every six
months or on transfer of key holders
whichever is earlier
7. OPENING OF CASH
Cash must be opened 10 minutes
prior to counter hours i,e @ 8:50 am
Counter must be ready for customer
services at 9:00 am
Cash must be withdrawn from vault
keeping in view “Average Daily Payment”
requirement
8. OPENING OF CASH
Vault register must be maintained and kept in vault
All stamps will be updated to reflect current date
Security Alarm system will be by passed during
Banking hours (Main entrance)
Cash counter door must be locked all the times during banking
hours
Notice of “Authorized Persons Only” must be pasted on
entrance door
9. CASH RECEIPT
Customer will deposit cash at counter
Only Teller is allowed to receive cash at branch
Teller will receive cash from customer along with
dully filled prescribed deposit slip or issue system
generated receipt after accepting & counting cash
After physical count, Teller will verify the same
through counting machine
10. CASH RECEIPT
Teller will mention denomination on deposit slip
Teller will obtain depositor signature on deposit slip
Teller will post deposit slip into system on real time
After proper discharge (sign & stamp), Teller will
handover customer copy to customer, if with in Teller’s
limit
11. CASH RECEIPT
If above Teller’s limit, receipt will be
forwarded to Authorizer for
authorization
Teller will advise customer to get his/her
copy from the authorizer
Authorizer will authorize it after basic
verification from customer and handover
customer’s copy
12. CASH PAYMENT
Customer will come at counter and present
cheque for payment
Teller will ensure that cheque is not crossed,
mutilated, torn, stale or post dated
Teller will ensure amount in words and figures is
matched on cheque
Teller will ensure there is no cutting/over writing
on cheque, if so it must be authenticated by the
drawer
13. CASH PAYMENT
Teller will confirm genuineness of
instrument through IV marker
Teller will verify drawer’s signature
through SS card into system, ensure
availability of balance, account status is
active, no stop payment instructions
against instrument
Teller will post cheque into system and
cancel it by waving a line with Red pen
14. CASH PAYMENT
Teller will obtain customer’s signature on back of
instrument and make payment, if within Teller’s limit
otherwise forward to authorizer for authorization
Teller will affix “Cash Paid” stamp on cheque with his
signature
Teller will mention denomination on back of instrument
While making payment of photo account, Teller will
ensure self presence of account holder at counter.
15. LOAN PAYMENT
Loan payment is restricted to borrowers with
biometric verification except MSME loan (for
customers having mature/firm signature)
In case biometric is failed, BM/BOM will
authorize transaction with noting on back of
cheque that;
“ Customer is himself/herself present at
counter
for payment”.
16. ONLINE TRANSACTION
Cash deposit or withdrawal by using different
branches of a bank using electronic means.
Transaction conducted by a walk in customer;
`
Copy of CNIC is required for cash transaction Rs. 0.500 M in a
single transaction or multiple transactions that appeared to be
linked
Copy of CNIC is required for online transaction (regardless of
threshold), if transaction exceeds Rs. 100,000 name, CNIC and
purpose must be captured in system
17. UTILITY BILLS COLLECTION
Customer will come over the counter for
payment of all type of post paid/prepaid
utility bills/ Top ups
Teller will collect bill along with cash
Teller will physically count the cash
Teller will input consumer number into
eBPS to get details of bill to be paid
18. UTILITY BILLS COLLECTION
Upon successful match of physical bill with system
details, Teller will pay bill into system, if
unmatched will be refused politely to customer
Teller will affix “Utility Bill Paid” stamp on both
(customer & bank) copies with signature and
amount
At closing, all bills copies will be reconciled &
attached with system report. Report will be jointly
signed by the BOM & Teller and stitch/seal with
daily vouchers
19. PAYMENT OF GOVT. TAXES & DUTIES
Customer will come over the counter for
payment of all type of Govt. Taxes &
duties
Teller will collect challan along with cash
Teller will physically count the cash and
match it with the challan amount
Teller will input reference number into
20. PAYMENT OF GOVT. TAXES
& DUTIES
Upon successful match of Challan with
system details, Teller will pay Challan into
system, if unmatched will be refused
