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FinCORE..StateoftheArt,ComprehensiveNewGenerationCoreBanking.
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IndianEnterprisesshouldcarryoutBusinessProcessRe-engineeringtomoveuptheservicesvalue-chain
Competitivepressurefromothercompaniesinthesamefieldhasincreased,thereisaneedtodelivervalueatlessincrementalcostsandmanpowerWillhelpIndianorganizationsextractbetterperformancefromitsexistingsystemsandsetupandintroducesignificantimprovements.
WhyBPR??
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RoleoftechnologyinBPRTechnologyhasbecomemoreacommodity.intheenterpriseandthereisnotmuchdifferentiationbetweencompetitorsBPRismainlyabusiness-driveninitiativeTheadvantageliesinthewaythetechnologyisusedTechsavvyenterprisesthatareabletoleveragetechnologyforbetteringtheirbusinessprocessescanbenefitfromBPRfaster
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WhichindustryderivebenefitofBPR
TheconceptofBPRisindustry-neutralMediumandlargecompaniesinanysectorwillbenefitfromBPREnterprisesthathavebusinessunitsspreadacrossseveralgloballocations
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StepsofbeginBPR
AnorganizationshouldtakefivestepsinordertoconductBPR
Thefirststepistoidentifythekeybusinessprocessinthevaluechainthathavesomepainpoints.andneedtobestreamlinedThesecondstepwillbetore-engineertheprocessesandsetmeasurablegoals.Thegoalsmaybetoincreasecase-loadproductivityby15percent,decreaseloanprocessingtimeby20percent.Theseprocessescanbeperformedbyaninternalteamorwithconsultancyteamwhichprovidesbroadindustryperspective
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Thethirdstepwillbetomapthenewprocessesagainsttheexistingapplicationsandidentifynewareasofsystemsintegrationandfunctionality.Thefourthstepwillbetodeviseachangemanagementplan,andanITplantoimplementthechangesThefinalstepwillbetoexecutetheplansandmeasureachievementagainstthegoals
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EssentialingredientsofsuccessfulBPRstrategyStrongexecutivesponsorshipClearvisionofthedesiredend-stateAbilitytoexecutechangemanagementEfficiencyofhandlingITinfrastructuredeploymentsGoodskillsintechnologyintegrationwithnewbusinessprocesses
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KeyAreasIdentifiedforRe-engineering
AccountOpeningCommission/Charges&InterestApplicationChequebookmaintenance&issueDemandDraftsClearingfunctionsOutwardClearingInwardClearingHomeClearingNationalClearingHighValueClearingOutstation/Upcountry/OBCclearing
ServiceBranchCollectionServices
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StandingInstructionsChequePurchaseTaxDeductedatSourceOtherProcessesStopPayment&RevocationAccountholds/restrictions&RevocationsAccounttransfers
Loans&AdvancesPresanctionPostSanction
DocumentationManagement
KeyAreasIdentifiedforRe-engineering
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AccountingGeneralLedgerManagementInformationSystems
KeyAreasIdentifiedforRe-engineering
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Accountopeningade-centralisedfunctionDataCaptureinadequateandinconsistentacrossbranchesCustomeridentifiedasthecustomeroftheBranchandnotofTheBank.Customerre-directednumberoftimesforaccountopeningDuplicationofeffortsDetailsofaccountopeningwrittenintheaccountopeningregister
AccountOpeningCurrentState
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Options:
AccountopeningtobeacentralizedfunctionAccountopeningtobeadecentralisedI.e.accountstobeopenedbythebranchitself
Centralisedfunction:
CustomerwillbeidentifieduniquelyacrossthebankBrancheswillbegroupedlogicallyunderonecentrallocationBranchestoensurethatallmandatory/necessarydataisfilledinbythecustomerontheaccountopeningform.Branchestoentertheminimal/mandatoryinformationrequiredforaccountopeningBranchestoensurethatallnecessarydocumentationlinkedtotheparticularaccounthasbeencollectedfromthecustomerbeforesendingtheformstothecentrallocationforaccountopeningAnyexceptionstobeaccompaniedbyacoveringletterdulyauthorizedbytheconcernedauthorityAccountopeningformscollectedbythebranchestobesenttotheparticular
centrallocationthroughlocalbranchcourier.Initialdepositforaccountopeningtobeacceptedincash,transferorcheques
AccountOpeningFutureState
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Systemtocheckforminimumbalancerequirementsas
parameterisedfortheparticulartypeofaccount,product/scheme
Allotherdetailedaccountinformationaswellasdocumentationdetailstobe
fedbytheconcerneddataentryoperatorsandauthorizedbytheofficers
atthecentrallocation.
EachdataentryoperatortoworkonquotabasisCustomerIDwillbegeneratedbythecorebankingsystemfornewaccounts.GenerationofcustomerIDisapre-requisitetoanyaccountopening.ExistingcustomerIDtobeusedintheeventthecustomeralreadyhasanaccountwiththeBankEnteredinformationtobecheckedagainstthelistofblacklistedcustomerscirculatedbyRBI,other3rdpartyagencies,internal(accountsmarkedbytheBank)for:AccountholderIntroducer
Jointaccountholders
Accountholdersaswellasjointaccountholderssignatureand(or)photographtobecapturedatthetimeofaccountopeningChequebook,credit/debitcard,ATMcard,PINGeneration,etc.tobeissuedcentrallyandcourieredtothecustomeralongwiththecustomerIDandaccountnumber.
AccountOpeningFutureState
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Internetbanking,phonebankingaccessrequesttobeforwardedtotheconcernedauthority/departmentLetterofthankstobegeneratedbythesystemfortheintroducerandtobecourieredtotheintroducerspostaladdress.Turnaroundtimefortheentireprocesstobeapproximately4workingdaysAccountlevelparametersforaddoncharges,exemptionsetc.tobefixedatthebranchlevelwithappropriateauthority.Intheeventofnon-availabilitytomandatoryfields,orrequireddocumentationtheaccountopeningformstobere-senttothedesignatedbranches
De-Centralisedfunction:
AccountstobeopenedbythebranchitselfAlldataentrytobedoneatthebranchitself,ChequebookstobeissuedbythebranchitselfRequestfordebit,creditcard,internetbanking,phonebanking,PINgenerationetc.tobeforwardedtotherespectivedepartmentsOtherprocessestobethesameasmentionedaboveinthecentralisedfunction
AccountOpeningFutureState
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AccountOpeningFutureStateAccountopeningProcess
CurrentStateFutureState
De-centralisedfunctionDatacaptureinconsistentandinadequateCustomerredirectednumberoftimesDuplicationofefforts
Accountopeningtobe:Acentralisedfunction(regionwise)Ade-centralisedfunction(branchfunction)
CustomertobeidentifieduniquelyacrosstheBankAllrequisitedataasdesiredbytheBanktobecapturedinthesystemforvariousproducts/schemesofferedbytheBankDatacapturetobeuniformacrosstheBankwiththehelpoffielddefinitionsintheCoreBankingsystemAllaccountopeningformalitiestobecompletedbytherelationshipofficerattheAccountopeningcounter
Chequebooks,debitcard,ATMcardetc.tobecourieredtothecustomerRequestforinternetbanking,phonebankingetc.tobeforwardedtotherespectiveauthority/departmentforactionTrackcollectionofrequireddocumentationlinkedtoaparticularaccount,product/schemeandmovementofthesame
PeopleRequirementShiftbankstafftocentrallocationHiredataentryoperatorsatlowcostCentralisationwouldresultinstaffre-deployment
ManagementDecisionOptionselection:centralisationv/sde-centralisationPlaceforcentralisedlocation(branch,R.O.,newpremisesetc.)Hiringofdataentryoperators/shiftingbankstafftocentralisedlocation.Maximumturnaroundtime(notgreaterthan4workingdays)Dataentryandpaymentlinkedtoquotabasis
Supportforbothcentralised/decentralisedfunctioningAccountnumberandcustomerIDuserdefinedcombinationsDefinefieldsrequiredfordatacaptureforaparticularaccount,product,schemeMovementofcollectedinitialaccountopeningdepositbythebranch
VendorQuestions
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Manycommission/chargestoberecoveredfromthecustomersnotsupportedNocentralisedmodulefordefiningthemethodsofcalculationsofcommission,chargesandinterestsSystempromptstheusertoenterchargesandacceptswhateverisenteredMayleadtoleakageofincomeMayleadtoincorrectapplicationofcharges/commissionleadingtocustomerdissatisfactionInvolvesmanualeffortProfit&lossaccountheadsopenforposting;whichmaybeaconcern.Interestapplicationprogramrunmanuallyontheduedateforvariousproducts/schemesInterestamountscanbealteredinthesystem
Commission/Charges&InterestApplicationCurrentState
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Commission,charges,andinterestrates/tablestobedefinedgloballyforallproductsandschemesinthecorebankingsolutionAllincomerelatedfields(Commission,chargesandinterest)tobegloballyparameterised.Methodofcalculation(I.e.tier,slab,flatamount/rate,combinationetc.)tobedefinedandattachedtoeachtypeofcommission,charge.Methodofcalculationforinterest(I.e.simple,compounding,EMIbased,combinations,etc.)tobedefinedandattachedtoeachproduct/schemeofferedbytheBank.Corebankingsystemtohavetheoptionofspecifyingaddon(+/-)charges,commission/interestamounts/percentagesandwaivers(ifany)withappropriateauthoritySystemwillcheckforaccountlevelcommission,chargeandinterestparametersatthetimeofapplication,and,accountlevelparameterswillprecedeglobalparameters.Interestratestobelinkedtobenchmarks(I.e.PLR,LIBOR,MIBOR,notlinkedetc.)andbeautomaticallyupdatedwiththechangesinthebenchmarkratesDirectentriestotheP&Laccountheadstobehighlyrestrictedbaseduponaccessprivilegesdefinedinthecorebankingsolution.
Commission/Charges&InterestApplication
FutureState
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Systemtoautomaticallypickupandapplythecommission,chargesandinterestratesasdefinedintheglobalparameterfile.Usersatthebranchleveltohavenorightstomodifythecommission,chargesamountsandinterestratespickupbythesystem.Interesttobeappliedtotheaccountsaspertheduedatesautomaticallybasedupondefinedrules.Nettingofbalancesindefinedaccountsforaparticularcustomer,groupofcustomers,groupID.stobeconsideredforinterestcalculationAbilitytodefinecommissionamountsasapartoftotalamounttobechargestothecustomerandinternallybifurcatetheaccountbasedontheactualamountandthecommissionamountwithoutitbeingtransparenttothecustomerI.e.exchangerateforUSDisRs.47.80thisratealsoincludessomeamountsofcommission/chargessothesystemshouldhavetheoptionofspecifyingthecommissionamountse.g..80whichformsapartofthetotalexchangerateandaccountforitseparately,sothecustomerwillbedebited/credited@47.80butthesystemwillinternallybifurcatetheentriesintoexchangerate47.00and.80ascommissionearned/charges
Commission/Charges&InterestApplicationFutureState
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Commission/Charges&InterestApplicationProcess
CurrentStateFutureStateManycommission/chargestoberecoveredfromthecustomersnotsupportedNocentralisedmodulefordefiningthemethodsofcalculationsofcommission,chargesandinterestsSystempromptstheusertoenterchargesandacceptswhateverisenteredInterestapplicationprogramrunmanuallyontheduedateforvariousproducts/schemesInterestamountscanbealteredinthesystem
Allcommission/charges,interestrates,tablestobemaintainedcentrallyintheCoreBankingsolutionMethodofcalculationforcommission,chargesandinteresttobedefinedandattachedtoeachtypeofproduct/scheme.Branchestohavetheoptionofspecifyingaddon(+/-)charges,commission/interestamounts/percentagesandwaivers(ifany)withappropriateauthoritySystemwillcheckforaccountlevelcommission,chargeandinterestparametersatthetimeofapplication,and,accountlevelparameterswillprecedeglobalparameters.Interestratestobelinkedtobenchmarks(I.e.PLR,LIBOR,MIBOR,notlinkedetc.)andbeautomaticallyupdatedwiththechangesinthebenchmarkratesDirectentriestotheP&Laccountheadstobehighlyrestrictedbaseduponaccessprivilegesdefinedinthecorebankingsolution.
