An Internship report on

General Banking Division

of.
JAMUNABANKLTD
 An Internship Report On
General Banking Division
Of

Jamuna Bank Ltd

SubmittedBy.
Md. Anower Parvez
Id: 05304097
BRAC business school

Submittedto
Syeda Rownak Afza
Senior Lecturer
BRAC Business School
DateofSubmission
27th December, 2009
Letter of Transmittal _

27th December, 2009

Syeda Rownak Afza

Senior Lecturer

Brac Business School

BRAC University.

Dear Madam,

I have completed my 12-week internship period at Jamuna Bank Ltd

(Dilkusha Branch) and would like to submit my internship report as per
your specifications. I would also like to draw your kind attention to the fact
that I have tried my level best to gather and organize all the information
needed for this particular report, and in doing so have tried my utmost to
live up to your standards.

May I, therefore, wish and hope that you would be gracious enough to
accept my effort and oblige thereby.

Yours sincerely,

MD Anower Parvez | 05304097 | ____________

Acknowledgement _

IwouldliketoexpressmygratitudetoMr.HarunurRashidChowdhury,FirstExecutiveOfficer
for his valuable guidance. His interest, enthusiasm in my subject material has helped us to
producearespectableresult.Iwouldliketothankhimforcooperatingforgivingusnecessary
informationonhowIwouldworkinthisproject.

I am obliged to express my thanks to Mr. Tanvir Rahman, Probationary Officer, Mr.

Hadiujjaman, First Executive officer of Jamuna Bank (Dilkusha Branch) Ltd for giving me the
valuableinformationabouttheirorganization.

Finally,IwouldliketothankthefollowingpeopleMr.SamsulArefin,ExecutiveVicePrsidentfor
hissupportandengagementduringthetenureofmyinternship.
Executive Summary _
JamunaBankLtdisoneofthemostwellknownprivateinourcountry.Itundertakesalltypeof
bankingtransactionstosupportthedevelopmentoftradeandcommerceinthecountry.Above
all of their service they go through their objectives such as earning and maintaining CAMEL
ratingstrong,establishingrelationshipbanking,introducingfullyautomatedsystems,ensuring
an adequate rate of return on investment, maintaining adequate liquidity to meet maturity
obligations,pursuinganeffectivesystemofManagementbytransparencyandaccountability
atalllevels.

AsapartoffulfillingtheirobjectivesthroughtheircustomerJBLoffersthefollowingaccounts:
Current Deposits, Savings Bank Deposits, Fixed Deposits, Short Term Deposits, Monthly Term
Deposits,Anyotherdepositsasmaybeapproved/advisedbyHeadOffice.

In General Banking, Clearing department receives cheques, DD, P.O. etc from depositors
attachedwithadepositslip.

Thebranchesofthebankoperateasindependentaccountingunit.Theysubmitstatementof
affairsandotherprescribedreturnsdirecttoHeadOfficewheretheseareconsolidatedinthe
formofastatementshowingassetsandliabilitiesofwholeBankasatthecloseofbusinesson
Thursdayandatthelastworkingdayofeachmonth.

Thesystemoftransactionsofthebankisessentiallydoubleentrysystemofbookkeeping.But
for quick and accurate recording as well as for arriving at daily financial position specialized
formofdoubleentrysystembookkeeping,namedslipsystemunderselfbalancingmethodis
followed by the bank. The golden principle of debiting or crediting is the same as those of
doubleentrysystem.Inthebank,insteadofrecordingtransactionsinajournalinitially,these
aredirectlyrecordedandpostedintheledger(computer)separatingthedebitsandcreditsby
slipsorvouchersystem.

Foreign exchange is an important department of Jamuna Bank Limited, which deals with
import, export and foreign remittances. It bridges between importers and exporters. This
department is playing an important role in enhancing export earnings, which aids economic
growthandinturnithelpsfortheeconomicdevelopment.Ontheotherhand,italsohelpsto
meetthosegoodsandservice,whicharemostdemandableandnotadequateinourcountry.
 TableofContent

Introduction
Originofthereport..01

Objectiveofthereport..02

Scopeofthereport..03

Sourcesofdata03

Methodologyofthereport.04

Limitationsofthereport..04

TheOrganization
Aboutjamunabank.05

Vision.06

Mission.06

CorporateSlogan..06

SponsorManagement07

Corporateculture..08

Objectives08

Strategies.09

TheJob
Natureofthejob13

TheProject
ProductsofJBL.14

ProceduresofAccountopening..14

CurrentDepositAccount..16

SavingsBankDepositAccount..19

ShorttermDeposit20

FixedDepositAccount21

InstructionsforholdingAccountholders.27

InterBranchTransferofaccounts.32

Issuanceofchequebooks34

Stoppaymentorderandtheirrevocation..38

PaymentofInstrument,DishonorofInstruments.40

Paymentsofchequesafterbankinghours..44

Dishonorofcheques44

PaymentsofFDR,Shortnoticedeposits46

ClosingofAccounts..49

Clearing&Transfer.52

Cash57

Accounts..64
 ForeignExchangeDepartment.66

SWOTAnalysis.76

Recommendations77

Conclusion..79

Bibliography..80


Introduction _
OriginoftheReport

Oneofthemostimportantfactorsforindustrializationandeconomicdevelopmentofacountry
istheavailabilityofthecreditfacility.Thecontinuingcrisisofaccumulationofnonperforming
and default banking loans has emerged as most of the serious constraint in the path of
economic development of Bangladesh as banking remains the main intermediary vehicles in
harnessing capital for accelerating the growth of the productive sectors in Bangladesh in the
absence of a healthy capital market. But providing loans without proper appraisal are even
moredangerousasthedepositorsareputintogreatriskoflosingtheirmoneyandattheend,
the crisis might go beyond overcome. So, I think it is very important to gather the technical
knowhowregardingthecriticalanalysisofcreditapprovalprocedurepracticedbytheJamuna
bankltd.bypreparingthisreport.
ThisinternshipreportonJamunaBankLimitedispreparedtofulfillthepartialrequirementof
theinternshipprogramasfullcreditsubjectoftheBBAprogramofTheUniversity.
InBangladeshtodayfinancialsectorisoneofthemostestablishedareasinthemacroeconomic
sector. Economy and finance is carrier of the country. So for the aspects of economic
development, banking sector must be reformed. In the process of forming a good economic
system, private banks are paling an important role compare to the government banks in the
country.ForthisreasonIpreparedmyinternshipreportonJamunaBankLimited.

ObjectiveoftheReport

The primary objective of the report is:

9 Tofulfillthepartialrequirementoftheinternshipprogramasafullcreditsubjectofthe
BBAprogram.

9 ToknowaboutthebankingsectorofBangladesh.

9 TobeaccustomwiththemanagementpolicyorprocessofJBLinBangladesh.

9 TogetanoverallideaaboutthemanagementpolicyofJBLaswellascommercialBank.

The secondary objectives of the report are as follows:

9 ToknowtheoperationofcommercialbanksinBangladesh.

9 TodescribethecustomerserviceprocessofJBLBankLimited.

9 ToanalyzethebarriersfacedbythebanksinBangladesh.

9 Tosuggestasupportiveroleintheprogressofbankingsysteminfinancialsector.

9 ToknowabouttheobjectivesandplanningofJBL.

9 Toknowhowthebranchesareefficientlycontrolled.

9 Toidentifywhetherallprocessareperfectlyandeffectivelypracticedornot.

9 Tofindoutthesectorsinwhichsuchtypesofproblemsexist.

9 Tomakeanopiniononthereports.

ScopeoftheReport

ThisreportcoveredtheoverallbankingsystemofJBLBankLimitedandalsoincludesthe
relationshipofthecustomerswiththebankaswellastheprincipalscoveredbythe
bankasageneralbankingsystem.

SourcesofData

Bothprimaryandsecondarydatahavebeencollected.Ihavegatheredprimarydataby
personalinterviewoftheExecutivesofJBL.MainlyIhavediscussedwiththemverbally.
IcollectedinformationfromthemandtheannualreportofJamunaBankLimitedthat
was provided by the Local Branch (Dilkusha). I used journals, brochures, manuals and
several books on Finance and Banking to prepare this report.75% data collected from
bank and articles, workshop and 25% are collected from the books as well as the

information provided by the competitive banks. That is for preparing the report
smoothlyandaccuratelyIusedprimarydataandsecondarydata.

Primary Sources:

9 Directinterviewswithrelevantpersonnel.

9 Expertsopinion

9 OfficialrecordsofJBL.

Secondary Sources:

9 Relevantpaperandpublications

9 AnnualreportsofJBL.

9 Relevantbooksandreferences.

MethodologyoftheReport

Research Design

This report is based mainly on observations that I experienced during the internship period.
DatarequiredforthisreportwerecollectedfromtheannualreportofJamunabank.Apartfrom
these,helpfulinformationwascollectedfromonlineresources.

LimitationsoftheReport

It is an uphill task to study the on the management so the report was completed under
certainconstrainswhichwere:

9 Difficultyingainingaccessestofinancialsector.

9 Nonavailabilityofthemostrecentstatisticaldata.

9 AsIamstudentitisnotpossibleformetocollectallthenecessaryinformation.

9 Ihadtocompletethisreportwithinaveryshortspanoftimethatwasnotsufficient
forinvestigation.

9 LakeofExperience.

About Jamuna Bank _

JamunaBankLimited(JBL)isaBankingCompanyregisteredundertheCompaniesAct,1994
withitsheadofficeatChiniShilpaBhaban,33Dilkusha,Dhaka1000. TheBankstartedits
operationfrom3rdJune2001.

JamunaBankLimitedisahighlycapitalizednewgenerationBankstarteditsoperationwith
anauthorizedcapitalofTk.1900.00millionandpaidupcapitalofTk.390.00million,asof
December 2008 Paid up capital of the Bank raised to Tk.1072.5 million and number of
branchesraisedto47(Fortyseven).

JBL undertakes all type of banking transactions to support the development of trade and
commerceinthecountry.JBLsservicesarealsoavailablefortheentrepreneurstosetup
new ventures and BMRE for industrial units. The Bank gives special emphasis on Export,
Import,TradeFinance,SMEFinance,RetailCreditandFinancetoWomenEntrepreneurs.

To provide clientele services in respect of International Trade it has established wide

correspondentbankingrelationshipwithlocalandforeignbankscoveringmajortradeand
financialcentersathomeandabroad.

Vision

Tobecomealeadingbankinginstitutionandtoplayapivotalroleinthedevelopmentofthe
country.

Mission

TheBankiscommittedtosatisfyingdiverseneedsofitscustomersthroughancollectionof
products at a competitive price by using appropriate technology and providing timely
service so that a sustainable growth, reasonable return and contribution to the
developmentofthecountrycanbeensuredwithamotivatedandprofessionalworkforce.

CorporateSlogan

YourPartnerforGrowth

Sponsors

ThesponsorsofJamunaBankLimitedaresuccessfulleadingentrepreneursofthecountry
havingstakesindifferentsegmentsofthenationaleconomy.Theyareeminentindustrialist
andbusinessmanhavingwidebusinessreputationbothathomeandabroad.

Management

JBLismanagedbyhighlyprofessionalpeople.ThepresentManagingDirectoroftheBankis
a forward looking senior banker having decades of experience and multi discipline of
knowledge to his credit both at home and abroad. He is supported by an educated and
skilled professional team with diversified experience in finance and banking. The
management of the bank constantly focuses on the understanding and anticipating
customers needs and offer solution thereof. Jamuna Bank Limited has already achieved

tremendousprogresswithinashortperiodofitsoperation.TheBankisalreadyrankedas
oneofthequalityserviceprovidersandknownforitsreputation.

CorporateCulture

EmployeesofJBLsharecertaincommonvalues,whichhelpstocreateaJBLculture.