politely to customer
Teller will affix “Cash Paid/Bank Paid”
stamp on both (customer & bank) copies
with signature and amount
At closing, all Challan copies will be
reconciled & attached with system
21. CASH IN TRANSIT
Utmost efforts will be made to hire
services of security company for
transportation of cash
Cash will be handed over to security
company guards after verification of their
identity and sealed in presence of branch
staff
In case of emergency or non-availability
of security service, branch can transport
22. CASH IN TRANSIT
Cash in transit entry will be made in
system before transporting cash
Entry will be reversed on same day upon
completion of transaction
Cash Withdrawal from Banker Account
Debit-GL Credit-GL
Cash in Transit GL-10103000 Banker Account GL-XXXXXXXX
Cash in hand GL-10101000 Cash in Transit GL-10103000
Cash deposit into Banker Account
Cash in Transit GL-10103000 Cash in hand GL-10101000
Banker Account GL-
XXXXXXXX Cash in Transit GL-10103000
23. CASH CLOSING
At closing, physical cash will be balanced
with Cash on hand system GL
All cash will be sorted through sorting
machine
Teller will prepare “Statement of cash
closing”. This statement will be jointly by the
cash custodians
Teller will maintain Vault register for closing
24. CASH CLOSING
Cash will be kept in vault under dual
control
Electronic Alarm system will be
activated
Surprise cash check must be done by
the BM/BCM at least once in a month
25. INSURANCE MANAGEMENT
Cash must be maintained within allocated
insurance limit, during banking hours and at
closing
Excess cash must be disposed off or arrange
insurance cover for the excess over limit cash
at closing
Insurance cover for excess cash must be
arranged on same day
26. ATM REPLENISHMENT
• ATM should be replenished on daily basis
under dual control
• Fresh or good quality re-issuable notes
should be kept in ATM
• ATM Keys should be in possession of Teller
and combination code with BOM
• Replenishment should be completed in
minimum possible time with the objective
27. ATM REPLENISHMENT
• Sufficient quantity of cash should be filled in
cassettes specially on weekends/public holidays/
Eid holidays
• Proper entries should be made in system
• ATM can also be operated after office hours
or during holidays, if required for maintenance
or replenishment but `under dual control
• Any excess or shortage of cash during balancing should be
adjusted accordingly in the system with proper intimation
to ADC Operations
28. TYPE OF CHEQUES
Bearer Cheque
When the word "bearer" printed on the cheque is not
cancelled, the cheque is called as bearer cheque
A bearer cheque is made payable to the to the person
who presents it to the bank for payment/encashment
29. TYPE OF CHEQUES
Order Cheque
When the word "bearer" printed on the
cheque is cancelled and the word ‘order’
may be written on the cheque, the
cheque is called an order cheque. An
order cheque is one which is payable to a
particular person.
30. TYPE OF CHEQUES
Cross Cheque
Crossing of cheque means drawing two parallel
lines on the left corner of the cheque with or
without additional words like "Account Payee
Only" or "Not Negotiable".
A crossed cheque cannot be encashed at the cash
counter of a bank but it can only be credited to the
payee’s account.
31. TYPE OF CHEQUES
Post Dated Cheque
Cheque on which drawer mentions a date
which is yet to come(future date) to the date
on which it is presented, is called post-dated
cheque.
32. TYPE OF CHEQUES
Stale Cheque
If a cheque is presented for payment after six
months from the date of the cheque, it is
called stale cheque.
Stale cheque cannot be paid without re-
validation by the drawer
33. TYPE OF CHEQUES
Mutilated Cheque
When a cheque is torn into two or more pieces
and presented for payment, such a cheque is
called a mutilated cheque. The bank will not
make payment against such a cheque without
getting confirmation of the drawer.
34. CROSSING OF CHEQUES
GENERAL CROSSING
When a cheque bears two transverse parallel
lines at the left hand of its top corner or stamped
as “A/C Payee Only” is called General Crossing
SPECIAL CROSSING
When the name of a particular bank is written
between two parallel lines the cheque is said to
be specially crossed
35. PARTIES TO CHEQUE
DRAWER
The person who signs the cheque and order for payment
DRAWEE
It is always bank on which cheque is drawn and is ordered to pay the amount of
cheque.
PAYEE
The person to whom the cheque is payable. ( In many cases, drawer and payee
can be the same person.)
