Finacle

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Looking Beyond the Obvious! Looking Beyond the Obvious!Looking Beyond the Obvious!

Looking Beyond the Obvious! 1

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Banking Technology

Looking ………Beyond the Obviou

Looking ………Beyond the Obvious!

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Looking Beyond the Obvious! Looking Beyond the Obvious!Looking Beyond the Obvious! Looking Beyond the Obvious!

2 1 INTRODUCTION 1 Finacle in Brief 2 Features 3 Why Finacle? 4 Security in Finacle 5 Maintenance of Password 6 Structure of Finacle

2 FINACLE TERMS & KEYS

1 Important Function Keys 2 Commonly Used Menu Options

3 CUSTOMER MASTER

1 Creation of Customer ID 2 Verification of Customer ID

4 ACCOUNT OPENING: SB, CA

1 Account Opening of SB, CA 2 Verification of Account Opening

5 TRANSACTION MAINTENANCE

1 Types of Transactions 2 Methods of Transactions

3 Posting of Transactions though TM 4 Verification of Transactions

6 INVENTORY MAINTENANCE

1 Inventory Location Codes

2 Inventory Movement Authorisation 3 Inventory Movement Between Locations

4 Verification of Inventory Movement Between Locations 5 Inventory Split

6 Inventory Merge

7 ISSUE OF CHEQUE BOOK

1 Issuing Cheque Books to Account-Holders

2 Verification of Issued Cheque Books to Account-Holders 3 Inquiry of Cheque Books in Account

8 STOP PAYMENT OF CHEQUE

1 Stop Payment of Cheque

2 Verification of Stop Payment of Cheque 3 Revoking Stop Payment of Cheque

4 Verification of Revoking Stop Payment of Cheque

9 ACCOUNT LIEN MAINTENANCE

1 Account Lien Set-up

2 Verification of Account Lien Set-up 3 Removal of Account Lien

4 Verification of Removal of Account Lien

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10 ACCOUNT FREEZE MAINTENANCE

1 Account Freeze Set-up

2 Verification of Account Freeze Set-up 3 Removal of Account Freeze

4 Verification of Removal of Account Freeze

11 TOD MAINTENANCE

1 Types of TOD

2 TOD Set-up in Account

3 Verification of TOD Set-up in Account

12 CLEARING

1 Processing of Outward Clearing

2 Other Important Menu regarding Outward Clearing 3 Processing of Inward Clearing

4 Process of Inward Reject Cheque 5 Process of Outward Reject Cheque

13 ISSUE OF DD / PAYORDER

1 Issuing Single DD or PO 2 Issuing Multiple DD or PO

3 Verification of Multiple DD or PO Issued 4 Printing Single DD / PO

5 Printing Mass DD / PO 6 Cancellation of DD / PO

7 Verification of Cancellation of DD / PO 8 Marking DD / PO as Lost

9 Revert the Marking DD / PO as Lost

14 BILLS MAINTENANCE

1 Bills Maintenance – OCC: Lodgment of Cheque 2 Bills Maintenance – OCC: Realisation of Cheque 3 Bills Maintenance – OCC: Dishonor of Cheque 4 Verification of Bills Maintenance – OCC

15 ACCOUNT OPENING – TERM DEPOSIT

1 Account Opening of Term Deposit

2 Verification of Account Opening of Term Deposit

16 STANDING INSTRUCTIONS

1 Standing Instruction Set-up 2 Verification of Standing Instruction

17 LIMIT NODE MAINTENANCE

1 Limit Node Concept

2 Flow-Chart of Limit Node Maintenance 3 Limit Node Maintenance Set-up

4 Verification of Limit Node Maintenance Set-up 5 Limit Tree Lookup

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18 ACCOUNT OPENING – CASH CREDIT

1 Account Opening of Cash Credit

2 Verification of Account Opening of Cash Credit

19 SECURITY REGISTER MAINTENANCE

1 Concept and Functions of Security Register Maintenance 2 Flow-Chart of Security Register Maintenance

3 Set-up of Security Register Maintenance

4 Verification of Set-up of Security Register Maintenance

20 ACCOUNT OPENING – LOANS

1 Account Opening of Loan

2 Verification of Account Opening of Loan

21 BANK GUARANTEE

1 Classification of Bank Guarantees 2 Various Types of Registers in Finacle 3 LNM Set-up for Bank Guarantee

4 Verification LNM Set-up for Bank Guarantee 5 Issuing Bank Guarantee Set-up

6 Reversing Bank Guarantee 7 Invocation Bank Guarantee

8 Verification of Various Set-up of Bank Guarantee

22 CLOSURE OF SB/ CURRENT ACCOUNT

1 Different Steps: Before Closure of SB / Current Account 2 Closure of an Account

3 Verification of Closure of Account

23 CLOSURE OF TERM DEPOSIT ACCOUNT

1 Closure of Term Deposit Account

2 Verification of Closure of Term Deposit Account

24 ANNEXURE

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Finacle in brief

A Financial Package, for Banking Solution developed by Infosys on a platform of Oracle, hence it is called as FINACLE. Presently, many Indian Banks are having this software as banking solution and it is highly flexible.

Prior to 1995 it was known as BANC 2000, a Total Branch Automation package with a distributed network. After 1995 Infosys developed the same as FINACLE, a Core Banking Solution.

Features:

Finacle is a Relational Database Management Software (RDBMS) of Oracle9i.

It involves C and C++ programming language.

This software runs on UNIX Operating System (OS) as this is widely used platform across the CBS environment.

Finacle is accessed through Browser Based Universal Client i.e. Internet Explorer.

SQL & PL SQL uses for generating MIS or Reports or Queries at Centralized Level.

Finacle facilitates anywhere banking

As this is menu driven software, it is very much easy for navigation.

Customization and parameterization are two special features of Finacle.

Finacle provides multi-lingual support

Finacle provides multi-level security i.e. operation, database and application level security

Why Finacle?