9 Theclientcomesfirst.

9 Searchforprofessionalexcellence.

9 Opennesstonewideas&newmethodstoencouragecreativity.

9 Quickdecisionmaking.

9 Flexibilityandpromptresponse.

9 Asenseofprofessionalethics.

Objectives

9 ToearnandmaintainCAMELratingstrong.

9 ToestablishrelationshipbankingandservicequalitythroughdevelopmentofStrategic
MarketingPlan.

9 ToremainoneofthebestbanksinBangladeshintermsofprofitabilityandassetquality.

9 TointroducefullyautomatedsystemsthroughintegrationofInformationTechnology.

9 Toensureanadequaterateofreturnoninvestment.

9 Tokeepriskpositionatanacceptablerange(includinganyoffbalancesheetrisks)

9 Tomaintainadequateliquiditytomeetmaturityobligationsandcommitments.

9 Tomaintainahealthygrowthofbusinesswithdesiredimage.

9 Tomaintainadequatecontrolsystemsandtransparencyinprocedures.

9 To develop and retain a quality work force through an effective Human Resources
ManagementSystem.

9 Toensureoptimumutilizationofallavailableresources.

9 TopursueaneffectivesystemofManagementbyensuringcompliancetoethicalnorms,
transparencyandaccountabilityatalllevels.

Strategies

9 To manage and operate the bank in the most efficient manner to enhance financial
performanceandtocontrolcostoffund.
9 To strive for customer satisfaction through quality control and delivery of timely
services.
9 To identify customers credits and other banking needs and monitor their perception
towardsourperformanceinmeetingthoserequirements.
9 Toreviveandupdatepolicies,proceduresandpracticestoenhancetheabilitytoextend
betterservicestocustomers.
9 To train and develop all employees and provide them adequate resources so that
customersneedscanberesponsiblyaddressed.
9 To promote organizational effectiveness by openly communicating company plans,
policies,practicesandprocedurestoallemployeesinatimelyfashion.
9 To cultivate a working environment that fosters positive motivation for improved
performance.
9 Todiversifyportfoliobothintheretailandwholesalemarket.
9 To increase direct contact with customers in order to cultivate a closer relationship
betweenthebankanditscustomers.

Schemes offered by Jamuna Bank Limited

MonthlyBenefitScheme

MonthlySavingScheme

EducationSavingScheme

10


MarriageDepositScheme

DoubleGrowthDepositScheme

TripleGrowthSavingScheme

LakhpotiDepositScheme

kotipatiDepositScheme

MillionaireDepositScheme

Monthly Savings Scheme (MSS)

Savingsisthebestfriendinbaddays.Smallsavingscanbuildupaprosperousfuture.Savings
can meet up any emergences. JBL has introduced Monthly Savings Scheme (MSS) that allows
saving on a monthly basis and getting a handsome return upon maturity. If anyone wants to
buildupasignificantsavingstocarryoutyourecherishedDream,JBLMSSistherightsolution.

Monthly Benefit Scheme (MBS)

Jamuna Bank Limited has introduced Monthly Benefit Scheme (MBS) for the prudent persons
having ready cash and desiring to have fixed income on monthly basis out of it without
taking risk of loss and without enchasing the principal amount. This scheme offers highest
return with zero risk. Everyone can plan your monthly expenditure with the certain monthly
incomeunderthescheme.

11


Double/Triple Growth Deposit Scheme

Forpeoplewhohavecashflowatthismomentandwanttogetitdoubled/tripledquicklyJBL
hasintroducedDouble/TripleGrowthDepositSchemethatofferstomakedouble/triplemoney
within6(six)yearsand9.5(nineandahalf)yearsrespectivelyresultingahighrateofinterest.

Marriage Deposit Scheme

Marriageofchildren,especiallydaughterisamatterofgreatconcerntotheparents.Marriage
ofchildreninvolvesexpenseofconsiderableamount.Prudentparentsmakeeffortforgradual
buildingoffundaspertheircapacitytomeetthematrimonialexpense of theirchildren
speciallydaughters.Parentsgetreliefandcanhavepeaceofmindiftheycanarrangethe
necessaryfundformarriageoftheirchildren,nomatterwhethertheysurviveornottillthe
marriageoccasion.

It can be a great help to the parents if there is any scope of deposit of a modest
mountaspertheirfinancialcapacity,whichgrovesveryfastathighrateofinterestyielding
asizeableamountonmaturity.

With this end in view JBL has introduced Marriage Deposit Scheme, which offers you an
opportunity to build up your cherished fund by monthly deposit of serial, amount at your
affordablecapacity.

12


Education Savings Scheme

Education is a basic need of every citizen. Every parent wants to impart proper education to
theirchildren.Educationistheprerequisiteforsocioeconomicdevelopmentofthecountry.As
yet,thereisnoarrangementoffreeeducationtothecitizensfromthegovernmentlevel.As
such, there should be prearrangement of fund to ensure higher educations the children.
Otherwisehighereducationmaybehinderedduetochangeofeconomiccondition,incomeof
the parents at the future time when higher education shall be required. Today's higher
educationisbecomingexpireddaybyday.Parentscangetreliefandcanhavepeaceofmindif
they can arrange the necessary fund for higher education of their children. As such, JBI, has
introduced 'Education Savings Scheme' which offers you an opportunity to build up your
cherished fund' by monthly deposit of small amount it at your affordable capacity or initial
lump sum deposit to yield handsome amount on a future date to meet the educational
expenses. Under this Scheme you have the different attractive options to avail the future
benefiti.e.withdrawalofthetotalamountaccumulatedinlumpsumorwithdrawingmonthly

13


benefittomeeteducationalexpensekeepingdieprincipalamountintactortowithdrawboth
principalandaccumulatedprofitmonthlyforacertainperiod.

Lakhpati Deposit Scheme

TobecomealakhpatiisadreamtomostofthepeopleofBangladeshespeciallytothelower
and lower middle class income group. They experience their expectations and wants are
enormousin nature inour small span of life. To meet our depositand wants weneedright
plan. Keeping the above in mind JBL has introduced "Lakhopati Scheme" which has flexibility
reportofmaturityandmonthlyinstallmentasperaffordablecapacity.

The job _

NatureoftheJob
IhavebeenappointedintheaccountsdepartmentintheDilkushabranch.Intheentireperiod
ofinternshipmyjobwastodoallkindofworksthatconductbytheaccountsdepartment.As
wellasthetransactionofgeneralbankingdivisionofjamunabankisdividedintofourmoods
and they are 1.Transfer 2.Clearing 3.Cash 4 Accounting opening .The job of the accounts
department is to sorting out the online voucher and also the auto voucher and handmade
voucher.

Myresponsibilitiesare

Responsibilities

14


Products of JBL _

Deposits

Types of Deposit Accounts-

CurrentDeposits
SavingsBankDeposits
FixedDeposits(TermDeposit)
ShortTermDeposits
MonthlyTermDeposits
Anyotherdepositsasmaybeapproved/advisedbyHeadOffice.

15


ProceduresofAccountingOpening

Opening account with a bank is the way of creating a banker customer relationship. In other
words, it is a contract between banker and customer. With this contract, bankers enter into
certainobligationsandresponsibilities.
Proper introduction serves as a precaution against fraud and forgeries and safeguard against
inadvertentoverdrafttobank.Obtainingproperintroductionmayabsolvethebankerfromthe
charges of negligence for conversion. So, while opening a new account, emphasis would be
givenwithoutexceptiontointroductoryreferenceandinquiry.Thefollowinginstructiontobe
followedwhileopeningaccount:

IntroductionofAccounttobeobtainedfromarespectableclientacceptabletobank.
The introduction shall be obtained in writing in the respective column of Account
openingform.
Foropeningsavingsbankaccountofindividualeithersinglyorjointly,passportsand
identitycardsmaybeacceptedforintroduction,butsubsequentlyproperintroduction
maybeobtained.
IntroductionofCurrentAccountbymembersofthestaffmaybeallowedbutshallbe
discouragedasfaraspossible.

16


Current Account shall preferably be introduced by another Current Account holder

acceptabletobank.
IntroductionofAccountholderofotherbranchmaybeacceptedwithcaution.Inthat
casetheintroducerssignaturemustbeverifiedbyauthorizedofficerofthatbranch
andauthenticatedbyaforwardingletter.
Photographsofaccountholdermustbeattestedbytheintroducer.
LetterofthanksbeissuedtointroducerinBanksstandardspecimen.

CurrentDepositAccount

9 ACurrentDepositAccountmaybeopenedbyindividual,firm,companyandclub,
association,bodycorporateetc.
9 FundsintheCurrentDepositAccountispayableondemand.
9 NointerestispayableonbalancesofCurrentDepositAccounts.
9 Current Deposit Account may be opened with a minimum initial balance of
Tk.5,000/
9 MinimumbalancetobemaintainedintheaccountisTk.1,000/

17


9 CustomerwillingtoopenCurrentDepositAccountshallfilluptheAccountOpening
Form (AOF) applicable to him/ her and Specimen Signature Card (SS Card). The
customer will sign in the space provided under Yours faithfully and on the
specimensignaturecards.
9 Incaseofproprietorshipandpartnershipfirmstherelevantaccountopeningformis
to be filled in and signed by the proprietor/ partner in their individual capacity in
thespaceprovidedunderYoursfaithfullyandonthespecimensignaturecardin
theirofficialcapacity.
9 Inallothercasesincludingcompaniesetc.thepersonsopeningtheaccountshallfill
in the relevant Account Opening Form and sign the Form in the space provided
underYoursfaithfullyandinthespecimenSignatureCardintheirofficialcapacity.
9 Introductionofacceptableclientstobeobtainedasperguidelines.
9 The Managers approval for opening account shall be obtained by the concerned
staffmember.

9 SignaturesoftheaccountholdershallbeadmittedbyaffixingthestampSignature
admittedandsigningbytheauthorizedofficer.Theintroducerssignatureshallbe
verifiedbyaffixingthestampSignatureverifiednearthesignaturebyauthorized
officer.
9 Blank space of the Specimen Signature Card should be closed by drawing parallel
lines.
9 The particulars of the Account Opening Form shall be entered in the Account
OpenedandClosedRegisteraspersequenceprovidedbythecomputersystem.
9 The customer shall be provided with Deposit Slip in corporating the Account
Numberandbeadvisedtomaketheinitialdepositintheaccount.Theamountof
initialdepositshallbeenteredintheAccountOpeningForm.

18


9 Cheque Book shall be issued on request on completion of all formalities including

initial deposit. Cheque series to be entered in the Account Opening Form at the
bottomrightandauthenticatedbyauthorizedofficer.
9 After posting of all particulars of the account including cheque series, one
authorizedofficershallcheck/verifythesameinthecomputerscreenandrecordit
intheformwithsignature.
9 Manager/ Authorized Officer shall apply sufficient intelligence and common sense
to ascertain genuineness of the account holder. No account shall be opened
withoutapprovaloftheManager.
9 ClearinstructionregardingoperationoftheaccountshallbenotedontheAccount
Opening Form and Specimen Signature Card especially in respect of death of
inabilityoftheaccountholders,orthepersonoperatingtheaccount.Theaccount
holdershallconfirmtheinstructionsunderspecimensignature.
9 Anindemnityshallbeobtainedfromthecustomerifhe/shesignsinlanguageother
thanEnglish/Bengali.



9 Illiterate persons shall be discouraged to open Current Account. If opened
withdrawalshallbeallowedonpersonalappearanceoftheaccountholder.
9 The account opening form shall be sent to the respective computer terminal for
postingandS.S.CardshallberetainedseriallyintheS.S.CardBoxundercustodyof
ChequePassingOfficer.
9 One of the photographs of the Account Holder is to be pasted with AOF and
anotheronewithS.S.Card.AOFtoberetainedinserialorderinPastingFile.
9 Aletterofthankstobesenttotheaccountholderaswellastotheintroducer.
9 All new accounts opened during the day shall be personally checked by the
Manageratthecloseofbusinessofeachday.

