TRAINING FOR CASH

OFFICIALS
PREPARED BY:
MD SIDDIQUR RAHMAN
VICE PRESIDENT
 Money
• A medium of exchange
• Generally accepted as payment for goods
and services and repayment of debts.
• Main functions of money:
A medium of exchange
A unit of account
A store of value
A standard of differed
payment
 Example:
Liquid Money: Easily Bank Notes and
converted into cash Coins
without any loss in its Checking accounts
value i.e current
accounts and
savings accounts
 Money in the form of Instruments
• Bank instruments for making and settlement of business as well as
individual financial transactions.
• Examples:
Cheque
Pay Order
Credit Card/Debit Crad
E-Wallets
 Virtual Money
• Digital representation of value in purely electronic form often known
as cryptocurrency
• Example- Bitcoins
What is Cash?
• Cash is money in the physical form of currency. Such as
banknotes and coins, which are highly liquid form of assets.
• Cash is the life blood of a financial organization/institution.
• Cash department deals all types of cash transaction (receipt
and payment) under the concept of branch banking.
Cash Management
• Proper cash management enhances the growth/profit of the
organization ensuring security at the same time.
• Modern concept of cash management includes three main
concepts:
o Handling of cash
o Procurement of cash
o Effective utilization of cash.
Opening of Cash System
• Strong room, grill door and vault must be opened in the presence
of custodians before the starting of banking hour.
• All the required registers and security documents kept in the vault
and strong room must be taken out.
• Vault must be locked in presence of the custodians.
• The required cash should be taken out from the vault in presence of
the custodian within the cash on counter limit & enter in the till of
Head Teller & then distribute among the other tellers.
• Similarly during the day transaction when the aggregated cash in all
the tills goes beyond the insurance limit, the surplus cash should be
transferred to the main vault through the till of Head Teller.
Opening of Cash System
Opening of Cash System
Opening of Cash System
Before starting the work, the tellers should ensure following tasks:
• Required amount of cash are is available.
• Steel cabinet/drawer locks properly and seals are available.
• Money counting machine with dual display is working properly.
• Fake note detection machine is working properly.
• The C.C. Camera is working properly covering the whole area.
• The sponge used for money counting is soaked with anti-septic
liquid.
Handling of Cash at the Counter
Cash receipt over the counter:

• Receive cash along with voucher/paying-in-slip from the customer.

• Check account title, account number, date, signature of the depositor
and the amount written both in figure and words.
• Count the notes and check whether all the notes are genuine. (examine
currency features and use UV detector to check fake notes)
• Write the denomination of cash on the back of the voucher
• Affix “cash received” seal on the face of the paying-in-slip and sign by
two respective officials on both the bank’s copy and customer copy and
return the latter part to the customer.
• Posting the transactional cheques/vouchers in the banking software
system (FCUBS)
Handling of Cash at the Counter
Exchange of Notes & Coins
NOTES:
• Exchange torn and mutilated notes with customers.
• Provide change to customers against large value notes.
• Exchange values of mutilated notes are given to the clients over
counter as per Bangladesh Bank guideline.
• Exchange value of 2 pieces (single cut) note is instantly paid over
the counter to the customers.
• If the note is more than 2 pieces/burnet/soiled, the note is received
through filing up a “Claim from” & the exchange value is paid to the
client after receiving the claim value from Bangladesh Bank.
Exchange of Notes & Coins
COINS:
• Bank have to receive both taka & coin denomination 1,2 and 5.
• For the convenience of the customers, each branch must retain
minimum 10,000 pieces of the said denomination coins.
• Local office/large branches must retain 30,000 pieces of each
denomination of coins.
• Bank can deposit extra coin to Bangladesh Bank after ensuring
minimum retained denomination through a sealed bag/wooden
box along with security tag containing 1,000-4000 pieces on
different denomination as per norms fixed by regulator.
• Mixing different coins in a bag is prohibited.
Exchange of Notes & Coins
Further Study:

• DCM Circular N0 12/2015 dtd:12.11.2015

• Bangladesh Bank Note Refund Regulations-2012):
Characteristics of notes and it’s replacement
• Soiled Note (ন াোংরা) : Those which have become dirty over time and
slightly cut or torn.

