ABAY BANK S. CHAPTER 11 Transaction-Authorization Limit ‘The following Transaction Authorization limit will be applied for supervisory level. ‘Authorization Limits Line of Business Activities 1. Depository and Payment A/Cs Services it for Supervisors TL. Deposit of S/A 500,000.00 1.2. Withdrawal of S/A 20,000.00 13. Deposit of C/A '500,000.00 1.4. Withdrawal of C/A 20,000.00 1.5. Cheque Deposit to Accounts 100,000.00 | 16. Fixed Time Deposit 100,000.00 [U7.tssuanceofCPOs "10,000.00 1.8. Liquidation of CPOs ~~ | 10,000.00 [19.tssuanceofDrafts ~~ | 10,000.00 1.10, Payment of Drafts 70,000.00 Ti. Blocking (CA/SA) 5,000.00 1.12, Account to Account Transfer | 5,000.00 2. Money Transfer Services 2.1. Local Transfer (incoming) 30,000.00 2.2. Local Transfer (Outgoing) 30,000.00 2.3. Foreign Money Transfer Payments 10,000.00 - 3. Reversal a Every Transactions Reversals shall require approvals TABAY BANK S.C. CHAPTER 12 Cash Operations 12.1 General Principles Cashier and Client Relations Officers a) Always give due attention to accuracy in keeping & controlling cash; b) Keep adequate cash in the Cash Office, so as to be able to meet immediate requirements and to avoid opening the vault more often than necessary; €) Keep sufficient coins to meet the moderate requirements of the Bank's customers; d) Make sure that the cash limit is always kept to a minimum; €) Inform the branch's Management whenever unusual transactions take place; f) Be fully aware of security requirements at the branch level and make it a point to strictly comply with all the security-related regulations; g) Familiarize yourself with the specimens of the signatures and of the initials of the branch's authorized personnel; h) Make sure that you are aware of counterfeit notes and the methods that must be used to detect them; i) Render to all customers of the Bank efficient and helpful services without being partial to any of them and as cordially as possible; j) Make sure that all the staffs of the Bank who work in the-cash area look neat and presentable; janking Operations Procedure - March 201ABAY BANK S.C. k) Form good working relations with customers of the branch, and familiarize yourself with their signatures and the transactions of their accounts; 1) Make sure that all the blank spaces that appear before and after the amount of the money to be deposited, which is written on both the original and the copy, have been closed; m)As much as possible, discourage long queues around the window of the transfer, cash payment and the receipt instrument by rendering these services from another window where there is no queue; rn) After you have rendered to the customer the service that she or he had come seeking, never forget to thank her/him for coming to the Bank; ©) The handing and taking over of cash has to be evidenced by an authorization on the system; P) Make sure that cash is promptly transferred to the cashier, so as to avoid an unnecessary accumulation thereof; 4g) Make it a point to invariably keep cash notes inside the cash drawers— out of public view—not at the counter; 1) Prevent the huge build-up of surplus cash in the Cash Office by promptly transferring it to the vault, even if it has not yet been sorted for security purpose: 8) In the event that you must, for one reason or another, leave the cash area, keep the cash locked in your drawers and take with you all the keys; and t) Try, as much as possible, to avoid frequently opening the vault by working with all those concerned in a more concerted manner so as to be able to determine the cash requirement for the day’s operations. Banking Operations Procedure - M: Page 120ABAY BANK S. ——S 12.2 Concentration and Security cl nt Relations Officer a) Make it a point to always concentrate only on what you are doing while counting, receiving and paying cash; b) You should always keep cash and cashed items only in lockable drawers—not in shelves or elsewhere; ¢) Do away with the now-obsolete practice of recording cash denominations after the payment has been effected; 4) You must always keep in mind that such cash-related items as vouchers, checks, payments and receipt instruments are almost as good as cash; e) Avoid putting your initials/signing on notes’ wrappers before the cash has been wrapped, and shred all wrappers that bear the initials of the Client Relations Officer, whenever you find them; f) Never forget to lock the drawers wherein you stash up cash whenever you have to leave the cash area and after office hours; 9) Before you leave the premises for lunch, balance your cash, ascertain the correctness of the amount thereof and hand it(the cash in your possession) over to the cashier and lock the drawers; fh) Count all the cash taken from the cashier (mandatory especially in the case of Birr 50 and Birr 100 notes) before delivering it to the customers of the Bank; i) You have to always slit/open wrapped notes—especially Birr notes of big denominations—before delivering them to the customers of the Bank; i) Remind customers of the need for carefully counting the cash given to them before leaving the cash counter; k) Avoid talking while counting cash, so as to prevent making ar 1) If and when the customer changes her/his mind regarding the cash, Retail Banking Operations ProcABAY BANK S. denominations during payment, do not try to attend to her or his request up until you have given her/him the cash as per her/his earlier preference; m) While exchanging money notes (from one currency to another), do not remove the cash presented by the customer from the counter until you have made sure that she or he has fully agreed to proceed with the exchange; A) Before effecting payment thereof, always make sure that the value of the check has been posted and that the appropriate account has been debited. Cashier a) Discourage the Bank's Client Relations Officers who are working at separate windows from exchanging Birr notes; b) Whenever possible, undertake all your cash-related activities on relatively quiet days; ©) Avoid putting coins in a money bag set aside for other denominations; d) Never forget to lock the drawers wherein you supply up cash whenever you have to leave the cash area and after office hours; €) Avoid talking while counting cash, so as to prevent making any errors; f) Client Relations Officers are not allowed to keep items like bags, pieces of luggage, lunch boxes, etc. in the cash area. 9) No one should be admitted into the cash area, other than those employees whose work involves some type of cash-handling. Even such employees should not be allowed to roam around the cash area or to cause unnecessary commotion. h) While on duty, Client Relations Officers are not allowed to leave their windows under any circumstances or to be engaged in long conversations with other Client Relations Officers or with the customers of the Bank across their partitions.ABAY BANK S.C. i) Nobody should be admitted into the windows of the Client Relations Officers. And no unauthorized person should be allowed to enter the Cash Office at any time, Since all cash-related work requires maximum care and accuracy, nothing that could disrupt the attention of the Client Relations Officers should be tolerated