Best Business Practices

Customer driven thinking

Convenience Banking

Integrated Delivery Channel support through Connect 24

Functionally Rich and Flexible

High Level Security control and audit capabilities

Relationship Banking

Workflow

MENU DRIVEN PACKAGE FACILITATES Executable (Write access) Inquiry (Read-only) Printing -Add Data -Modify Records -Delete Records Verification Mandatory

Browse data within limited menu option

given to him.

Printing Information

-PSP – for Customer A/c

-ACLP – printout is chargeable. Waiver would mean loss to Bank

-ACLPCA- Account Ledger Print Customer A/c

- ACLPOA - Account Ledger Print Office A/c

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6 Any change in default parameter is exception.

Security in Finacle:

Multiple levels of security

OS Level

No access to OS

OS and application level profile

Direct login to application menu

Database level

Protection from external updating

Application level Menu level User level Product level Account level Transaction level

Dual control for all transactions

Maker-Checker Concept

Controlled error handling through exceptions (1) Warning (2) Exception (3) Error

Maintenance of Password:

User can change password through the Menu Option PWMNT

Password length is minimum 6 characters and maximum 14 characters

Password can contain alphabets, numbers and special characters

While changing password, at least first 5 characters of old password are to be changed

There is no history of previous password.

Password to be compulsorily changed after 30 days. System prompts you to change the password from 27th day.

Inserting wrong password 3 times, the User Profile gets deleted

User ID & Password are not case-sensitive and User can login from any terminal throughout the bank.

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Structure of Finacle in IDBI:

Customer Master (CUMM): HCUMM under ONS

Detail portfolio of every New Customer

Details like name, address, date of birth, introducer, TDS, financial details, identity proof etc.

Details for MIS purposes

Customer ID is generated by system and it is a 9 Digit number.

Customer ID is universal and not Branch specific. It is generated across the bank in a senrial order with zero padding in the beginning.

Customer ID is basic need for opening of every type of account

Account Master (OAAC): What does it contain?

After creation of CID account opening procedure can be initiated.

The Scheme Code needs to be provided

Details of mode of operation and other general details, scheme details, nomination details, joint account details etc.

System generates the account number which is a 15-digit number.

Suppose an account number reads 183104000002382, the structure could be classified as under:

183|10400|000238|2 3 Digits: 183 is SOL (Service Out Let) ID

5 Digits: 10400 is GL Sub-head 6 Digits: Serial Number

1 Digit: Check Digit

Check Digit is a randomly generated number by system to avoid transposition errors.

Account Ledger (ACLI): ACLI is a menu option which has the following advantage:

System created and holds dynamic data

It contains history of all transactions of every account

All the details of transactions like debit, credit and balance

Transaction: How do we make transaction in Finacle?

Transactions entered by users and posted in the leger

There are certain transactions which are system generated.

General Ledger:

The General Ledger has a three Tier structure viz - GL --GL Sub Head -- Account

Consolidation of transaction information at Branch level / GL Sub Head - currency wise

No Hard coding and no conditions for defining GL or GL Sub Head

GL information at any level I.e. branch level or cluster (Set) level

Used for Non customer accounts

GL report can be generated for any day

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Office Accounts Numbering System: These are the 16 digits:

First 4digits represent the SOLID

The next 5 digits represent the GL Sub head code

The next 4 digits represent the basic number of the office account The last 3 digits represent the segment code.

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After logging in to the Finacle Core following screen Appears

1) Menu Block: In this block user will find various menus of Finacle Core like customer menu, accounts menu etc.

2) Menu Option Block: User has to type the required menu and execute the same from this block.

3) Action Bar: User can execute the process of Finacle Operations by clicking on various options on this bar. The Hot-Keys are also assigned for all options, which appear on the bar.

4) Message Bar: At the time of processing of operations some messages of warnings, exceptions or errors appear on this bar.

5) Favorites: You can put (paste) your regularly required menu under favorites by copying from Menu Block.

6) Progress Indicator: It shows the progress of the action initiated.

Menu Option Block

Menu Block Message Bar Action Bar Favorites

(User Defined)

Progress Indicator

Finacle Terms & Keys

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Important Function Keys

Physical Key What does it do?

F1 Field level help. Like in several word processors and spreadsheet packages, F1 displays context sensitive help messages and field level help messages.

F2 List. This key lists the codes that may be used in a particular field.

F3 Quit/ Back. Quits and takes the user back to where he started when in action. It can be used when the input is incorrect and the user wants to abandon what he has been doing. It can also be used to go back to the previous menu.

F4 Accept. After the user has completed the input, this key can be used to accept the data.

F5 Background Menu

F6 Next Block

F8 Copy Record

F9 Display Signature

F10 Commit/ Save. This is very important key and this concludes the transactions. This is the commit and transactions get into the General Ledger (database) when this key is used.

F11 Next field

F12 Previous Block

TAB Go to next valid field

ENTER Go to the next field

CTRL+↓↓↓↓ Next record

CTRL+↑↑↑↑ Previous record

CTRL+←←←← Scroll left

CTRL+→→→→ Scroll right

CTRL+F1 Help maintenance

CTRL+F3 Show key map

CTRL+F4 Display error

CTRL+F8 Terminal lock

CTRL+F9 Memo pad look up

CTRL+F11 Context level help

CTRL+D Page down on a list

CTRL+E Explode. This key is particularly useful for the further inquiry .

CTRL+F Clear field. This key combination can be used when the user wants to

clear the field.

CTRL+J Display cookie field

CTRL+K Clear a set of field

CTRL+T Display LGI. The user ID, Terminal ID, SOL, BOD Date and language

details are displayed.

CTRL+U Page up on a list

CTRL+X Put BOD date. This key combination populates the default BOD date

in the field.

SHIFT+F1 Function key help

SHIFT+F4 Select the current item from the list. This key combination can be

used to select a value from the list of valid values listed for a particular field.

SHIFT+F11 Transmit

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Commonly Used Menu Option:

Menu Option Description

CUSTOMER MASTER RELATED

CUMM To Add, Copy, Suspend, Inquire, List, Modify, Unsuspended,

Verify and Cancel a Customer Master.