Usersatthebranchleveltohavenorightstomodifythecommission,chargesamountsandinterestratespickupbythesystem.Interesttobeappliedtotheaccountsaspertheduedatesautomaticallybasedupondefinedrules.
PeopleRequirementSeniorstaffproficientintheirrespectivefunctionalareastoberesponsibleforsetting/changingtheparameterfilesStafftobethoroughlyawareoftheimpactofparameterchange
ManagementDecision
Allcommission/charges,interesttablestobesetcentrallybyseniorstaffmembersMethodofcalculationforcommission/charges,interesttobedefinedbythesameseniorstaffmembersPowerstobedelegatedtowaivechargesoflevy(+/-)amount/percentagesatthebranchlevel
Supportdefinitionofallcommission/charges,interestrates,tablesandmethodofcalculationasrequiredbytheBankforvariousproducts/schemesofferedbytheBankSupportaddon(+/-)charges,commission/interestamounts/percentagesandwaiversforeachproduct/schemeEaseofdefinitionofnewcommission/charges,interestrates,tablesandmethodofcalculation
VendorQuestionsCommission/Charges&InterestApplicationFutureState
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ChequeBookMaintenance&IssueCurrentStateAchequesbookisissueduponawrittenrequisitionfromthecustomer.EachchequebookcontainstherequisitionformThesystempromptsforchequesbookcharges,thesamemightnothaveparameterizedgloballyandacceptsanyamountthatisentered.ThismayresultinincomeleakageSystemallowsausertoenterduplicatechequenumbersatthetimeofchequebookstockentrySystemacceptsalphaseriesforchequebooksbutthereisnovalidationonthealphaseriesatthetimeoftransactionprocessingTheminimumbalancecriterionforaparticularaccountisbasedonthepresenceofachequebookissuedrecordinthesystemandnotonwhetherthecustomerhasrequestedforthefacilityatthetimeofaccountopening.DuplicationofeffortsDetailsofchequebookissuedrewritteninthechequebookissueregister.
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PersonalizedChequeBook
StockofchequebookstobemaintainedcentrallyinthecorebankingsolutionbasedonthenumberofleavesChequebookissueprocesstobecentraliseChequebookrequisitionslipstobecollectedbythebranchandsenttothedesignatedcentrallocationBranchestoensurethatrequireddetailsareappropriatelyfilledbythecustomeronthechequebookrequisitionslipCorebankingsystemtoensurethatduplicatechequenumberarenotissuedtotheparticularaccountacrosstheBank.ChequebookswillbeautomaticallypickedupfromthestockbaseduponthenumberofleavesrequiredandlinkedtotheparticularaccountCorebankingsystemtomaintainsafetylevelsofchequebookstockWarningmessagestobeflaggedbythecorebankingsystemintheeventthestockofchequebooksreachestheminimumsafetylevel.
ChequeBookMaintenance&IssueFutureState
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Chequebookissuechargestobeautomaticallyappliedintheaccountasdefinedintheglobalparameterfile.Systemwillcheckforaccountlevelparametersfor(+/-)charges,accountlevelparameterswillprecedeglobalparameters.SystemtosupportissueofchequebookswithalphaseriesandvalidatethesameatthetimeoftransactionprocessingexceptInwardClearingRequestforissueofchequebooktobeenabledthroughInternet&PhonebankingAllrequestforthedaytobeforwardedfromtheInternet/PhoneBankingsystemstothecentralisedlocation
Non-personalizedChequeBook
BranchestomaintainanAdhocstockofchequebooksforimmediateissuancetothecustomersThechequebooksmaintainedatthebrancheswillbefromthestockmaintainedcentrallyonlyOnissuanceofsuchchequebooksthebranchwillenterthedetailsofthechequebookinthesystemCustomertobelatersentapersonalizedchequebookfromthecentrallocationonintimationbythebranch
ChequeBookMaintenance&IssueFutureState
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ChequeBookMaintenance&IssueProcessCurrentStateFutureStateChequebookissueprocessde-centralisedSystempromptsforchequesbookchargesandacceptsanyamountthatisentered.SystemallowsausertoenterduplicatechequesnumbersatthetimeofchequesbookstockentryTheminimumbalancecriterionforaparticularaccountisbasedonthepresenceofchequesbookissuedrecordinthesystemandnotonwhetherthecustomerhasrequestedforthefacilityatthetimeofaccountopening.Detailsofchequebookissuedrewritteninthechequebookissueregister.
StockofchequebookstobemaintainedcentrallyinthecorebankingsolutionbasedonthenumberofleavesChequebookissueprocesstobecentraliseSystemtoensurethatduplicatechequenumberarenotissuedtotheparticularaccountacrosstheBank.CorebankingsystemtomaintainsafetylevelsofchequebookstockWarningmessagestobeflaggedbythecorebankingsystemintheeventthestockofchequebooksreachestheminimumsafetylevel.Chequebookissuechargestobeautomaticallyappliedintheaccountasdefinedintheglobalparameterfile.Systemwillcheckforaccountlevelparametersfor(+/-)charges,accountlevelparameterswillprecedeglobalparameters.
SystemtosupportissueofchequebookswithalphaseriesandvalidatethesameatthetransactionprocessingexceptInwardClearingRequestforissueofchequebooktobeenabledthroughInternet&Phonebanking
PeopleRequirementOfficialsusedfordataentrycanbeusedtoissuechequebooksBurdenonbranchstaffreduced,excessstaffcanbere-deployed
ManagementDecisionCentralisationofchequebookmaintenance&issueprocess
Placeforcentralisedlocation(branch,R.O.,newpremisesetc.)OfficialsusedfordataentrycanbeusedtoissuechequebooksMax.turnaroundtime(notgreaterthan4workingdays)PersonalisedchequebookstobeonlyissuedcentrallyNonpersonalisedchequebookstobeissuedformthebranchitselfNumberofleavesfornonpersonalisedchequebooks
SupportforCentralisationofchequebookmaintenance&issueprocessStockmaintenanceofchequebooksSupportthroughInternet/PhoneBanking
VendorQuestionsChequeBookMaintenance&IssueFutureState
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DemandDraftissue,cancellationandpurchasesupportedbythecurrentsystemsCommissionforissueofdemanddraftspartlymanualI.e.cashcommissioncalculatedmanuallyThesystempromptstheuserforthechargestobecollectedforcancellationofthedraftandacceptsanychargethatisenteredbytheuserInterestandchargesforpurchaseofinstrumentarecalculatedbythesystemDemandDraftreconciliationisdonebytheInterBranchReconciliationDepartmentCurrentreconciliationprocessislengthyandtimeconsumingCurrentsystemsallowduplicatedemanddraftnumberstobemaintainedinthestockCurrentlythereisnosystemtovalidatethegenuinessoftheinstrumentpresentedforpaymentorpurchasethroughthesystem.Currentprocessofpaymentofdraftswithoutanysystemvalidationispronetohighriskofencashmentorpurchaseofdraftsonbehalfoffraudulentpersonnel
DemandDraftsCurrentState
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DemanddraftstocktobeenteredandmaintainedatthecentrallevelforallcorebankingbranchesPhysicaldraftstock(securitypaper)tobemaintainedatthebranchforthestockthathasbeenfedinthesystem(allocatedtotheparticularbranch)CorebankingsystemtomaintainsafetylevelsofdraftsstockWarningmessagestobeflaggedbythecorebankingsystematthebranchaswellascentrallevelintheeventthestockofdraftsreachestheminimumsafetylevel.Corebankingsystemtoensurethatduplicatedraftnumberarenotissuedtotheparticularbranch.DraftstobeonlyissuedformthestockenteredDraftstobeautomaticallypickedupfromthestockenteredandlinkedtotheparticularaccountAmountsforcommission,charges,feesetc.forissue,cancellationetc.tobemaintainedcentrallyBranchestohavetheparametertowaiveoff/discountthechargeswithappropriateauthority
DemandDraftsFutureState
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Draftissuechargestobeautomaticallyappliedintheaccountasdefinedintheglobalparameterfile.Systemwillcheckforaccountlevelparametersfor(+/-)charges,accountlevelparameterswillprecedeglobalparameters.Draftwillbeautomaticallyprintedoncethetransactionisauthorizedonsingle/continuousstationeryasdesiredbytheBankRespectiveaccountheadwillbedebitedandcreditedwiththerespectiveamountsonlineSystemwillautomaticallygenerateanAdviceofDrawing,whichwillbeprintedatthepayingbranch(thebranchonwhomthedrafthasbeendrawn)Onpresentmentforpaymentkeydetails(I.e.draftnumber,amount,date)ofthephysicalinstrumentwillbeentered.Intheeventallthekeyfieldsmatchthedetailsofthedraftasenteredbytheissuingbranch,thedetailsofthedraftwillbedisplayedatthepayingbranchThedraftwillalsobevalidatedforAlreadyEncashed,Cancelled,Stale,PostDatedetc.beforepayment..OnverifyingthedetailsofthedraftsthepaymentwillbeauthorizedanddraftwillbepaidOnauthrisingthetransactiontherespectiveaccountheadswillbeupdatedonlinewiththeamounts
DemandDraftsFutureState
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Systemtosupportcancellationofdraftsandautomaticallycalculateandapplythecharges,commissionetc.asdefinedintheglobalparameterfiles.FurtherthesystemtopromptfortherequisitedocumentationtobecollectedfromthecustomerforcancellationofthedraftSystemtosupportpurchase/collectionofdraftsandautomaticallycalculateandapplycharges,commissionetc.SystemtosupportonlinecustomerverificationintheeventofdraftpurchaseforacustomeroftheBankonthecorebankingsolutionSystemtosupportdefinitionofpurchaselimitsbranchwise,userIDwisebasedupondefinedparameterse.g.sizeofbranch,locationofbranch,corebusinessofthebranchetc.Systemtosupportpayment/collectionofdraftsonbehalfofcorrespondentbanksandtrackdetailsofthesameSystemtosupportverificationofdraftdetailsbeforepaymentwiththedatauploadedinthecorebankingsystemreceivedfromthecorrespondentbanksSystemtosupportissueofdraftsonstationeryofotherBanks,withwhomCentralBankhasanarrangementandtrackdetailsofthesameSystemtosupportreconciliationofdraftsissuedbycorrespondentbanksonCentralBankandalsodraftsissuedbyCentralBankonotherBankswithwhomCentralBankhasanarrangement.Systemtosupportbulkissueofdraftsthroughelectronicmediumupload
DemandDraftsFutureState
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DemanddraftissuerequesttobesupportedthroughInternetandPhoneBankingAllrequestforthedaytobeforwardedfromtheInternet/PhoneBankingsystemstothecentralisedlocationDetailsofthedraftstobeenteredinthebranchwherethecustomerhasanaccountandtherequestforprintingtobeforwardedtotheBranch,andallsuchrequesttodisplayedinaseparatemenuoptionAccounttobedebitedon-linewiththecharges,commission,postageetc.oncethedetailsofthedraftfedinthesystematthecentrallocationhavebeenauthorizedBranchtoprintthedraftsafterauthorizationDraftstobedirectlycourieredbytheBranchtothecustomer
DemandDraftsFutureState
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DemandDraftsProcessCurrentStateFutureState.DDissue,cancellationandpurchasesupportedbythecurrentsystems.CommissionforissueofdemanddraftspartlymanualI.e.cashcommissioncalculatedmanually.Currentreconciliationprocessislengthyandtimeconsuming.Currentlythereisnosystemtovalidatethegenuinessoftheinstrumentpresentedforpaymentorpurchasethroughthesystem..Currentprocessofpaymentofdraftswithoutanysystemvalidationispronetohighriskofencashmentorpurchaseofdraftsonbehalfoffraudulentpersonnel
