Field Training Report on

The S.A.S. Nagar Central Cooperative Bank,

A Project Report
Submitted to
Agriculture Cooperative Staff Training Institute,
Jalandhar

On Feb 21th, 2015

By:
Sarabjit Singh
Clerk cum Data entry operator
DCCB: Fatehgarh Sahib
Branch: NandpurKalour

ACKNOWLEDGEMENT

I wish to extend my deepest gratitude to the staff members of The S.A.S. Nagar Central
Cooperative Bank, Mohali, for not only guiding my project but also enhancing my experience
with the richness of his experience during the entire duration of the project.. Last but not the
least I would like to thank faculty members of ACSTI for giving me the thorough information
regarding banking which helped me in my training.
It has been very informative practical experience for me and I extend my gratitude to the
department for making this field learning a part of our training. I am presenting this Field
Learning Report based on my training at the branch.

Study of various reports and returns being send to PSCB, NABARD, RBI, and Income
Tax Department:
Monthly Reports:
1. KCC scheme MIS report for the month
To: GM (NABARD)
Copy to: GM (O&A), PSCB
2. Progress report for the month
To: The Statistical Officer, PSCB
GM, Divisional Office
3. Banking Regulation Act,1949 (As applicable to cooperative Societies)- Return in
From No.2: To Deputy Chief Officer Rural & Credit Planning Department, RBI
CC to:- The DGM NABARD
The Registrar coop. societies
Divisional Manager
4. Targets and Achievements of MT Loans.
To:- The Registrar Coop. SOCs, PSCB Chd.
CC to:- Statistical office PSCB.
Divisional General Manager
5. Information Regarding cash credit fertilizer for the month
To:- the Asst. GM PSCB
6. Submission of NODC statement of ST SAO oil seed purpose and Revolving Cash
Credit (RCC) report for the month.
To:- the Deputy GM (O&A), PSCB
7. (i) Short Term Agriculture operations(SAO)
(ii) Certificate of Non Overdue Cover in respect of loans and advances for ST
SAO/OPP/NDAP/Other crops for the month (Separate NODC for SAO, OPP and RCC to be
furnished).
(iii) Certificate of Non Overdue Cover in respect of loans and advances for ST
SAO/OPP/NDAP/Other crops for the month (for Revolving Cash Credit)

8. Certificate of Non Overdue Cover for ST Agriculture Loans from NABARD for the
month
CC to (a.) DGM, NABARD
(b.) DGM Mumbai
(c.) Divisional Manager
11. Certificate of Non Overdue Cover for the short term/individual from RBI for the month
12. Certificate of Non Overdue Cover Medium Term Normal for Agriculture purposes from
Reserve Bank of India
13. Certificate of Non Overdue Cover for Medium Term Conversion for Agriculture purposes
from RBI for the month
14. Submission of return in form-I
To:- The DGM, RBI
15. DTL daily, monthly, quarterly report
16. Progress in Doubling of flow of Agricultural Credit and implementation of Debt Relief
Measures Monthly information for the month
To: The Deputy General (O&A)
CC to: I. The Divisional manager
II. The Lead District Manager for information
18. Trail Balance and Balance Sheet
To: NABARD, Managing Director, PSCB and Registrar, Cooperative Societies
Quarterly Returns from Stat Cell:
1. Form No. 9
2. Section 23 of BR Act 1949 Branch Banking Statics Submission of quarterly returns,
revision of Performa I & II.
3. CMA (Credit Monitoring Arrangements Reports)
4. OSS Report
Annual Report from Stat Cell:
1. Statement Sharing branch open/close
4

2. Annual Credit Plan

Name of
Statutory
Return
Form-I

Nature of return Periodicity Due

Date

Form II

Section 20 of BR Act, 1949 (AACS)

-Unsecured loans and advances
granted by Cooperative Bank to
companies in which any of its
Directors is interested as director or
managing agent or guarantor.
Section 23 of B R Act, 1949 (AACS)
(Rules 12) - Form of application for
permission, to open a new place of
business or change the location
(otherwise than within the same city,
town or village) of an existing place
of business.
Section 26 of B R Act, 1949 (AACS)
Submit a return of unclaimed
deposits in the prescribed form and
manner to RBI which have not been
operated upon for ten years.
Section 29 & 31 of B R Act 1949
(AACS) -Accounts and Balance
Sheet together with the auditors
report shall be published.