CUMI Inquiry on customer record

CUS Inquiry on Customers based on selected criterion/ criteria

CUIR Interest Certificate for customers

CUMP Customer Master Print

CUSTBALP Balances for different accounts of a customer

ACCOUNT OPENING / MAINTENANCE

OAAC For opening SB/CA/TD/Cash Credit/Loan/OD accounts

OAACAU To verify account opened under OAAC

ACM To Modify/Inquire the Account

ACLI Account ledger inquiry

ACCBAL Account balances

ACS Account Selection Criteria

INTTM For changing the interest rate

ACINT For running interest calculations

AITINQ Inquiry on interest in accounts

TDSCALC For calculating the TDS

ACMP Master print for accounts

PSP Printing statement of accounts

TRANSACTION MAINTENANCE TM Putting through transactions

TI Inquiry on specified transactions

FTI Inquiries for financial transactions

TEI Inquiry on exceptions in transactions

INVENTORY MAINTENANCE

IMAUM Maintain authorized users for inventory

IMC Inventory movement between locations

IMI Inquiry on inventory

ISI Inventory split merge and inquiry for inventory held by self

ISIA Inventory split, merge and inquiry for inventory held by others

CHEQUE BOOK & STOP PAYMENT RELATED

ICHB Issue of cheque books to customer accounts

ICHBAU Verification of cheque books issued to customers

CHBM Inquiries relating to cheque book maintenance

SPP To input stop payments

SPPAU To authorize stop payments

INQACHQ Inquire on the basis of cheque number

LIEN & FREEZE

AFSM For freezing/ unfreezing the accounts

ALM Account Lien (mark / unmark) Maintenance

ACCOUNT TOD MAINTENANCE

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ACTODMAU For verification of TOD Set-up

ACTODI Inquiry on TOD in accounts

DEMAND DRAFT / PAYORDER

DDPRNT Printing DD/ PO

DDLOST Marking lost DD/ PO

DDREVERT Unmarking Lost DD/PO

DDMI Mass issue of DD/PO

DDSM Status of the DD/ PO

DDII Inquiry on specific DD issued

DDIC Inquiry on credits to DD account

DDIP Inquiry on specific DD paid

DDID Inquiry on debits to DD account

DDPALL Mass DD Printing

DDC DD Cancellation

CLEARING

MCLZOH Opening/ regularization/ suspension of outward clearing zone

OCTM Outward clearing transactions

ICTM Inward clearing transactions

OIQ Outward clearing transaction inquiry

OPQ Inquiry on outward clearing Part -Tran

MARKPEND For marking pending instruments from being regulerised

REVPEND For revoking MARKPEND

MICZ Opening/ suspension/ validation/ closing of inward clearing zone

BILLS BM Lodging/ verifying/ realizing Bills

BI Inquiry on Bills

BRBPR Balancing Report - Bills Purchased

BRCR Balancing Report - Collection

BCSI Bills/Cheques Covering Schedule - Inter Br

BCSO Bills/Cheques Covering Schedule - Inter Branch

STANDING INSTRUCTION SIM Setting up standing instruction

SIE Execution of standing instructions

CFLM Inquire/ delete/ carry forward standing instruction List

SIETR Standing instructions execution report

SIRP Standing instructions report

SIADVC Standing instructions executed advice to the customer

LIMIT NODE MAINTENACE LNM Limit Node Maintenance

LTL Limit Tree Lookup

LNDI Limit Node Details Inquiry

LOANS & ADVANCES

LADGEN Loan Demand Generation

ACLHM Account Limit History Maintenance

LAGI Loans General Inquiry

LALIEN Loans Lien Process

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LAMP Loan Account Master Print

LAOPI Loans Overdue Position Inquiry

LADSP Loan Demand Satisfaction Process

LARSH Loan Repayment Schedule Report

MAPD Marking Accounts as Past Due

MEAC Modify Effective Asset Classification

PAYOFF Loan Pay Off Process

SRM Security Register Maintenance

AINTRPT Interest Report for Accounts

BANK GUARANTEES GMM Issuance of Bank Guarantee

GI Guarantee Inquiry

BGPRINT Bank Guarantee Printing

ACCOUNT CLOSURE

CAAC Closure of accounts

CAACAU Verification of closed accounts

CACC Account Closure Charges

TDS RELATED

TDSIP TDS Inquiry / Print

TDSREP TDS reports

RMTDS TDS Remittance Capture

PASSWORD RELATED

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For Creating Profile of New Customer:

Menu Option CUMM

Go to Menu option and enter option CUMM

Function: A (Add)

Fill in all details of above first screen and Press F6. Ensure in CBOP the short name should contain the first 10 letters of the customers’ name. Ex: For Gurvinder Singh Karbhanda, the short name shall read “GURVINDERS”.

Fill in Communication or Permanent Address of above second screen and Press F6

The Next page appears, which contains Employer Address. If applicable fill in the same properly and Press F6

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Input details of Community, Caste, Health Code, Tax Slab and PAN details etc. and Press F6

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Input the details and Press F6

Enter Free Text. This relates to particulars which the user wishes to input

The General details of Customer Master are now completed at this stage. Press F6 and Press F4 for accepting the General Details

Type ‘E’ in the OPTION block for entering Currency Details and press F4. Following screen will appear:

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Type INR and explode. The following screen appears:

Press F4 twice

In case the customer is neither Minor nor NRE nor Trade Finance Customer Press F10 for final commit, else proceed to enter the details as under:

If customer is a minor ENTER OPTION-- M and Press F4. Following screen will appear:

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Input the Minor Details and Press F4:

If the customer is a Trade Finance Customer ENTER T in the option block and Press F4. Following screen appears:

Input the details of Trade Finance Customer and Press F4

If the customer is an NRI Customer ENTER N in the option block and Press F4.

Input the appropriate details and press F4 to accept.

Press F10 to finally Commit

Customer ID will be generated and displayed on the screen as below:

Note down customer ID on the Account Opening Form and send the form for verification:

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For Verification of Customer ID

Menu Option CUMM

Go to Menu option and enter option CUMM

Function: V (Verify)

Then input generated Customer ID to be verified.

Press F4.