DemanddraftstocktobeenteredandmaintainedatthecentrallevelforallcorebankingbranchesPhysicaldraftstock(securitypaper)tobemaintainedatthebranchforthestockthathasbeenfedinthesystem(allocatedtotheparticularbranch)Systemtosupport:IssueofDemandDraftsCancellationofDemandDraftsPurchase/CollectionofDemandDraftsIssueofDemanddraftsonstationeryofotherBanksPaymentofCentralBankdraftsandalsodraftsissuedbyothercorrespondentBanksonCentralBank
SystemtosupportprintingofdraftsonCentralBank/otherbanksstationeryasdesiredbytheBankonsingle/continuousstationeryAllcharges,commission,interestandmethodsofcalculationforthesametobedefinedgloballySystemtosupportonlineupdationofrespectiveaccountheadsAutoreconciliationofdraftsRequestforissueofdraftstotobealsohandledthroughInternetandPhoneBanking
PeopleRequirement
BurdenonInterBranchAccountingdepartmentstaffreduced,excessstaffcanbere-deployed
ManagementDecisionDemanddraftstocktobeenteredandmaintainedatthecentrallevelforallcorebankingbranchesAutoreconciliationofdraftsSettingofpurchaselimitsMaximumturnaroundtime(notgreaterthan4workingdaysforrequestthroughInternetandPhoneBanking)Demanddraftsneednotbeissuedonacustomeronthecorebankingsolution,premiumcanbechargesforimmediatecredit
Exploreopportunitiesofnewcorrespondentarrangementsasnowdraftscanbedrawnupon,purchasedandpaidbyanybranchonthecorebankingafterappropriateverificationofthedetailsofthedrafts
SupportforCentralisedmaintenanceofdemanddraftstocksSystemtosupportprintingofdraftsonCentralBank/otherbanksstationeryasdesiredbytheBankonsingle/continuousstationerySupportthroughInternet/PhoneBanking
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VendorQuestionsDemandDraftsFutureState
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Volumes3000chequesperdayAllbranchesdoitontheirownPower&ManualEncodersarebothpresentSoftCopyforpreparingtosendtoRBIforHV&InwardreturnAlphacodingisnotbeingusedOutwardreturnscheques&returnmemosaresenttobranches
ClearingOutwardClearing(CurrentState)
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Options:
OutwardClearingentryandprocessingtobeacentralizedfunctionI.e.regionwisecentralisedattherespectiveservicebranchOutwardclearingentrytobedecentralisedatthebranchitselfandprocessingtobecentralised
Centralisedfunction:
Detailsofoutwardclearingtobeenteredcentrally(ServiceBranch).Incaseofcentralisedentryofoutwardclearinginstruments,branchestoonlyrecordthetotalinstrumentsreceivedandtheconsolidatedtotalsfortheparticulardate.Numberofinstrumentsandconsolidatedtotalsenteredatthebranchtobecomparedbythesystemattimeofentryatthecentrallocation.SystemtohighlightanddisplaydiscrepanciesifanyASCIIfilestobesenttotheclearinghousesforoutwardclearingtobegeneratedatthecentrallocationbranchwise/consolidated.CoreBankingsolutiontobeinterfacedwiththeRBIsystemtodownloaddetailsofinstrumentstobepresentedforlocalclearinganduploadclearingeffectsan
dreturns(ifany).BranchestodownloadthedatafromtheRBIsystemsandclubthentogetherwiththeoutwardclearinginstrumentstobepresented
ClearingOutwardClearing(FutureState)
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Servicebranchtodownloadthedetailsoftheinstrumentspresentedforclearingfromtheclearinghousewebsites/RBIintothecorebankingsolutionforreconciliationpurposes.ClearingeffectstobepassedontothecustomeraspertheclearingdatesReturnedinstrumentstobeenteredinthesystematthecentrallocationandsenttotherespectivebranchestobehandedovertothecustomers.Chequereturnchargestobeautomaticallycalculatedandappliedtotherespectiveaccountsuponauthorisationofthetransaction.
De-Centralisedfunction:
Detailsofoutwardclearingtobeenteredattherespectivebranches.ScheduleforoutwardclearingtobeprintedatthebranchandsenttotheservicebranchalongwiththeinstrumentsforprocessingOtherprocessestobethesameasmentionedaboveinthecentralisedfunction
ClearingOutwardClearing(FutureState)
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Volumes3000to4000perdayHardCopy&SoftCopySoftCopydownloadedfromtheRBIwebsiteCheques&StatementssenttobranchesReturnssenttoRBIinsoft&hardcopy,sentbetween1600to1630hoursBranchesInformtheservicebranchthroughfaxChequesareretainedatthebranches
ClearingInwardClearing(CurrentState)
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Inwardclearing-Supportstraightthroughprocessing.Intheeventofnonstraightthroughprocessingthedetailsoftheinstrumentstobeenteredatthecentrallocation(servicebranch)Servicebranchtodownloadtheclearingdetailsfromtheclearinghouse/RBIwebsiteforinwardclearingServicebranchtoverifythephysicalinstrumentswiththelistprovidedbytheclearinghouse/RBIforinwardclearing.InstrumentstobemarkedforDeliveredbutnotlistedandlistedbutnotdelivered.Instrumentdetailstobeuploadedinthecorebankingsystembasedupontheaccountnumberandchequenumber.CoreBankingsystemtocheckforthevalidityoftheinstrument,stoppaymentinstructionsetc.Allinstrumentsuploadedshouldbeshownasashadowbalanceinthesystemuntilthesignaturesonthephysicalinstrumentshavebeenverifiedwiththesystem.Theservicebranchtoverifythesignaturesofthephysicalinstrumentswiththesystem.IntheeventofsignaturesnotmatchingtheinstrumenttobemarkedasreturnedattheservicebranchandthereasonforthesametobecapturedattheservicebranchAllinstrumentsnotmarkedasreturnedeitherbytheservicebranchmanuallyorautomaticallybythesystemtobeeffectedintherespectiveaccountsafterthe
batchhasbeendulyauthorised.
ClearingInwardClearing(FutureState)
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TheservicebranchshouldprintareportofallrejectedtransactionsbranchwiseandsenditdirectlytothebranchesalongwiththeinstrumentsforfurtheractionAllrejectedinstrumentsshouldbedisplayedinaseparatemenuoptionattheindividualbranchesalongwiththereasonfortherejection.ThebranchtoverifythelistsentbytheservicebranchwiththeinstrumentsdisplayedasRejectedTheappropriateauthorityhavingtherelevantauthorizationpowersatthebranchtohavetheoptionofmarkingtheinstrumentasReturnedorCleared.AllinstrumentsmarkedasreturnedshouldbeautomaticallydisplayedintherelevantChequeReturnsmenuoptionalongwithalldetailsoftheinstruments.Systemtoautomaticallypickupthechargesetc.fromtheglobalparameterfileasdefinedandapplythesametotherespectiveaccounts.Thereturnedinstrumentdetailstoupdatedinthecustomersprofilealongwiththereasonforreturn.
ClearingInwardClearing(FutureState)
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HomeclearingreferstothechequesdrawnonBankbranches.Allhomeclearingchequesareenteredinthesystemattherespectivebranch.SuchchequesaresenttotheservicebranchalongwithanonsortedstatementTheservicebranchsortstheinstrumentsbranchwiseanddispatchesthesametotherespectivebranches.Theservicebranchsendsanadvicetotherespectivebranchforallrealizationsandreturns.Onreceivingtherealizationadvicethebranchreleasestheunclearedeffectsandtherespectiveaccountsarecreditedwiththeamount.Allchequestobepassed/returnedareenteredthroughthesamechequesentryoption.ThereisnowaytoidentifychequestobereturnedafterdataenteroftheinstrumentsexceptthattheinstrumentsarephysicallyseparatedfromtheotherinstrumentsMayresultinreturnedchequesbeingpassedastheofficerauthorizingcannotdifferentiatebetweennormalchequesandreturnchequesthroughthesystem.Systemspromptstheusertoenterthechargesforreturnsandacceptsanychargethatisentered.Thismayleadtoleakageofincomeor(and)customerdissatisfactionintheeventofwrongchargeapplication
ClearingHomeClearing(CurrentState)
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ChequesdrawnonBankcustomershavingaccountsinbranchesthatareontheCoreBankingsolutioncanbeeffectedimmediately.Alldetailsoftheaccountstodebitedincludingthesignatureswillbevisibletotheconcernedauthorityhavingtherequisiteaccessprivilegeseffectingthetransaction.Validityoftheinstrument,stoppaymentinstructionset.c.willbevalidatedbythecorebankingsystemfortheinstrumentpresented.InstrumentscanbereturnedonthespotaftervalidationandtheaccountwillbedebitedwiththerespectivereturnchargesasdefinedintheglobalparameterfileBankmaywishtochargethecustomeracommissionamountforeffectingpaymentsonthespot.ChequesissuedbyBankcustomersnotonthecorebankingsystemwillbeenteredatthebranch/directlysenttotheservicebranchforentry,inwhichcasethebranchwillonlyentertheconsolidatedtotalsoftheinstrumentscollected.Numberofinstrumentsandconsolidatedtotalsenteredatthebranchtobecomparedbythesystemattimeofentryattheservicebranch.SystemtohighlightanddisplaydiscrepanciesifanyServicebranchtosorttheinstrumentsbranchwiseandsentittotherespectivebranchvialocal/domesticcourier
Clearingeffectstobepassedonbytheservicebranchtotheindividualbranchtobereleasedtothecustomeraspertheclearingdates
ClearingHomeClearing(FutureState)
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Chequesdrawnonanyofthefourmetrosviz.Mumbai,Delhi,Calcutta,ChennaiareroutedthroughNationalClearing.NationalclearingchequesarehandledthroughthesystemThetellerentersthechequesforclearingintherespectivetimezones.Theofficerauthorizesallchequesenteredbytheteller.ThesystemautomaticallypicksupthechargesfornationalclearingAnunsortedscheduleofallchequescollectedbythebranchundernationalclearingisgeneratedbythesystem.TheinstrumentsfornationalclearingalongwiththeschedulearesenttothelocalservicebranchTheservicebranchsendsanadvicetotherespectivebranchforallrealizationsandreturns.ServicebranchkeepstrackofthemovementoftheseinstrumentsandisalsoresponsibleforreconciliationofthesameOnreceivingtherealizationadvicethebranchreleasestheunclearedeffectsandtherespectiveaccountsarecreditedwiththeamount.
ClearingNationalClearing(CurrentState)
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Options:
NationalClearingentryandprocessingtoacentralizedfunctionI.e.regionwisecentralisedattherespectiveservicebranchintheeventtheregionhasaservicebranch/anyotherlocationintheregionwhichhandlestheclearingfunctionsoftheregionNationalclearingentrytobedecentralisedatthebranchitselfandprocessingtobecentralised
Centralisedfunction:
Instrumentscollectedbythebranchundernationalclearingtobesenttotheservicebranchforentry.Collectingbranchtoenterthenumberofinstrumentsregionwisealongwiththeconsolidatedtotals.ServicebranchtoentertheinstrumentsintherespectivebranchesNumberofinstrumentsandconsolidatedtotalsenteredatthecollectionbranchtobecomparedbythesystemattimeofentryattheservicebranch.SystemtohighlightanddisplaydiscrepanciesifanyASCIIfilestobesenttotheclearinghouses/localservicebranchesfornationa
lclearing(ifany)tobegeneratedatthecentrallocationregion-wise,intheeventthelocalservicebranchisnotonthecorebankingsolution.
.