19


9 Checking officer shall particularly see the introduction, initial deposit in cash or
cheque,natureofbusinessoftheaccountholder,TradeLicense,PartnershipDeed/
MemorandumofArticlesofAssociation,Resolutionetc.
9 SimilarAccountsshouldbenotedintheAOFandcareshouldbetakenwhilemaking
postingoftransactionsinsuchaccounts.
9 The Computer Program used by bank shall provide reference of clients. Branch
Managermustensurethattheircomputersystemprovidesreferenceofclient.
9 ClassifiedDepositOwnershipProgramtobemaintainedintheComputerSystemfor
facilitatingperiodicalreturnstoBangladeshBank.
9 Bankshallprovidemonthlystatementofaccounttoclientsaspercomputersystem
ofthebranch.
9 IfminimumbalanceoftheaccountfallsbelowTk.2,000/onceduringthehalfyear,
incidentalchargewillberecoveredasperHeadOfficeCircular.
9 Bankatitsdiscretionmaycloseanyaccountwithpriornoticetotheaccountholder.
9 In case of closure of account by the account holder, branch shall recover closing
chargesasperscheduleofcharges.

SavingsBankDepositAccount

9 Savings Bank Account may be opened in the name of adult individual who are
mentallysoundandalsojointlyinthenamesoftwoormorepersonspayableto
eitherorbothorallofthemortothesurvivororsurvivors.
9 SavingsBankAccountmaybeopenedinthenameofaminoralso.
9 SavingBankAccountmaybeopenedinthenamesofclubs,societies,association
andsimilarinstitutionsandevenbygovernmentandsemigovernmentoffices.
9 AccountshallbeopenedwithatleastaminimuminitialdepositofTk.1,000/.

20


9 InterestattheratesfixedbyHeadOfficefromtimetotimeisappliedhalfyearly
onthebalancesheldondailyproductbasis.
9 Notmorethanoneaccountisallowedtobeopenedinthesamename.Butthis
willnotbeapplicabletoparentswillingtoopenmorethanoneaccountinhis/
hernameinrespectofeachminorchild.
9 Savings Bank Account shall not be allowed to be overdrawn under any
circumstances.
9 AccountopeningformalitieslikeCurrentAccountshouldbefollowed.
9 SavingsBankAccountshouldnotbeallowedtobeoperatedlikeCurrentAccount
9 Not more than 25% of the balance can be withdrawn without 7 days notice.
Withdrawalsintheaccountshallbeallowedtwiceinaweek.
9 Nointerestshallbepaidtosuchaccountsinthemonthforviolationoftheabove
rules.
9 Bank shall provide monthlycomputerized statement of accounts to account
holdersinsteadofpassbook.
9 Bank may at its discretion close any account with prior notice for repeated
returnofchequesduetoinsufficientbalance.
BankmayrecoverchargesuptoamaximumofTk.100/perinstancesofchequereturn.

ShortTermDepositAccount

Depositsheldinthisaccountarepayableonshortnotice.Normallycorporatebodies,bankand
financial organizations invest their funds temporarily. Nowadays, private individuals having
soundfinancialmeansalsoopenthistypeofdepositaccounts.Thefollowingrulesshallapply

21


DepositsheldinSTDAccountarepayablein7(Seven)daysnotice.
Chequebooksmaybeissuedtoaccountholdersforwithdrawaloffunds.
Repeatedwithdrawalwithoutnoticeshallbediscouraged.
Interest is payable on balance held on daily product basis as per computer program
usedbybank.
ForopeningSTDAccount,AOFusedforCurrentDepositAccountshallbeused.
OtherformalitiesaresimilartoCurrentDepositAccounts.
MinimumbalancerequirementforaccruinginterestisTk.100,000(Takaonelac)only.

FixedDepositAccount

9 FixedDepositisneithertransferablenornegotiable.
9 Fixed Deposit Account may be opened by individuals, firms, companies,
corporatebodyetc.

22


9 FixedDepositAccountshallbeopenedforafixedperiodrangingfrom3months
to36monthsoraboveasdeterminedbyHeadOfficefromtimetotime.
9 RateofinterestpayabletoFixedDepositAccountsshallbeapproved/advisedby
HeadOfficefromtimetotime.
9 Interestondepositsshallnormallybepayableonmaturityalongwithprincipal.
9 Customersmayhowever,havetheoptionofwithdrawinginterestaccruedafter
everysixmonthsprovidedthattheaccountisformorethan24monthsperiod.
9 Interest ceases to accrue on overdue Fixed Deposit Account. Branch may,
however, allow interestto exceptionally valued clients ondeserving cases with
concurrenceofHeadOffice.
9 FDR may be encased before maturity on written request of the depositor. For
payment of interest, branch shall follow Head Office instruction in this regard
fromtimetotime.
9 In case of FDR in joint names, written consent of all holders shall be obtained
beforeprematureencashment,irrespectiveofinstructionprovidedforoperation
oftheaccount.
9 DuplicateFDRmaybeissuedincaseoflossofFDRreportedbytheholder.An
indemnity bond executed by the depositor(s) shall be obtained on Banks
standard form. A remark DUPLICATE ISSUED IN LIEU OF ORIGINAL REPORTED
LOSTistobetypedontopoftheduplicateFDR.Theoriginalnumbershouldbe
used and comments to this effect be recorded in AOF, S.S. Card and FD Issue
Register.


9 ExtracareshallbetakenincaseduplicateFDRisproposedforlientoanybank.
9 EachFDRofthesamedepositorwillbetreatedasseparatecontract.
9 AccountOpeningFormforFixedDepositAccountcontainsrelevantcolumnsfor
mentioning all terms including rate and term of deposit and operational
instruction.Thebottompartoftheformshallbeusedascreditvoucherforthe

23


deposit. Specimen Signature Card duly signed by the depositor to be obtained

withclearinstructionforoperationoftheaccount.
9 Nomineeformmaybeobtainedifthedepositordesirestonominateanybodyto
receive the proceeds of his account in case of his death. Nominees Signature
andonecopyofphotographdulyattestedbythedepositortobeobtained.
9 The signature of the depositor is to be admitted by authorized officer both in
AOFandS.S.Card.
9 ParticularsoftheaccountshallbeenteredintheFDAccountOpeningRegister
and a control number be allotted in computer sequence order with oblique
against the printed number of FDR. The complete number shall be quoted/
mentionedinallreferences.
9 On completion of all formalities, including deposit of fund, FDR shall be issued
and signed by two authorized officers. The FDR shall be delivered to depositor
againstacknowledgementonthereverseofthecounterfoil.
9 TheAOFwillberetainedinfileandtheS.S.CardshallbekeptinS.S.CardBox
undercustodyoftheconcernedauthorizedofficer.
9 The particulars of the account shall be posted in the computer system on
completionofallformalitiesincludingreceiptofdeposit.Oneauthorizedofficer
shall check/ verify the particulars in the computer screen and record his
commentsontheAOFtothiseffectwithsignature.




9 Renewal of Fixed Deposit Account shall be allowed on written request of the
depositor, if no intimation is received, the account shall be deemed to have
renewedundertheexistingtermsandconditionsautomatically.
9 FDRcanbeacceptedassecurityagainstcreditfacility.
9 OfferofspecialinterestrateondepositsissubjecttoHeadOfficeapproval.

24


The following documents duly completed shall be obtained from the customer at the time of
opening different types of accounts as applicable:

Individual/ joint
9 Accountopeningformasapplicabledulyfilledin.
9 SpecimenSignatureCard.
9 Twophotographsdulyattestedbyintroducer.
9 NomineeForm(ifnominationgivenbytheaccountholder).
9 Mandate or Authority Form (if a third person is authorized to operate the
account).

Proprietorship Firm
9 AccountOpeningForm.
9 SpecimenSignatureCard.
9 CopyofTradeLicense
9 Twophotographsdulyattestedbyintroducer.
9 ProprietorshipRubberStampagainstallsignaturesoftheproprietor.

Partnership Concern
9 AccountOpeningForm.
9 SpecimenSignatureCard.
9 CopyofTradeLicense

25


9 PartnershipsDeed
9 Twophotographsofeachpartnerdulyattestedbyintroducer.
9 Partnership Rubber Stamp against all signatures of partners operating the
accounts.
9 Partnershipletter.

Private Limited Company

9 AccountOpeningForm.
9 SpecimenSignatureCard.
9 CopyofTradeLicense.
9 CopyofMemorandumandArticlesofAssociationdulyattestedbytheManaging
Director/ChairmanoftheCo.
9 CertificateofIncorporation.
9 ListofDirectorasperreturnofJointStockCompanywithsignature.
9 ResolutionoftheBoardforopeningaccountwiththebank.
9 Photographsofeachoftheauthorizedsignatories.








Public Limited Company
9 AccountOpeningForm.
9 SpecimenSignatureCard.
9 CopyofTradeLicense.
9 PhotographofDirectorsandaccountoperatorsotherthanDirector.

26


9 CertifiedcopyofMemorandumandArticlesofAssociation.
9 Certificateofcommencementofbusiness.
9 ListofDirectorsasperreturnsofJointStockCompanywiththeirsignature.
9 ResolutionoftheBoardforopeningaccountwiththeBank.
9 Certificationofincorporation.

Clubs/ Association/ Society etc. (Non-Trading Concerns)

9 AccountopeningFormforcurrentaccountorSBaccounts.
9 SpecimenSignatureCard.
9 CertifiedcopyofByelaws/constitutionoftheorganization.
9 ListoftheExecutivesofManagingCommitteewiththeirsignatureandpresent
andpermanentaddress.
9 ResolutionoftheCommitteeforopeningaccountwiththebank.
9 2Photographsofeachoperatoroftheaccount.

Corporation/ Autonomous Bodies/ Govt. Organization

9 AccountOpeningFormasapplicable.
9 SpecimenSignatureCard.
9 CopyoftheActorOrdinanceShowingauthoritytoopenaccount.
9 LetterfromtheauthorizedpersonsinabsenceoftheBoard.

Account Of Constituted Attorney

9 AccountOpeningForm(Asapplicable)
9 SpecimenSignatureCard

27


9 PowerofAttorney

AcopyofPowerofAttorneyshallbetakenandenteredinthePowerofAttorneyRegisterin
serialorder.TheserialnumberistobenotedalongwithBanksnameonthePowerofAttorney.
OriginalmaybereturnedandthecopytobeattachedwithAccountOpeningForm.

InstructionsforHandlingAccountHolders

Individual Account

28


Mostoftheaccountsofabranchareindividual.Assuchtheydeserveregularattention
ofthemembersofthestaffofabranch.Anindividualaccountholdermaynominatehis
near and dear ones to inherit his deposit in case of his death. He/ she can also give
mandateorauthoritytooperatehisaccountinhisshortabsence.

Joint Account

9 Atthetimeofopeningaccountsinthenameoftwoormorepersons,clearand
specific instructions shall be obtained regarding operation of the account and
payment of balance to the survivor(s) or surviving members in the event of
deathofoneormorejointaccountholders.
9 The instructions as far as possible shall be obtained in the handwriting of the
partiesconcerned,underthesignaturesofallthejointaccountholders.
9 Instructions in the either or Survivorship form may be taken in the following
manner.
9 Iftheaccountisopenedinthenameoftwopersonsinstructionmaybe:Either
orSurvivororsinglyorjointly.
9 Iftheaccountisinthenamesofmorethantwopersonsinstructionsmaybe:By
eitherorSurvivorsinglyorbyanytwoormoreofthemorbyallofthem.
9 In case of death of any joint account holders, if the specific instructions are
eitheraorb,thebalancewillbepayabletothesurvivor(s).