Monthly

Form VI

Form VIII

Annual
Accounts
and
Balance
sheet
Form IX

Off-site
Surveillanc
e (OSS)
returns

Return

(Section 18 & 24 of B R Act, 1949, Monthly

(AACS)- CRR/SLR (Monthly return
on Cash Reserve/Liquid Assets).

Due Date
Before 20th of every
month
a
return
showing the amount
so held on alternate
Fridays during a
month
with
particulars of its
Demand and Time
Liabilities in India.
Before the close of
the month succeeding
that to which the
return relates.
As and when the
bank
intends to open new
office of business

Annual

Within thirty days

after the close of
each calendar year.

Annual

Within six months

from the end of the
period to which they
refer.

Section 27 of B R Act, 1949 (AACS)

Assets and liabilities in India as at
the close of business on the last
Friday of every month or if that
Friday is a public holiday under the
N.I. Act, 1881, the close of business
of the preceding working day.

Monthly

Before the close of

the month succeeding
that to which it
relates.

Sec. 27(2) & 27(3) of BR Act, 1949

(AACS) Half-Yearly OSC.01 Status
of NPAs

Half yearly
31March and
30 September

OSC.02 - Details of large loan

Half yearly

31 May for March

Statement
31 Oct. for Sep
Statement
30 June for March
5

accounts

Statement, 31 Oct.
for Sept statement
Half yearly

31 May for March

statement, 31 Oct for
Sept statement

Annual
Annual

31 May
30 April

OSC.04 - SLR & Non-SLR

Investments
Annual :
OSC.03 - Management
OSC.05 - Capital Adequacy

Role of Lead Bank under Stat Cell:

In every district, there is one Lead bank, to which all banks (commercial and cooperative
banks) report in district and provide targets for future to all those banks. The Lead Bank is
kind of leader or representative which leads all banks in the district. It also overviews the
performance of the banks in the district for provided targets. The Lead Bank can provide
targets to the banks according to the performance of the bank. It asks banks to invest certain
amount of surplus in some areas and can demand report of it time to time. It guides banks for
certain aspects like Financial Literacy, Financial Inclusion, KYC norms, Loans to some
particular areas
In District S.A.S. Nagar: Punjab National Bank is Lead Bank
Record of every report of all banks (which sent to RBI, NABARD or other institutions) is
kept with Lead Bank. Lead Bank convene common platform to all banks in the district.
Lead Bank constitutes Block Level Development Review Committee.
Reports to be sent to Lead Bank from every Bank
1. LBR-II (Lead Bank Report) It is monthly report of sector-wise disbursements of
Loans and Advancements.
2. LBS-II It is quarterly report of outstanding amount of Loans.
3. Annual Credit Plan: All banks in the district prepare their annual plan for credit every
year and send report to Lead Bank.
4. State Level Banker Committee: This committee works on state level. For this
committee, Presently, Convener Bank for it is Punjab National Bank, Chandigarh.
This committee works for implementation of government schemes like Direct Benefit
Transfer Scheme (DBT), priority sector lending etc.
6

Various Compilations:
Various types of compilations are being done in Stat Cell, as all branches report to Head
Office in Stat Cell with various daily, monthly, quarterly and yearly reports. By combining all
those reports, common reports are being generated, which are being sent to various
concerning authorities like RBI, NABARD, PSCB, Division Office, Lead Bank etc.
Every Bank calculates their Demand and Time Liabilities on daily basis for smooth
functioning of the bank. On the basis of these Daily DTL reports of all branches, one
common report of DTL is being generated which calculate DTL on First Friday of the month
and then fortnightly (second alternate Friday of the month) of the Bank.
Daily Position of Reserve and Liquid Assets
Liabilities in India
Demand Liabilities
1.
2.
3.
4.
5.