in the cash area. J) All staffs working in the cash area must be polite, courteous, attentive and respectful toward the customers of the Bank. Proper information must be given out in response to the inquiries coming from customers. If the Client Relations Officers is uncertain about the inquiry forwarded to her or him by a customer, she or he should direct the customer to the pertinent person or Supervisor. k) Since there is no insurance coverage for the excess cash over and above the approved limit, Branch Manager and the cashier should make sure that the branch’s cash-holding limit is within the approved limit. The Branch Manager ‘The branch manager shall create awareness to Client Relations Officers before assigning them at a front office. a) To change the date on the cash stamp of the branch on a daily basis; b) To concentrate on the work at hand even on relatively quiet days; ©) To check properly signatures, ID cards, posting, approval and the sameness of the amount of money given in both words and figures; d) To accurately write the denominations of the cash paid to the customers of the Bank on the cash-payment instruments and to verify the correctness of the denominations written on the cash deposit vouchers; e) To retain the original of a deposit voucher and hang the slip to the depositor; Retail Banking Operations Procedure Page 123ABAY BANK S.C. ———————— 12.3 Attendance and Conduct a) The cashier, the Client Relations Officers and the Cash Office personnel should always be in the cash area 15 minutes before 8.00 A.M. to make the necessary arrangements for the cash operations of the day and start rendering the services to the customers of the Bank as soon as the branch is open to its customers at 8.00 AM. Furthermore, since they are the staffs whom the customers of the Bank come into contact with more often, they should, as much as possible, be presentable in their appearances and thereby reflect a positive image of the Bank. b) The cashier, the Client Relations Officers and the Cash Office personnel are not normally allowed to leave the cash area. If they are compelled to do so, due to an unexpected circumstance that is beyond their control, they have to at first get the go-ahead of the concerned supervisors. €) Telephone calls should, as much as possible, is avoided during cash hours. Client Relations Officers who are in their windows should not be disturbed by outside calls. In the event that the telephone call has to do with an important and urgent message, nevertheless, it should be received by the supervisor and communicated to the CRO after she/he has been cleared off her or his cash responsibility. Should the message turn out to be urgent and thus calls for an immediate attention, the Client Relations Officer must at first be relieved of the cash still in her/his hands and then informed of the message. d) As soon as the Client Relations Officer starts work, she or he must switch off her/his mobile (cell) phone. ) The Client Relations Officer should never be reprimanded either in writing or otherwise while she/he is in the middle of a cash operation. f) No brawls or exchange of strong words between the staffs of the Bank working in the cash area will be tolerated. The same is true about all acts that are considered to be contributing factors to making errors. ne Retail Banking Operations Procedure - March 2016 ye 124ABAY BANK S.C. g) It goes without saying that idleness is one of the underlying causes for errors and for other unacceptable acts. The Client Relations Officers are, therefore, expected to keep themselves always busy—doing what they are supposed to do. Even if they have completed their share of work, they should assist the other staffs who have not yet completed their work. No one should leave the cash area until the daily cash has been balanced. Also, no mail should be delivered to the CROs during cash hours, as it might contain some shocking news that could interfere with the efficiency of its recipient. h) Whenever a customer of the Bank has a complaint to lodge against a Client Relations Officer and the complaint has something to do with either the shortage or excess of cash, the cashier will have to report thereon to the Branch Manager. The Branch Manager should then see to it that the window of the concerned Client Relations Officer is closed and balance all the cash still in the hands of that particular Client Relations Officer, with a view to fully satisfying the customer who has lodged the complaint against her or him. In a branch where there is a Branch Controller, nonetheless, the checking must be done in her or his presence. i) All Client Relations Officers should be left alone and extra care must be taken not to disturb them while they are on duty, as any disturbance or conversation with them could result a serious error on their part, including a shortage of cash. i) Ifand when a Client Relations Officer unexpectedly falls ill, she or he will have to be given permission to seek medical attention during cash hours. No matter what happens to her or him, she or he should not, nevertheless, be allowed to leave the premises of the bank without balancing and surrendering the cash in her/b Retail Banking Operations Procedur Page 125ABAY BANK S.C. 12.4 Cash handling between cash custody and issue and branches Cash collection from cash custody and issue/ the NBE Issue Account-Holding Branch will be handled following the procedures presented here in under> 12.4.1. Responsibility of the branch City Branches The Branch Manager a) Prepares a letter of request to the Director Finance and Accounts and Issue or prepares a message on the systems end through the Bank's computer network like ERP, disclosing the total amount of the local currency or of the foreign currency requested for, together with a breakdown there of in denominations; b) The Bank’s branches in the cities are supposed to lodge their requests in writing, indicating there in the following: > The total amount of the money requested for, together with a breakdown thereof in denominations; > The letter of request should be signed by the cashier and by Branch Manager; > The letter of request should bear the seal of the branch; and > The letter of request should be sent to the Director Finance and Accounts and Issue ina sealed envelope. ¢) Authorizes the transaction; Retail Banking Operations Procedure - March 2016ABAY BANK S.C. SS The Cashier a) When receiving cash from the Cashier(cash custody and issue) counts the cash, in collaboration with the Client Relations Officer at the table, ascertains the correctness of the amount and the denominations there of by comparing it with Handing and taking over format or Re- imbursement claim, in front of the Cashier from the H.0. Finance and Account: b) Signs on the Handing and taking over format or the Re-imbursement claim and gets the Client Relations Officer/Manager co-sign on it, affixes a stamp and hands it over to the Cashier of the H.O. as an acknowledgement of receipt of the cash; ©) Passes one copy of Handing and taking over format or the Re- imbursement claim to one of the Client Relations Officers for posting the cash received; and d) Registers the