9 In the absence of specific instructions in the Either or Survivorship form,
balance of the joint account will be payable to the survivors and the legal
representativesofthedeceasedjointaccountholders.

29


9 In the event of any of the Joint Account holders becoming bankrupts, all
operationinthejointaccountshallbestoppeduntilfreshinstructionsaregiven
by the remaining solvent account holders jointly under their signature and the
officialassignee.
9 Intheeventofdeathofanyjointaccountholders,thesurvivororsurvivorsshall
berequestedtoclosetheoldaccountandopenanewaccountinthenameof
survivingaccountholders.
9 Nooverdraftshallbeallowedinajointaccountunlessitisoperatedjointlybyall
thepartiesoftheaccountandchargedocumentsinrespectofadvancearealso
signedbyallofthem.
9 Account payee cheque in the name of one of the account holders may be
depositedintheirjointnameaccountforcollection.

Account of Proprietorship Concern

9 Whileopeningaccountsinthenamesofproprietorshipconcerncareshouldbe
exercised that the person opening account is the proprietor of the firm.
ObtainingtradelicenseissuedbyMunicipalAuthority/UnionParishadcanbea
proof. On specific instruction the account may be operated by persons
authorizedbytheproprietor.
9 In case of death of proprietor, all operations in the account shall be stopped.
Procedure laid down in Para (r) may be followed. On the death of the proprietor
authority given by him ceases and the authority holder can not be allowed to
operate the account.

Accounts of Partnership Firm

30


9 Apartnershipaccountshallbeallowedtobeopenedandoperatedbyanyone
partner of the firm under his signature provided a partnership letter has been
signedbyallthepartnersofthefirmintheirindividualcapacity.
9 Partnership Deed or Partnership Letter should be thoroughly studied to know
thenamesandaddressofallthepartners.Natureofbusiness,namesofpartners
authorizedtooperatetheaccountincludingauthoritytodraw,endorse,accept
bills,mortgageandsellpropertybelongingtofirm.Itshouldalsobeascertained
aboutthepositionofthefirmonretirementofanypartner,deathorinsolvency
ofanypartner.
9 Incaseofdeathofpartner,ifthedeceasedpartnerwasoperatingtheaccount
singly,thebalanceshallbepaidtotheheirsofthedeceasedandthesurviving
partners as per orders of the Court agreement or arrived at between the
survivingpartnersandheirsofthedeceased.Inthelatercase,therecipientshall
executeindemnitybondasexplainedinpararegardingdeceasedaccount.
9 IfapartnershipDeedissubmittedthesameshouldbeacceptedandrecorded
withthebank.
9 In case of death of a partner whowas not operating theaccount the surviving
partners shall be advised to close the partnership account and open a new
account.
An operating partner may give mandate to a third person to operate the account in
placeofhim.

Accounts of Joint Stock Companies

31


9 A Joint Stock Company is a separate legal entity. The shareholders may die or
become insolvent. The company shall continue to exist unless the number of
shareholdersfallsbelowtheminimumnumberofmembers.
9 The minimum number of members is two and maximum is 50 excluding
employees and exemployees. Private Limited Company cannot invite public to
subscribetoitssharesandtherefore,notrequiredtoissueaprospectus.Right
to transfershare isrestricted. Itcan commence business as soon as it receives
certificateofincorporation.ItneednotobtainCertificateofCommencementof
Business.
9 Public Limited Company must have minimum of seven members. There is no
restrictiononmaximumnumberthoughitisalwaysadvisabletokeepitwithin
manageablelimit.ApublicLimitedCompanyraisesitscapitalgenerallythrough
publicissuesandtherefore,aprospectusisrequiredtobeissued.Shareofpublic
Limited Company can be transferred. It however cannot commence business
untilandunlessCertificateofCommencementofBusinesshasbeenobtained.
9 Approval of Head Office to be obtained for opening account in the name of a
NewPublicLimitedCompanyforthedepositofsharemoney.
9 Nochequebookshallbeissuedorwithdrawalsallowedfromtheaccountofthe
newlyfloatedcompaniesunlessacertifiedcopyofcommencementofbusinessis
producedbythecompany.
9 If the company fails to produce such certificate as mentioned at para (v), the
deposits accepted by the bank on their behalf representing share money,
receivedinanticipationofthecommencementofbusiness,shallberefundedin
lumpsumtotheDirectorsofthecompanyobtainingajointreceiptfromallof
themsubjecttopriorapprovalofHeadOffice.

32


9 Account of Limited Companies operated by the Managing Agents of the

companyshallnotbeopenedorallowedtobeoperatedunlessacertifiedcopy
of the Managing Agents, Agreement is obtained and the authority of the
persons signing on behalf of the firm or company or the Managing Agent is
verified.
9 No advance shall be allowed to any company unless it is ascertained that
Memorandum and Articles of Association of the Company authorize the
company in that behalf. And it is authorized to secure the advance against
securitiesofferedbyit.

Accounts of Clubs/ Societies/ Associations

9 Nooverdraftshallbeallowedintheaccountsofclubs.SocietiesandAssociations
withoutpriorapprovalofHeadOffice.
9 No cheque drawn on the accounts of Clubs and Societiesshall be collected for
credittoprivateaccountoftheofficebearersofthesocietiesandclubs.
9 In case of transfer or death of any of the office bearer of the club/ society
operatingtheaccount,alloperationshallbestoppeduntilsuchtimethatafresh
resolution is passed in future by The Executive/ Managing Committee
determining the method of its operation and delegation of powers to the new
officebears,andadvisedtotheBank.

InterBranchTransferofAccount

33


In case of transfer of Savings or Current account to another branch, a letter of request should be
obtained and action be taken after verification of the signature and taking proper approval of the
Manager. The request of the account holder desiring the transfer of the account shall be taken an
application.

9 WhentheapplicationisreceivedManagerofthebranchwillcheckupthesame
andiffoundinorderwillapprovetransferoftheaccount.Therelativespecimen
signaturecardsandaccountopeningformshallthenbetakenoutfromfilefor
transferbytheconcerneddepartment.
9 Thefollowingentriesshallbepassedbythebranchtransferringtheaccount.
9 Debit : Partysaccount.
9 Credit : JBL General Account {Transferee branch (IBCA to be
issued)}.
9 Thetransferringbranchshouldnotrecoveranychargesfromtheaccountholder
fortransferoftheaccount.
9 The forwarding letter as per the following specimen shall be singed by the
Manager.
9 AtthetimeoftransferringtheaccountthebranchmayretainphotocopyofAOF
andSSCardtogethertheapplicationandpreserveinAccounttransferfile.
9 EntriesshallbemadeintheAccountopenedandClosedRegisterandanoteto
this effect Account Transferred to .. Branch on. shall be made
therein.
9 The Account Opening Form, SS Card and the IBCA shall be dispatched under
coveroftheforwardingletterasperspecimentothetransferredbranchunder
registeredA/D/CourierMail.

34


9 Ordinarilyanewlyopenedaccountshouldnotbetransferredtoanotherbranch.
Theholdershouldbetterbeadvisedtoclosetheaccount.
9 It must be carefully noted that no overdraft, cash credit, demand loans or any
other account representing partys liability or obligation shall be transferred
fromonebranchtoanotherwithoutpriorHeadOfficeapproval.
9 MeasurestobetakenbytheTransferredBranch.
The transferred branch sends a letter of acknowledgement to the
transfereebranchonreceiptofthepapers/documentsoftheaccount.
All the enclosures to be checked and verified in terms of number and
contents.
Intimation shall be sent to the account holder by post/ courier mail
requestinghimtocallonthemanagerwiththeintimationlettersentto
him.
A new account number shall be allocated and IBCA is responded in the
followingmanner.
Debit : JBLGeneralAccount(TransfereeBranch).

Credit : NewAccount(Underadvicetotheholder).

Newchequebookagainsttheaccountopenedshallnotbeissuedtothe
accountholderunless
TheLocalAddressofthepartyisproperlytalliedwiththesamementionedinthe
transferforwardingletter.
The party calls on personally and signs the cheque requisition slip with
acknowledgement.
FreshSetofAccountOpeningFormandSSCardwithfreshintroductionare
obtainedandformalitiescompletedasrequiredforopeningAccount.

35


IssuanceofChequeBooks

General Service Division of Head Office will supply required Cheque Books to branches against
their requisition from time to time. On receipt of these cheque books/ other security stationery,
the branch shall record the stock in the Security Stationery Stock Register. While recording the
stock, the Prefix number shall invariably be mentioned.

A few Cheque Books required for current consumption of the Deposit

Department shall be taken out from the main stock under control of an
authorizedofficer.Theconcernedissuingofficerwillkeepthesechequebooksin
aboxunderlockandkeyandissuethesametotheclientsduringtheday.The
ChequeBookswillbeenteredintheChequeBookIssueRegisterandbeissuedto
clientsagainsttheiracknowledgementintheregister.
SeparatefolioswillbeopenedintheChequeBookissueRegisterforCD/SB/STD
accountchequebooks.
Whenachequebookisrequiredbyanewcustomer,thechequerequisitionslip
pasted on top of each cheque book is to be got signed by him. The officer
responsibleforissuingchequebookshallgetthesignatureoftheaccountholder
verified from the officer incharge of the Deposit Department and issue the
chequebooktothecustomerafterputtinghisinitialinthecageofchequeseries
subject to the condition that account opening form is complete in all respects
andotherwiseinorder.
TherequisitionslipshallbesenttotherespectiveComputerTerminalforposting
intherespectiveaccount.

36


All subsequent Cheque Books shall be issued against Cheque Requisition Slips
extractedfromthepreviouschequebooksissuedtothecustomer,However,the
requisition slip pasted with subsequent cheque book on its first page shall be
destroyed.
Thechequerequisitionslipdulyfilledinbythecustomershallbeforwardedto
chequepostingTerminaltoascertain:
Theaveragebalancemaintainedbythecustomer.
Whetherpreviouschequeleavesareproperlyconsumed.
Chequesarenotfrequentlyreturnedforinsufficientfundsintheaccount.
PaymentofChequeisnotfrequentlystopped.
Themannerinwhichtheaccountisoperated.
Theaccountisnotdormant.

If any of the defects is noticed by posting officer, he/ she shall make remark on the
requisition slip and forward it to Cancellation Officer whowill decidewhethercheque
bookshouldbeissuedtothecustomer.

In cases, where the account is found in order and the party is known, the
cancellation officer shall verify the signature on the slip and send it back to
chequebookissuingofficerforissuanceofthesame.
IncaseofaDormantAccount,thepartyshallcallontheManagerpersonallyfor
identification purpose. The Manager on being satisfied about the bonafides of
theapplicantshallallowissuanceofchequebook.
In case of slightest difference in signature or suspicion aroused about the
bonafidesofthepersonpresentingthechequerequisitionslip,properinquiries

37


shall be made by contacting the account holder. The officer must be satisfied
beforefinallyissuingthechequebook.
In case where requisition slip extracted from a previous cheque book is not
presented, every possible care shall be exercised to establish the bonafides of
thecase,particularlywhenaddressofaconstituenthasbeenrecentlychanged
and/orasimultaneousrequesttochangetheaddressismade.
Ifthechequebook/chequerequisitionslipisreportedlost,thebranchshalltake
extracareinissuingfreshchequebookandtakethefollowingextrasteps:
AnIndemnityonbanksstandardformshallbeobtainedfromtheclient
counter signed by another customer of the branch having reasonable
balanceintheaccount.
Stop payment shall be made for the unutilized cheque leaves (Detailed
procedureinrelevantchapter).
On completion of the formalities, fresh cheque book shall be issued to
the client. The client shall personally receive the cheque book against
acknowledgement.