Press F6 and visit all the screens and verify General Details with the AOF.

On returning to the first page, press F4

Go to option E – Press F4 – Explode – Press F4 twice to verify the Currency Details.

For Minor customers go to M option to verify the Minor Details.

For NRI customers go to N option to verify NRI Details.

For Trade finance customers go to T option to verify theTrade Finance Details.

Press F10 to commit.

The customer record stands verified.

Other Functions:

Purpose Menu Option Function

For Modification in CID CUMM M For Cancel Created CID

(Only possible before verification)

CUMM X

For Copying details of an existing Cust. ID

CUMM C

For Suspension of CID CUMM D For Revoking Suspension CUMM U

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For any Type of Customer Account Opening

Menu Option OAAC

This illustration is for opening of Saving Bank Account

Go to Menu option and enter option OAAC

Enter Customer ID & Press F11 for confirming Customer’s Name

Enter appropriate Scheme Code & GL Sub-head Code Press F4

For every account opening the General & Scheme Details are mandatory

The above 1st Screen of General Details will appear then enter the details like mode of operation, location code etc.

Press F6 for next screen

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The above 2nd Screen of General Details will appear then enter the details like statement, frequency, interest credit a/c flag etc. Press F6 for next screen

The above 3rd Screen of General Details will appear. Now enter the details and Press F6. Then 1st Screen will appear again. Press F4 for accepting the General Details

Enter S in the Enter Option field and Press F4 to go in the Scheme Details – Then following screen will appear

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Input the details required in the fields and Press F4 for accepting Scheme Details.

Press F10 for final commits.

After pressing F10 the 15 Digits account number will be generated by the system

If the customer has nominated any body, at the time of account opening, keep the Nomination Flag ‘Y’ under Scheme Details and fill in the nomination details through option ‘N’.

In case of a Joint Account add the Joint Account Holders through option ‘A’ i.e. Additional Party Details. The Customer IDs are necessary for all the Joint Account Holders.

Now we will see Nomination Details as well as Additional Party Details in next illustrations.

If you have entered Y in the field “Availing Nomination facility” then go to option ‘N’. The following screen will appear:

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Input details and Press F4 for accepting Nomination Details.

If there are Joint Account Holders - Go to option ‘A’ and Press F4

In the option ‘A’ the details of the main a/c holder will appear, for adding joint a/c holders - Press DOWN ARROW KEY.

Press DOWN ARROW keys to add more joint a/c holders and continue as explained above.

Then Press F4 for accepting Additional Party Details

Other than General and Scheme Details for every additional detail you have to accept those details with F4 and then Press F10 for final commit.

Note down the system generated account number for further verification

For Verification of Account Opening

Menu Option OAACAU

Function: V (Verify)

Input Generated A/c No. in Temporary A/c No. Field and Press F4

For visiting all screens of General Details Press F11 continuously

After coming on 1st Screen Press F4 for accepting General Details

Enter option ‘S’ and press F4 of verifying Scheme Details

Verify details and Press F4.

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Verify the details and Press F4.

If account is Joint - Enter option ‘A’ and Press F4.

Verify the details and press F4.

Press F10 to commit. The a/c no will be displayed.

The account stands verified.

IMP:

Add Verify Inquiry Modify Verify

CUSTOMER MASTER CUMM CUMM CUMM CUMM CUMM

Function A V I M V Screens to be filled G, E Minor M NRI N Trade Finance Customer T

ACCOUNT MASTER OAAC OAACAU ACM ACM ACM

Function O V I M V

Screens to be filled G, S

Nomination N

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In day-to-day banking operation various customers are making transactions in their accounts. These transactions are either debit transactions or credit transactions. Customer makes these transactions by the way of depositing cash, withdrawing the cash or issue the transfer from one account to another account of himself or another customer. Finacle is having the layer for different types of transactions.

In Finacle there are Financial and Non-financial Transactions

Financial transaction means the transactions made by the way of cash, transfer or clearing.

A Non-financial transaction means every operation or process other than financial transaction.

There are three types of transactions in banking operations.

Transaction Type Sub-type Description

Cash C NR Normal Receipt

C NP Normal Payment

C CT Cash Transfer

Transfer T CI Customer Induced

T BI Bank Induced

Clearing L O Outward Clearing

L I Inward Clearing

Two types of Transaction ID

User Created: DC number is generated by system. All transactions made by teller/ cashier are user created transactions. The cash or transfer transactions are mostly user created transactions.

System Generated: SDC number is generated by system. These types of transactions are system-generated transactions. Clearing transactions, various charges, commission, interest application, standing instructions etc. are some examples of system-generated transactions.

Status of Transaction

(1) Entered (2) Posted (3) Verified (4) Deleted

Methods:

Maker Checker Status of Transaction Method I Enter Post Verified

Method II Enter & Post Verify Verified

*The two persons must be involved in every transaction i.e. Maker & Checker

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For Adding Transaction

Menu Option TM

Go to Menu Option and Enter TM.

Function: A (Add) then Type/Sub-type. Press F4

Enter A/c No., Amount, Description etc and Press F4

At this stage, just omit the transaction and a Tran id is generated which starts with M. Example of a Tran id is = M32

Enter ‘P’ in the specify option field

Press F4 to post credit part of the transaction.

Press DOWN ARROW key to go to the next part of the transaction.

Enter ‘P’ in the specify option field

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Press F10 for commit.

Note down the transaction ID on voucher

(Which will be shown as in the above screen, here it is DC36)

For Verification: If Transaction is in Entered Stage

Menu Option TM

Go to Menu Option and Enter TM

Function: M (Modify) & Press F4

Enter generated DC No. & Press F4

Enter P in the field Specify Option & Press F4 for 1st_Part-Tran

Press DOWN ARROW key to go the next Part-Tran of and enter ‘P’ in the Specify Option and press F4 and F10 to commit the verification.

The transaction stands verified and the Status is verified

For Verification: If Transaction is in Posted Stage

Menu Option TM

Go to Menu Option and Enter TM

Function: V (Verify) & Press F4

Enter generated DC No. & Press F4

Enter V in the field Specify Option & Press F4 for 1st Part-Tran

Press DOWN ARROW key to go the next Part-Tran of and enter ‘V’ in the Specify Option and press F4 and F10 to commit the verification.