36. CALL BACK CONFIRMATION (CBC)
To secure customer’s interest and bank’s payment
CBC should be performed on cheque Rs. 100,000/- or above on
counter for payment, funds transfer or in clearing
BM/BOM should contact with customer on registered number
Upon successful confirmation, note on reverse of cheque that “CBC
confirmed” with time & signature of official
In case unsuccessful CBC, branch management will decide on
previous history and conduct of customer, for online payment
matter may be referred to parent branch for final decision
37. Genuineness of instrument
To mitigate the risk of payment on forged
instrument
Every instrument valuing Rs. 100,000/-
and above will be verified through IV/UV
Marker to confirm genuineness before
making payment
38. CLEAN NOTE POLICY
1.Branches have been preparing and
maintaining the prescribed statement of
daily closing cash balances
39. CLEAN NOTE POLICY
2.Branches have been maintaining minimum One day’s
fresh / re-issuable balance in accordance with the
average daily cash payment requirements except of
the branches which are exempted from this condition
i. Branches making an average daily payment of less than Rs. 0.50 million
ii. Branches having immediate access to re-issuable good quality currency notes
such as withdrawal facility from the large branch of the same bank in the same city,
SBP BSC local Offices / NBP Chests
40. CLEAN NOTE POLICY
3. Branches have been properly sorting
Bank Note packets / bundles into
issuable/ non-issuable as per SBP BSC
standards and no instances have been
observed where non-issuable notes /
packets are being put into circulation by
the branches
41. CLEAN NOTE POLICY
4. Branches have been making
arrangements for on spot sorting of
bank notes over the counter, in case
where average daily payment is
exceeding Rs. 1.50 million
42. CLEAN NOTE POLICY
5. Branches have been affixing Sorted
stamps on packets of issuable / non-
issuable bank notes of either description
“ISSUABLE” or “SOILED”
43. CLEAN NOTE POLICY
6. Branches have been accepting small
denomination bank notes of Rs. 5/-, Rs.
10/- & Rs. 20/- as well as cut / soiled /
mutilated and defective currency notes of
all denominations
44. CLEAN NOTE POLICY
7. Branches have been removing staple
pins from re-issuable packets of all
denominations
45. CLEAN NOTE POLICY
8. Branches have been banding packets of
all denomination Bank Notes
46. CLEAN NOTE POLICY
9. Branches have been following the
procedure for issuance of fresh currency
to general public / stakeholders, as
issued by SBP BSC (Bank)
47. CLEAN NOTE POLICY
10. Branches have been maintaining
sufficient stock of coins of Re 1, Rs. 2, Rs. 5
and Rs.10/- denominations
48. CLEAN NOTE POLICY
11. Branches have been accepting coins
and are providing notes-coins exchange
facility
50. CLEAN NOTE POLICY
13. Branches have not been repeating
the irregularities pointed out in the
previous report
51. CLEAN NOTE POLICY
14. Branches have not been using
strong room / vault for other purposes
like record room, kitchen, stationery
store etc.
52. CURRENCY MANAGEMENT STRATEGY- CMS
State Bank of Pakistan announced salient features of its Currency
Management Strategy in currency conference held at Lahore in Feb
2015. The key features are;
Automation of cash management function in
the banking industry
Availability of machine authenticated good
quality notes to general public
53. CURRENCY MANAGEMENT
STRATEGY- CMS
Rationalization of SBP BSC Currency Management Operations
Increasing bank’s role & participation in currency
management
Combating counterfeiting
Machine sorting is applicable to all denominations
except Rs. 10 & 20
54. CURRENCY MANAGEMENT STRATEGY (CMS)-
PENALTY STRUCTRE
NON COMPLIANCE
Issuance of
Unauthenticated and
Unprocessed
banknotes to public
PENALTY
Rs. 100,000/- per
instance
55. CURRENCY MANAGEMENT STRATEGY (CMS)-
PENALTY STRUCTRE
NON COMPLIANCE
CPC/Feeding
branches/other
branches do not
have separate clean
and secure vault
space, with proper
safe keeping
arrangements
PENALTY
Rs. 20,000/- per
instance
56. CURRENCY MANAGEMENT STRATEGY (CMS)-
PENALTY STRUCTRE
NON COMPLIANCE
The vault does not have
insurance cover in line
with value of cash held
The entire CPC / Sorting
area is not covered by
high resolution CCTV
cameras
PENALTY
Rs. 10,000/- per
instance
Rs. 20,000/- per
instance
57. CURRENCY MANAGEMENT STRATEGY (CMS)-
PENALTY STRUCTRE
NON COMPLIANCE
Recording of CCTV