denominations of the cash in her/his cash position book and posts the total amount thereof into the system as cash received, The Customer Services Officer a) Receives one copy of Handing and taking over format or the Re- imbursement claim from Cashier; b) Posts the transactions. The Branch Control a) Receives the handing and taking over form or the Re-imbursement claim from the Client Relations Officer; 'b) Checks the transaction on the system; Retail Banking Operations Procedure - March 2016 Page 127ABAY BANK S.C. - Outlying branches Branch Manager a) The outlying branches Sends the tested message to Regional Manager or Director Finance and Accounts, Branch Manager at the NBE Issue Account-Holding Branch, as the case may be, by telephone or prepares a message on the system send by secured Abay’s computer network like ERP, disclosing the total amount of the local currency or of the foreign currency requested for, together with a breakdown there of in denominations; b) The Director Finance and Accounts should be notified once a month, through a report, of the cash shipment to, or from, the branches, so that she or he will provide the necessary insurance coverage; €) Authorizes the transaction. The Cashier * Follows the same procedure discussed here in above under the Cashier for city Branch, The Client Relations Officer ‘+ Follows the same procedure discussed here in above under the Client Relations Officer for city Branch. The Branch Controller ‘* Follows the same procedure discussed here in above under the Branch Controller's task for city Branch. inking OperationsABAY BANK S.C. Lene ee 12.4.2 Respon 'y of cash custody and issue/ the NBE Issue Account-Holding Branch A- City Branches The Manager-Cash Custody and Issue a) Upon receipt of the tested message from the branches, ascertain and decodes the message and forwards it to the Head of Local Currency or to the Head of Foreign Currency, so that she or he will keep it in her/his custody; and b) Provides a van/vehicle for transporting the cash, as well as the security guards who will escort it (the cash). The Head Cash Custody and Issue a) Prepares cash Handing and taking over format or the Re-imbursement claim for the total amount of money to be supplied to the branch, disclosing the breakdown of the denominations thereof; b) Arranges the date, the time and the cashier who will provide the cash to the branch; and ¢) Arranges the cash requested for, in accordance with the preferred denominations, and hands it over to the concerned cashier, together with Handing and taking over form or Re-imbursement Claim, The cashier at H.O. Finance and Accounts a) Counts the bundled-up cash, which has subsequently been stashed pin bricks, so as to ascertain the correctness of the amount thereof, in line with the lodged request, and signs one copy of Handing and taking over format or the Re-imbursement claim ill beABAY BANK S.C. ee _ b) Takes the cash to the branch, having it escorted by the assigned security guards; and ¢) Hands over the cash to the cashier at the branch, together with the copy of Handing and taking over format or the Re-imbursement claim. 12.4.3 Cash surrender to cash custody and issue/ the NBE Issue Account-Holding Branch Responsibility of the branch a) City Branches ‘The Manager Requests, the Director Finance and Accounts to collect the excess cash and requests for the shipment thereof on the system send by secured the Bank's computer network like ERP. Upon requesting for cash shipment, she or he has to makes sure that the following have been fulfilled: ‘@. The total amount of the money to be dispatched to the H.O. or Issue account and the breakdown of the denominations thereof; b, The letter should be signed by Branch Manager; and ©. The letter should bear the stamp of the branch. The Cashier (at the branch) a) Requests for the ID card of the Cashier and ascertains that its number is concordant with the one that appears in the letter; b) Prepares Handing and taking over format or Re-imbursement claim for the total cash to be sent to the NBE issue account-holding branch or Department, indicating the breakdown of the denominations and signs onit; €) Prepares the cash to be sent from the vault to Cash custody and issue, in collaboration with Branch Manager; il Banking Operations Procedure - March 2016ABAY BANK S.C. d) Identifies the Cashier in charge on the file copy of the Handing and taking over format or Re-imbursement claim which will be retained by the branch and makes her or him sign on it to acknowledge receipt of the cash; and e) Transfers the amount and denomination of cash to be dispatched to the Client Relations Officer through the system together with a copy of the handing & taking over format or Re-imbursement claim for posting, The cI nt Relations Officer * Accepts the money through the system and posts it into the system as payment. The Branch Supervisor a) Authorizes the transaction; and b) Jointly prepares, with the cashier, the cash to be sent from the vault to the H.0. or issue account. ‘The Branch Controller a) Receives the handing and taking over form or Re-imbursement claim from the Cashier; d) Checks the transaction on the system; b) Outlying Branches An outlying branch having excess cash shall first inform, in writing the branch holding cash for the "National Bank of Ethiopia Issue Account” as, follows: a) Outlying branches should send tested messages by telephone or prepares a message on the system send by secured Abay’s computer network like via ERP; b) The total amount of the money to be dispatched and the break down thereof in denominations should be disclosed; ¢) The letter must have been signed by the Branch Manag, Retail Banking Operations Procedure - March 2016ABAY BANK S.C. d) The letter must have been impressed by the seal of the branch. By a copy of the same letter, the Director-Finance in the Head Office shall be informed by mail of the need for an insurance coverage. The dispatching branch should also make ready the cash prior to the date of collection; €) Separates the good Birr notes from the mutilated and dog-eared Birr notes; f) All Birr notes—those that are in good condition as well as those that are mutilated and dog-eared—should be wrapped up, in accordance with their denominations, and the signatures of the pertinent personnel must then be affixed to the wrappers; 9) Wrapped-up bundles of Birr notes should be arranged in bricks, with the exception of the Birr notes that are mutilated as well as Birr 50 and Birr 100 notes, which require too longa time to amount toa complete brick; hh) Arranges a box that can be locked or nailed shut, after the cash that is to be dispatched is put in it; and i) Prepare Handing and taking over format the total amount of money to be dispatched, indicating the breakdown thereof in denominations; J) Upon its arrival at the "NBE Issue Account-Holding Branch, “the branch surrenders the cash to the Cashier, together with Handing and taking over format. The cashier, for her or his part, accepts the cash and counts it, with the help of the Client Relations Officers, and there by ascertains the correctness of its amount as per the Handing and taking over for matt hereof, 12. Security Precautions Cash consignment from one branch to another and from the Issue Accounts to the branches should always be escorted by security guards who have had prior military or police training, if a branch has no security guard of its own. If the distance to be covered requires an over-night stay on the way, it must be planned in such a way that the town where the night is to be passed should be preferred for the safety of the cash Retail Banking Operations Procedure - March 2016 Page 132ABAY BANK S.C. ‘Whenever possible, a trip with cash after sunset or before sun rise should be avoided. If there is a branch of the bank in that town, the vehicle carrying the cash should be made to stay for the night in the compound of the branch, vigilantly watched by i S escorts. In the absence of a branch, however, the vehicle should be parked either in the compound of a nearby police station or in a military camp, accompanied by its escorts. 