If the cheque book is issued through bearer, his signaturemust be attested by

theaccountholderontherequestletter.Therequisitionwillhoweverbefilled
in/ signed by the account holder. The bearer will receive the cheque book
againsthisacknowledgementonthereverseofrequisitionslipandChequeBook
IssuedRegister.Thepartysacknowledgementmaybeobtainedbysendinghim
aletterthroughbearer.

38


Theissuanceofthechequebookwillbeprocessedasunder:
It should be ensured that all the leaves and blank requisition slip are
intactandtheprintedserialnumbersareinorder.
The name and account number of the customer shall be written in the
chequebookscoverandthechequerequisitionslip.
Theaccountnumbershallbeaffixedonalltheleavesofthechequebook
including the cheque requisition slip under the signature of the issuing
officer,whosesignatureshouldberecordedinthedepositdepartment.
Cheque Books shall be delivered to the customer over the counter after
obtaininghisacknowledgementinthechequerequisitionslipaswellascheque
bookissueregister.
In special circumstances, cheque book may be delivered through bank
messenger. But in that case similar acknowledgement or subsequent
confirmationshallbeobtainedfromtheclient.
ChequeBooksentbypostshallbedispatchedtoclientundercoverofalatterin
a sealed envelope under Registered A/D. The client shall be asked to confirm
receiptofthechequebook.TheA/Donreturntogetherwiththeconfirmationbe
taggedwiththerequisitionslip.
Thechequerequisitionslipsagainstwhichchequebookshavebeenissuedshall
bestitchedtogetherwithvouchersoftheday.
Atthecloseoftheday,theSecurityBoxcontainingthechequebooksshallbe
placedinsafeorinsidetheStrongRoomunderthesupervisionoftheauthorized
officers.

39


StopPaymentOrderandtheirRevocation

9 Instruction for stopping payment of any cheque shall be obtained from the account
holderinwriting.
9 IfstoppaymentinstructionsarereceivedovertelephoneorTelexaprovisionalnotein
respect thereof shall be kept with cancellation officer, pending receipt of written
instructionsfromtheaccountholder.Shouldthechequebepresentedinthemeantime,
thesameshouldbereturnedwithobjectiondrawersconfirmationrequired.
9 The date and time on which those instructions received shall be marked on the letter
andsignedbyanauthorizedofficer.
9 Thesignatureoftheaccountholdershallbeverifiedontheletterandaccordinglythe
cancellationofficer/postingofficerwillbeaskedtoinsertthechequenumberandstop
paymentinthecomputerterminal.
9 Meanwhile if the cheque is already paid the account holder shall be informed
immediately.
9 An acknowledgement Memo in Banks printed format may be issued to the account
holderastotheactionsregardingstoppayment.
9 The stop payment letters received from the party shall be filed in the stop payment
file.
9 When a stopped cheque is presented for payment, the remark Payment Stopped by
drawershouldbewritteninboldletterinredinkacrossthefacethereofandreturned
tothepayeewithreturnmemounderusualmanner.
9 Revocation instruction regarding Stop Payment shall be obtained from the account
holders in writing. The signature of the account holder shall be verified with the
signatureonthepreviousletter.

40


9 The Stop Payment instruction shall be revoked from the account by withdrawing the
cheque number from computer system and note to this effect shall be made on the
letterforreference.
9 The revocation letter shall be filed with the previous letter which contained Stop
Paymentinstructions.
9 The revocation instruction shall be acknowledged by sending a letter to the account
holder.

41


PaymentofInstrument,DishonorofInstrument

Scrutiny of cheques/ voucher

Beforepostinginthecomputersystem,thecheque/vouchersaretobechecked
bytheconcernedofficerwithreferencetothefollowing:

Cash Cheques

Thechequeisdrawnonthebankandbranchwhereitispresentedforpayment.
Thechequeisanopenchequei.e.uncrossed.
In case it is an order cheque (Payable in cash) the payee is identified to
satisfaction.
Itisnotpostdated,undatedorstale.
Thewordsandfigurestally.
Thechequeisdulysignedbythedrawers.
Cuttings and alteration have been authenticated under full signature of the
drawer.
Thereisnooverwritingwhatsoever.
Anymaterialpartofthechequeisnotmutilated.
Thechequeisnotunusuallyofhugeamountandalsowithdrawlisnotrareand
sudden.InsuchcasesthemattershouldbebroughttothenoticeoftheManager
bythepostingofficer.
Thechequeleavebearstheinitialofchequebookissuingofficer.

42


Cash Debit Voucher

Incaseofcashdebitvoucher,thefollowingpointsshouldbechecked:

9 ItissignedbytheauthorizedofficeralongwiththeManager.
9 Itissignedbythepayeeonthereverseandpayeessignatureisverified.
9 ItbearstheStampPayCash.

Clearing Cheques

Incaseofclearingcheque,itischeckedthat:

9 Collecting Banks Clearing Stamp bearing correct date is affixed on the face of
thechequeandthechequeispresentedinthe1stor2ndclearingasstamped.
9 Thecollectingbanksdischargeiscorrect.
9 Otherpointssimilartothoseasexplainedabovearefollowed.

Transfer Delivery

Thefollowingpointstobechecked:

9 The Transfer Delivery Stamp is affixed on the face of the cheque and bears
correctdate.
9 Thecollectingbanksdischargeiscorrect.
9 Otherpointssimilartothoseexplainedabovearefollowed.

43


Cash Transfer

Itshallbecheckedthat:

9 TheCashTransferStampisaffixedonthefaceofthecheque.
9 Brancdischargeiscorrect.
9 Branchcrossingsealisapplied.
9 Otherpointssimilartoexplainabovearefollowed.

Voucher

Itshallbecheckedthat:

9 Itiscorrectlywrittenanddated.
9 Twoattorneyholderssignitjointly.
9 Amountinwordsandfigurestallies.
9 Appropriateheadofaccountisgiventogetherwithcomputernumber.

44


Cancellation of Cheques

9 Thecancellationofficershouldbeanauthorizedofficerofthebank/branch.
9 He/SheshallkeepallSpecimenSignatureCardunderhiseffectivecontrolduring
transactionhours.
9 The cancellation officer shall retain only the signature cards admitted by the
authorizedofficerinserialorder.
9 Beforepassinganycheque,thesignatureofthedrawermustbeverified.Incase,
signatureofthedrawerdiffers,chequesshallnotbepassedunlessthedrawers
confirmationisobtainedorareferenceismadetoManagerforhisinstruction.
9 Thecancellationofficershallnotpassanychequeunlesschequeispostedinthe
computersystem.
9 He/sheshouldchecktheirregularitiesofthechequeifany.
9 ThechequeseriesnumberwithPrefixshouldbecheckedtosafeguardfraudand
forgeries.
9 The cancellation shall be done by drawing redline across the signature of the
drawer of the cheque. He/ She shall sign in full in red ink near the drawers
signature.
9 Cheques over Tk.50,000/ shall be cancelled by two authorized officers jointly.
Branchmustissueofficeorderregardingchequepassingscheduleaccordingto
its size and volume of work load. The cancellation officer shall follow the
scheduleinvariably.
9 In case of cash payment cheque a Pay Cash stamp shall be affixed on the
chequeandsignedbythecancellationofficer.

45


PaymentofChequesafterBankingHours

Payment of cheques after banking hours should be discouraged. Payment to the drawer only may
be made in special cases as deemed by the Manager. The cheque should be paid after
ascertaining sufficient balance in the account and on completion of other formalities.

However,suchchequesshouldbeardateofactualpaymentorpriortothatdate.

DishonorofCheques/Instruments

Bankersareunderlegalobligationtohonorcustomerschequeiffundspermit.Iftheyhonora
chequethroughoversightwhentherearenofunds.TothecreditofthedrawersaccountBank
maylossthemoney.Ontheotherhand,iftheydishonoritthroughinadvertencetheymaypay
damageforwrongfuldishonors.

Therefore, it is incumbent upon the bankers to proceed with caution in the matter of
dishonoringchequedrawnonthem.Abankerisnotunderstatutoryobligationtogiveawritten
answeronadishonoredcheque.Butasperpractice,aswellasagreementofBankersClearing
House a banker should return it with Return Memo giving the appropriate reason for the
dishonor.

46


Whilegivingsuchreasons,duecareshouldbetakentoseethatthecreditofthecustomeris
not damaged by an unwarranted/ exaggerated answer. It should also be ensured that such
reasondoesnotmisleadthepayee.

IntheeventofdishonoringachequeitmustbeenteredintheChequeReturnedRegisterand
theauthorizedofficermustsignintheregisterandtheChequeReturnMemo.

Thefollowingreasonsaregenerallyusedforreturningcheques/instruments

Effectsnotcleared,pleasepresentagain.
Notarrangedfor
Payeesendorsementrequired.
Payeesendorsementirregular.
Payeesendorsementillegible.
Drawerssignaturediffersfromspecimenrecordedintheoffice.
Endorsementrequiresbanksconfirmation.
Alterationrequiresdrawerssignatureinfull.
Chequeispostdated.
Chequeisoutofdate.
Exceedsarrangement.
Amountinwordsandfiguresdiffer.
Crossedchequemustbepresentedthroughbank.
Paymentstoppedbythedrawer.
Fullcovernotreceived.
Vernacularendorsementrequiresconfirmation
InstrumentMutilated/Requiresconfirmation.
Banksdischargeirregular/required.
Notdrawnonus.
Fundsinsufficient.

47


Chequeincomplete.
Clearingstamprequired.
Clearingdateirregular.

PaymentofFDR&ShortNoticeDeposits

Fixed Deposit Receipts (FDR)

In computerized system of accounting the branches get daily print report of FDR maturity
togetherwithinterestpayableandrelateddeductions.Thefollowingstepsshallbetakenbythe
branchestomakepaymentofFDRonmaturity.

9 FDRdulydischargedbytheholder(s)onthebackofittobeobtained.
9 Thesignature(s)shallbeverifiedbyauthorizedofficer.
9 FollowingentriesshallbepassedforpaymentoftheFDRonmaturity.
9 Dr:Exp.ControlA/C :InterestonFDR
Cr:SundryDeposit :InterestpayableonFDR
9 Dr.SundryDeposit:InterestpayableonFDR
Cr:FixedDepositA/C :InterestpaidonFDR
Dr.FixedDepositA/C : AIT (10%) on interest and excise
duty.
Cr. Sundry Deposit A/C: AIT (10%) on FDR and excise duty
payable.

9 Incaseofcashpaymentthefollowingshallbedone
Dr:FixedDepositA/C :(byFDRitself)

48


Dr:FixedDepositA/C : Interest payable (by cash debit

voucherforinterestpayableamount.)
Cr: :Cash
9 The FDR holder shall sign on the back of the Cash Debit
Voucherforpaymentofinterestonlyandholder'ssignatureshallbeverifiedby
authorizedofficer.
9 CashDebitVouchershallbesignedbytwoauthorizedofficers
oneofthemmustbetheManager.

9 ncaseofpaymentthroughtransferthefollowingentriesshall
bepassed
9 Dr:FixedDepositA/C : (FDR itself for principal
amount shall be the debit Voucher) and for the interest amount by a debit
transfervoucher.
9 Cr:BillspayableA/C : PaySlip/Payorder(Fortotal
amount).
Or
9 Cr.SB/CDA/Coftheholderasperinstruction.
9 Branch must ensure recovery of Excise Duty from each FD
Account once in a year irrespective of its closure/ renewal as per Head Office
instruction.
9 Premature Encashment of FDR is permissible. Interest
however,shallbepayableatprevailingSavingsBankrateorasperratefixedby
HeadOfficefromtimetotime.
9 In case of premature encashment branch shall reverse the
interest already credited to sundry Deposit A/C in excess of the actual interest
payableonthedateofpaymentinvariably.