ClearingNationalClearing(FutureState)
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ServicebranchtosendalltheinstrumentscollectedunderNationalclearingtotherespectiveservicebranchesforpresentmentCharges,commission,interesttobeautomaticallypickedup,asdefinedintheglobalparameterfile,calculatedandappliedtotherespectiveaccountsoncethebatchhasbeenauthorised.Clearingeffectstobepassedontothecustomerthroughtheservicebranchaspertheclearingdates
De-Centralisedfunction:
Detailsofnationalclearingtobeenteredattherespectivebranches.SchedulefornationalclearingtobeprintedatthebranchandsenttotheservicebranchalongwiththesortedinstrumentsforprocessingOtherprocessestobethesameasmentionedaboveinthecentralisedfunction
ClearingNationalClearing(FutureState)
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HighvalueclearingisalsoreferredasmetropolitanareaclearingcurrentlychequesaboveRs.50,000/-comeunderhighvalueclearing.ChequedepositedunderhighvalueclearingarerealizedonthesamedayHighvalueclearingchequesarehandledthroughthesystemThetellerentersthechequesforclearingintherespectivetimezonesTheofficerauthorizesallchequesenteredbytheteller.Anunsortedscheduleofallchequescollectedbythebranchunderhighvalueclearingisgeneratedbythesystem.TheinstrumentsforhighvalueclearingalongwiththeschedulearesenttothelocalservicebranchTheservicebranchsendsanadvicetotherespectivebranchforallrealizationsandreturns.Onreceivingtherealizationadvicethebranchreleasestheun-clearedeffectsandtherespectiveaccountsarecreditedwiththeamount.
ClearingHighValueClearing(CurrentState)
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AllinstrumentscollectedbythebranchesunderHighValueclearingtobeenteredbytherespectivebranches.Instrumentsalongwiththeclearingstatement/schedule(sortedbankwise)tobesenttotheservicebranchServicebranchtogeneratetheASCIIfilesinthedesiredformatbranchwise/consolidated.Effectsforhighvalueclearingtodownloadedbytheservicebranchfromtheclearinghouse/RBIwebsites.EffectstobepassedontothecustomeraspertheclearingdatesReturnedinstrumentstobeenteredinthesystemattheservicebranchandsenttotherespectivebranchestobehandedovertothecustomers.Chequereturnchargestobeautomaticallycalculatedandappliedtotherespectiveaccountsuponauthorisationofthetransaction.
ClearingHighValueClearing(FutureState)
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Upcountry/Outstation/OBCclearingclearingishandledthroughthesystemThetellerentersthechequesforclearingintherespectivetimezonesTheofficerauthorizesallchequesenteredbytheteller.ThesystemautomaticallypicksupthechargesandcalculatestheinterestamountforupcountryclearingThescheduleforupcountryclearingisgeneratedbythesystem.Theinstrumentsforupcountryclearingalongwiththeschedulearesenttothelocalservicebranchifthereisaservicebranchintheareaoforiginationoftheinstrumentelsetheinstrumentsaredirectlysenttothenearestbranchwheretheinstrumentwasdrawn.Theservicebranch/respondingbranchsendsanadvicetotherespectivebranchforallrealizationsandreturns.Servicebranch/respondingbranchkeepstrackofthemovementoftheseinstrumentsandisalsoresponsibleforreconciliationofthesameOnreceivingtherealizationadvicethebranchreleasestheunclearedeffectsandtherespectiveaccountsarecreditedwiththeamount.
ClearingOutstation/UpcountryClearing(CurrentState)
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Options:
Outstation/UpcountryClearingentryandprocessingtoacentralizedfunctionI.e.regionwisecentralisedattheservicebranch.Outstation/UpcountryClearingentrytobedecentralisedatthebranchitselfandprocessingtobecentralised
Centralisedfunction:
Allinstrumentscollectedbythebranchesunderupcountryclearingtobesenttothecentrallocation(I.e.servicebranch)forentry.Collectingbranchtoenterthenumberofinstrumentsregionwisealongwiththeconsolidatedtotals.ServicebranchtoentertheinstrumentsintherespectivebranchesServicebranchtogeneratetheASCIIfilesinthedesiredformat(ifrequired)branchwise,location/regionwisetobesenttothelocalservicebranch/nearestbranch,intheeventthelocalservicebranch/nearestbranchisnotonthecorebankingsolution.Servicebranchtosenttheinstrumentsalongwiththescheduletotherespectivelocalservicebranchifthereisaservicebranchintheareaof
originationoftheinstrumentelsetheinstrumentsaredirectlysenttothenearestbranchwheretheinstrumentwasdrawn.
ClearingOutstation/UpcountryClearing(FutureState)
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Effectsforupcountryclearingtobedownloadedbytheservicebranchfromtheclearinghouse/RBIwebsitesormanualintimation.EffectstobepassedontothecustomeraspertheclearingdatesCharges,commission,interesttobeautomaticallypickedup,asdefinedintheglobalparameterfile,calculatedandappliedtotherespectiveaccountsoncethebatchhasbeenauthorised.Returnedinstrumentstobeenteredinthesystemattheservicebranchandsenttotherespectivebranchestobehandedovertothecustomers.Chequereturnchargestobeautomaticallycalculatedandappliedtotherespectiveaccountsuponauthorisationofthetransaction.
De-Centralisedfunction:
DetailsofOutstation/UpcountryClearingtobeenteredattherespectivebranches.ScheduleforOutstation/UpcountryClearingtobeprintedatthebranchandsenttotheservicebranchalongwiththesortedinstrumentsforprocessingOtherprocessestobethesameasmentionedaboveinthecentralisedfunction
ClearingOutstation/UpcountryClearing(FutureState)
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Allclearingfunctionshandledbytheservicebranch.Servicebranchactsasnodal/linkbranchforgovernmentbusinessServicehandlesprocessingofpaymentsforinterest/dividendwarrantsServicebranchmaintainstheRBIaccountforthebankfornetclearingeffectsandisalsoresponsibleforreconciliationCurrentlytransactionprocessingismainlythroughmanualstatementsresultingin:IncreasedmanualeffortsReconciliationissuesHighchancesoferrorsDuplication/redundantprocessingatvariouslevels(branches,servicebranchetc.)
DuplicationofeffortsInstrumentdetailsre-enteredattheservicebranchfornational,upcountryclearingetc.
ServiceBranch(CurrentState)
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Allclearingfunctionstobecentrlisedattherespectiveservicesbranches.Servicebranchestoenterinformationforoutward,highvalue,upcountryclearingandreturns.Servicebranchestoencode,bundleandpresenttheinstrumentsforclearing.ServicesbranchestogenerateASCIIfilesforclearingdatainthedesiredformattobehandedovertotheclearinghouses/RBI.Servicebranchestodownloadclearingdatafromtheclearinghouse/RBIweb-siteforinward,outward,high-valueclearing.Servicebranchtoreconciletheinstrumentssentandreceived,toandfromtheclearinghouses/RBIServicebranchtoreconciletheinstrumentssentandreceived,toandfromthebranches.Individualbranchaccountstobemaintainedbytheservicebranchforclearing,reconciliationofthesametobedonebytheservicebranchClearinghouse/RBIaccountforclearingsettlementstobemaintainedandreconciledbytheservicebranch.Servicebranchtoalsohandlestraightthroughprocessingofdividendwarrantpayments
ServiceBranch(FutureState)
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Clearing&ServiceBranchFutureState
ClearingandServiceBranchProcessCurrentStateFutureStateClearingfunctionsde-centralisedDatacaptureinconsistentandinadequateDataenteredagainattheservicebranchagainfornational,outstation/upcountryclearingManualreconciliationatthebranchesandservicebranchLotofmanualeffortsattheservicebranchandbranchesforprocessingofclearinginstrumentsanddataTimeconsumingactivityatthebranchinvolvinghugeamountofresources
Clearingfunctionstobe:Centralised(I.e.entryandprocessingtoacentralizedfunctionforoutwardclearing,nationalclearingandupcountry/outstationclearing,inwardclearingDe-centralised(I.e.entrytobedecentralisedatthebranchitselfandprocessingtobecentralised)forhighvalueandhomeclearing
InwardclearingtobestraightthroughprocessingDatatobedirectlydownloadedfromtheRBI/clearinghousewebsiteintothecorebankingsolutionforstraightthroughprocessingandreconciliationofclearingdata.
ASCIIfilesandclearingschedulestobegeneratedbytherespectiveservicebranchesforallbranchesunderthemIndividualbranchaccountstobemaintainedbytheservicebranchforclearing,reconciliationofthesametobedonebytheservicebranchClearinghouse/RBIaccountforclearingsettlementstobemaintainedandreconciledbytheservicebranchServicebranchtohandleprocessingofdividendandinterestwarrantpayments
PeopleRequirementShiftbankstafftocentrallocationHiredataentryoperatorsatlowcostSamestafftobeusedfordataentryofinward,outward,national,upcountryclearing
CentralisationwouldresultinstaffreductionatthebranchesandredeploymentBurdenonInterBranchAccountingdepartmentstaffreduced,excessstaffcanbere-deployed
ManagementDecisionOptionselection:centralisationv/sde-centralisationPlaceforcentralisedlocation(servicebranch,branch,R.O.,newpremisesetc.)Hiringofdataentryoperators/shiftingbankstafftocentralisedlocation.Maximumturnaroundtime(notgreaterthan15secaninstruments)DataentryandpaymentlinkedtoquotabasisMaintenanceandreconciliationofbranchclearingsettlementaccountsandRBIclearingsettlementaccountsbyservicebranch
Supportforbothcentralised/decentralisedfunctioningSupportforstraightthroughprocessinganddownloadingofclearingdetailsfromtheRBI/clearinghousewebsiteforreconciliationMaintenanceandreconciliationofbranchclearingsettlementaccountsandRBIclearingsettlementaccountsbyservicebranchConsolidationofthevariousRBIclearingsettlementsaccountsmaintainedbytheservicebranchesonperiodicbasisforoverallfundpositions
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VendorQuestions
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Collectionservicesincludeserviceslikecollectionoftaxes,phonebills,electricitybillsforbothcustomersandnoncustomersoftheBankCollectionsservicescurrentlymanualConsolidatedaccountingentriespassedinthebranchbankingsystemforcollectionsmadeduringthedayScheduleforcollectionsmadeforvarioustypesofcollectionsservicespreparedmanuallybythebranchReconciliationatthebranchdonemanuallyAllcollectionsmadeduringadayaresenttotheServicebranchwhichisthenodal/linkbranchalongwithanadviceforthetransferofcollectionamountReconciliationofallinstrumentssentbyvariousbranchesunderaparticularservicebranchisdonemanuallyattheservicebranch.Servicebranchafterreconciliationoftheinstrumentsandthecollectionamountssentbyvariousbranches,remitstheproceedstotheparentbranch(I.ethebranchwherethemaincollectionaccountisheld)alongwiththedetailsoftheinstruments.Consolidatedtotalsareverifiedattheparentbranchandcollectionamountsarecreditedtothecollectionaccount
Reconciliationofthetransactionentriesandcollectionamountswiththecollectionaccountholders(RBI,customs,exciseetc.)ishandledattheparentbranchAllMISasrequiredbythestatutory/regulatorybodies,managementetc.preparedmanuallyAccuracyofMISisaconcern
CollectionServices(CurrentState)
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Direct&Indirecttaxcollections,school,universityfeescollectionsetc.tobehandledatthebranchesthroughtherespectiveoptionsEachbranchwouldhaveseparateaccountsfordifferenttypesofcollectionsservicesoffered.Dailythecollectionsmadebytheparticularbranchwillbeenteredinthecorebankingsolutionbythebranchalongwithallthedetailsofthetransactions.Attheendofbusinesshoursthephysicalcollectioninstruments(e.g.challanreceipts)willbesenttothenodalbranchalongwiththescheduleofcollectionThebrancheswillfurthertransferthecollectionsforthedaytothenodalbranchasperthecollectionschedulebeingsentbythebranchtothenodalbranch.(OptiontodefinethetransferperiodofcollectionfundsfromthenodalbranchestotheparentbranchandthemodeoftransferI.e.automated/manual)IntheeventofchequepaymentstheentrywillbeautomaticallypickedupbythesystemonthedaythechequewasrealizedandtheamountwillbeautomaticallytransferredfromthesundryaccounttothebranchcollectionaccountThenodalbranchwillberesponsibleforreconciliationoftheinstrumentssentbythebrancheswiththephysicalinstrumentsandalsotheamountstransferredbythebranches.