12. Cash handling within a branch 12.6.1 Cash Limit setting for Client Relations Officers The Branch Manager and Cashier shall determine the cash limit of Client Relations Officers for starting the day’s operation for a certain period uniformly, considering the volume of the transaction. However, the limit could be revised periodically, as and when required. 12.6.2 The Procedure for Opening and Starting the Day’s Operations The duties and responsibilities that the operators involved in opening and starting the day’s cash operations are entrusted with comprise the following; The Cas! . a) Jointly, with Branch Manager, opens the vault and withdraws there from the cash that will be needed for the day’s Operation: b) Authorizes the vault transfer on the system to acknowledge receipt of the cash withdrawn from vault. €) Distributes adequate physical cash in all kinds of denominations to the Client Relations Officers; d) Transfers through the system to the concerned Clignt-Relations Officer the required-cash balance; ZA” it~ABAY BANK S.C. ——————————— €) Transfers the closing balance of the cash book of the previous day and the balance of the day to the cash book as BBF. f) Assigns Client Relations Officers who will assist and facilitate the cash operation at the counter and at the master table; and 9) Assigns a CRO who will exchange Birr notes and coins. The Branch Manager a) Jointly, with the cashier, opens the vault and withdraws there from the cash that will be needed for the day’s operations; b) Transfer the amount of cash withdrawn from vault against the denomination to the cashier. ©) Assigns Client Relations Officers who will assist and facilitate the cash operation at the counter and at the master table(when the cashier is not available) ;and ) Assigns a CRO who will exchange Birr notes and coins, The Client Relation Officer a) Collects the cash together with the personal cash brand/stamp from the cashier when vaul 's opened in the morning; b) Collects the cash from the cashier and checks all the complete bricks to ascertain that each one of them contains 10 bundles and that all of them have been wrapped; ©) Counts the cash in front of the cashier to confirm the amount of petty cash, d) Takes the cash to its cage, opens the computer and verifies the amount of the petty cash transferred through the computer against the previous day's record and accept/authorize; e) Makes sure that the signatures or the initials of the Cash Counter and the Verifier have been affixed to the bundle. Notes of Birr 50 and Birr 100 are to be accepted only by carefully counting each one of them; Retail Banking Operations Procedure - March 2016 Page 134ABAY BANK S.C. f) Check the amount of cash transfer through the system, authorize the ‘Till transfer’ as acknowledgment of receipt of cash for the daily operation; G) Adjusts the date of the stamps (brands) before starting the day's operations. 12.6.3. During the Day’s Operations a) Request for Additional Cash a) Requests the cashier the required additional cash through the system. b) Collects the money, counts and ascertains the correctness of the amount and of the denominations there of, by comparing it with what was requested; and €) Confirms to acknowledge receipt of the money by authorizing the cash transfer through the system. The Cashier a) Coordinates and controls the activities of the nt Relations Officers and does follow-up on the balance still in their possession through the system as well as physically; b) Prepares the amount of money requested by them after ascertaining actual need for big amount; ¢) Sends the required physical cash and transfer the same amount of Cash though the system. b) Transfer of Excess Cash in the Middle of the Gash Operations The Cli nt Relations Officer a) Sorts the cash at hand into bundles, in accordance with the denominations and balances thereof; b) Hand over the cash to the cashier, and transfer the ai f cash through the system; and Retail Banking Operations Procedure - March 2016ABAY BANK S.C. ———— EEE The Cashier a) Receives the cash and counts it with help of Cash Office Personnel; b) Ascertains the correctness of the money received, in accordance with the denominations written down; and ©) Acknowledge receipt of the amount of money by authorizing the ‘till transfer’ through the system; d) Whenever the money at the table becomes too bulky, receives it by carefully counting each bundle and brick and after checking the correctness of its amount by comparing it with that in the system (till balance) of the CRO. 12.6.4 Recel ing Cash Deposit at the Table The Client Relations Officer (at the table) a) Collects from the customer the amount of money to be deposited in excess of 15-bundle cash. b) Counts the Birr notes against each denomination in the bundle sand ascertains the correctness thereof by comparing it with that of the voucher filled in, ©) Posts the amount of money to the customer's account using her/his user ID, affixes as tamp to the voucher/s, signs on it and prints a deal slip; ) Makes the cash office attendant wrap the bundles of the Birr notes accor ing to their denominations and affixes a stamp to the wrapping paper; ) Signs on the wrapped Birr notes to confirm the correctness of the amount of money in each bundle (two signatures are required on wrapped notes of Birr five and above, and one signature on wrapped notes of Birr one);and ) When the brick become too bulky, balances the money according to its denominations and hands it over to the cashier, and transfer the cash through the system. Retail Page 136ABAY BANK S.C. a) Hand over all the Birr notes in bundles, except the loose ones, to the cashier and make a ‘till transfer’ through the system; ‘b) Hands over to the Branch Controller/Cashier the remaining vouchers in her or his possessi m5 ©) Balances the overall cash that is, the total cash received from customers and from the cashier against the cash paid to them (customers) and sent to the cashier with that of the remaining cash and stamps in her/his hands; The Cashier a) Accepts the cash surrendered by the CROs, ascertains the correctness of the denominations and of the total and acknowledges receipt of the cash by authorizing the ‘till transfer’ on the system; b) Ascertains the