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Published by: sambit_074160 on Dec 18, 2010
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ICMCs was needed due to the following challenges faced by the bank It was difficult for RBI to service

all banks on a daily basis to meet their requirements RBI moving out of Retail business, handing over activities to commercail banks Circulation of notes as per denomination and quality Receipts and Payments conforming to RBI Clean Note Policy Check influx on counterfeit currency an implementaion of Note Refund Rules Facilitate banks in meeting their own cash requirements Features of ICMC Integrated facility for centralized cash receiving, cash payments, cash processing and cash vaulting for the branches within a region. Cash acceptance from own branches on priority Centralized cash processing into issuables for own consumption of branches / ATMs and nonissuables sent to RBI for destruction. Cash payments for branch / ATM requirements and maintenance of reserve cash Facilitate FAST CASH for payments of quality issuable cash packed in pre packeted envelopes in value of Rs. 1000/-, Rs. 2000/- and Rs. 5000/- for enhancing customer satisfaction and reducing HOT (hands on time) of the cashier. Interaction with RBI Providing cash to Cash Replenishment Agencies (CRA) from ATMs Bulk cash receipts handling Benefits of an ICMC to Bank Direct Dealing with Reserve Bank of India Currency availability at all times Cash balance in ICMC treated as RBI balance gets counted towards CRR Cash balance in ICMC attracts interest from RBI Helps bank reduce cash holding Inward Remittances from branch to ICMC Sujit: Now let's learn about the processing of the currency remitted from the branch to ICMC Branch reports surplus cash to ICMC at EOD The branch should report the End of Day cash figures to the ICMC to which it is mapped in the format for offloading excess cash to ICMC.

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ICMC arranges for cash pick up Surplus cash (unprocessed) moves to ICMC Branch holding (CRL) is reduced Branch cash converts to RBI balance

Outward Remittance branches/ICMC Now let's learn about the Outward remittance to the branches from ICMC. All payments to customers have to be made from fresh / processed currency only as per Clean Note Policy. To avoid any payments with unprocessed cash, the branch requires fresh / processed

IT custodian accepts cash only in a steel box provided to the CIT vehicle by the bank. in the presence of the CIT custodian. Process and Procedures for Cash-In-Transit (CIT) CIT custodian gives acknowledgement of the cash received to the branch/ICMC. In exceptional cases if the key of the remitting box is not available at other end for whatever reasons. All three cameras capture live recording simultaneously. 2 Guards and 2 loaders) of the CIT Van are introduced to the branches before the start of operations with proper identification. The entire operation is done under dual custody. Process and Procedures for Cash-In-Transit (CIT) CIT Crew is with proper police verification and antecedent checks. All recordings are kept for 90 days. of packets in each bundle. the branch and the ICMC. All dustbins inside processing rooms are emptied only at the end of the day under the supervision of the custodian. Each bundle secured as such must contain 10 packets of 100 pieces each. under camera. CIT Custodian does not hold the key of the remitting box as the same is held at both ends i. Branch to send indent for its cash requirements. The Crew members (1Custodian.currency to meet cash withdrawal demand of customers. All the bundles are dropped in the remitting box by the branch /ICMC in custodian's presence. . Vaulting at ICMC The Currency Manager. 1 Driver. The access to the processing room is limited. opens remitting boxes once received at the ICMC in the receiving room. Remitting box in which cash is kept is locked by the branch/ICMC officer and then the keyhole of the lock is sealed by the remitting branch. The cash payment may also be done for small amounts in "FAST CASH" packets due to its multifarious benefits. There are minimum two persons for each activity. The CIT custodian does NOT DO individual note counting. with at least three to four persons inside the processing room at any time. Vault and bins are locked under dual custody with record of each operation duly maintained in the register kept with the vault officer. Cash bundles are counted and carried to the vault to be kept in identified bins. The bundles are counted for no. the same can be handed over to the CIT custodian in a sealed envelope. Cash processors and cash peons are always wearing a full apron giving them no access to their pockets. two of them are colored with high resolution. Staff members are permitted to oversee their processing any time. restricted and recorded.e. The entire activity is recorded by a camera. Precautions in the processing room At least three cameras are placed in the processing room. bulk payments and Fast cash. Identified CIT custodian with authority letter delivers and collects cash to and from branches. The branch should report the End of Day cash figures to the ICMC in the same format for next day's cash requirements.