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Flow of Transaction Process in Brief:

Cash Transaction (Receipt) Cash Transaction (Payment) TM

Function: A--- F4

Type/Subtype: C / NR --- F4 Enter A/c No.: ---- F4 Enter Amount: ----

[In case of cash receipt transaction system takes ‘C’ Credit Flag in 1st Part-Tran by default]

Enter Description: --- F4

Specify Option: P ---- Down Arrow In 2nd Part-Tran

Again in Specify Option: P F10

TM

Function: A--- F4

Type/Subtype: C / NP --- F4 Enter A/c No.: ---- F4 Enter Amount: ----

[In case of cash receipt transaction system takes ‘D’ Credit Flag in 1st Part-Tran by default]

Enter Description: --- F4 Enter Instrument Type: ---

(If Cheque) Enter Instrument No: --- Instrument Date: --- F4

Specify Option: P ---- Down Arrow In 2nd Part-Tran

Again in Specify Option: P F10

*In case of Cash Transaction 2nd Part-Tran of Transaction is auto-generated. You can post multiple Dr/ Cr transaction in single segment through TM

Transfer Transaction TM

Function: A--- F4

Type/Subtype: T / CI or BI --- F4 Enter A/c No.: ---- F4

Enter Amount: ---- Enter Description: ---

Enter Type of Transaction: D or C [Debit or Credit]

[If Debit Enter Instrument Type/ Number / Date etc.]

Press F4

Specify Option: E ---- F4

After Pressing F4

2nd Part-Tran will be generated—Then: Enter A/c No.: ---- F4

Enter Amount: ---- Enter Description: ---

Enter Type of Transaction: D or C [Debit or Credit]

[If Debit Enter Instrument Type/ Number / Date etc.]

Press F4

Specify Option: P---F4 Up Arrow 1st Part-Tran Specify Option: P --- F4 F10

In case of Transfer transaction we have to create new Part-Tran as per above flow. You can post multiple Dr/ Cr transaction in single segment through TM.

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The concept of Inventory in Finacle mean handing of Security Items like Cheque Books, Demand Drafts, Pay orders, Traveler’s Cheques etc. The Inventory Module is especially used for storage, transfer of Security Items and release of security items to Front Office personnel for normal Banking. There are various types of inventory locations as per below:

Location Code Description In Brief

ZZ – EXT External to the System Inventory receive by the branch from Head / Administrative Office i.e. from external location

DL - DL Double Lock It keeps in double custody of two supervisors of branch

EM- User ID Employee Code Supervisors allot or distribute the inventories to the front desk tellers for issuing to the account holders

Let us see the process or flow of the inventory.

For Inventory Movement Authorisation

Menu Option IMAUM

The following screen appears:

Select function A to add two authorised User Id’s for transfer of Inventory from External Location to Branch’s Double Lock. The custodian and the supervisory official will put their respective user ID’s.

For Inventory Movement Between Locations

Menu Option IMC

This menu option IMC is used for movement of inventory between different locations:

From ZZ-EXT to DL-DL

From DL-DL to EM- USER ID

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The menu option for transfer of Inventory from one location to another (from External to branch’s Double Lock and from Double Lock to Employees) is done through Option IMC. The screen is as under:

Function A for transfer of Inventory from ZZ (External) to DL (Double Lock)

Verification is required for above step (the screen shot and process on next page)

Then Function A for transfer of Inventory from DL to Employees based on everyday requirements.

Verification is required for above step (the screen shot and process on next page)

The steps involved for the same are as under:

F2 help available for first two columns leave 3rd column blank and enter the Serial No. From *** to ----keep blank then put total quantity & press down arrow end Sr. No. automatically generated by system & Press F10 to commit.

The Inventory Transaction number will be generated. Note down the number for further verification.

For Verification of Inventory Movement Between Locations

Menu Option IMC

Go to the menu option IMC and enter.

Function: V (Verify) and Enter Inventory Transaction Number & Press F4.

The Details of inventory movement will appear. Again Press F4 for accepts the same. The following screen will appear.

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After populating above screen two Auth. Users are to be entered their password in given block in case of ZZ-EXT to DL-DL movement. And in case of DL-DL to EM-USER ID, two supervisors as well as the Employee to whom the inventory is allotted has to enter the password

For Inventory Split

Menu Option ISI

Function: S (Split) Press F4 then Select Employee Code from Location Class / Code

Select Inventory Class / Type & Press F4.

Various ranges of inventory are appeared on screen. Choose appropriate range, which you want to split by Shift + F4. Then following screen will appear

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Enter Start serial no. of the inventory in Start Serial No. Field

Enter Items Per Units required in one book in Items Per Unit Field.

Enter No. of Units in which total inventory is to be divided, in No. of Units Field.

Press F10 to commit and you will get the message ‘Records Split Successful’.

For Inventory Merge

Menu Option ISI

Function: M (Merge) & Press F4

Input the Location Class / Code, Inventory Class / Type

Then input the Start Serial No., which do you want to merge and the quantity you want the system to merge.

Then press F4 to get the details of merger, then Press F10.

IMP: The Employee himself can do Splitting as well as Merging of Inventory. No needs of verification for split and merge option.

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For Issuing Cheque Books to Account-Holders

Menu Option ICHB

Go to the menu option ICHB. The following screen will appear.

Function: I (Issue) & Press F4

Enter Account No. Press F4

Select Cheque Type i.e. CA Cheques, SB Cheques etc. & Press F4

Following screen will appear

Scroll down to the appropriate cheque book by using Down Arrow Key ↓↓↓↓

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Select the cheque book by using SHIFT + F4 then Press F10 for commit

Go to the menu option ICHBAU. The following screen will appear.

Function: V (Verify) & Press F4

Enter Account No. Press F4

The details of the cheque books issued to this account will be shown.

Verify the details. Press F4 twice and then Press F10.

The cheque book issue stands verified.