correctness of the cash-balancing done by the CRO that is, the opening balance (the petty cash) and the cash received from him/her against the cash surrendered and the cash still in her or his hands; ) Receives the total payments & receipts of each CRO; d) Ascertains the correctness of the cash balance and of the petty cash in her or his possession by comparing it with the amount of the money debited and credited; and e) Makes sure that the amount of the petty cash in the box is correct against the ‘Till transfer ‘made to him as a petty sit in the safe. Retail Banking Operations Procedure - MarchABAY BANK S.C. b) The Day-End Closing The Client Relations Officer a) Transfers to the Branch Controller the remaining deposit and payment vouchers in her or his hands,; b) Amalgamates the cash in her or his hands in bundles and loose notes, sorting it by its denominations, and balances the overall cash as follows: Petty Cash (beginning balance + cash received from customers +cash received from the vault (the cashier) ~ cash paid to the customers-cash sent to the vault = cash on hand). €) After balancing it, transfers to the cashier the balance at the total amount, which will be transferred to the table, and make a ‘Till transfer’; and submits stamps to the cashier as well. The Client Relations Officer (at the cash table) a) Accepts the remaining bundles attend of day from the Client Relations Officers sent to her or him; b) Checks against the system the correctness of the amount of the cash received from the table and of that surrendered to the table by each Client Relations Officer during the day; and €) Checks the correctness of the amounts of money in each brick and loose bundle and surrenders them to the cashier. The Cashier a) Accepts the money from the CRO at the table, after checking against the system; b) Receives the total amount of cash from the Client Relations Officers by authorizing the ‘Till transfer’ as acknowledgment of receipt of Cash. €) Makes sure that the bricks contain 10 bundles of 100 Birr notes each and that the packet bears the initials of the Counter and of the Verifier in the cases of notes of Birr five and above;ABAY BANK S. SS —eeeeeeeSOee 4) Balances the total cash transaction against the Client Relations Officers’ balance in the system; e) Writes the balance of the daily debits and credit on the cash book; f) Fills the amount of money withdrawn from the vault during the day and the amount of money lodged to the vault on the cashbook; 9) Balances the cashbook and signs on the space provided for that purpose; hh) Signs on the cash book on the space provided for that purpose; i) Posts the cash lodged to the vault on thesystem under the file 'Till to Vault transfer’; and j) Jointly, with Branch Manager transfers the cash lodgment to the vault, together with stamps. The Branch Manager/Accountant/D/B/Manager a) Checks the correctness of the amount of the cash balanced by the cashier against ‘Till balance by denomination’ in the system; b) Makes sure that each brick contains 10 bundles and counts all the loose Birr notes; ¢) Authoi the ‘Till to Vault transfer’ made by Cashier; d) Jointly, with the Cashier, transfers the physical cash lodgment to the vault, together with the stamps. en eee nking Operations Procedure - March 2016 Page 139ABAY BANK S.C. 12.8 Cash Difference a) A cash discrepancy (shortage and excess) involving Birr 100.00 and above, but below Birr 1,000.00, be reported to the Branch Manager. b) A cash discrepancy involving a shortage of Birr 10,000.00 or more must be immediately reported to the Director -Internal Audit, BORM and HRM. A letter should follow indicating the effort made to trace the difference. The letter should contain the following: The amount of money involved; — The name of the Client Relations Officer; = The effort made to trace the discrepancy; - The action taken to settle the discrepancy; and = Any other relevant facts. ) In the event that a substantial sum of cash is detected as a shortage, it should be jointly reported by the Branch Manager & the Branch Controller. d) The Branch Manager should arrange the whole cash, including the vault cash, to be checked and for a proper investigation to be done thereon. ‘And, whenever the cash indemnity account of the concerned Client Relations Officer is insufficient to cover the loss involved, appropriate action must be taken to balance the cash position. €) Although, for control purposes only, a difference of Birr 1,000.00 or of any amount in excess thereof, needs to be reported separately, it is important to note that any difference should be treated as being equally serious—regardless of its amount. After all, a shortage or an excess of Birr 100.00 could well have been a shortage or an excess of Birr 1, 000.00 oF more. f) All branches are required to send to the Manager in their respective Regional offices their cash-discrepancy reports (shortage or excess) Retail Banking Operations Procedure - Marc! Page 140ABAY BANK S.C. at the end of each month, regardless of the amount of money involved, 12.8.1 Refund of Excess Cash a) A cash excess of up to Birr 10,000.00 has to be refunded to the rightful claimant so long as there fund has been jointly approved by the Branch Manager. b) There fund of an excess cash of over Birr 10,001.00, but less than Birr 50,000.00 ,has to be jointly approved by the concerned Branch Manager and the Regional Manager. ¢) There fund of an excess cash of over Birr 50,001.00 has to be jointly approved by the Branch Manager with the concerned Regional Manager and Director - BORM. d) At the time of approval ,the following, among others, should be considered: Application of the Claimant A request for such is fund should normally be lodged instantly. And, unless a valid reason has been given for the delay, such claims should not be entertained 15 days after the money was deposited. The claimant's application must contain such pertinent information as to how the excess occurred as well as the denominations and the other factors. This information should be counter checked against the statement of the concerned Client Relations Officer. A Written Statement of the Client Relations Officer ‘The Client Relations Officer may recall the circumstance under which the excess occurred and she/he may even recognize the claimant. This must be included in the Client Relations Officer's report, which should be critically looked in to. Receipt or a Payment Voucher in which the Excess is claimed to have occurred denominations written on it.ABAY BANK S.C. Se =e was involved at the time of the deposit or withdrawal in order for the excess to occur. Other Pertinent Circumstantial Evidence All other factors that corroborate the claim may be considered, although it is difficult to enumerate all of them here. The Branch Controller and the Branch Manager should work out the denominations of the excess. Deposit will be added on to the beginning cash balance by denomination and withdrawals will be deducted in the same manner to arrive at the denominations of the closing cash balance. This should be performed without fail, and those who approve the refund of excesses will consider such reports in their decisions UNDERTAKING AND GUARANTEE Ifand when it cannot be completely proved that the excess belongs to the claimant, but there are some reasons to support the claim, an undertaking / guarantee should be obtained for paying back the money with interest thereon, in case another claimant appears later on. REPORTING EXCESS CASH ‘The Branch Controller should report to the concerned office on the excess refund approved by the branch. The regional office should then communicate the approval of the excess cash to the Internal Audit. 