49


9 No penal interest shall be recovered for premature

encashmentbutusualincometaxandexcisedutyshallberecovered.
9 Fixed Deposit Account may be renewed automatically incase
of nonreceipt of official request from the holder on the same terms and
conditionsiftherateisacceptabletobank.
9 The holder may renew the Fixed Deposit Account on revised
termsandconditionsacceptabletobankwithwrittenapproach.
9 Branchshallaffixastamp"renewedforfurthermonths
atinterestrateof"onthebackoftheReceiptforeachrenewaldulysigned
bytwoauthorizedofficers.
9 On closure of the account the Account opening Form and
SpecimenSignatureCardshallbemarkedcancelledandpreservedinaseparate
fileforfuturereference.




Short Term Deposit

Depositsunderthiscategoryiswithdrawableataminimumof7(seven)daysnotice.
Withdrawalfromtheaccountshallbeallowedonthefollowingmanner

If cheque book is issued, withdrawal by cheque shall be

allowedagainst7(seven)daysnotice.
If no cheque book against the account is issued with drawl
may be allowed as per written instruction of the client either by pay
order/Demand Draft or through transfer to his /her current account with the
branch.

50


If any account is operated like Current Account, the customer shall be advised to open a
CurrentAccountinsteadofshorttermAccount.

MinimumbalancerequirementasfixedbyHeadOfficefromtimetotimeshallbeinforce.

ClosingofAccounts

Fordifferentreasons,theaccountholder(s)mayrequestforclosureofhis/theiraccountwith
the bank. On receipt of such letter of request for closure of account, the Manager should
ascertain the reasons to satisfy himself that the constituent is not severing his relations for
grievance from the bank which may possibly be redressed. If for genuine reason the account
holder(s)approachforclosureofhis/theiraccount,thefollowingstepsshallbetaken:

The application shall be received together with unused

chequeleaves.
Thesignatureoftheaccountholdershallbeverified
Thenumberofunutilizedchequeleavesshallbenotedonthe
letter.

51


The Manager shall approve closure of the account and

ascertain liability position (if any) and closing charges at prescribed rate to be
recovered.
The account holder may be requested to withdraw the
balance on deduction of the charges. Otherwise the balance payable may be
paidbywayofpaySlip/PayOrderinfavouroftheaccountholder
Afterclosureoftheaccount,"AccountClosed"Stampshallbe
affixedontheaccountopeningform,S.S.CardandintheAccountOpenedand
ClosedRegisterwithdateundersignatureofanauthorizedofficer.
The Account opening form together with S.S.Card and the
request letter shall be retained in Account closed file to be maintained in
branchesforCurrentandSavingsAccountsseparately.
If the balance is paid by way of Pay Slip/Pay order, the debit advice may be
deliveredtotheaccountholdereitherbyhandorbymail.
Theunusedchequeleavesshallbedestroyedbyauthorizedofficerandshallbe
recordedontheapplicationforreferenceunderjointsignature.

TheunusedchequeleavesshallbeenteredintheA/COpeningRegisterandthe
running number of the account shall be drawn reducing the closedaccount on
eachday.

InterestApplication

Computerized branches need not requirecalculating interest manually. The computer system
will guide officials as per program incorporated. Branches need to pass vouchers only where

52


neededtobalancethefigures.InterestrateshoweverwillbedecidedbyHeadOfficefromtime
totime.

BalanceInquiries&Statements

Balance Inquiries

Theaccountholdermayenquireabouthis/herbalanceinthe
account. The client may be advised to fill and sign the Balance Requisition Slip
(BRS) or to produce the Letter of Authority (LOA) duly signed by the account
holder.
The signature of the account holder shall be verified on the
BRSorLOAbeforedisclosingthebalance.
Ifaslipisrequiredtobesentbymailorhand,itshallbesent
inaclosedenvelopeaddressedtotheaccountholder.

Balance Certificate

In the event of a balance certificate required by an account holder, he/she may be provided
with such certificate as per computer print report recorded by the branch against his/her
writtenrequest.Certificatemaybedeliveredasperinstructionoftheaccountholder.

Balance Confirmation

53


Inacomputerizedsystemofaccounts,thecomputerprogram
willprovideprintreportofbalanceconfirmationofAccountsalongwithasub
joined part. It will contain the full address of the account holder. The balance
confirmation shall be dispatched to account holder in a window envelope.
Followup should be made to get back the subjoined part duly signed by the
accountholder.
On receipt of the confirmation from the party regarding
his/her balance duly signed, it shall be preserved in a file after verification of
signature.

Balanceconfirmationfordebitbalancesincaseofoverdraft,cashCreditand/orloanaccounts
shall be dealt with separately. The subjoined part to be received from clients duly signed by
themandpreservedintheirdocumentfileafterverificationofsignature

Clearing & Transfer _

Clearing

54


Clearing Department plays a vital role in General Banking. This department receives
cheques,DD,P.O.etcfromdepositorsattachedwithadepositslip.Thentheseinstruments
arepostedintheNIKASComputer.Afterpostingthoseinstruments,aresegmentedbank
wise. Eleven separate branches of JBL with in Dhaka sent instruments to the local branch
(Dilkusha Branch) for collection along with the floppy disk in which particulars of the
instrumentsaredescribed.Thentheauthorizedofficerofthelocalbranchaccumulatesall
informationinafloppyandtheinstrumentsoftwelvebranches(includingthelocalbranch)
are segmented bank wise. All instruments are now ready for collection at the 1st clearing
house.TherearetwotypesofHouse:

1stClearingHouseand
SamedayclearingHouse

CONDITIONS FOR SAME-DAY CLEARING

9 TheInstrumentsvaluemustbeoverTk.5lac
9 Therespectivebranchofthebankmustbewithin2K.MofBangladeshBank.

Outwardclearing

All cheques, demand drafts and other credit instruments tendered for the credit of
customersaccountwillbedeliveredbythedepositorattheclearingcounter.Anydeposits

55


receivedbypostwillalsobesentovertotheclearingcounter.Thecounterofficershallat
thetimeofreceiptexaminesuchdepositscarefullytoensurethat

ThenameoftheaccountisveryclearlywrittenontheDeposit
slips.
Theparticularsofdepositssuchaschequenumbers,namesof
banketc.areproperlyenteredonthedepositslip.
ThedepositorhassignedtheDepositSlip.
On item deposited payees discharge and the chain of
endorsement,areinorder.
All cheques and other instruments will be crossed immediately on receipt
withthebanksspecialcrossingstamp.Itemsintended/selectedforthenext
daysclearinghousewillbebrandedwiththebank'sclearingstampwithdate.
If the deposits are made at a time when it is too late for these to be
presented to drawee banks the same days the stamp "Too late for todays
clearing"willbeaffixedonthecounterfoil.
All branches of Jamuna Bank Limited are computerized and operate in
Clearing House with computer Floppy. All clearing items will first be sorted
outbankwiseandthenenteredinacomputerprintedslipprescribedforthe
purpose. These Schedules/Slips are in fact list of cheques etc. delivered by
JamunaBankLimitedtootherbanksthroughtheclearingHouse.

Alltheseslipsaresummarizedinabiggercomputerprintoutwhichreflectsin
details the instruments etc. presented by the bank to Clearing House and
containsthenamesandaccountnumbertowhichthecreditswillbeposted.
ThesesheetsservethepurposeofaClearingHouseRegister.

56


Bankalsoprepare,anothersummerysheet(ValidationSheet)fromcomputer
whichcontainthetotalanumberofchequesetc.deliveredtodifferentbanks
intheClearingHouseandchequesreceivedfromdifferentbankswithcorrect
totalofamount.
TheCreditvouchersshouldthenbereleasedforpostinginthecomputer.It
willbetheresponsibilityofDepositDepartment,however,nottoallowany
drawings against such items before the fate is definitely known. Reversal
entriesforanyclearingitemreturnedunpaidshouldinvariablybemadebya
separatedebitvoucher.
Allclearingitemwillbepassedthroughthebank'sLocalOffice/MainBranch's
AccountwithBangladeshBank.
EntriestobepassedbyLocaloffice/MainBranch.
Other branches routing their Clearing Instruments shall send a Clearing
House Floppy to Local Office/Main Branch supported by IBDA for the total
amount.
Local Office/ Main Branch shall respond the IBDA to the debit of their
accountwithBangladeshBank/SonaliBankinaconsolidatedmanner.
IncaseofreturnofchequesunpaidintheClearingHouse,LocalOffice/Main
BranchshallissueIBDAonthebranchwhichlodgedthechequesinclearing
toreconciletheaccounts.
All IBDAs originated in connection with Clearing House shall invariably be
responded on the same day and under no circumstances shall be kept
pending.

InwardClearing

57


9 Local Office/Main Branch shall receive cheques etc drawn on Jamuna Bank Limited
branches from the Clearing House. On receipt of the cheque etc. they shall segregate
thesamebranchwiseandissueIBDAonbranchesagainsttotalamountofchequeetc.
and shall arrange delivery of the IBDA together with the cheques etc. within Clearing
Housetimeschedule.
9 BranchesshallsendthechequesdishonoredbythemsupportedbyIBDAissuedonLocal
Office/Main Branch, within Clearing House time schedule for enabling Local Office/
MainBranchtoreturntheseinstrumentsinthe2ndClearingHouse(ReturnHouse).

TransferDelivery

9 All such instruments drawn on easily accessible local Branches of JBL (say within Dhaka
city) and deposited for credit of customer's account shall be treated as "Transfer
Delivery".
9 Jamuna Bank Limited is yet to introduce transfer delivery
system of collection amongst its branches in Dhaka. Till such time the branches shall
continuetocollectproceedsthroughoutwardbillsforcollectionprocedureaslaiddown
inbillschapter.

58


InternalTransfer


9 TransferBookshallbemaintainedforenteringtransfercheques/vouchers.
9 Serialnumbershallbeallottedbothonthedebitandcreditsideofthebook,whichshall
berequiredforrecordingthedailytransactions.Thesameserialnumbershallbenoted
onthevoucherenteredinthebookincludingtheircontracreditanddebitvoucherand
orasetofcreditordebitvouchersofatransaction.
9 Entries in the debit and credit column of the book shall be directly made from the
respectivedebitandcreditvouchers.Attheendofthebankinghoursthetotalofthe
debit and credit shall be arrived at and tallied with the computer figure in Transfer
Head.
9 TransferStampisaffixedonthefaceofvoucher;VouchersarereleasedfromTransfer
book. It is balanced and signed by the writer and Book is checked and signed by the
authorizedofficer.
9 In a computerized system scroll is done by the computer system. But branch shall
maintaintheTransferBookmanuallyasasafeguardagainsteasydetectionofmistakes
andissuingvouchersifany.

59


Cash _
ReceiptofCash

Cash may be deposited either by deposit Slips for SB/ CD/ CC accounts or by other credit
voucher like single credit voucher, pay order/ Draft/ T.T. application forms. Branches shall
ensurethefollowing:

9 Cash receiving officer shall check the deposit slip/ credit

voucher/applicationformastoitstitleofaccount,numberandamountinwordsand
figures.
9 The cash currency notes shall be counted physically /by cash
counting machine as per denominations of the currency notes on the back of the
voucher/depositslip.TheofficerwillentertheparticularsinthecashReceivingRegister
andsignontherelateddepositslip/voucherandaffix"CashReceived"Stampwithdate.
He/she shall write the amount in words and figures in red ink across the deposit
slip/voucher/applicationformintokenofreceiptofthemoney.He/Sheshallsendthe
registeralongwiththedepositslip/voucherforsigningonthesameandauthenticating
thereceiptintheregisterbytheinchargeofthedepartment.
9 The officer incharge shall retain the original of deposit Slip
and other vouchers and send them to respective desk for postings/actions. The
duplicatevoucher(counterfoil)shallbehandedovertothedepositor/client.
9 Atthecloseofbusinessthecashreceivingofficershalladdall
theentriesintheregisterandifagreedwiththeactualcashreceivedbyhim,shallhand
overtheregisterforcheckingbyofficerincharge.
9 Receiving Cash officer will hand over the cash to the entire
cashinchargedulycheckedbyhim.