Current DepositSaving Deposits(Demand Liability Portion only)Borrowings

Other Demand Liabilities
Total Demand Liabilities (A1+A2+A3+A4)

Time Liabilities
6. Fixed Deposits
7. Saving Deposits(Time Liability Portion only)
8. Borrowing
9. Other Time Liabilities
10. Total Time Liabilities (A6+A7+A8+A9)
All branches send their Trail Balance report to the Head Office, with the compilations of all
those one Trail Balance is prepared for the Bank.
Purpose-wise reports of all branches are also sent to Stat Cell, where reports of all branches
combine to prepare one common report of the Bank. In purpose-wise report, disbursements of
various loans and advancements are covered.

Sr No.
1.

Name of the Return

Daily Cash Position

Periodicity
Daily

Subject/Content
Cash in hand & balances with other banks
GL balance of all account

2.

Weekly Trail Balance

Weekly

Total receipts and payments during the week

3.

Weekly R&D

Weekly

Total receipts and payments during the month

Details of deposits mobilized, loans issued,

4.

Monthly R&D

Monthly

share capital collection and outstanding

balances

5.

MIS

Monthly

Loan disbursed during the month

Monthly balancing statement

6.

LBR-2 and U-2

Monthly

7.

Certificate of balancing of Monthly

Transactions in inter branch account

books of account

Anti-Money Laundering

Head Office Account

8.

KYC- Cash Transaction Monthly

Information on recovery of dues against

9.

Report

demand

Monthly

DCB Statement

Loan outstanding and recovery

10.

Quarterly
LBR-3

Balance in OD accounts sanctioned

Targets under various sectors

11.

OD Balance Statement

12.

LBR-1(Annual

13.

Plan)

Quarterly

Credit Quarterly
Yearly

Arbitrary Proceedings of banks regarding legal action taken in case of recovery of

loans:
Arbitration cases are made when the loan amount is not recovered. These cases are sent to AR
which are called as missal.
AR gives the decision by listening to both parties (customer and bank) which is called as
decree(Award).
If any party nor satisfied then either of them further appeal to the higher level.
After providing the decree the execution of decree is executed under section 63A, 63B, 63C.
8

In 63 A the salary of the defaulter will get attached , 63B includes sale of asset and in 63C the
arrest is made.
In which AR appointed as sale officer and DR appointed as Recovery officer. AR takes a
sales demand date from the DR and the auction date is decided for the particular case.
Modes of recovery
There are various modes of recovery:

By attachment and sale of the charged assets or the other movable or immovable

property of the defendant(s);

Arrest of the defendant(s) and detention in civil prison;
Appointing a receiver for the management of the movable and immovable
properties of the defendant(s).

Procedure of loan sanction at head office level

Beyond the amount of above discussed, every loan file would be forwarded to Head Office.
At HO, Clerk check the completion of documents in the file, if find alright then forward to
Manager at Loan Seat. Appraisal is prepared at this level. Two Managers check the
documents properly if there is something wrong. If found so, then person is called personally
at Head Office to be cleared. If cleared then it is referred to Sr. Manager for sanctioning. Last
signature is of District Manager, if he finds everything alright. Documentation is completed at
branch level, and Branch Manager could be contacted at any level to inquire about the person
who filed for loan.
Power delegation for loan sanction
Power lies with the branch manager according to his designation to sanction loans. The
charge of Branch Manager could be given to any of them (Senior Manager, Manager,
Assistant Manager, Accountant, and CDEO), whosoever is senior in rank available in branch.