12.9 Forged Notes a) The Financial intelligence office has warned that any marking on counterfeit Birr notes could interfere with the effort to determine the characteristics of the counterfeit Birr notes and should not, therefore, be made. b) It is imperative that counterfeit Birr notes presented by customers be marked “COUNTERFIET” in front of the presenter. Otherwise, she/he March 2016 inking Operations Procedu Page 142ABAY BANK S.C. Nee enn ee, will have aground on which to lodge a complaint as having been unduly expropriated of her/his property. ¢) Ifa rubber stamp is used for marking, it should not be heavily inked or cover the numbers, the portrait, the signature or any other feature that makes the note clearly different from that of a genuine Birr note d) If a counterfeit money note is noticed after it has been accepted and mixed with the overall cash of the Bank and there is no way to pinpoint the presenter of the note, the Client Relations Officer who has discovered the counterfeit is liable for making the value of the Birr note as good as it should be. In addition to that, she or he will have to discover the Birr note and mark it accordingly and then withdraw it from circulation. e) Whenever a counterfeit Birr note is intercepted by the Bank, the Federal Police /nearest police station has to be informed about it immediately. In fact, the note itself should be sent to the nearest police station, after a stamp indicating that it is counterfeit has been affixed to it, together with a written report thereon, The report should clearly show the address of the customer and her/his statement as to how she/he acquired the note. A copy of this report must then be sent to the Director - BORM, Director -RCM, Director -Accounts and Finance and the Regional Office. f) The Bank has no authority to detain the possessor of the note. Still, it will have to notify the police on the phone while preparing the report. Retail Banking Operations Procedure - March 2016 Page 143ABAY BANK S.C. 12.10 Cash Custody 12.10.1 Good Coins If the branch has a coin-counting machine, the counting of the coins should be done by Cash Office Personnel. The numbering of the machine should, however, should be attended by the Client Relations Officer. In a branch where there is no such machine, however, the counting of the coins should be done by hand, by Cash Office attendant. In the event that the work load of the cash work is too heavy for Cash Office Personnel to do the counting, never the less, the customer may be requested to assist in stacking up the coins. If she or he is willing to assist, he should, however, be provided with the coin tray of the Bank. Coins of all denominations that are hand-counted should bear ranged ina pile of twenty coins each and be put in a tray in rows. A tray of coins should contain 100 piles of coins—that is, ten piles wide by ten piles long (10X10). Before the coins are put in a bag, the Client Relations Officer should check the accuracy of the counting of the coins arranged in the tray. After the counterfeit money has been counted, a small card that shows the amount, the initials of the Counter and of the Verifier as well as the date on which the counting was done should be put in the bag, Then the bag must be sealed. A coin bag that is full should either be sealed or tied with a string. ‘Thereafter, a tag with the appropriate color should be attached at the end of it, showing the denominations, the amount of money, the date ‘on which it was sealed and the initials of the persons by whom it was counted and verified as well as the name of the branch. In the. vault, or in the cash held for the National Bank of Ethiopia (NBE), the coin bags should be kept separately, according to the types coins of one denomination Page 144 of coins they contain. In other words, sanking OperationsABAY BANK S.C. Se ed should be kept in one bag as indicated above. Dilapidated coins should be kept separated from the coins that are in good condition, with a note in the bag showing the amount there of and the initials of the two custodians. 12.10.2 Good Money Notes Except notes of Birr one, all other money notes should be counted by one person and then verified by another. Both the Counter and the Verifier of the notes should sign at the two corners of the bundles containing the first money notes. The Counter should sign in black ink, and the Verifier in red. The money so counted should then be wrapped. It must also bear the initials of the Counter and of the Verifier in the colors mentioned above and the date on which it was wrapped and the name of the branch where the wrapping of the bundles was done, A bundle should contain 100 Birr notes, and a brick 1,000 Birr notes. In other words, the Birr notes have to come in ten bundles, a rubber string strapped around them, with a label on one side of the brick showing the following: + The amount of the money in Birr; ‘© The date on which it was strapped; ‘+ The name of the branch; and + The initials of the Counter and of the Verifier. No amount of money that comprises less than 100 Birr notes should be wrapped. And loose Birr notes should be strapped with a rubber band, and the number of the Birr notes should be written at the corner of the first Birr note.ABAY BANK S.C. order of first-in, first-out and should not be kept for more than one year after they have been strapped in to bricks. All the initials or signatures on the bundles of the Birr notes must be legible. An incoming or outgoing consignment of cash should always be opened in the presence of the cashier, the Branch Manager and the Branch Controller, if there is one. Cash Office Personnel should never be left alone to wrap the Birr notes without the supervision of either the Client Relations Officer or the cashier. All Client Relations Officers should be occasionally requested to deposit fresh specimens of their respective signatures and initials in duplicate. The original must be kept by the Cashier and the duplicate should be passed on to the Branch Controller so that she or he will keep it in her/his custody. The frequency for obtaining such specimens is left to the discretion of the cashier the Branch Manager. 