CollectionServicesFutureState
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Thenodalbranchwillalsohavethefacilitytouploadtransactiondetailsreceivedthroughelectronicmedium/manuallyenterrequireddata,forbranchesnotonthecorebankingsolution/manualbranches.Thenodalbranchwillberesponsibleforreconciliationoftheinstrumentssentbythebrancheswiththephysicalinstrumentsandalsotheamountstransferredbythebranches.Thenodalbranchwillalsohavethefacilitytouploadtransactiondetailsreceivedthroughelectronicmedium/manuallyenterrequireddata,forbranchesnotonthecorebankingsolution/manualbranches.ReconciliationandaccountingofbranchesnotconnectedtothecorebankingsolutionwouldberoutedthroughtheInterbranchReconciliationDepartment.Forbranchesconnectedtothecorebankingsolutiontherespectivebooksofaccountswillbeupdatedonlineonarealtimebasis.Dailytheamountsalongwiththetransactiondetailswouldbetransferredbythenodalbranchestotheparentbranch.(OptiontodefinethetransferperiodofcollectionfundsfromthenodalbranchestotheparentbranchandthemodeoftransferI.e.automated/manual)Theparentbranchwillreconciletheconsolidatedtotalsforeachtypeofcollectionandtransferthecollectionstotheparentaccount.Thecorebankingsolutionwouldkeepatrackofallcollectionsmadetoaparticularbranchasonaparticulardatealongwiththedetailsofthetransactions.
CollectionServicesFutureState
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Thecorebankingsolutionwouldalsocalculatethecommissionreceivable(ifany)basedupondefinedrulesfromthecollectionaccountsforservicesofferedbyCentralBank.Thecommissionamountswouldbecomparedbythesystemwiththeactualcommissionreceivedfromthecollectionaccountholders.Discrepanciesifanyshouldbedisplayed.Reconciliationofthetransactionentriesandcollectionamountswiththecollectionaccountholders(RBI,customs,exciseetc.)ishandledattheparentbranchTheparent,nodal/link,aswelltheoriginatingbranchwillbeabletoviewalldetailsofthetransactionsmadeandtheflowofthetransactionsatthemicrolevelatanypointintimeCollectionsserviceswillalsobeofferedthroughInternetBankingtothecustomersIntheeventofcollectionsmadethroughInternetBankingthebranchwillprintareportofthesamecollectionaccountwisefortransactiondoneuptothecloseofthebusinesshour/cutofftimeandsendthisscheduletothenodal/linkbranch.ThebranchwillconsolidatetheamountscollectedthroughinternetBankingalongwiththetotalcollectionsmadefortheday.
Thenodal/linkbranchwillalsoreceiveacopyofthecollectiontransactionseffectedinthecorebakingsystemuptothecloseofthebusinesshour/cutofftime(asparameterizedfortheparticularbranch)throughtheInternetBankingserverbranch-wise.BoththesereportsI.e.onesentbythebranchandtheotherreceivedbythenodal/linkbranchwillbeusedforreconciliationpurposesbythenodal/linkbranch
CollectionServicesFutureState
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CollectionServicesProcessCurrentStateFutureState
Collectionsservicescurrentlymanuale.g.taxcollectionsConsolidatedaccountingentriespassedinthebranchbankingsystemforcollectionsmadeduringthedayScheduleforcollectionsmadeforvarioustypesofcollectionsservicespreparedmanuallybythebranchReconciliationatthebranchdonemanuallyAllMISasrequiredbythestatutory/regulatorybodies,managementetc.preparedmanually
Direct&Indirecttaxcollections,school,universityfeescollectionsetc.tobehandledatthebranchesthroughtherespectiveoptionsEachbranchwouldhaveseparateaccountsfordifferenttypesofcollectionsservicesoffered.Branchesinaparticularregion,localityetc.tobelinkedtoaparticularnodalbranchandthenodalbranchesinturntobelinkedtoaparticularparentbranch(I.e.thebranchwherethemaincollectionaccountismaintained)Reconciliationofthecollectionsmadebythevariousbrancheswillbehandledbythenodal/linkbranch,whereasthereconciliationoftheactualcollectionaccountwillbehandledbytheparentbranchSystemtosupportreconciliationofindividualtransactionwiseaswellasconsolidatedtransaction-wise
Nodalbranchestohavetheoptionofconsolidationscollectionsmadebynoncomputerisedbranchesthroughmanualdataentry/directuploadtothesystemifdataisavailableinelectronicformatCollectionsmadeonaparticulardaytobeautomatically/manuallytransferredtothenodal/linkbranchuponauthorisationofallcollectiontransaction,andfromthenodal/linkbranchtotheparentbranchuponauthorisationafterreconciliationatthenodal/linkbranchThesystemwouldkeepatrackofallcollectionsmadeaparticularbranchasonaparticulardatealongwiththedetailsofthetransactions.Theparent,nodal/link,aswelltheoriginatingbranchwillbeabletoviewalldetailsofthetransactionsmadeandtheflowofthetransactionsatthemicrolevelatanypointintimeCollectionsserviceswillalsobeofferedthroughInternetBankingtocustomers
PeopleRequirementAutomationofthecollectionprocessandofferingthesamethroughInternetBankingwouldresultinstaffreductionatthebranchesandredeployment
ManagementDecision
Periodicityformovementoffundsfromthebranchestothenodal/linkbranchandfromthenodal/linkbranchtotheparentbranchReconciliationofallcollectionsmadebythebranchestobedonebythenodal/linkbranchIdentificationofthenodal/linkbranchIdentificationofthebrancheslinkedtothenodal/linkbranch
Abilitytolinkbranchestoanodal/linkbranchandnodal/linkbranchestoaparentbranchAbilitytosupportconsolidationandreconciliationatthenodal/linkbranchesandparentbranchAbilitytoautomatically/manuallytransferthecollectionmadefromthebranchestonodal/linkbranchesandfromthenodal/linkbranchestotheparentbranchAbilitytosupportallcollectionservicesasdesiredbytheBankthroughInternetBanking
VendorQuestions
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CollectionServicesFutureState
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WrittenmandatesaretakenfromthecustomersforeffectingstandingordersCurrentlythestandinginstructionmoduleisusedforintrabranchaccounttransfersmainlyforloaninstallmentandRDpayments.Paymentstobemadetobeneficiariesoutsidethebranch/otherbanksetc.aremanuallymaintainedinregistersThebranchhasnowaytoknowwhatstandingordershavenotbeenexecutedonaparticulardayasthesystemdoesnotgenerateanyreportforStandingInstructionsnotexecutedonaparticularday.Thesystemhasnooptiontorecordthereceiptofpaymentmadebythecustomerdirectlyandautomaticallyadjustthenextpaymentdates.Soeventhoughthecustomerhasmadethepaymentthesystemduringthenextexecutionautomaticallyrecoversallamountduefromthedatewhenthestandingorderwasnotexecuted,thusdebitingthecustomersaccountmultipletimeseventhoughthepaymentforthesamehasbeenmadethroughsomeothermodeofpayment.Asaresultofthesemultipledebitsintheaccountatasinglepointoftimegenuinechequesofthecustomermaybounceforlackoffunds,customermaybechargedminimumbalancechargesetc.eventhoughthebalanceintheaccountwassupposedtobesufficientThiscausescustomerdis-satisfactionandinconveniencetothecustomer.Furtheritalsoresultsinalotofmanualeffortatthebranchforproblemidentificationandrectificationofthesame.
StandingInstructionsCurrentState
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Forotheraccountsbesidesloanaccountwherestandinginstructionsaretobeeffectedgounnoticedtillthecustomercomplaintsaboutthesameasitisnotpossibleforthebranchtocheckallaccountsonadailybasis.Nocheckforexistenceofstandinginstructionatthetimeofaccountclosure.Sobeforeanaccountisclosedtheconcernedofficerhastogothroughthestandinginstructionsmoduletomakesurethatnoactivestandinginstructionsarelinkedtotheparticularaccount.
StandingInstructionsCurrentState
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Standinginstructionstobeenteredbythebranchitselfinthecorebankingsystem.DatafieldstobecapturedwouldbedefinedatthecentralleveltoensureconsistencyofdataandaccurateprocessingofstandingordersProposedstandinginstructionmoduletobecapabletohandleintrabranch,interbranchandinterbanktransactions.Theprocessofexecutionofthestandingorderwillautomatee.g.daybegin,dayendetc.StandinginstructionmoduletosupportgenerationofdesiredmessageformatsforinterbanktransactionstobepassedontotheRTGS/respectivesystemsfordirectinterbanktransfers/entriesThestandinginstructionsmoduletosupportautomaticgenerationofDD/PO.setc.asperdatesdefinedinthestandinginstructionsmoduleinthedesiredformat,recovercharges/commissionforthesameasparameterisedintheglobalparameterfilesThestandinginstructionsmoduletosupportautomatictransferoffundsbeyondaparameterisedamountforaparticularcustomer/group,betweenaccountsofthesame
branch,acrossbranches,thirdpartyaccountsThesystemwillautomaticallygeneratealistofallstandingordersexecuted/non-executedonaparticulardayalongwithreasonsfornonexecutionofthesame.Allnonexecutedstandingorderswillbedisplayedandcanbepassedwithappropriateauthorization,forallotherrejectedtransactionsthesystemwillretryforthenumberoftimesspecifiedintheparameter
StandingInstructionsFutureState
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AllstandingorderspassedwithhigherauthorizationswillnotbeconsideredforretryThesystemwillretrytoexecutethenonexecutedstandingordersforthenumberoftimesasspecifiedintheparameterfile.Asperdefinedparametersthesystemwillgenerateappropriatewarninglettersinformingthecustomer:tomakethebalanceavailableintheaccount,informingthecustomertomakethepaymentdirectlyuponcrossingthenumberofretries,informingthecustomeraboutautomaticallyterminatingthestandinginstructionfornonexecutionofthestandingorderforxnumberofconsecutivetimes,informingthecustomeraboutterminationofthestandingorderuponreachingtheexpirydateofthestandingorder.
Thesystemtoautomaticallygenerateareportasperdefinedfrequencyforallinterbranch/interbanktransactionsthroughstandingordersgivingcompletedetailsofthetransaction.Systemtocheckforexistenceofstandinginstructionatthetimeofaccountclosure
anddisplayappropriatewarningmessagesforthesame.SystemtosupportrequestforstandingorderinstructionsthroughInternetBanking,InwhichcasetheinstructionswouldbedownloadedatperiodictimeintervalsfromtheInternetBankingserverandbefedinthecorebankingsystematacentrallocationhandlinginternetbankingtransactions.
StandingInstructionsFutureState
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StandingInstructionsProcessCurrentState
FutureState
CurrentlythestandinginstructionmoduleisusedforintrabranchaccounttransfersmainlyforloaninstalmentandRDpayments.Paymentstobemadetobeneficiariesoutsidethebranch/otherbanksetc.aremanuallymaintainedinregistersThebranchhasnowaytoknowwhatstandingordershavenotbeenexecutedonaparticulardayasthesystemdoesnotgenerateanyreportforStandingInstructionsnotexecutedonaparticularday.Thesystemhasnooptiontorecordthereceiptofpaymentmadebythecustomerdirectlyandautomaticallyadjustthenextpaymentdates.Nocheckforexistenceofstandinginstructionatthetimeofaccountclosure
Standinginstructionstobeenteredbythebranchitselfinthecorebankingsystem.DatafieldstobecapturedwouldbedefinedatthecentralleveltoensureconsistancyofdataandaccurateprocessingofstandingordersProposedstandinginstructionmoduletobecapabletohandleintrabranch,interbranchandinterbanktransactionsinbaseaswellasforeigncurrency.Theprocessofexecutionofthestandingorderwillautomatee.g.daybegin,dayendetc.