Sanction amount for different ranks for every loan:

1. For rank Manager ,as BM it is Rs100000/2. Manager/ Sr Manager/District Manager, at H/O. it is Rs 600000/9

3. RCC upto Rs.800000 is sanctioned by Manager/ Sr. Manager/District Manager at

H/O.
4. For loan above Rs.600000 and RCC above Rs.800000 sanctioned by loan subcommittee.
To ensure that the Branch Managers powers are not misused, the Head Office of the
Bank may prescribe a monthly return on Loans sanctioned by Branch Manager using
his/her discretionary powers.

Documentation
The borrower may be asked to execute various documents in favour of the bank. The nature
and type of documents to be executed by the borrower will depend on the type and nature of
advance granted. The bank may ordinarily obtain the following documents:
1. Demand/Time promissory note
2. Letter of continuity in the case of cash credits and overdrafts
3. Letter of pledge/hypothecation, etc. creating a charge on the assets offered as security
4. Mortgage and guarantee deeds.

Documents as well as their execution will vary according to:

1. Type of borrower
2. Nature of security offered and the type of charge to be created upon.
The court may reject the documents or impose penalties in any of the following six situations:
1. When documents are kept blank or incomplete.
2. When documents are unstamped or under stamped.
3. When documents are not registered, which are required to be registered
4. When documents are attested, which do not require attestation

10

5. When documents are not attested, which require compulsory attestation

6. When documents are barred by limitation

Consortium arrangements
In respect of consortium advances each bank is required to classify the borrowal accounts
according to its own recovery, i.e. on the record of recovery of the individual member banks.
The banks participating in the consortium should, therefore, arrange to get their share of
recovery transferred from the lead bank of the consortium. The S.A.S. Nagar invested
Rs.10crores in consortium with the PACS bank.
Employees' record maintained:
All the incidents relating to the official career of a Government employee, which have a
bearing on pay, promotion; leave, pension etc. are recorded in the service record of such a
Government employee particularly in respect of the following incidents along with the dates
and the relevant authentication /orders. I observed

the service book where following

columns are used to record the data:-(i)

Appointment and joining.

(ii)

Grant of increment or withholding of increment.

(iii)

Grant of Selection Grade.

(iv)

Crossing of efficiency bar.

(v)

Fixation of pay.

(vi)

Grant of leave.

(vii)

Deputation/ transfer

(viii)

Suspension or interruption in service along with details of the period

thereof.

(ix)

Resignation.

(x)

Termination of service along with its reasons.

(xi)

Promotion.

(xii)

Compulsory / Premature/ Voluntary Retirement.

(xiii)

Removal or dismissal from service.

(xiv)

Reversion.
11

(xv)

Reduction in rank or pay along with the precise reasons thereof viz.
Whether reduction is on account of inefficiency or reduction in
establishment or abolition of the post held by the employee.

Each entry in the service record shall be neatly made and duly attested by the Head of
Department or Office, as the case may be. However, where an employee himself is the Head
of the Department or Office, the attestation of the entries in his service record shall be made
by the next higher authority.
Procedure relating to establishment matters
Firstly, any application or others get received at establishment branch of the bank and receipt
number is put on it. Then, it is passed over to competent authority, where authority takes
decision on it and then again it is returned back to Establishment section with decision taken
by competent authority. And then, procedure is followed accordingly, letter is dispatched to
concerned authority informing about decision of the authority.
Salary and TA/DA matters:
Salary means basic pay inclusive of other emoluments treated as pay.
The Grade pay range as I studied in the service rules book is as under:
Grade Pay Range
I)
II)
III)
IV)
V)

Rs. 10000 and above.

Rs. 7600 & above but less than Rs. 10000.
Rs. 5000 and above but less than Rs. 7600.
Rs. 3800 and above but less than Rs. 5000.
Below Rs. 3800.