cameras is not available
for 60 days
Banknotes sorting an
authentication machines
are not processing /
authenticating
banknotes as per SBP
standards as outlined in
Finance Department
circular No. 03/2015
PENALTY
Rs. 10,000/- per day
Rs. 5000/- per machine
58. CURRENCY MANAGEMENT STRATEGY (CMS)-
PENALTY STRUCTRE
NON COMPLIANCE
Police verification of all
employees deployed at
CPC/Feeding Branch is not
available
Record of visitors is not
maintained
PENALTY
Rs. 5000/- per instance
Rs. 5000/- per employee
Rs. 5000/- per instance
59. CURRENCY MANAGEMENT STRATEGY (CMS)-
PENALTY STRUCTRE
NON COMPLIANCE
No approval has been
obtained from SBP
Finance Department,
where deviations to
requisite capabilities
in cash
handling/packing
machines
PENALTY
Rs. 20,000/- per instance
60. CURRENCY MANAGEMENT STRATEGY (CMS)-
PENALTY STRUCTRE
NON COMPLIANCE
Suspected Counterfeit
banknotes are not
surrendered to SBP BSC
within 48 hours of detection,
in a temper proof bag along
with all particulars of note,
name and code of relevant
branch
Packets and bundles are not
prepared/packed as per
requisite specifications
PENALTY
Rs. 30,000/- per instance
Rs. 20,000/- per instance
Rs. 100/- per packet
61. CURRENCY MANAGEMENT STRATEGY (CMS)- PENALTY
STRUCTRE
NON COMPLIANCE
Cash offered in IEC or
deposit with SBP BSC are not
packed as per Packing
Instructions
Any other non-compliance
and circumvention of
instructions issued from time
to time by SBP, relating to
CPC / Feeding Branch /
Standalone Branch
PENALTY
Rs. 20,000/- per instance
Rs. 1000/- per bundle
Min. 5,000 to Max. 100,000
depending upon the severity
of instance
62. CURRENCY MANAGEMENT STRATEGY (CMS)-
PENALTY STRUCTRE ATMs
NON COMPLIANCE
Machine authenticated
and sorted cash is not
being fed into ATMs
Presence of forged
banknotes in ATM
PENALTY
Rs. 100,000/- per instance
100 times the value
banknote found
63. CURRENCY MANAGEMENT STRATEGY (CMS)-
PENALTY STRUCTRE ATMs
NON COMPLIANCE
Bags/Cassettes are not prepared
and sealed in high resolution,
CCTV environment, as per
requisite specifications
The records pertaining to
bags/cassettes are not
maintained including
denomination, date and time of
sorting, sealing,
preparing/sealing personnel,
transporting personnel,
transporting vehicles and name
of supervisor
PENALTY
Rs. 20,000/- per
instance
Rs. 20,000/- per instance
64. CURRENCY MANAGEMENT STRATEGY (CMS)-
PENALTY STRUCTRE ATMs
NON COMPLIANCE
Separate bags /Trays are not
prepared for all attached
ATMs
Bags / Cassettes are remitted
without receipt of written
acknowledgement from
feeding team/officials/armor
guards/CITs
CCTV record of disputed
cases is not available
PENALTY
Rs. 10,000/- per instance
Rs. 5000/- per ATM
Rs. 10,000/- per instance
Rs. 20,000/- per instance
65. CURRENCY MANAGEMENT STRATEGY (CMS)-
PENALTY STRUCTRE ATMs
NON COMPLIANCE
Leftover cash taken from
ATMs, if any, is not
packed and sealed in
CCTV environment and
is not transported to
CPC/Feeding Branch for
Processing
Any other non-
compliance and
circumvention of
instructions issued from
PENALTY
Rs. 5000/- per ATM
Min. 5,000 to Max.
100,000 depending
upon the severity of
instance
66. CURRENCY MANAGEMENT STRATEGY (CMS)-
Arrangement with other Banks and IEC
NON COMPLIANCE
Claims/disputes for any balances
pertaining to IEC are not settled
within sixty (60) days
Any other non-compliance and
circumvention of instructions
issued from time to time by SBP,
relating to Arrangement with other
Banks or IEC
Bank does not maintain
prescribed statement of daily
closing cash balance
PENALTY
Rs. 5000/- per instance
Rs. 1000/- per day
Min. 5,000 to Max. 100,000
depending upon the severity of
instance
Rs. 5000/- per instance
500/- per day for which default
continues
67. CURRENCY MANAGEMENT STRATEGY (CMS)-
Arrangement with other Banks and IEC
NON COMPLIANCE
Minimum One Day's fresh /
re-issuable machine
authenticated balances is
not maintained in
accordance with the average
daily cash payment
requirements
Branch does not accept small
denomination banknotes as
well as cut / soiled /
mutilated and defective
PENALTY
Rs. 10,000/- per
instance
1000/- per day for which
default continues
Rs. 10,000/- per
instance
68. CURRENCY MANAGEMENT STRATEGY (CMS)-
Arrangement with other Banks and IEC
NON COMPLIANCE
The soiled banknotes
deposited by
commercial banks found
to contain more than
20% of re-issuable
banknotes or vice versa.
(Variance within 20% is
tolerable)
PENALTY
Rs.500/- per bundle