12.10.3 Birr Notes that are in Bad Conditions Birr notes that are in bad physical conditions should be kept separately, according to their denominations, segregated from the Birr notes that are still in good condition. Any mutilated or dog-eared Birr note should be withdrawn from circulation and kept together with the other Birr notes that are like it so that it may not be re-issued by mistake. However old, every time a Birr note of a certain denomination reaches 100 in number, it should be counted, verified and wrapped and treated like all other bundles of new Birr notes. After all the counting, wrapping and signing is completed, however, a stamp should be affixed to each bundle, to both sides thereof, with a large rubber stamp marked “Deteriorated” with bold letters, so that the stamping appears on the full length of the bundle. Once a bundle is is highly improbable that it could be Page 146 obliterated with such a stamp, Retail Banking Operations Procedure - MarchABAY BANK S.C. issued again by mistake for circulation. ‘The dog-eared or mutilated Birr notes presented at the counter of the Abay Bank s.c. for redemption of their value shall be treated as follows: ¥ If it is mutilated where the serial number is written and then glued together on another paper, the Birr note has no value what so ever; Y If it happens to be of a size that is equal or less than one- quarter of the original note, it has no value, even if the serial numbers appearing thereon are complete; Y Ifitisa r note with several perforations and mutilated edges and if its serial numbers at both corners are complete and the Birr note is a whole one—that is, it is not torn apart and patched up later on—the Birr note should fetch its full value; and ¥ Even though the Birr note does not bear in full the serial number at either of its two corners, but one corner of the Bir note is not mutilated and bears a complete serial number and its size is not less than three-fourths of the whole note, the Birr note so presented should fetch its full value. The shapes and sizes that these remnant Birr notes take on from some fire, rodents and other blights are varied and numerous. Not many patterns may be devised and shaped to illustrate each of them. ‘The NBE has, however, devised eleven patterns against which we should try to compare and determine the values of the mutilated and dog-eared Birr notes presented for redemption. Their samples are forwarded to all the bank’s branches under a separate cover. If a branch, nonetheless, happens to come across Birr notes whose shapes do not have any semblance to any of the eleven patterp Retail Banking Operations Procedure - March 2016ABAY BANK S.C. 12.10.4 Exchange of Birr Notes a) For the exchange of Birr notes, the Client Relations Officer will receive from the cashier a fixed amount of physical cash in different denominations, preferably small denominations, and through the system. b) The Client Relations Officer shall count the cash she or he is provided with in front of the cashier. If an additional amount of money is needed for exchange, the cashier shall provide the cash against through the system. ¢) The Client Relations Officer shall authorize the ‘Till transfer’ on the system as acknowledgment of the receipt of cash. d) The Client Relations Officer will exchange big Birr notes received from the public into Birr notes of smaller denominations and vice versa. e) At the end of the cash operations, during lunch time and at the day- end closing, the Client Relations Officer will have to surrender the cash in her or his hands to the cashier in different denomi ions and shall make a ‘Till to Till transfer’. The amount of the cash thus surrendered must be equal to the amount that was received by her/him during the day and ‘Till balance by denominations’ on the system till transfer. 12.10.5 Exchange of Coins ‘a) For the exchange of coins, the Client Relations Officer will receive in the morning coins in bags with different denominations from the cashier and authorize the till transfer for acceptance. b) The Client Relations Officer shall examine the tag on the coin bags and the lead used for packing the coin and counts the coins with a coin- counting machine to ascertain the correctness of the amount thereof. ¢) The Client Relations Officer should balance the coins during lunch time and at the day-end closing and hand over to the Supervisor the equivalent thereof in Birr note: Page 148ABAY BANK S.C. ee 12.10.6 Sorting Table a) A detailed record must be kept by the cashier for recording cash denominations received from the Client Relations Officers. b) Regardless of their denominations, all Birr notes must be sorted, counted and wrapped, in collaboration with the Client Relations Officers and Cash Office Personnel; ¢) Wrapped Birr notes should be impressed by a cash stamp and signed by both the Counter and the Verifier or by the cashier. d) The Table Master/Client Relations Officer should make sure that the total of the cash surrendered by the Client Relations Officers, as recorded in the ‘Till to Till Transfer’, agrees with that of the cash sorted and held in the Table. e) After balancing, the Table Master/ Client Relations Officer in charge will have to deliver the cash, according to its denominations, to the cashier and shall make a “Till to till transfer’. 12.11. Cash Consolidation a) It is the responsibility of the cashier to combine all the cash surrendered to her/him, including any balance of cash, which is kept in the cash room, with help from the Client Relations Officer (at the table) or her/his Assistant. b) The cashier prepares the cash book and balances the overall cash in her or his hands with that of the “Till transaction today’ and denomination by till. ©) While amalgamating and consolidating cash, the cashier must make sure that the following procedures are strictly followed. Y Abrick should contain 10 bundles, and, notes;ABAY BANK S.C. ———_—_—_—_——————— Y Bundles must be properly wrapped, sealed and bear the signatures of the Counter and of the Verifier—that is,; and Y Birr 50 and Birr 100 notes will have to be carefully counted either by herself/himself or by the Table Master/ Client Relations Officer in charge. 12.12 Cash Lodgment to the Vault After handling of the cash is secured and the final closing in the cashbook is recorded according to the denominations, Branch Manager shall undertake the following: a) Verifies the correctness of the cashbook filled out by the cashier against the ‘Teller Transaction today’ report and ‘till balance by denomination’ on the system; b) Verifies that each brick contains 10 bundles, before transferring the cash to the vault; €) Balances the vault cash with that of the ‘till to vault’ transfer made by Cashier; and ) Authorize the ‘Till to Vault transfer’ for amount lodged. 