Travelling Allowance:
As the Establishment incharge told us that:Employees shall be paid T.A. @ as applicable to the employees of the Punjab
Government from time to time except the following: Daily allowance will be paid @ 1 times of the rate applicable to the employees of
the State Govts.

12

 No allowance should be permissible within a radius of 8 kms from the place of duty.
Road mileage at fixed rates discussed subsequently should, however, continue to be
paid for this journey except to employees who are in receipt of local travelling and
conveyance allowance.
Journey beyond 8 kms and within 25 kms of the place of duty should be treated as
local journeys. Daily Allowance should be admissible for a calendar day at half the
normal rate irrespective of the period of absence if the employee returns to head
quarters the same day. But when such a journey involves night stay, an employee
should be entitled to normal travelling allowance;
A full Daily Allowance should be admissible for journeys beyond 25 kms from
headquarters if the period of absence is six hours or more. If the period of absence is
less than six hours, half Daily Allowance should be admissible

File Management:
Files of employees, circulars and other concerned matters are maintained in Establishment
Section. Files of enquiries, legal matters against employees and likewise are kept at
Establishment against allotted file number. Index are readied for files for convenience.
Disciplinary proceedings:
In disciplinary proceedings, a Govt. employee has to follow the service rules. In case there is
a violation of these rules disciplinary proceedings are taken against the employee. These
disciplinary proceedings include warnings to the employee, delaying in annual increment,
transferring to some other place, suspension from the job.
Suspension
(a) The Managing Director may suspend any employee against whom action is proposed to
be taken, if in his opinion the attendance of the employee on duty during the period that the
charges are under investigation against him, is likely to affect the investigation or working of
Bank or PADB.
(b) During the period of suspension, an employee shall be paid subsistence allowance equal
to 50% of his salary with usual allowances admissible to him and on that basis the amount of
such subsistence allowance shall be paid by the bank.
Provided that if the employee placed under suspension is subsequently completely exonerated
of the charges, he shall be eligible to full pay and allowances for the period of suspension and

13

the entire period will be treated as duty. If, however, he has not been completely exonerated
of the charges, the competent authority shall specify in the order of re-instatement as to how
much amount of pay and allowances are to be paid for such period.
Note: - Suspension of an employee will not constitute penalty, and as such no appeal shall lie
there-against.
Service rules (common and non-common cadre rules)
The Service Rules are applicable on the employees which are defined under The Punjab State
Cooperative Financing (Common Cadre) Rules -2004 & 1970-71 for common Cadre and The
Punjab State Cooperative Financing Institutions Service Rules 1958 (Non- Common Cadre)
for non-common cadre employees.
Reconciliation cell
There are two sources for a bank branch to find out the balance at bank H.O. One source is
H.O. account in the branch and the other source is branch account in the books of H.O. which
is revised regularly from H.O. in shape of account statement.
These both account statements are governed by the same set of transactions and they should
show the same amount of balance although the nature of balance will be different. If H.O.
account in branch a debit balance, the account statement received from H.O. will show a
credit balance and vice-versa. Bank should prepare a reconciliation statement to reconcile the
two balance periodically. This statement explains the difference between the two balances.
The reasons contributing to the difference between two sources may be:
Cheques deposited for collection but not yet collected.
Cheques issued for not yet presented for payment
Credits in H.O. accounts only
Debits in H.O. accounts only
How to prepare Bank Reconciliation statement
We are having three statements preparing the current reconciliation statement.
Branch account is H.O.
14