StandinginstructionmoduletosupportgenerationofdesiredmessageformatsforinterbanktransactionstobepassedontotheRTGS/respectivesystemsfordirectinterbanktransfers/entriesThestandinginstructionsmoduletosupportautomaticgenerationofDD/POsetc.asperdatesdefinedinthestandinginstructionsmoduleinthedesiredformat,recovercharges/commissionforthesameasparameterisedintheglobalparameterfilesThestandinginstructionsmoduletosupportautomatictransferoffundsbeyondaparameterisedamountforaparticularcustomer/group,betweenaccountsofthesamebranch,acrossbranches,thirdpartyaccountsThesystemwillautomaticallygeneratealistofallstandingordersexecuted/non-executedonaparticulardayalongwithreasonsfornonexecutionofthesame.SystemtoautomaticallyretryforthenumberoftimesasspecifiedintheparameterfileSystemtogenerateappropriatewarning&terminationlettersbasedonparameterdefinedinthe
systemThesystemtoautomaticallygenerateareportasperdefinedfrequencyforallinterbranch/interbanktransactionsthroughstandingordersgivingcompletedetailsofthetransaction.SystemtocheckforexistenceofstandinginstructionatthetimeofaccountclosureSystemtosupportrequestforstandingorderinstructionsthroughInternetBanking
PeopleRequirement
Automationoftheprocesswouldresultinstaffreductionatthebranchesasthisfunctioncanbehandledbyanyofficer,noexclusivestaffrequiredforthisprocess.
ManagementDecisionPermitinterbranch,intrabranch,interbanktransfersthroughstandingordersSystemparameterstobesetglobally,branchestohavenocontroloverparametersettingsAutoterminationofstandingordersbaseduponparametersdefinedinthesystem
Abilitytosupportinterbranch,intrabranch,interbankstandingordersHighlyparameterisedsystemAutomaticgenerationofwarning&terminationlettersbaseduponparametersdefinedinthesystem
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SupportrequestforstandingorderthroughInternetBanking
VendorQuestionsStandingInstructionsFutureState
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ChequepurchasesupportedbythesystemChequesaremainlypurchasedbytheBranchfortheircustomersonly.Intheeventthecustomerisofanotherbranchthecustomerdetailsareverifiedoverthephonewiththebranchwherethecustomerhasanaccount.Applicablecommissionandinterestisautomaticallypickedupanddisplayedbythesystemaspertheparameterset.Chequespurchasedbythebrancharesenttotheservicebranchforcollectionalongwithanunsortedschedule.Uponrealizationoftheinstrumentstheservicebranchsendsanadvicetothebranchinformingthemabouttherealization/returnoftheinstrument.
ChequePurchaseCurrentState
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AllbranchesonthecorebankingcanofferthisfacilitytotheircustomersfromanybranchoftheBankwhichisconnectedtothecorebankingsolution.EachbranchonthecorebankingwillhavetherighttoaccessdataofallotherbranchesconnectedtothecorebankingbaseduponaccessprivilegesThecorebankingsolutiontomaintainthecustomerhistorycardgivingallrelevantdetailsofthecustomerinasnapshot.Thecustomeraccountcanbedirectlycreditedwiththeamountofthecheque(lessdeductionsI.e.interest,commission/chargesetc.)Theinstrumentcanbedirectlypostedatthepayingbranchinthecustomersaccount(I.e.thepersonwhohasissuedtheinstrument)iftheaccountisonthecorebankingsolution.ThesystemtovalidatetheinstrumentforAlreadyEncashed,Cancelled,Stale,Datedetc.beforepayment.Intheeventofanydiscrepanciesinthevalidationstheinstrumentcanbereturnedonthespot.Intheeventthecustomersaccount(debit)isnotonthecorebankingsolutiontheinstrumentwillbeforwardedtotheservicebranchforprocessing.
Allinterest,commission,chargestobeautomaticallycalculatedanddeductedfromthecustomersaccountasdefinedintheglobalparameterfile.Chequepurchaselimitsbranchwise,useridwisetobedefinedinthesystemandthesystemtovalidatethesameatthetimeoftransactions
ChequePurchaseFutureState
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ChequePurchaseProcess
CurrentState
FutureStateChequepurchasesupportedbythesystemChequesaremainlypurchasedbytheBranchfortheircustomersonly.Intheeventthecustomerisofanotherbranchthecustomerdetailsareverifiedoverthephonewiththebranchwherethecustomerhasanaccount.Applicablecommissionandinterestisautomaticallypickedupanddisplayedbythesystemaspertheparameterset.Chequespurchasedbythebrancharesenttotheservicebranchforcollectionalongwithanunsortedschedule.Uponrealizationoftheinstrumentstheservicebranchsendsanadvicetothebranchinformingthemabouttherealization/returnoftheinstrument.
AllbranchesonthecorebankingcanofferthisfacilitytotheircustomersfromanybranchoftheBankwhichisconnectedtothecorebankingsolution.EachbranchonthecorebankingwillhavetherighttoaccessdataofallotherbranchesconnectedtothecorebankingbaseduponaccessprivilegesThecorebankingsolutiontomaintainthecustomerhistorycardgivingallrelevantdetailsofthecustomerinasnapshot.
Thecustomeraccountcanbedirectlycreditedwiththeamountofthecheque(lessdeductionsI.e.interest,commission/chargesetc.)ThesystemtovalidatetheinstrumentforAlreadyEncashed,Cancelled,Stale,PostDatedetc.beforepayment.Intheeventofanydiscrepanciesinthevalidationstheinstrumentcanbereturnedonthespot.Intheeventthecustomersaccount(debit)isnotonthecorebankingsolutiontheinstrumentwillbeforwardedtotheservicebranchforprocessing.Allinterest,commission,chargestobeautomaticallycalculatedanddeductedfromthecustomersaccountasdefinedintheglobalparameterfile.Chequepurchaselimitsbranchwise,useridwisetobedefinedinthesystemandthesystemtovalidatethesameatthetimeoftransactions
PeopleRequirementCanbehandledbyanyseniorofficerinthebranchnorequirementofstaffexclusivelyforthispurpose.
ManagementDecisionPermitchequepurchaseforacustomerofanybranchatanybranchonthecorebankingsolution.SetuplimitsforpurchaseinthesystemDefinerulesforchequepurchaseacrossbranchesandupdatethebranchoperatingmanualswiththesame.
Abilitytosupportchequepurchaseforacustomerofanybranchatanybranchonthecorebankings
olution.AbilitytotrackthemovementofthechequesalongwiththedetailsofthetransactionsAbilitytomaintaincustomerhistorycardforonlineverificationAbilitytodefinechequepurchaselimits
VendorQuestions
ChequePurchaseFutureState
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CustomernotuniquelyidentifiedintheBranchI.e.allaccountsofacustomerarenotgroupedtogetherAccountopeningnotacentralizedfunctioneachdepartmentopentheirownaccounts.NocheckingofcustomersrecordsforduplicationsatthetimeofaccountopeningSinglecustomerhavingmultipleaccountsinthesamebranchTDSisonlydeductedfromtermdepositaccountsotheraccountslikesavingsarenotconsideredNofacilitytospecifyotheraccountsfromwhichTDScanberecovered.TDScalculatedmaynotbeaccurateCurrentsystemsdonotsupportcalculationofTDSHugeamountofmanualeffortsinvolvedincalculationandrecoveryofTDSAllMISwithregardstoTDSpreparedmanually,whichistimeconsumingexerciseandresultsinhugeamountofresources
TaxDeductedatSourceCurrentState
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CustomertobebeidentifieduniquelyacrosstheBankthroughhis/hercustomerID.Allaccountsofthecustomerwillbegroupedtohis/hercustomerIDAccounts/products,schemestobedefinedinthesystemwhereTDSisapplicableRulestobedefinedinthesystemforcalculationandrecoveryofTDSTaxslabsandrateapplicabletobedefinedgloballybaseduponcertainparametersliketypeofaccount,typeofcustomeretc.AbilitytorecoverTDSfrom:Oneormoredepositaccountsofthecustomerinthesame/anyotherbranchonthecorebankingsystemDirectdeductionatthetimeofpaymentofhistermdeposit
SystemtosupportrecoveryofTDSamountalongwithinterestfromthecustomerintheeventtheBankhaspaidTDSonbehalfofthecustomerGeneratewarningletters/reminderlettersforrecoveryofTDSamountsfromthecustomerorpaymentofTDSasparameterizedinthesystemGenerateTaxcertificatesinuserdefinedformatsforanytaxdeductedatsource.
TaxDeductedatSourceFutureState
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DisplayandprinttheprojectedTaxdeductedamountattheopeningofdeposit.Thesystemshouldconsiderallthedepositaccounts/Termdepositsheldbythecustomerwiththebranch/bank.GenerateTDSReturn,asofanyparticulardate,tobefiledwiththetaxauthoritiesforTaxdeductedfromcustomers,intheformatasrequiredbythetaxauthorities.Capturedetailsofform15H,16AAutomaticallyrecalculatetheTDSamountintheeventofaprematureclosureanddisplaythebalancepayable/recoverablefromthecustomerSupportpro-ratacalculationofTDSintheeventofperiodicinterestcalculation
TaxDeductedatSourceFutureState
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TaxDeductedatSourceProcessCurrentStateFutureStateCustomernotuniquelyidentifiedintheBranchI.e.allaccountsofacustomerarenotgroupedtogetherNocheckingofcustomersrecordsforduplicationsatthetimeofaccountopeningSinglecustomerhavingmultipleaccountsinthesamebranchCurrentsystemsdonotsupportcalculationofTDSHugeamountofmanualeffortsinvolvedincalculationandrecoveryofTDSTDScalculatedmaynotbeaccurateAllMISwithregardstoTDSpreparedmanually,whichistimeconsumingexerciseandresultsinhugeamountofresources
CustomertobebeidentifieduniquelyacrosstheBankthroughhis/hercustomerID.Allaccountsofthecustomerwillbegroupedtohis/hercustomerIDAccounts/products,schemestobedefinedinthesystemwhereTDSisapplicableRulestobedefinedinthesystemforcalculationandrecoveryofTDSTaxslabsandrateapplicabletobedefinedgloballybaseduponcertainparametersliketypeofaccount,typeofcustomeretc.AbilitytorecoverTDSfromoneormoredepositaccountsofthecustomerinthesame/anyotherbranchonthecorebankingsystem,directdeductionatthetimeofpaymentofhistermdepositSystemtosupportrecoveryofTDSamountalongwithinterestfromthecustomerintheeventtheBa
nkhaspaidTDSonbehalfofthecustomerGeneratewarningletters/reminderlettersforrecoveryofTDSamountsfromthecustomerorpaymentofTDSasparameterizedinthesystemGenerateTaxcertificatesinuserdefinedformatsforanytaxdeductedatsource.GenerateTDSReturn,asofanyparticulardate,tobefiledwiththetaxauthoritiesforTaxdeductedfromcustomers,intheformatasrequiredbythetaxauthorities.
PeopleRequirementAutomationofthisprocesswouldresultinreductionofeffortsatthebranchesfortheabovementionedprocess,asmanualinterventionrequiredwouldbeminimal.Excessstaffcanbere-deployed
ManagementDecision
DatacapturetobeuniformacrossallbranchesCheckforexistenceofaccountamustAllaccountsofacustomertobegroupedunderauniquecustomerIDAllparametersforcalculationandrecoveryofTDStobegloballyparameterised,branchestohavenoaccesstomodifythesame.IdentifyproficientpersonneltodefinerulesforTDScalculationandrecovery
AbilitytosupportTDScalculationforacustomerofanybranchatanybranchonthecorebankingsolution.