• Mutilated (ত্রুটিপূর্)ণ Note:

-দুই খণ্ডে খন্ডিত ন োি
-ন োি এর ন ো অংশ অ ুপস্থিত
-বড় স্থিদ্রযুক্ত ন োি
-নতল যুক্ত ন োি
-নিেঁ ড়ো বো নিপ যুক্ত ন োি
Characteristics of notes and it’s replacement
• Non- Issuable Note (অপ্রচল ণ্ডযোগ্য ):
-অতযোস্থি ময়লোযুক্ত ন োি
-ন োণ্ডি অল্প মস্থরচোর স্থচহ্ন
-অল্প রং লোগ্োণ্ড ো ন োি
-ন োণ্ডির উপর অতযোস্থি নলখো, এ োস্থি স্থিল অস্থি অ ুস্বোক্ষর বো স্বোক্ষর
- িোমো য নিেঁ ড়ো বো ক্ষুদ্র স্থিদ্র যুক্ত ন োি

• Claim Note (দোস্থবণ্ডযোগ্য):

-দুইণ্ডয়র অস্থি খণ্ডি খন্ডিত ন োি
-ন োণ্ডির অ ুপস্থিস্থতর পস্থরমোর্ ন োণ্ডির আয়ত এর 10% এর ম হণ্ডল
-আগুণ্ড নপোড়ো অথবো আগুণ্ড র আেঁচ লোগ্োণ্ড ো ন োি
-ড্যোম্প অথবো অতযস্থি রম অথবো অতযোস্থি মস্থরচো যুক্ত ন োি
-ন োণ্ডি নবস্থশ রং লোগ্োণ্ড ো
Characteristics of notes and it’s replacement
• Charred Note: Burnt or having sign of burn partially or wholly
• Damp Note: Wet partly or fully or so weak that the note(s) can be
easily broken or torn when counted or handled.
• Deformed or Decomposed Note: deformed or disfigured or
vitiated or decomposed by anyway or by writing with ink or other
materials on the note(s).
• Mismatched Note: Formed by joining a half note of one note to a
half note of another note.
• Obliterated Note: Rendered fully or partially undecipherable
(complex).
Note Claim & Honouring Chart

Area of the note of Payable value of the note of

Sl. No.
respective denomination respective denomination
01. ≤50% No claim entertained
02. 51%-75% 50%
03. 76%-90% 75%
04. >90% Full value
Steps after Detection of Fake Notes
• The note and presenter should be handed over to police.
• If the bank officer is convinced that the presenter has presented
the fake note in good faith believing it to be genuine, he/she
should impound the note after documenting the identification of
the presenter along with his/her statement regarding the source
of the note.
• A impounded fake note must be stamped with the word
“Forged” or the word “Forged” must be written on it in red ink in
large letter.
Steps after Detection of Fake Notes
• Notes disfigured by oil or other substances should be scrutinized
with special care, as forged notes are sometimes intentionally
thus disfigured to render detection difficult.
• The managers of all banks have instruction to send forged notes
presented to them to the police who will send them to Currency
Officer for necessary action.
• The Bangladesh Bank has authorized Currency Officer in Dhaka
and designated officers in its other branches to impound forged
notes.
Steps after Detection of Fake Notes

Further Study: Treasury Rules Part-III, Chapter –IV, Section-52

circulated by DOCM &PS vide Paripatra No- Jalnote:
1(Policy)/2007-191 dtd: 04.07.2007
Sorting and Binding of Notes

Objective:
Pulling out of all mutilated, torn and unhealthy notes under
“Clean Note Circulation Policy” announced by Bangladesh
Bank.

Implementation Channel:
All schedule Banks.
Sorting and Binding of Notes
Categorization of Notes:
• Issue note
• Non-Issue Note (dirty, scotch tape, torn etc.)

Rules to be followed:
• No mixing between issue and non-issue note.
• Each bundle must contain 100 pieces of same denomination note.
• Banding of notes with polymer tape or polymer coated paper tape.
• Affixing bank slip containing bank’s name, address, signature of
enumerator and counter enumerator, seal & date.
Sorting and Binding of Notes

Rules to be followed (Continued):

• Mutilated, torn & soiled note of Tk.100/- denomination to be stitched.
• Soiled notes will be bundled separately and sent to feeding branch which
will be sent to Bangladesh Bank.

Sorting & Binding Tools:

Note banding machine, Stapler (for Tk.1000 notes), Polymer coated paper
tape, Rope, Fly-leaf etc.
Sorting and Binding of Notes
Sorting and Binding of Notes

There are some other Categories of notes also found in the market which
bank cannot receive or handle.
1. Fake or counterfeit note (any note which does not possess the
characteristics of genuine Bangladeshi currency notes.
2. Built up notes (decomposed by small part or pieces)

“Issue” category notes are retained by branch for re-use. Non-issue, soiled &
mutilated notes are deposited with Bangladesh bank either directly or
through feeding branch for getting exchange value through a process.
Security Features of Note
• Paper quality
• Size & shape of numbers
• Security thread
• Intaglio Printing
• Latent image in vertical band
• Electrotype watermark(in watermark window)
• Micro lettering
• Fluorescence (number panels and central band)
• Optically variable ink
Security Features of Note

Further Study:
[Link]
Balancing of Cash

Entry of Cash Balance Book(FCUBS):

• Cash Balance= (Opening balance+ Cash Receipt)-Cash Paid

• Cash Position Memo(FCUBS System): Generate report from

MIS and tallied the closing balance(cash in hand) figure
with the respective GL and then signed by the cashier &
custodian(Customer Service In-Charge/OM/HOB).
Maintenance of Vault Register

• Upon confirmation of closing balance, cashier should put figures

to the kachha register(handbook) also where rough cash balance
has been written with denomination like cash balance book and
signed by the cashier & custodian.