60


PaymentofCash

Cheques,CashDebitVouchers,FixedDepositReceipts,MonthlyTermDepositReceipts,Bearer
Certificatesof Deposit, Demand Drafts, may be placed for payment at thecounter by clients,
beneficiariesandvariousdepartmentsforencashment.Branchesshallensurethefollowing:

9 The instrument is checked for any apparent discrepancy and

evidenceofpostingandcancellation.
9 Specimen Signature of cancellation officer shall be available
withcashpayingofficerforconvenienceofpayment.
9 Onbeingsatisfied,thecashpayingofficershallcountcashfor
paymentandthedenominationsofnotesarewrittenonthereverseoftheinstrument
invariably.
9 Signature of the bearer is obtained on the reverse of the
instrument and compared with the signature already obtained from the bearer while
presentingtheinstrument.
9 If the presenter is found to be the same person, cash is
handedovertothebearer/presenter.
9 "CashPaid"Stampisaffixedonthefaceoftheinstrumentand
signedbythecashpayingofficer.
9 Particularsoftheinstrumentareenteredinthecashpayment
register.
9 Paidinstrumentsarepreservedwiththecashpayingofficer.
9 At the close of bank hour, the amount entered in the cash
paymentregisteristotaled.Thetotalmustagreewiththetotalsofcashpaid.

61


9 Thetotaliswritteninthecashpaymentregisterinwordsand
figures.
9 The officerincharge of cash department shall check the
entries and instruments to ascertain that the payment has been made correctly and
shall release the instruments from cash payment register by his initials against each
entryinthecashpaymentregister.
9 Theofficerinchargealsochecksandsignstheentries.

Remittance, Bills and Endorsements _

PaymentofTelegraphicTransfer

Receipt of message and payment

9 Theinchargeandthemanagerverifythetestmessage.
9 If the testnumber, payees A/C number and title of the A/C does not agree a
telex is sent to the branch concern asking them to rectify the message with
correcttestnumberandotherparticulars.
9 Ifthetestnumberagreesandallotherinformationiscorrect,testagreedsealis
affixedonthemessageandsignedbytheofficers.
Where the payee does not have any account in the drawee branch a Pay Order/ Pay Slip is
issuedinfavourofthepayeeadeliveredtohisbankeronthesameday.

62


Issue and Payment of Pay-Orders

Thecustomerisaskedtofilluptheapplicationthatistreated
asacreditvoucherfor:BillsPayableAccountPayOrderissued.
Thevoucherisgiventothecustomertodepositthecashwith
thecashier.

The cashier receives the cash and delivers the vouchers to

RemittanceDepartmentagainstinitialsinhisbook.


PayOrder is prepared and entered in PayOrder Issued
Register.TheamountofthePayOrderisprotectgraphed.
ThePayOrdernumberiswrittenonthevouchers.
PayOrder Register and the vouchers along with the register
aresenttotheofficerinchargeforcheckingandsignature.
After officerincharge's signature, the payorder and the
voucheraresenttoManager/Secondofficerforsecondsignature.
AcknowledgementofthepurchasersofP.O.shallbeobtained
onthebackofthecounterfoilsoftheinstruments.
ThevouchersaresenttoAccountDepartment.

PaymentofPayOrder

63


Paymentincash:Whenpayorderispresentedforencashmentsimilarprocedureisadoptedas
explained in the foregoing for payment of Demand Draft in cash. It also paid by clearing
/transferdelivery/cashtransferProcedureissimilartothatexplainedinparasofPaymentof
DDthroughclearingtransferdeliveryandcashtransfer.

Balancing of remittance accounts

9 D.D. Payable, T.T. Payable, P.O. issued, D.D. Paid without

Adviceaccountsshouldbebalancedonmonthlybasis.
9 The balances are agreed with the figures of concerned
SubsidiaryAccounts.

IssuanceofDuplicateInstruments

Issue of duplicate pay-order

9 In addition to obtaining application from the purchaser, a

confirmationshouldalsobeobtainedfromthebeneficiarytotheeffectthatthe
instrumenthasbeenlostornotreceivedbyhim/them.
9 Head Office is informed regarding loss of the P.O. for
circulationtothebranches.
9 An indemnity bond affixed with special adhesive stamp of
Tk.150/isobtainedfromtheapplicant.
9 Anotetothiseffectismadeontheoriginalapplicationform
andthePayOrderIssuedRegister.
9 The indemnity bond is kept in the "Indemnity Bonds for
duplicateinstrumentsissuedfile."
9 ThePayOrderisissuedmarkedDuplicateinRedInk.

64


Issue of duplicate demand draft

9 On receipt of application from the purchaser of the draft

regarding its loss and issue of duplicate one, the signature of the applicant is
verifiedfromtheoriginalapplication.
9 HeadOfficeisinformedofthelossofDDimmediatelyandthe
draweebranchisinformedofthelossofdraftnumberandrequestedtoexercise
caution by letter or telex. The telex charges if incurred are recovered from
customer.

9 On receipt of confirmation from the drawee branch that the

draft is still outstanding in their books and that caution is being exercised by
them,aduplicatedraftisissuedto thepurchaserafterobtaininganIndemnity
BondinBanksprescribedformat.
9 Thedraftisissuedmarked"DUPLICATE"inredink,repeating
theoriginalprintednumber,strikingoutthepresentprintednumberandgiving
theoriginalcontrollingnumber.
9 Anotetothiseffectismadeontheoriginalapplicationform
andtheDraftsIssuedRegister.
9 Draweebranchisadvisedregardingissuanceoftheduplicate
draft.
9 The indemnity bonds are kept in "Indemnity Bonds for
duplicateinstrumentsissuedFile."

65


CancellationofInstruments

Cancellation of pay-order

On receipt of application along with payorder for its

cancellation, the signature of applicant is verified from the original application
form.
Before the payorder is cancelled it is ascertained that no
duplicate payorder has been issued. The payorder is cancelled and kept with
thedebitvoucher.

Cancellation of demand draft

9 OnreceiptofapplicationalongwiththeDemandDraftforits
cancellation the signature of the applicant is verified from the original
applicationformandthegenuinenessoftheDemandDraftisexamined.
9 Beforethedraftiscancelleditisascertainedthatnoduplicate
drafthasbeenissued.
9 Thedraftiscancelledbearingoutthesignaturethereon,anda
note to this effect in red ink is made in the original application form and the
DraftsIssuedRegisterandinitialed.

66


9 Thecancelleddraftisattachedwiththedebitvoucher.
9 Thebranchconcernedisadvisedtothiseffectwithinstruction
tosendIBCAforthecancelledDemandDraft.
9 On receipt of IBCA the entry in Sundry Assets AccountDD
cancelledisreversed.
9 Nodraftshouldbeallowedtobecancelledwithoutobtaining
priorconfirmationfromthedraweebranch.

Accounts _

AccountingSystem

Thebranchesofthebankoperateasindependentaccountingunit.Theysubmitstatementof
affairsandotherprescribedreturnsdirecttoHeadOfficewheretheseareconsolidatedinthe

67


formofastatementshowingassetsandliabilitiesofwholeBankasatthecloseofbusinesson
Thursdayandatthelastworkingdayofeachmonth.
Thesystemoftransactionsofthebankisessentiallydoubleentrysystemofbookkeeping.But
for quick and accurate recording as well as for arriving at daily financial position specialized
formofdoubleentrysystembookkeeping,namedslipsystemunderselfbalancingmethodis
followed by the bank. The golden principle of debiting or crediting is the same as those of
doubleentrysystem.Inthebank,insteadofrecordingtransactionsinajournalinitially,these
aredirectlyrecordedandpostedintheledger(computer)separatingthedebitsandcreditsby
slipsorvouchersystem.

HalfYearlyandAnnualClosingofAccounts

Half Yearly Closing

Forascertainingthefinancialposition oftheBank,accountsareclosedason30thJune
everyyear.ForHalfYearlyclosingmanyimportantaccountingjobsaretobedoneaboutwhich
adetailedcircularisissuedbyHeadOfficefromtimetotime.Brancheswilldotheneedfulas
requiredbythecircular.

68


Annual Closing

Annual closing of accounts is done as on 31st December every year about which Head
Officeissuesadetailedcircularfromtimetotime.Brancheswillperformannualclosingworks
asperthecircular

AccountingRatiosforManagementUse

Our Bank prepares a Budget every year and each branch is given business goals/targets at the
beginning of the year. These goals and targets include business goals in the areas like deposit,
advance, foreign exchange business, non-funded business, ancillary business, profit etc. The
performances of the branches in these areas are reflected in their income, expenses, cost of fund,
profit etc. Top management, while appraising the performance of the branches, frequently needs
much information which may help in judging and rating the performance of the branches and the
Bank in the business areas as mentioned above. For helping top management in this exercise,
many accounting ratios are to be calculated and analyzed for arriving at decisions for
effectiveness and profitability. Not only top management, Branch-in-charge or concerned
department(s) can also use these ratios for analyzing performance and improving efficiency of
the branches or departments and the Bank.

Foreign Exchange Department _

ForeignExchange

Foreign exchange is an important department of Jamuna Bank Limited, which deals with
import,exportandforeignremittances.ForeignExchangeisanInternationalDepartmentofthe
Bank.Itfacilitatesinternationaltradethroughitsvariousmodesofservices.Itbridgesbetween

69


importers and exporters. This department mainly deals in foreign currency, thats why it is
calledforeignexchangedepartment.

This department is playing an important role in enhancing export earnings, which aids
economicgrowthandinturnithelpsfortheeconomicdevelopment.Ontheotherhand,italso
helpstomeetthosegoodsandservice,whicharemostdemandableandnotadequateinour
country.

ForeignExchangeDepartmentisdividedintothreesections

ForeignExchange

ImportExportRemittance

The Documentary Letter Of Credit

LetterofcreditisacreditcontractwheretheOpening/IssuingBankiscommittedtoplacean
agreedamountofmoneyatthebeneficiarysdisposalundersomeagreedconditions.

Forms of Documentary Credit

70


RevocableCredit:Arevocablecreditisonewheretheissuingbankisatlibertytorevoke
that is itcan cancel the credit at any time. According to UCPDC (Uniform Customs for
PracticeofDocumentaryCredit),arevocablecreditmaybeamendedorcanceledbythe
issuingbankatanytimeandwithoutpriornoticetothebeneficiarybeforeshipmentof
consignmentagainsttheL/C.

IrrevocableCredit:AnirrevocableL/Cisone,whichcannotberevokedoramendedby
thebankwiththeconcurrenceoftheinterestedparty.

Some important terms of Letter of Credit .

Amendment of credit: Sometimes the importer may require

amendmenttobemadeintheL/C,butthisamendmentmustbemadewithintheconsentpf
exporter,otherwiseamendmentwillhavenovalidity.

Adding Confirmation: Sometimes the importer may not rely

ontheL/Cissuingbank.ExporterrequirestheL/Ctobeconfirmedbyanotherbanksituatedin
his country. Then on request of issuing bank, any bank in exporters country gives guarantee
about the payment. This is called confirming bank. By adding such confirmation, confirming
banksundertakestheliabilitytohonorthebillofexchangeofexporter.

Validity and Expiry of Credit: All L/C must

mentiontheexpirydateofL/Cwithinwhichthedocumentsforpayment/acceptancemustbe
presented. This must exceed the date of issuance of the bill of lading or other shipping
documents,duringwhichpresentationofdocumentsforpayment/acceptancemustbemade.