For Verification - Issued Cheque Books to Account-Holders

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For Inquiry of Cheque Books in Account

Menu Option CHBM

Go to the menu option CHBM. The following screen will appear.

Function: I (Inquire) & Press F4. Then Enter Account No. Press F4

For Viewing further status of each cheque of particular series Press Ctrl+ E

Note:

It is necessary that the inventory should be available either at the issuer’s location or at the verifier’s location, without which system will not permit cheque book issue.

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For Stop Payment of Cheque

Menu Option SPP

Go to the menu option SPP. The following screen will appear.

Function: S (Stop) & Press F4 then Enter Account No. Press F4

Enter Begin Cheque No. and No. of Leaves and Press F4

After pressing F4 the Date & Time automatically comes

Enter Payees Name, Cheque Date (if known), Cheque Amount (if known)

Select Reason Code and Press F4 for accepting General Details

In Option enter ‘C’ for collecting charges and Press F4

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The screen shows default charges. You may change the charges if required.

For accepting charges Press F4

Press F10 for commit

Stop payment is registered.

For Verification of Stop Payment of Cheque

Menu Option SPPAU

Go to the menu option SPPAU. The following screen will appear.

Function: V (Verify) & Press F4 then Enter Account No. Press F4

Enter Begin Cheque No. and Press F4

Verify the General Details & Press F4 for accepting General Details

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Verify the charges and Press F4 for accepting charges and Press F10 for commit.

After verifying SDC will be generated by system. This SDC is for Stop Payment Charges.

Inquire the same through TM menu, whether it is posted or not. If not, post it through TM.

The Stop Payment instruction stands verified.

For Revoking Stop Payment of Cheque

Menu Option SPP

Go to the menu option SPP

Function: R (Revoke) & Press F4 then Enter Account No. Press F4

Stop Payment Details will appear then Press F4 for accepting the same

Now Press F10 for commit

For Verification of Revoking Stop Payment of Cheque

Menu Option SPPAU

Go to the menu option SPPAU

Function: V (Verify) then Enter Account No. Press F4

Stop Payment Details will appear then Press F4 for accepting the same

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In order to earmark funds for any reason the same needs to be blocked and not made available for the account holder. To achieve this objective a lien for the purpose needs to be done. The process of marking lien for an account can be done through menu option ALM.

Now we will see how to mark lien on account in Finacle:

For Account Lien Set-up

Menu Option ALM

Go to the menu option ALM and enter. Following screen will appear:

Function: A (Add) & Press F4

Then Enter Account No. and Press F4

Then enter Lien Amount, expiry date of Lien and select appropriate Lien Reason Code

Input remark, if any in Lien Remark field and Press F10 for commit

Lien Set-up is over now.

Go to the menu option ALM and enter.

For Verification of Account Lien Set-up

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Details of lien will appear. Verify it and Press F10 for commit.

Account Lien Set-up stands verified.

Now, we will see the procedure of removing the lien of account in Finacle:

For Removal of Account Lien

Go to the menu option ALM and enter. Following screen will appear:

Then modify Lien Amount as ‘ZERO’

Input remark, if any in Lien Remark field and Press F10 for commit

Removal of Lien is over now.

For Verification of Removal of Account Lien

Go to the menu option ALM and enter

Details of lien will appear. Verify it and Press F10 for commit.

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Bank need to freeze the account for various purposes as per the freezing orders by different types of authorities. Bank itself also freeze the account of customer, if he/she would be a defaulter. In the Lien marking, we have to put the same on amount, as it is amount specific. Hence, in case of Freeze Set-up it is event specific mean we will restrict transactions i.e. debit only, credit only or total freezing.

Now we will see the procedure of freezing the account:

For Account Freeze Set-up

Menu Option AFSM

Go to the menu option AFSM and enter. Then following screen will appear:

Function: F (Freeze) & Press F4

Then Enter Customer ID No.

Then select Freeze Reason Code & Freeze Code. Press F4.

All accounts, which are linked to the given Customer ID would be appeared on screen. Select account numbers by Shift + F4 one by one and Press F10 for commit

Account Freeze Set-up is over.

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Go to the menu option AFSM and enter.

Then Enter Customer ID No. & Press F4

All details of freeze will appear. Now verify it and Press F10 for commit.

Account Freeze Set-up stands verified.

Now we will see the procedure of removal the freeze of account:

For Removal of Account Freeze

Go to the menu option AFSM and enter. Then following screen will appear:

Function: U (Unfreeze) & Press F4

All details of freeze will appear. Now Press F10 for commit.

Now Account stands Unfreeze.

For Verification of Removal of Account Freeze

Go to the menu option AFSM and enter.

For Verification of Account Freeze Set-up

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All details of freeze will appear. Now Press F10 for commits

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TOD means Temporary Overdraft, which is a credit decision and naturally, is normally conscious. In contingencies Customer request to branch head for overdrawing his account for temporary period.

As the events for TOD in the diagram shows, there can be 5 occasions for granting system generated TOD. However only the following two system generated TODs and one User Generated TOD are enabled in Finacle. Those are as follows:

Type Event Mode

IC Interest Calculation Single

DL Drop In Limit Single

UG User Generated Single / Running / Ad-hoc

Examples of Mode

Mode How Operates

Single (S) Applicable for specific Purpose and of use once only

Running Allows the client to operate within the TOD Limit for the defined period.

Ad-hoc Allows those client, who is having their existing credit limit like OD Limit or CC Limit etc. to operate within the TOD for the defined period i.e. it is temporary extension of limit.

If both Running and Ad-hoc serves the same purpose, why both are necessary?

The system counts the number of TODs in an account. In case the cumulative number is higher than predefined number (which is 1 per day at present), the system displays exception. All TODs under ‘Single’ and ‘Running’ type are eligible for counting. However, Ad-hoc is not included for this purpose.

