CONCEPT NOTE ON

POLICY & PROCEDURE

 DEFINITION OF POLICY

 Policy is a precise statement which contains the set of

principles acting as guidelines for achieving the goals of an
organization.
 Policies are general statement that sets out the limits within
which decisions are taken by the managers and thus assures
the consistent performance. They provide some common
parameters over which the management can take a
consistent decision over a long period.
 Policies are the guiding principles of an organization. Rules
and regulation of the business organization are framed in the
form of policies.
 DEFINITION OF POLICY
 Policy is the roadmap or the framework for the task. It is
a statement of intent, and is implemented as a practice or
protocol.
 A policy is a set of rules or guidelines for the
organization and employees to follow in or to achieve a
specific goal (i.e. compliance). An effective policy should
outline what employees must do or not do, directions,
limits, principles, and guidance for decision making.
 Policies communicate an organization’s culture, values,
and philosophy. They cover what employees can expect
from the organization, what the company expects from
employees and what customers and the community can
expect from the organization.
 THE GOAL OF POLICIES
 To Set clear expectations: - it is to put in writing what the
company expects from employees in terms of the behaviour,
actions, and processes they take in specific scenarios.
 To Create consistency throughout the organization:- Clarity
in the company’s guidelines leads to everyone operating according
to the same principles and guidelines
 To Reduce risk: - it ensures employees both understand the
policies and know how these policies apply to their day-to-day
jobs.
 To Improves employee performance: - Developing that
accountability mind-set empowers both individuals and teams to
be more collaborative and productive, allowing them to more
effectively contribute to the organization’s overarching goals.
 To Set high standards for all employees:- It sets the bar high
for the standards the company expects employees to live up to
 DEFINITION OF PROCEDURE
 A procedure is the instructions on how a policy is followed.
 Procedures is the step-by-step instructions for how to complete
the task or how policies are to be achieved.
 Procedures is a series of actions conducted in a certain order
or manner.
 Procedures is the standard for informing new employees about
conditions of work.
 Procedures is an act or a manner of proceeding in any action
or process; conduct.
 Procedures is a particular course or mode of action.
 The ultimate goal of every 'Procedure' is to provide the reader
with a clear and easily understood plan of action required to
carry out or implement a policy.
 A well-written procedure will also help eliminate common
misunderstandings by identifying job responsibilities and
establishing boundaries for the jobholders.
 BENEFITS OF GOOD PROCEDURE

 To Know what you have to do. ...

 To Access information to quickly solve problems and
reduce downtime. ...
 To Easily on-board new employees. ...
 To Be in compliance with norms/certifications. ...
 To Improve quality. ...
 To Make sure everyone is on the same page. ...
 To Reduce risk & improve security. ...
 To Improve performance.
 PROCEDURE & NON- PROCEDURE
BASED CULTURE
PROCEDURE-BASED NON-PROCEDURE-
CULTURE BASED CULTURE
Individuals share knowledge that everyone Individuals “own” knowledge about
“owns” work processes.
Knowledge is formally collected and Knowledge is informally collected
retained in procedures. and retained by individuals.
Everyone performs a task the best way. Each individual performs a task their
best way.
Irregularities stand out as problems or Irregularities are ignored.
potential problems.
Everyone has full access to the body of New people must learn on their own
knowledge via Policies and Procedures. by doing a job, or depend on the
goodwill of others to share.
Formalise hold-points in doing work, check- No formalised hold-points, check
off lists specified, and requirements for offs, or verifications.
verification or peer review are clear.
Condition reporting is used when problems Frequent use of informally working
are encountered. Seeking the root cause around problems (temporary fixes)
and reviewing conditions and processes. when problems are encountered.
 Policy
Policies are those terms and
conditions which direct the
company in making a decision.
Policies outline the organization’s
plan for tackling certain issues.
Policies are made to support the
strategies
Policies are decision oriented
Policies need to be thoroughly accepted There should be a disciplined
by the people
Procedure
Procedures are the sequential
steps which direct the people for
any activity.
Procedures include a checklist or
process steps to follow.
Procedures are helpful in the
implementation of programs.
Procedures are action oriented.
process in the procedure.
MOTIVES TO HAVE POLICIES AND
PROCEDURES

 For safety
 For Efficiency
 For Clarity and Consistency
 For the Accountability
 To capture and retain information
 For Quality Assurance and
Improvement
 POLICIES AND PROCEDURES IN BOA
 Policies and Procedures in BoA are produced for different work units to
ensure employees’ compliance with regulations at work.
 To enhance the accessibility to employees all the approved policy and
procedure documents are available in the internal communication portal.
 The following policies & procedures are uploaded in the internal
communication portal at Resource part of the Documents
 HR POLICY
 PROCUREMENT DEPARTMENT PROCEDURE
 CAPITAL AND DIVIDEND MANAGEMENT POLICY
 INVESTMENT POLICY AND PROCEDURE
 SUSPENSE ACCOUNTS FOLLOW - UP, PROVISIONING AND WRITE - OFF PROCEDURE
 INTERNAL AUDIT CHARTER
 CONSUMER AND MORTGAGE CREDIT PROCEDURE
 INTERNATIONAL BANKING BUSINESS PROCEDURE
 ANTI-MONEY LAUNDERING & COUNTERING TERRORISM FINANCING POLICY AND GUIDELINE
 INTEREST FREE BANKING FINANCING BUSINESS PROCEDURE
 INTEREST FREE BANKING CONSUMER AND MORTGAGE FINANCING PROCEDURE
 BRANCH BANKING PROCEDURE