• Vault register contains date, deposit/withdraw balance, notes

with denomination, coin with denomination, amount & signature
column.
Safe Keeping of Cash in Vault

Security of the cash hold by the branch is covered through the

following measures.
1. Insurance Coverage
2. Holding of Cash in safe under Joint Custody.
3. Holding of Strong Room Keys under Joint Custody.
4. C.C. T.V. coverage of the strong room round the clock.
5. Restriction on entry to the cash area.
6. During the closing of cash at the end of the day, Main
Collapsible gate should remain closed.
Buying, Selling & Handling of Prize Bonds
• A prize bond is a lottery bond
• Non-interest bearing security
• Issued by the Government for borrowing in 1974
• Refundable to the owner on demand
• Keep record on our bank prescribed register (SB-58) after every transaction
and draw.
• Buy prize bond from Bangladesh bank/Feeding branches/Customers at face
value. Check the following in case of purchasing from customers.
- Whether the prize Bond is genuine.
- Whether the prize bond declared as lost
- Whether the prize bonds are cancelled, defected or endorsed
Buying, Selling & Handling of Prize Bonds
• Sell prize bonds to customers at face value on demand.

• Make entry into banking software and keep record vide register(SB-58) of
both buying & selling of prize bond into the register including the series
number of the same.

• Check the draw result of unsold prize bonds as soon as the result is
published (31st January, 30th April, 30st July & 31st October) by two
officials jointly and keep the record after obtaining counter sign of
authorized officials including OM/HOB.
Buying, Selling & Handling of Stamp Papers
Stamp Papers:
• Used for taxes or fees on documents. Buy stamps (adhesive & revenue)
from Bangladesh Bank/Sonali Bank/Post Office/Concern Authority through
treasury challan and sell the stamps to customers. Keep record on stamps
bought, sold & available at day end in the respective register. Verify challan
genuineness through online challan verification for record keeping of the
purchased stamps.
• Non Judicial Stamp: Used for documentation like (i) Power of Attorney (ii)
Sale Deed (iii) Rent agreement (iv) Affidavits (v) Transfer of immovable
property like building, land, mortgage or other important agreements.
Buying, Selling & Handling of Foreign Currencies

Foreign Currencies: Buy/Sell of foreign currency from/to the

customer and maintain a balance register with denomination.

For walk-in-customers, transaction may be conducted through

FOREIGN REMITTANCE PARKING ACCOUNT which is a Parking CD
account in nature to execute transaction.
Safe Keeping of the Duplicate Key of the Vault
• The duplicate Key of the vault should be kept with the nearest branch of
United Commercial Bank PLC under joint signature of the Custodians.

• The key of the vault /Iron safe should be rotated at least once in a year
Closing of Cash System
• At the end of the day after reconciliation of the physical cash of each till
with their individual teller total, they should transfer the physical cash to
the Head teller & head teller after reconciliation at his end will transfer
the total cash in the vault.

• The main safe & vault must be locked in presence of the custodians &
before leaving the vault the custodians must be confirmed that the doors
have been properly locked & the CC TV inside the vault has properly been
functioning.
Vault Security
At the end of day before leaving the strong room /vault, be sure that:
1. Cash receive/cash payment/transfer/signature verified seals have been properly kept
in the Iron safe.
2. All the cash has been properly shifted to the Iron Safe
3. The cash book memo & vault register have been properly signed by two custodians.
4. The C.C. T.V Camera in the vault is working properly.
5. Double lock the vault, Strong room & grill door by two respective officials including
Teller/Cash In-charge and Customer Service In Charge/OM/HOB.
6. Lights in the strong room have been put out/ watchman mode open with sound & the
strong room doors have been locked by duel keys properly.
7. Vault close notification message has been received to the authorized mobile of the
vault key custodians.
Vault Security
Further Study:

BRPD Circular Letter No. 3 dated 27.01.2014 BRPD Circular Letter No. 18 dated 17.11.2014
Common Irregularities in Cash Department
• Often Stale & post-dated cheques are paid over counter
• Denomination of notes are not written on the back of the cash cheques & pay in
slips.
• Short /full KYC for the walk-in customers are not obtained.
• Sometimes vouchers passed with single signature.
• Cash Received / Paid/Transfer seal not affixed on the vouchers / cheques.
• Cash deposit is received without signature & contact no. of the depositor in the
pay in slip.
• Cash paid/received without NID verification of drawer/depositor(in applicable
cases).
• Branch holds cash in safe over their prescribed limit without insurance coverage.
Any question?

Thank you.