71


FOB (Freed on Board):UnderFOBbasis,theexporterquotesthe

price covering all his expenses until the goods duty packed are delivered on board, the
carryingvesselnamedandarrangedbythebuyerwiththefreightandtheinsurancebeingpaid
bythebuyer.Theimporterbearsanycostincurredandallrisksfromthetimethegoodsare
placedonboardinclusiveofthosearisingoutoftheshipsfailureonberth.

Cost and Freight(C & F): In this case the exporter quotes
the FOB price plus insurance cost. The responsibilities of carrying out all formalities for
shipmentofthegoodsdevelopedupontheseller.

CIF (Cost, Insurance and Freight): Under

CIF,theexporterquotesC&Fpriceplustheinsurancecost.Theresponsibilityofcarryingoutall
formalitiesforshipmentofthegoodsdevelopupontheseller.

FAS (Free alongside Ship):UnderFAS,thesellerquotes

thepricecoveringallhischargesuntilsuchtimeasgoodsareloadedonTrainatthespecified
railwaystation.Thebuyerisresponsibleforallchargesfromthetimehetakesdeliveryofall
goodsfromtheexportersyard.

EX-Factory: The seller quotes the price of the goods exfactory on the date
agrees.Theimporterisresponsibleforallfurthernecessaryarrangementsandcharges.

PARTIES TO LETTER OF CREDIT

1.Importer(Buyer)/Applicant
2.TheissuingBank(OpeningBank)

72


3.TheAdvisingBank/NotifyingBank
4.Exporter/seller
5.ConfirmingBank
6.NegotiatingBank
7.Thepaying/Accepting/RemittingBank

Applicant:Thepersonwhorequestthebank(openingbank)toissueletterof
credit.AsperinstructingandonbehalfoftheapplicantbankopensL/Cinlinewiththeterms
andconditionsofthesellercontractbetweenthebuyerandtheseller.

Opening Bank/Issuing Bank: The bank which

open/issue letter of credit on behalf of the applicant/importer. Issuing banks obligation is to
makepaymentagainstpresentationofdocumentsdrownstrictlyaspertermsoftheL/C.

Advising/Notifying Bank: The bank through which the

L/Cisadvised/forwardtothebeneficiary(exporter).Theresponsibilityoftheadvisingbankisto
communicatetheL/Ctothebeneficiaryaftercheckingtheauthenticityofthecredit.Itactsas
anagentoftheissuingbankwithouthavinganyengagementontheirpart.

Beneficiary:BeneficiaryoftheL/Cisthepartyinwhosefavortheletterof
creditisissued.Usuallytheyarethesellerorexporter.

Confirming Bank:Thebankwhichunderinstructionintheletterof
credit addsconfirmation of making payment in addition to the issuingbank. It is done at the
request of the issuing bank having arrangement with them. This confirmation constitutes a
definiteundertakingofthepartofconfirmingbankinadditiontothatofissuingbank.

73


Negotiating Bank:Thebankwhichnegotiatesdocumentsandpays
the amount to the beneficiary when presented complying credit terms. If the negotiations of
documentsarenotrestrictedtoaparticularbankintheL/C,normallynegotiatingisthebanker
ofthebeneficiary.

Reimbursing / Paying Bank: The bank nominated in

the letter of credit by the issuing bank to make payments stipulated in the document,
complyingwithreimbursingbank.

Beneficiary 1. Contract Applicant

74


SELLER BUYER

2. Doc. Credit
Application

4. Advise of
Doc. Credit

3. Documentary Credit

ADVISING BANK ISSUING BANK

Figure: The Documentary Credit Cycle

ThePlanofPaymentsByMeansOftheLetterOfCredit

The description of process

1. Thecontractisconcludedbetweentheimporterandexporter.

75


2. Theimporteraddressesinservingbankwiththerequesttoletoutirrevocabletheletter
of credit (to open the letter of credit) according to condition to the contract and
transfersthesumofacoveringundertheletterofcredit.
3. Thebankofthebuyeropenstherequiredletterofcreditandthebankcorrespondent
askstonotifythesupplieronopeningtheletterofcredit.
4. Straight Bank (the bankcorrespondent of the bankemitter) informs the supplier on
openingoftheletterofcredit.
5. The exporter organizestransportation of the goods by means of the conclusion of the
agreementwiththetransportorinsurancecompanyandreceivesthetransportinvoice
orinsurancepolicy.

Theexportergives,accordingtothecontract,thefollowingdocuments:

ProformaInvoice,
CommercialInvoice,
Billofloading,
Insurancepolicy,
Packingsheet/list,
Certificateofquality,
Others.

And other documents straitening to bank for payment under the documents. It is supposed,
thatalldocumentscorrespondtoconditionsoftheletterofcredit.Inthiscaseweproceedfrom
theassumption,thatstraiteningandexecutingbankisthesame.

6. Theexecutingbankchecksallthedocumentsonconformitytotheletterofcreditandif
notitisfoundoutofanydivergencesarefoundout;executingbankcanworkwithone
ofthefollowingways:

76


9 TosendthedocumentsforcollectiontoBankEmitter,
9 To pay the documents after reception from the exporter of the letter of
guarantee,
9 To pay the documents after reception of consent with divergences from the
BankEmitter.
7. Executing Bank sends the documents to the bankemitter according to the conditions,
stipulatedbytheletterofcredit.
8. Executing bank sends the requirement about a covering (with the invoice of the
addresseeundertheletterofcredit)toconfirmingbank.
9. TheBankEmitternotifiesthebuyeronarrivalofthedocuments.
10.Theimporterreceivesfromthebankemitterthedocuments.

11.Theimportergivestheinvoiceofthetransportcompanyforreceptionofthegoods.

12.Afterreceptionifthegoodsfromthetransport

The Plan of Payment

77


ConfirmingBank
3 8
3
Issuer Bank, issuing the Binding Bank
letter of credit

10 1 4 6
9 5
2
The Importer
7 The Exporter

5
1 1
5
Insurance
Customs House Company

The Transport Company The transport Company

Figure: SummaryofthePlanofPayments

Modes of Sales of Goods

78


1. Cashinadvance:Riskisminimum.Theproformainvoiceisissued.
2. OpenAccount:Goodsaresentfirstandpaymentismadeafterwards.Thereareno
intermediaries.Proformainvoiceisusedhereaswell.
3. DocumentaryCollection:Sameasanopenaccountbuttheuseofbankasan
intermediary.Heretheriskiszero.Herethebankactslikeanagent.
4. DocumentaryCredit:L/C

Heremodes1,2and3arebuiltongoodfaithandrelationship,butmode4comeswithathird
partyguarantor.

Back-to-Back L/C

BacktobackL/Cmeansonecreditbacksanother.Itisnewcreditinfavorofanother
beneficiary.Sometimesbeneficiarysellerofacredithimselfisunabletosupplygoodsspecified
intheL/Candrequiredtopurchasefromanothersupplierbyopeningsecondcredit.Besides,
theformalitiesandrequirementsfor(L/Copening)thefollowingformalitiesanddocumentsare
alsorequiredforopeningbacktobackL/C

1. MasterL/C
2. Validbondedwarehouselicenses
3. Quotaallocationforquotaitems
4. ERCinadditiontoIRC
5. Indemnity/Undertaking
6. Noobjectionfrompreviousbanker
7. Factoryinspectioncertificate
8. BGMEAMembership

SWOT Analysis _

79


STRENGTH

9 StableSourceofFunds
9 LargestPortfolioAmongPCBs
9 StrongLiquidityPosition
9 LowCostFund
9 SatisfactoryProfitability

WEAKNESS

9 MarginalCapitalAdequacy
9 LackofStrongInitiativetoExploreInvestmentOpportunityThroughResearch
AndMarketing
9 IT&EBankingStatusDoseNotMatchWithOtherBanks

OPPORTUNITY

9 ScopeofWholeSaleBankingwithNBFIs
9 IncreasingAwarenessofBankingSystem
9 CreditCardBusiness

THREATS

9 IncreasedCompetitionInTheMarketForQualityAssets
9 SupplyGapOfForeignCurrency
9 OverallLiquidityCrisisInMoneyMarket

Recommendation _

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ThoughJamunaBankLimitedtriestogivethebestcustomersupport,theyhavesomelakeand
linkagecomparetootherbankofthesamegeneration.Therecommendationsforthisreport
are

9 The authority should recruit more employees to serve the customers. The can recruit
experiencedemployeeaswellasfreshgraduate.
9 Thebankshouldintroducemoreproductsbasedonthemarketdemand.
9 Thebankshouldreducetheirminimumbalancetoattractmorecustomers.
9 Thesalaryoftheworkerneedtoberise,asaresultexperiencedpeoplefromotherbank
willbeattracttojoinJamunaBankLimited.
9 Jamuna Bank Limited should offer international credit card, because in modern world
theuseofincreasingpapercurrenciesisdecreasing.
9 Beside social work the bank have to be more serious to get better position in CAMEL
retting.
9 Thebankcanopenmorebranchestoreachtomorecustomers.
9 Thebankcanopenbranchesorforeignboothbecausemanypeoplesendmoneyfrom
abroadeveryyeartoBangladesh.
9 Thebankshouldfinancetotheconsumergoods,becausemanypeopleinthecountry
wantstobuyconsumergoodsfrombankloan.
9 Themarketingdepartmentofthebankshouldmoreefficienttoreachatthehartofthe
customer.
9 Forthesuccessofanyorganization,employeesatisfactionisoneofhemostimportant
factorandJBLauthorityhavetolookaboutit.
9 The bank should be more profit concern as well as took part to the economics
developmentofthecountry.

9 The departments of the bank should more efficient to make profit by satisfying
customers.
9 Thebankshoulduseprintedinstrumentslikecheque,payordersetc.

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9 Beingacleartransparentthebankcanprovidethebestsupporttothecustomerasearn
profit.

JamunaBankLimitedisbankofnewgeneration.Thoughmyreportisongeneralbanking,Itried
hardtocoverallaboutthecustomerandtheirbehaviorwiththebank.

For a banking operation deposit is one of the most important factor as well as remittance,
clearing, cash are also part of general banking and customers are directly related with these
department.Bymakingproperinteractionamongthedepartmentsthebankcangivethebest
supporttotheaccountholders.Ontheotherhand,ifthecustomersaresatisfiedtheywillbring
morenewcustomersandthisprocesswillbecontinuing.JBListhebestbank,whichprovidesa
largefundtodevelopthesociety,andthebankhastocontinuethisprocess.FinallyJamuna
BankLimitedYourPartnerforGrowthmustbeatruepartnerofthecustomers.

Conclusion _

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As an organization the Jamuna Bank Limited has earned the reputation of top banking
operation in Bangladesh. The organization is much more structured compared to any other
bankoperatinglocalorforeigninBangladesh.Itisrelentlessinpursuitofbusinessinnovation
andimprovement.Ithasareputationasapartnerofconsumergrowth.

Withabulkofqualifiedandexperiencedhumanresource,JamunaBankLimitedcanexploitany
opportunityinthebankingsector.Itispioneerinintroducingmanynewproductsandservices
inthebankingsectorofthecountry.Moreover,intheoverallbankingsector,itisunmatched
withanyotherbanksbecauseofitswidespreadbranchnetworkingthoughtthecountry.

ThisreporttriestofigureoutmostoftheindicatorsofproblemsandstrengthsofJamunaBank
Limited as a valid pretender in the competitive banking sector of Bangladesh. A severe cut
throatcompetitionisgoingoncurrentlyinthissectorandthatswhyJamunaBankLimitedhas
to work out with different dimensions like product diversification, market forecasting,
proactiveactivitiesundertakenbyJamunaBankLimitedandsomesuggestiontogetridofthe
predicamentsthatexist.

Bibliography _

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AnnualReportofJamunabankltd2008

www.Jamunabankbd.com

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