AbilitytotrackthemovementoftheTDScertificatesalongwiththedetailsofthetransactionsAbilitytomaintaincustomerhistorycardforonlineverification
VendorQuestionsTaxDeductedatSourceFutureState
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OtherProcessesProcessCurrentState
FutureStateDe-centralisedSystempromptsusertoentercharges,andacceptsanyamountenteredaschargesresultingin:PossibilityofleakageofincomeCustomerdissatisfactionforwrongchargesapplied
Processeslikestoppayments,Accountholdandrestriction,accounttransfers,canbehandledbyanybranchonthecorebankingsystem.Instructionsforstoppayments,accountholds,accounttransferscanbe:GivenbythecustomeroverthecounterThroughinternet/phonebankingATMetc.
Systemtoautomaticallyapplythedateandtimestampintheeventtheinstructionshavebeenreceivedthroughanyofthedeliverychannels,butintheeventtheinstructionsaregivenoverthecounterthecollectingofficerwouldmanuallyputthedateandtimestamp
AllinstructionsreceivedoverthecounterwouldbeenteredimmediatelyinthesystembythereceivingbranchInstructionsreceivedthroughthevariousdeliverychannelswouldbedownloadedtothecorebankingsystematperiodicintervalforupdaton.SystemtovalidatetheinstrumentsbeforestoppaymentsAllcharges,commissionetc.toberecoveredfromthecustomertobegloballyparameterisedAccessrightstobedefinedinthesystemforplacing/revokingholds,stoppaymentsetc.FloorlimitstobedefinedinthesystemforinterbranchtransactionsRulesforinterbranchtransferstobedefinedinthesystemSystemtoautomaticallyprintareportbeforedayendforallinterbranchtransactionsdonebyaparticularbranchonotherbranchesandtransactionsdonebyotherbranchesofaparticularbranch
PeopleRequirementNoadditionalstaffrequiredtohandletheabovementionedprocessesIndividualdepartmentheads/officerstohandletheprocesses
ManagementDecisionDefinerulesforinterbranchtransferse.g.betweenthesamecustomeraccount,between3rdpartyaccountsMovementofinstructionsforstoppayment,accounthold/restrictionI.e.toacentrallocation,tothebranchwherethecustomeraccountismaintained,atthebranchwheretherequestwasacceptedDefinefloorlimitsforinterbranchtransactions
Definethetransactiontobeallowedthroughdeliverychannels
AbilitytohandletheabovementionedprocessesthroughanybranchonthecorebankingsolutionAbilitytodefinefloorlimitstointhesystemforinterbranchtransactionsAbilitytodefinerulesforinterbranchtransfersinthesystemAbilitytoautomaticallyprintareportbeforedayendforallinterbranchtransactionsdonebyaparticularbranchonotherbranchesandtransactionsdonebyotherbranchesofaparticularbranch
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VendorQuestions
StopPayment,AccountHolds,AccountTransfersProcessesFutureState
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BranchestoconcentrateonmarketingofcreditExpertisetoevaluatecreditproposaltobedecentralizedorcentralizedfortheBankasawholeattheHeadofficePowerstobedelegatedtothebranchestoprocessanddisburseloansonthebasisofamountofloan,purposeofloan,typeofbranchetc.Thesametobeconfiguredinthecorebankingsystem.Loan/advanceproposalbeyondthepowersofthebranchestobedirectlyforwardedtothecentralisedlocationforevaluationandprocessing.All/selectedbranchestohaveaccesstothecreditappraisalsystem.Parametersforcreditscoringandrating,benchmarking,documentationrequirementandcompliancetobeparameterisedinthecorebankingsystematacentrallevel.Branchestoonlyhaveaccesstoentertherelevantinformationforgenerationofthecreditappraisalreport.Branchestoobtainapprovalfromhigherauthorityintheeventofdeviationsfromthecreditappraisaldonebythesystem.Maximumfacilitythatcanbeofferedtothecustomerbaseduponhiscreditapprai
salandratingtobeascertainedbythesystemandvalidatedatthetimeoflimitgranting.Alldetailsofthecustomerfortheparticulartypeofloan,securitydetails,documentationdetailsetc.tobeenteredatthebranchintheeventthecreditappraisalfortheparticularcustomerwasdoneatthebranch,elsethecentraldepartmentwillberesponsibleforenteringdetailsofthecustomerfortheparticulartypeofloan,securitydetails,documentationdetailsetc
Loans&Advances(Pre-Sanction)FutureState
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Disbursalschedulestobeautomaticallygeneratedbythesystemonenteringtherequiredloandetails.Branchestobeinformedbythecentraldepartmentsthroughthecorebankingsystemabouttheacceptance/rejectionoftheproposal.Loanapprovallettertobegeneratefromthebranchandcourieredtothecustomer.Disbursaloftheloan/advancetobedonebytherespectivebranchwherethecustomerhasanaccount.
Loans&Advances(Pre-Sanction)FutureState
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Corebankingsystemtosupportpostsanctionactivitieslike:DisbursalsCollectionsCreditmonitoringNPAmanagementRecoveryGenerationofreminderlettersGenerationofstatutory®ulatoryMISPDCmaintenanceandlodgmentetc.Legal
Rulesforaccountclassifications,provisionsetc.tobeparameterizedcentrally.Branchestohavenoaccesstomodifythedefinedrules.AccountclassificationandprovisioningtobeautomatedasperdefinedbusinessrulesBranchestohavetheoptionstore-classifyaccountsalreadyclassifiedbythesystemwithappropriateauthorityMonitoringofaccountstobecentrally/de-centrallycontrolledbasedupontheamountofloan,purposeofloan,typeofbranchetc.
CentraldepartmenttohaveaccesstoviewandmonitorallaccountsbaseduponaccessprivilegesdefinedinthesystemPDCmaintenanceandlodgmenttobecentralizedregionwiseoratindividualbranchesAllstatutory,regulatory,managementandexecutiveinformationandreportstobegeneratedbythecorebankingsystem
Loans&Advances(Post-Sanction)FutureState
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Loans&AdvancesProcessCurrentStateFutureStateDecentralisedprocessingofloansandadvancesBrancheshavingthenecessaryexpertiseonlydeal/disburseparticulartypesofloans/advancesCustomerredirectedtothenearestbranchwithdealsintheparticulartypeofcreditShortageoftechnical/functionalexpertisetoservicelargecustomerbaseMISgenerationforstatutory,regulator,managementandexecutiveinformationsystemsmainlymanualinthebranches,resultingindelayedinformationflowDatacaptureinconsistent&inadequateacrossbranchesAccuracyofMISisaconcern
BranchestoconcentrateonmarketingofcreditExpertisetoevaluatecreditproposal,monitoraccounts,recovery,legal,tobedecentralisedregionwiseorcentralisedfortheBankasawholeattheHeadofficePowerstobedelegatedtothebranchestoprocessanddisburseloansonthebasisofamountofloan,purposeofloan,typeofbranchetc.Thesametobeconfiguredinthecorebankingsystem.Loan/advanceproposalbeyondthepowersofthebranchestobedirectlyforwardedtothecentralisedlocationforevaluationandprocessing.All/selectedbranchestohaveaccesstothecreditappraisalsystem.Datacapturefieldsfordataentrytobefixedcentrallytoensuredatauniformity
Forloansdisbursedbythebranches,dataentryfortheloantobedonebytherespectivebranches,elsedataentryfortheloanwillbedonebythecentralisedlocationLoanapprovallettertobegeneratefromthebranchandcourieredtothecustomer.Disbursaloftheloan/advancetobedonebytherespectivebranchwherethecustomerhasanaccount.Activitieslikecreditmonitoring,creditappraisal(beyondthepowersofthebranch),NPAmanagement,recovery,PDCmaintenance,legaltobecentralisedregionwise/bankwideRulesforaccountclassifications,provisionsetc.tobeparameterizedcentrally.Branchestohavenoaccesstomodifythedefinedrules.Anydeviationfromcreditrulesdefinedinthesystemforappraisal,sanction,interestrates,classificationetc.wouldrequirehigherapprovalBranchestobeinformedbythecentraldepartmentsthroughthesystemabouttheacceptance/rej
ectionoftheproposal,reviewcomments,actionstobetaken,etc.Consolidatedviewandcentralizedmonitoringoftotalcustomerexposure,industryexposure,groupexposureetc.Allstatutory,regulatory,managementandexecutivereportsandinformationtobegeneratedfromthecentrallocation
PeopleRequirementBurdenofloanprocessing,dataentry,monitoring,MISpreparationetc.reducedatthebranchlevel,resultinginreductionofstaffhandlingloansandadvances.ExcessstaffcanberedeployedformarketingeffortsIdentificationofcorefunctionalpersonnelintheareasofcreditappraisal,monitoring,NPAmanagement,recovery,legalacrosstheBank
ManagementDecision
Expertisetoevaluatecreditproposal,monitoraccounts,recovery,legal,tobedecentralisedregionwiseorcentralisedfortheBankasawholeattheHeadofficePowerstobedelegatedtothebranchestoprocessanddisburseloansbaseduponcertaincriteria,allotherloanprocessingtobehandledcentrallyCriteriafordisbursalatthebranchestobefixed
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Rulesformovement/classificationofaccountstobeparameterisedgloballyActivitieslikecreditmonitoring,creditappraisal(beyondthepowersofthebranch),NPAmanagement,recovery,PDCmaintenance,legaltobecentralisedregionwise/bankwideAllMIStobegeneratedfromthecentrallocationExtentallloansandadvancesschemestoallbrancheswithcontrolsonthesametobecentralised
Abilitytosupportcentralisedanddecentralisedbackofficeprocessing,monitoring,NPAmanagement,recovery,PDCmaintenance,legaletc.AbilitytosupportallcurrentloanandadvancesproductsHighlyparameterisedsystemEaseofconfiguringnewloanandadvancesproductsGenerationofMIStobecentralised/decentrlisedReminderletters,warningletters,reviewwarningsetc.tobebothcentralisedandde-centralised
VendorQuestionsLoans&AdvancesFutureState
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CorebankingsystemtosupportdocumentationmanagementforallproductsandservicesofferedbytheBank.Documentationrequiredforeachtypeofproduct/servicetobeparameterizedinthesystemalongwiththeirgraceperiods,reviewandexpiryperiodsetc.centrallyScreensforcapturingthedetailsofthedocumenttobedesignedinthecorebankingsystemaspertheBanksrequirementDocumentstobeparameterizedasmandatory,nonmandatoryinthecorebankingsystemforvariousproducts/schemesRulestobedefinedinthecorebankingfor:DocumentsnotcollectedEscalatethemattertothehigherauthorityStopall/sometransactionsintheaccountetc.
Documentsnotreceivedintimeetc.Automaticallytriggerevent(maketheDrawingPower0,etc.)EscalatethemattertothehigherauthorityChangethestatusoftheaccountChargepenalinterest/flatfees
Documentationmaybebypassedorrulesmaybeviolatedbythebranchessubjecttohigherapproval
DocumentationManagementFutureState
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Rulesforcalculationoflimits,drawingpower,marginetc.basedupondocumentationdetailsprovidedtobeparameterisedinthecorebankingcentrally.Systemtogeneratewarningmessages/lettersxnumberofdays(asparameterised)inadvancefordocumentexpiringonaparticulardate.Documentdetailstobeenteredbythebranchintheeventthecreditappraisalwasdoneatthebranches,elsethedocumentsshouldbecollectedbythebranchasperthelistofdocumentsfortheparticularproduct/schemeandthesameshouldbesenttothecentrallocationforentry.ThecentraldepartmenttohaveaccesstoviewandmonitoralldocumentationdetailsbasedupondefinedaccessprivilegesSystemtogeneratealertsfordocumentstobereviewedxnumberofdays(asparameterised)inadvance.Systemtorecalculatelimits/drawingpowerbasedonrevieweddocumentationSystemtointerfacewiththeinsurancepackageforautomaticuploadofinsurancedetailsinthecorebankingsolutionforrenewals,freshpoliciesetc.Systemtohavethefacilitytolinkmultipledocumentstooneproduct/schemeof
singledocumenttomultipleproducts/schemesWorkflowstobedefinedforautomatedescalations,approvals,authorisationsetc.basedupondefinedrules.