12.13 Stamp management The duties and responsibilities that the operators involved in handling stamp are entrusted with consist of the following. Client Relations Officers The cash brand/stamp shall be transferred to, or exchanged with, other Client Relations Officers, as far as handing and taking over is signed between them The Cashier Registers the cash stamp into a register book, affixes the stamp to the register book and keeps it (the register book) in her or his custody; inking Operations Procedure - March Page 150ABAY BANK S.C. CHAPTER 13 Property Management System 13.1 Inventory of Fixed Assets Properties and Fixed Assets constitute one of the major possessions of the Bank in terms of value and are subject to close supervision and management. The Branch Manager is fully and entirely responsible for proper handling and recording of Fixed Assets in Branches. All Fixed Assets in the Branch should be registered in the Inventory Sheet and retained by the Branch. The copy of which should be sent to Facility and Procurement Department, Accounts & Finance Department and Internal Audit Department for eventual recording and control purposes. Any addition to the Fixed Asset of the Branch should be duly captured by the inventory sheet and it should also be updated with the records of Facility Department , Accounts & Finance, and Internal Audit Department. Damaged or obsolete items should be repaired timely or sent back to Facility and Procurement Department for further maintenance or shall be returned to the Department after the records with all Departments are adjusted accordingly. The Branch Manager should conduct an inventory of Fixed Assets Semi-annually 13.2 Rubber Stamps Rubber stamps are vital tool, which are used in the Bank to validate transactions, business letters, and standardize and simplify internal duties. Hence utmost care should be taken to ensure safe custody of these items A wide variety of rubber stamps are being used in the Retail Banking Operations Procedure - March 2016ABAY BANK S.C. rubber stamps used must be recorded in the stamps catalogue/register of the Bank. As stamps are sensitive by nature, the staffs who keep custody of rubber stamps should bear in mind that they must be kept under lock when not in use. The following are the steps to be taken in this regard. The Branch Manager a) Submits a stamp-requisition letter to the Procurement and Facilities Directorate, clearly indicating the type there of—that is, either a new one or a replacement; b) Registers all stamps received from the Directorate; ¢) Issues the stamp to the staff who uses it against her/his signature by registering on the register book prepared for this purpose; d) Periodically makes sure that the designated staffs of the Bank properly handle the stamps in their custody and always keep them locked up after office hours; e) Collects old rubber stamps whenever they are replaced by new ones; f) Makes sure that when a staff is transferred to, and from, the branch, the staff who takes her or his place takes over the rubber stamp against her/his signature in the register system ;and 9) Periodically reviews the register in the system and makes sure that it is properly updated. Staffs Holding the Bank’s Rubber Stamps a) Receives the rubber stamps from Branch Manager b) All Abay Bank’s staffs holding the Bank’s rubber stamps are responsible for all the stamps they have received against their signatures; ¢) At the end of the day, every rubber stamp should be kept locked up by the staff that has received it against her/his signature; and d) When a staff of Abay is transferred to, or from, a branch, the staff who replaces her or him has to make sure that the register on the system Retail Banking Operations Proced: age 152ABAY BANK S.C. eS... for rubber stamps has been updated accordingly and that the rubber stamps do exist. 13.3 Keys Since Keys are paramount in preserving Cash and various documents of the Bank, proper handling of keys of Bank's Strong Rooms, Safes, Filing Cabinets, Machines, Desks and other equipment is an indispensable task. Bank keys are categorized as follows: ‘+ Keys for strong room doors and large safes used as cash vaults. ‘+ Keys of safes and grill doors for petty cash. ‘+ Keys for safes or fireproof cabinets containing valuable documents. + Carkeys, Generator Keys and Machine Keys * Keys for regular filing cabinets and desks. a) Keys of strong room doors and large safes used as Vaults must be held by: Managers and cashiers in Grade C Branches, where there is no Deputy Branch Manger «Inthe absence of Deputy Branch Manager or The Branch Manager, and during skeletal hours and Saturday afternoon, branch accountants may formally be delegated to takeover and handle such keys b) Duplicate keys of Keys for strong room doors and large safes used as cash vaults should be sent in a separate sealed envelope to the Internal Audit Department to be kept under its custody whereas the combination codes of main and petty cash safes should be sent in separate sealed envelope to the Controller to be kept under his custody both are to be used during emergency cases only. ) Keys for safes and fireproof cabinets containing valuable documents must be held by those who are in charge of the documents. Such documents include: title deeds, share certificate Retail Banking Operations Procedure - March 2016ABAY BANK S.C. ES books, CPOs, Demand Drafts and other Payment Instruments, etc. 4) Individuals who use the cabinets and desks hold their respective keys. €) A separate register book must be maintained whereby the keys must be recorded and signed for. f) Duplicate keys should be kept with the Branch Manager under his/her custody. ) Loss of keys must be immediately reported in writing by the indivi lual key holders to the immediate supervisor. The supervisor should then contact the concerned unit for replacement. h) At the time when an employee is supplied with the original key to any office equipment (especially of vaults and petty cash safes), it is the prime duty of those supplying the keys to make the employee aware of the measures which will be taken against him if he loses his keys. If a key is lost action could be taken as per the Bank's regulation. 13.4 Register Books, Formats, & Equipment Required ‘The following are used in the general account operation at a branch. 13.4.1 Register Books + Saving/Current Account Opening register, * Cheque Book Stock register book * Cheque Book delivery register book + Passbook Delivery Register book ‘+ Passbook Stock Register book + Dishonored checks register book + Security Register + Cash Book Register + Blotter + Cash delivery ‘+ Negotiable Instruments Stock Register Book Retail Banking Operations Procedure - March 2016 ge 154ABAY BANK S.C. ———SEE es 13.4.2 Formats * Account Opening application forms (single, joint, joint & several), * Cheque requisition form + Cheque clearance forms + General debit and credit tickets with advice ‘+ Statement dispatch forms + Dishonored Cheques attachment slip (for returned cheques) ‘+ Warning letter due to in sufficient funds (1st, 2nd & 3rd) ‘+ Account Blocking forms ‘* Stop payment forms 13.4.3 STAMPS Accepted for Deposit" pending clearance "Date" stamp "Canceled" stamps General crossing stamp Endorsement stamps 13.4.4 EQUIPMENT © Adding and calculating machines * Cheque printer ‘+ Specimen signature cards filing cabinets ‘There may be similar items in use as and when the need arises. Beware that stamps, headed letters and all other sensitive items should be kept safe and secure under the custody of an auth; Retail Banking Operations Proced S.. Page 155ABAY BANK S.C. Revision of the Procedure This procedure will be revised every three years. However, it shall be revised as and when deemed necessary, Effective Date This procedure shall come in to force from the date of issuance by the President of the Bank as indicated below: Date Of issuance: President Signature: a Gessesse Glee ale vou President SERRE EErEn ERE EEReeeeteeeemeeeeeinememeeneneeeeneE Retail Banking Operations Procedure - March 2016 Page 156 »