Now we will see the procedure to set-up of TOD in the account:

For TOD Set-up in Account

Menu Option ACTODM

Go to the menu option ACTODM and enter. The following screen will appear:

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Enter Account No. and Press F4 twice

In option field enter A (Add) the details of TOD & Press F4 the following screen will appear:

Enter the Grant Date. (Current Date or it can be Future Date)

Enter Advance Amount (Amount of Granted TOD) and Press F4

Enter Expiry Date and Press F11 the Penalty Date automatically appears

Select appropriate Advance Type (A- Ad-hoc, S-Single, R-Running)

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Enter the Remark, if any, in the field of Remark

Then Press F4 for accepting the details

Again we will find you on 1st screen and curser is blinking in option A then Press F10 for commit.

For Verification of TOD Set-up in Account

Menu Option ACTODMAU

Go to the menu option ACTODMAU and enter. The following screen will appear:

Enter Account No. and Press F4

The details in single line will appear

In option field enter I (Inquire) for inquiring the details of TOD & Press F4 the following screen will appear:

Verify the details of TOD from above screen and Press F10 for commit.

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After appearing above screen with exceptions accept with Pressing F4

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There are two types of clearing in the Bank.

1. Outward Clearing 2. Inward Clearing

First we will see the procedure of Outward Clearing

OUTWARD CLEARING

In the branch, regularly customers are lodging the cheques for collection, which are sending through the outward clearing. Initially, we need to open Outward Clearing zone for lodgment of cheues. Following are some zones in outward clearing.

Clearing Zone Code Description

HV High Value

IB Inter-Bank

MICR MICR

DW Dividend Warrant

NMICR Non MICR Clearing

*Note: these Codes are User Defined.

For Outward Clearing activity the process is as follows:

Menu Option Function Description MCLZOH O Open Zone

OCTM A Lodge Cheques

OCTM V Verify Lodged Cheques MCLZOH S Suspend Zone

MCLZOH

V Revoke Suspended Zone (if re-open of zone is required

MCLZOH R Release to Shadow Balance

*At this stage Outward Return Clearing process is to be done through Inward Clearing Zone.

MARKPEND Withhold the Clearing REVPEND Revoke withheld clearing MCLZOH G Regularise Zone

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Now we will see Outward Clearing process step-by-step in following manner:

STEP 1: Open Zone of O/W Clearing Menu Option MCLZOH Function: O

The above screen of Maintenance of Clearing Zone will always displays at the time of execution of MCLZOH option.

After appearing of above screen Function: O (Open Zone) & Press F4

In Zone field: 1st Field enter Date & 2nd Field Zone ID, in which you are going to lodge the clearing. Press F4 and Press F10 for commit.

Clearing Zone gets opened at this stage.

Now you have to lodge or enter the cheques in this Zone for that you have to go through following step:

STEP 2: Adding the Cheques for lodgment Menu Option OCTM Function: A

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Function: A (Add), enter Date & Zone Code then Press F4. Then screen will appear as follows.

Set number will auto-generated

Then enter Account No. Press F11

Enter Amount and Press F6 for next block of Instrument Details

Then enter Instrument No., Sort Code, Transaction Code, Amount and Press F10 for commit.

Note Set No. Reverse side of Cheque as well as on Pay-in-slip.

Again start the lodgment of 2nd set from ‘enter Account No. Press F11’

After completion of entire lodgment send the instruments for verification.

Note: (1) If there are multiple pay-in-slips and single instrument, so after entering amount in 1st Screen put down arrow for entering details of next pay-in-slip and so on.

Then after entering last details press F6 for going to next block for entering instrument details.

(2) If there are single pay-in-slip and multiple instruments, so after entering account no. and amount in 1st Screen press F6 for going in next block

Then in next block enter instrument details upto amount and press down arrow for entering further details of another instruments.

STEP 3: Verification of Lodged Cheques Menu Option OCTM Function: V

Verification of lodged cheques in O/W Clearing Zone is necessary for that

Function: V (Verify) and Enter Set ID No. Press F4. Then following screen will appear.

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After verifying details from cheque Press F10 for commit.

Again put next Set ID and Press F4 for verifying next instrument and so on.

Before suspension of Zone you have to inquire for verification of entire instruments i.e. whether all instruments are verified or otherwise?

*Note: Any instrument once verified cannot be modified or deleted.

For that purpose following inquiry is there:

STEP 4: Inquire on Clearing Transactions Sets Menu Option IOCLS Function: I

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Then enter Zone Date / Code in appropriate field

Enter Start Set No. & End Set No and Press F4. The following screen will appear:

Confirm that the status of all sets should be verified then go for suspending the Zone.

Note: In 1st Screen, if you enter Verified Status as ‘N’ (NO) so in 2nd Screen only unverified instruments would appear.

Now we will move on next step i.e. Suspend the Zone.

STEP 5: Suspend the Zone

Menu Option MCLZOH Function: S

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Now hereinafter the above screen will appear at every stage of MCLZOH menu option.

Function: S (Suspend Zone) then enter Zone Date and Zone Code and Press F4.

Details will appear then Press F6 two times and confirm that total number of instruments. It should be tallied with physical instruments. Then Press F10 for commit.

The Zone Status is changed as Suspended.

After suspending the Zone you cannot add any instruments in this Zone. If you want so please go through following step.

STEP 6: Revoking the Suspended the Zone Menu Option MCLZOH Function: V

Function: V (Revoke the Suspended Zone) then enter Zone Date and Zone Code and Press F4.

Details will appear then Press F10 for commit.

The Zone Status is changed as Open Zone. Now you are able to enter the cheques in the opened zone through OCTM.

STEP 7: Release to Shadow Balance Menu Option MCLZOH Function: R

Function: R (Release to Shadow Balance) then enter Zone Date and Zone Code and Press F4.

The Zone Status is changed as Release to Shadow balance.

*Note: Financial Transactions happens at this stage.

STEP 8: Mark Pending Cheques

Menu Option MARKPEND Function: ---

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This option is very important and useful when information of lodged cheques being late returned / bounced in clearing are received. The system withholds transfer from unclear

balance to clear balance of those cheques, which are selected under MARPEND. Such

withholding can be done on the basis of various criteria like Zone code or Instrument no. or Bank Code or Amount etc. The system throws up all relevant entries based on the input criteria. The user has to choose the relevant entry and MARKPEND the item by Pressing Shift + F4 (after which a small * appears on the selected item) and then Press F10 to commit the selection.