This is called the Link Branch. unlike the currency chest that belongs to the Reserve Bank of India (RBI). . Day end balances are reported to RBI online through ICCOMS application over the Internet. when Currency Chest faxes the day's net position to RBI. deposits are more than withdrawals on a day.e. Debit: BK. The RBI account is reconcilled by RPC/ branch / Corporate office which maintains the RBI account in Bank's books and the unit ensures whether the amount credited / debited to the RBI account is as per the remittance made to / received from ICMC. The small coin depot belongs to the Central Government. The branch/ RPC maintaining the RBI account on sighting the credit should pass the following entry in their books.Accounting entries Accounting entries for Inward / Outward remittance of cash by branches: There are several accounting entries that need to be passed to ensure accounting for cash by branchs and proper reporting to RBI by ICMC / Link branch. As per RBI directives for Currency Chests banks have to maintain a Small Coin Depot for all coins of 50p denomination and below in their Currency Chests. RBI reconciling person is the person who physically checks the account of ICICI bank held with RBI to ensure the credit / debit received is in accordance with the cash remitted to and from ICMC.RBI account*(Day 0) Credit : IBITCORP account pending receipt of IB-Misc . which is closest to RBI and does the RBI reporting. The stock and value of these coins is outside the purview of the Currency Chest Limit and all the related transactions have to be reported separately to RBI. 2. Accounting entries D) For the branch / RPC at the branch/RPC maintaining the RBI mirror account At the end of every day. when these small coins are distributed to branches or received from the branches. These accounting entries are done in Finacle Finacle by the branch nearest to the ICMC. Further. A separate account is opened for accounting of all transaction of 50p and below at all link branches of respective ICMCs.IBITCORP account). If the net position at Currency Chest is deposits i. Accounting entries Accounting procedure for transactions relating to Small Coin Depot (Currency Chest) 1. Similarly.The reconciliation of this account would be done by the respective Link Branches with the ICMCs on occurrence and with the RBI on monthly basis only. they need to be accounted separately. they should also fax a copy of the same to the branch/ RPC handling the RBI account. the branch / RPC handling the RBI account should reverse the above entry in IB. RBI Link office is the branch. RBI would credit ICICI Bank account for the amount.Debit from the branch managing the Currency chest (On receipt of the debit originated by the branch managing the currency chest in the TLR.

50/-. RBI gives a monthly net debit or credit for all the entries pertaining to that particular month . The balance in the account will remain outstanding till the RBI settles the amount in our current account. the same will be reported to the respective Issue Offices of RBI and Link Office.Accounting entries ACCOUNTING ENTRIES FOR TRANSACTIONS WITH SMALL COIN DEPOT The branches remitting to or withdrawing small coins from Chest should adhere to the following accounting for Small coin depot transactions. subject to the minimum of Rs. The branch attached to the ICMC will maintain a reconciliation statement consisting of the individual debits and credits and balance the account. or.100/The balance in the small coin depot account may be a debit balance or a credit balance at the EOD. on the day on which the transaction has occurred through the medium of slip in the Form TA-51. RBI debits or credits our accounts once in a month or two month. While in case of routine Currency Chest transactions. by ICMC. Further. Whenever there is a deposit into or withdrawal of small coins (50p and below). deposit into the depot should be made in the multiples of Rs. with the help of the ICMC. the withdrawals from. RBI debits or credits our current account the very next day on the basis of our link statement. everyday. in case of a small coin deposit or withdrawals.

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