DocumentationManagementFutureState
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DocumentationManagementProcessCurrentStateFutureStateNodocumentationmanagementsystemDetailsofdocumentsnotcapturedinthesystemDelayinreceiptofdocumentationfromthecustomer/documentsnotreceived/collectedbythebranchStorageandmovementofdocumentationisaconcernatthebranchesExpertisetocriticalevaluatedocumentsnotavailableatallbranchesManualduedatediariesmaintainedbythebranches
CorebankingsystemtosupportdocumentationmanagementforallproductsandservicesofferedbytheBank.Documentationrequiredforeachtypeofproduct/servicetobeparameterizedinthesystemalongwiththeirgraceperiods,reviewandexpiryperiodsetc.centrallyScreensforcapturingthedetailsofthedocumenttobedesignedinthecorebankingsystemaspertheBanksrequirementDocumentstobeparameterisedasmandatory,nonmandatoryinthecorebankingsystemforvariousproducts/schemesRulestobedefinedinthesystemandactionstobetriggeredfordocumentsnotcollected/documentsnotreceivedintimeDocumentationmaybebypassedorrulesmaybeviolatedbythebranchessubjecttohigherapprovalRulesforcalculationoflimits,drawingpower,marginetc.basedupondocumentationdetailsp
rovidedtobeparameterisedinthecorebankingcentrally.Systemtogeneratewarningmessages/lettersxnumberofdays(asparameterised)inadvancefordocumentexpiringonaparticular.Documentdetailstobeenteredbythebranchintheeventthecreditappraisalwasdoneatthebranches,elsethedocumentsshouldbecollectedbythebranchasperthelistofdocumentsfortheparticularproduct/schemeandthesameshouldbesenttothecentrallocationforentry.ThecentraldepartmenttohaveaccesstoviewandmonitoralldocumentationdetailsbasedupondefinedaccessprivilegesSystemtogeneratealertsfordocumentstobereviewedxnumberofdays(asparameterised)inadvance.Systemtorecalculatelimits/drawingpowerbasedonrevieweddocumentationSystemtointerfacewiththeinsurancepackageforautomaticuploadofinsurancedetailsinthe
corebankingsolutionforrenewals,freshpoliciesetc.Systemtohavethefacilitytolinkmultipledocumentstooneproduct/schemeofsingledocumenttomultipleproducts/schemesWorkflowstobedefinedforautomatedescalations,approvals,authrisationsetc.basedupondefinedrules.
PeopleRequirementNoadditionalstaffrequiredforthisprocess,shouldbehandledbyofficersofrespectivebusinessfunctions
ManagementDecision
ParameterisationofDocumentationrequiredforeachtypeofproduct/servicealongwiththeirgraceperiods,reviewandexpiryperiodsetc.centrallyRulestobedefinedinthesystemandactionstobetriggeredfordocumentsnotcollected/documentsnotreceivedintimeDocumentdetailstobeenteredbythebranchintheeventthecreditappraisalwasdoneatthebranches,elsethedocumentsshouldbecollectedbythebranchasperthelistofdocumentsfortheparticularproduct/schemeandthesameshouldbesenttothecentrallocationforentry.
Abilitytosupportallcurrentloanandadvancesproducts
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HighlyparameterisedsystemAbilitytodefinetheworkflowstobedefinedforautomatedescalations,approvals,authorisationsbasedupondefinedrules
VendorQuestions
DocumentationManagementFutureState
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OnlydesignatedBankbranchesdealinforeigncurrencytransactionsExistenceofaseparatepackageforrecordingForextransactionwithnointerfacetothebranchbankingsystemBranchonlypurchases/sellforeigncurrency/travelerschequesforcustomerswhomaintainanaccountwiththatbranch.Intheeventtheparticularbranchisnotdesignatedtodealinforexthecustomerissenttothelinkbranchforpurchase/saleofforeigncurrency/travelerscheques.ThecustomerhastosubmitawrittendeclarationintheformofaletterstatingthetransactiondetailsThedetailsarerecordedinamanualregister.Currency/crosscurrencyconversionandcommissioncalculationisdonemanually.Vouchersarepreparedmanuallyforpaymentofcash,accounttransferetc.Transactionsarere-enteredinthebranchbankingsystemforthetransferamounts.
Purchase&SaleofForeignCurrency&TCCurrentState
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ProcessofIssue/PurchaseofTravelersCheques/ForeignCurrencybecompletelyautomatedandbehandledbyanybranchofthebankAllincomerelatedfields(e.g.commission,chargesetc.)forallcurrenciesbegloballyparameterized.Systemtocapturealldetailsforthepurposeofissue/purchaseofTravelsCheques/ForeignCurrency.CommissiontobeautomaticallybecalculatedforbothIssue/PurchaseofTravelersCheques&ForeignCurrencyExchangerates,crosscurrencyratesforallcurrenciestobepickupautomaticallyfromtheglobalparametertablesandtobeappliedtotheaccountsbasedupontheamountofthetransactionsormanuallyenteredSystemtopromptforspecialratesfromthetreasuryintheeventthetransactionamountisbeyondthanwhatisspecifiedintheparameteroronthebasisofthenatureofthetransaction.StockmaintenanceofTravelerscheques&ForeignCurrencyissuedtobranchestobe
enteredatacentrallocationandmonitoredbothfromthebranchaswellasthecentrallocationSystemtoapportiontheproceedsofthePurchase/salesofForeignCurrency/TravelersChequesbycash,accounttransfersorcombination.StoppaymentdetailsoftravelersChequestobeuploadedinthecorebankingsentbyTravelersChequesagents
Purchase&SaleofForeignCurrency&TCFutureState
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TravelerschequenumbertobeverifiedforstoppaymentwiththedetailsuploadedbeforeprintingtheCustomerTransactionreceiptSystemtoprinttheCustomertransactionreceiptforsale/purchaseofTravelersCheques/ForeignCurrencyasdesiredbytheBank.OnlineupdationofrespectiveaccountheadsThesystemtointerfacewithTreasurysystemforonlinereportingofpositionaswellasavailingexchange/crosscurrencyrates.Abilitytospecifylimitsforcurrency/travelerschequesholdingatthebranchesbaseduponuserdefinableparameterse.g.sizeofbranch,forexbusiness,etc.
Purchase&SaleofForeignCurrency&TCFutureState
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PurchaseandSaleofForeignCurrencyandTravellersChequesProcess
CurrentStateFutureStateOnlydesignatedBankbranchesdealinforeigncurrencytransactionsExistenceofaseparatepackageforrecordingForextransactionwithnointerfacetothebranchbankingsystemBranchonlypurchases/sellforeigncurrency/travellerschequesforcustomerswhomaintainanaccountwiththatbranch.Intheeventtheparticularbranchisnotdesignatedtodealinforexthecustomerissenttothelinkbranchforpurchase/saleofforeigncurrency/travellerscheques.Currency/crosscurrencyconversionandcommissioncalculationisdonemanually.Vouchersarepreparedmanuallyforpaymentofcash,accounttransferetc.Transactionsarere-enteredinthebranchbankingsystemforthetransferamounts.
ProcessofIssue/PurchaseofTravellersCheques/ForeignCurrencybecompletelyautomatedandbehandledbyanybranchofthebankAllincomerelatedfields(e.g.commission,chargesetc.)forallcurrenciesbegloballyparameterised.Systemtocapturealldetailsforthepurposeofissue/purchaseofTravelsCheques/ForeignCurrency.CommissiontobeautomaticallybecalculatedforbothIssue/PurchaseofTravellersCheques&ForeignCurrency
Exchangerates,crosscurrencyratesforallcurrenciestobepickupautomaticallyfromtheglobalparametertablesandtobeappliedtotheaccountsbasedupontheamountofthetransactionsormanuallyenteredSystemtopromptforspecialratesfromthetreasuryintheeventthetransactionamountisbeyondthanwhatisspecifiedintheparameteroronthebasisofthenatureofthetransaction.StockmaintenanceofTravellerscheques&ForeignCurrencyissuedtobranchestobeenteredatacentrallocationandmonitoredbothfromthebranchaswellasthecentrallocationSystemtoprinttheCustomertransactionreceiptforsale/purchaseofTravellersCheques/ForeignCurrencyasdesiredbytheBank.OnlineupdatingofrespectiveaccountheadsThesystemshouldbecapabletointerfacewithTreasurysystemforonlinereportingofpositionaswellasavailingexchange/crosscurrencyrates.
PeopleRequirementAutomationofthisprocesswouldresultinstaffreductionatthebranches.Redeploymentoftrainedstaffformbrancheshavingexcesstootherbranchestoexpandtheserviceofferings
ManagementDecision
Increasethebranchesfromaselectedfewtomaybeall/80%ofthebranchesonthecorebankingsolutionforallforexrelatedtransactions.IdentificationofbranchesforofferingforextransactionsSettingupofsmallcountersofferingforextransactionsatdomestic/internationalairports
andportsExtendthefacilityofpurchase/saleofforeigncurrencyandtravellerschequestononCentralbankcustomersRemitallforeigncurrencypurchasedtoacentralizedlocationorselltheforeigncurrencytothelocalauthoriseddealersandgetexchangeratesfromthembeforepurchase.Centralisedfundsmanagement
SupportcompleteautomationofIssue/PurchaseofTravellersCheques/ForeignCurrencySupportforcentralisedfundsmanagement
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VendorQuestionsPurchase&SaleofForeignCurrency&TCFutureState
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Definethesetofaccountingentriesthatshouldgetgeneratedateverystageofatransaction:onentryauthorizationModificationDeletionofatransaction
Definethedifferentgeneralledgersthatneedtobeupdated,basedonthetransactions,theGeneralledgerscouldbethetransactingbranch,headoffice,treasury,customerbranchetc.DefinewhentheGeneralLedgers(ofthebranch,theheadoffice,treasuryandtherelatedbranches)shouldbeupdatedbythesystem,forexample:On-linerealtimebasisAfteraspecifiedtimeinterval(30minutes,1houretc.)AtthedayendUponcompletionofspecifiednumberoftransaction
Abilitytohandleoff-linetransactionsAbilitytodefinetheaccountheadsasreconcilableandsupportautomaticreconciliationofsuchtransactionsAbilitytosupportautomaticreconciliationforalltransactionsdonebetweencor
ebankingbranches
AccountingFutureState
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Abilitytosupportreconciliationoftransactionsfornoncorebankingbranches,routedthroughtheInterBranchAccountingdepartmentAbilitytogenerateadvicesfortransactionsdoneonnoncorebankingbranchesAbilitytobifurcateaccountingentriesandposteachentryintherespectivecustomeraccountsandgeneralledgeraccountheads(e..g.interest,charges,commission,etc.)ModificationstoaccountingentriesafterauthorizationofthetransactionstobediscouragedSystemgeneratedentriestoautomaticallyeffectedintherespectiveaccountsbaseduponparametersset.SystemtosupporttransactionsfromvariousdeliverychannelssuchasATM.S,InternetBanking,PhoneBanking,SMS/MobileBankingSystemtobeabletoidentifytransactionseffectedinthecorebankingthroughvariousdeliverychannelsandcapabilitytoprintareportforthesamebaseduponuserdefinableparameterse.g.deliverychannel-wiseetc.Centraldepartmenttohavenoaccesstodirectlypostanyentriesinbranchbooks,intheeventofanydiscrepanciesinreconciliation/wrongentriesthesameshouldberectifiedbytheoriginatingbranch/departmentonly.Alltransactionsdonebycorebankingbranchesonnon-corebankingbranchesandviceversatobehandledthroughtheInterBranchaccountingandreconciliationdepartment
AccountingFutureState
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8/2/201