STEP 9: Regularise the Shadow Balances Menu Option MCLZOH Function: G

Function: G (Regularise the Shadow Balance) then enter Zone Date and Zone Code and Press F4.

*The Zone Status is changed as Partially Regularised in case of MARKPEND

*Note: If there are any O/W Returned Cheques, which marked through MARKPEND option and then you have execute above option of regularisation so Zone Status will be changed as ‘Partially Regularised’. Where MARKPEND cases have to be reversed do it through menu option REVPEND and again regularise the zone. The status of the zone will be ‘Closed’.

Revoke the MARKPEND

Menu Option REVPEND Function: ---

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IMP:

• The Partial Regulerised Zone will be changed as Closed only after posting of O/W Returned cheques through I/W Clearing.

• Once you execute the MCLZOH- ‘G’ for regularisation the Zone will be automatically closed, if no one cheques are returned in O/W Clearing Zone.

Other Important Menu Option

Transfer of Lodgment Sets

Menu Option MCLZOH Function: T

It may so happen that due to a sudden strike or non-participation by Banks, the clearing operations would have been suspended at the clearing house. But till then branches may have lodged cheques in a zone. It would be impractical to delete the cheques and re-lodge them all over again. Hence by using the above option, all instruments which are lodged for that days clearing under a particular zone can be moved to the next days clearing zone.

Initially, you have to open new zone before execution of above menu option

Then Function: T & Press F4

Then system asked you that: - From which Zone you have to transfer the sets and To which Zone you need to lodge the cheques.

Fill appropriate information and Press F10 for commit.

Inquiry of Zone

Menu Option MCLZOH Function: I

This option gives details on the status of a zone, what amount is under shadow balance etc, whether regularized or not.

There are some option for inquiry as well as Printing Reports. Now, we will see the same:

ACSBIO: Inquiry / Components of the shadow balance of an account

OPQ – Inquiry on the basis of Part Transactions.

OIQ: Instrument wise Inquiry

PCLSO: Print Clearing Schedule

PWO: Print Clearing Waste.

VALDRPT: Outward Clearing Value date Report

Inquiry / Components of the shadow balance of an account Menu Option ACSBIO Function: ---

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This option gives the following details

Inquiry on the basis of Part Transactions

Menu Option OPQ Function: ---

This option gives the following details

Instrument wise Inquiry

Menu Option OIQ Function: ---

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Print Clearing Schedule

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Print Clearing Waste

Menu Option PWO Function: ---

Outward Clearing Value Dated Report Menu Option VALDRPT Function: ---

INWARD CLEARING

The branch customers are regularly issuingcheques as payments to third parties. Those collecting banks also lodged these chques through their outward clearing to Clearing House. On daily basis Clearing House distributes these collected cheques to all Bank-Branches. Every Bank-branch receives the cheques of their customer for

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payment from RBI through Inward Clearing. There are also some Zones in Inward Clearing.

Apart from that every Bank-branch gets Outward Return cheques with this

Inward Clearing. These cheques are also debited to customer’s accounts through Inward Clearing Zone i.e. Outward Reject Zone.

Clearing Zone Code Description

MICR MICR I/W Clearing NMICR Non MICR I/W Clearing MIRTN MICR Outward Reject NMIRTN Non-MICR Outward Reject

For Inward Clearing activity the process is as follows:

Menu Option Function Description MICZ O Open Zone

ICTM A Add Cheques

ICTM V Verify Added Cheques MICZ S Suspend Zone

MICZ R Revoke Suspended Zone MICZ V Validation Run

MICZ P Post Run MICZ Z Close Zone MICZ T Validation Report

Now we will see Inward Clearing process step-by-step in following manner:

STEP 1: Open Zone of I/W Clearing Menu Option MICZ Function: O

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The above screen of Maintenance of Inward Clearing Zone will always displays at the time of execution of MICZ option.

After appearing of above screen Function: O (Open Zone) & Press F4

In Zone field: 1st Field enter Zone ID & 2nd Field Date, in which you are going to lodge the clearing. Press F4.

Then enter Total Instruments Received in the Field ‘Tot Inst BAR’ and Total Amount of Instruments Received in the Field ‘Tot Amt BAR’

Now Press F10 for commit

Clearing Zone gets opened at this stage.

Note: The cursor shifts to the option box where you have the choices as under:

G - General details. (The default screen)

S - Statistics (gives break up of postings into various a/c’s, useful after Posting Run)

T – Transaction Details

Now you have to lodge or enter the cheques in this Zone for that you have to go through following step:

STEP 2: Add Instruments

Menu Option ICTM Function: A

Go to the menu option ICTM and enter then following screen will appear:

Function: A then In Zone field: 1st Field enter Zone ID & 2nd Field Date, in which you are going to lodge the clearing. Press F4. Then following screen will appear:

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Enter Account No. & Press F11

Enter Cheque No. Press <enter>

Enter Amount Press <enter>

Enter Payees Name Press <enter>

Press F9 for Viewing Signature of the Account Holder

If you would like to enter the other optional fields like Inst. date (systems validates chq being stale / post dated if entered), bank code etc. Press F11 after inputting payees name.

If you do not want to enter the optional fields press F4 directly after entering Payee details. The record gets added in the system if there are no exceptions else the system will flash a message showing exceptions like cheque not issued to the account or insufficient balance.

If you would like to return a particular cheque for whatever reason, enter the cheque as usual but modify the following fields to:

Carve: ‘N’ and Reject: I (Inward Reject)

Press F6. Then the system will prompt you to enter certain details which have been explained later under Inward Rejects

You will also notice that the following fields values are default populated:

Transaction Code: Cheque transaction code is picked up by default depending upon the account type i.e. Saving’s 10, Current 11 and so on.

Instrument Type: Cheque is by default

Carve: Defaulted to Y. Under carving the system keeps on apportioning the amount of the cheque as and when it is entered and reduces the available balance to that extent from the clients account.