 H.O. account is Branch

Previous reconciliation statement
The branch office account statement received from H.O. and H.O. account in the branch
office are tallied for each transaction and ticked on both sides. The unchecked entries on both
the account are summarized as per in Performa of BRS.
CRR/SLR maintained and its reporting to various quarters
CRR is maintained at the rate of min. 4% of DTL (demand and time liabilities) of the bank at
daily basis and reported to RBI & NABARD from time to time. CRR is maintained in shape
of cash in hand and bank balance with RBI and other nationalised banks. If CRR is more than
6% than extra is considered as SLR of the bank.
SLR is maintained min. 21.5% of DTL as on date and reported to RBI and NABARD time to
time
SLR And NON SLR Investment
SLR and NON SLR investment is done by the bank in the form of FDR in the bank accounts
of PSCB or other banks.
Government securities The bank has to invest some funds in SLR categories in the shape of
different govt. securities subject to the approval of BOD of the bank.
SLR is maintained in shape of govt. securities and other securities.
AS PER THE LASTEST GUIDELINES OF RBI
5% of SLR in govt. securities upto 31st march, 2015.
20% of SLR in govt. securities upto 31st march, 2016.
100% of SLR in govt. securities upto 31st march, 2017.
Surplus funds invested- SLR and Non-SLR investments:

15

SLR itself works as an investment as we get some interest on the amount. If we keep surplus
SLR amount, then we dont get extra benefit of that amount except standard interest rate on
SLR. So we avoid investment of surplus funds in SLR.
Non-SLR investment
Besides giving loans to businesses and individuals, RBI has also allowed banks to invest in
various capital market instruments such as stocks and bonds issued by public and private
sector companies and commercial papers. In addition, banks are also allowed to invest in
various mutual fund schemes. Unlike SLR investments, there is no compulsion on banks to
invest in these instruments. Investments are entirely guided by commercial considerations
and many such investments are in accordance with the prescribed guidelines.
Non-SLR investment is FDs of State CBs with PSCB.
Presently, there are no surplus funds for investments with our State CB.
Investment Policy of the bank:
Investments are made in FDs with other banks in our bank. Time to time, bank is directed to
invest in such secured fields. Everyday our bank demand offering interest rates of FDs from
other banks. They send their current offered interest rates, then our bank invest in that bank
FD which offer the most in all offered rates. Investment period vary according to status of
availability of money and current DTL status of the bank. In case we had made investment in
FD and next day we got larger demand than amount available with us then we take loans
from other banks on those FDs or without FD whichever is convenient.
Borrowings from other institutes:
We speculate our future demand according to our DTL reports. And we could be demanded
for more amount than what could be available to us then we can borrow money from PSCB
and NABARD. If PSCB do not have that much amount with them that we demanded then
they can make it available to us from NABARD. If we take borrowing from NABARD then
there is margin of interest rate at every level from NABARD to PSCB to State CBs.
Share Capital

16

Share capital or capital stock refers to the portion of a company's equity that has been
obtained (or will be obtained) by trading stock to a shareholder for cash or an equivalent item
of capital value. For example, a company can issue shares in exchange for computer servers,
instead of purchasing the servers with cash.
The term has several meanings. In its narrow, classical sense, still commonly used in
accounting, share capital comprises the nominal values of all shares issued (that is, the sum of
their "par values"). In a wider sense, if the shares have no par value or the allocation price of
shares is greater than their par value, the shares are said to be at a premium (called share
premium, additional paid-in capital or paid-in capital in excess of par); in that case, the share
capital can be said to be the sum of the aforementioned "nominal" share capital and the
premium. In the modern law of shares, the "par value" concept has diminished in importance,
and share capital can simply be defined as the sum of capital (cash or other assets) the
company has received from investors for its shares.
Besides its meaning in accounting, described above, "share capital" may also be used to
describe the number and types of shares that compose a company's share structure. For an
example of the different meanings: a company might have an "outstanding share capital" of
500,000 shares (the "structure" usage); it has received for them a total of 2 million dollars,
which in the balance sheet is the "share capital" (the accounting usage).
The legal aspects of share capital are mostly dealt with in a jurisdiction's corporate law
system. An example of such an issue is that when a company allocates new shares, it must do
so in a way that does not inequitably dilute existing shareholders.
Reserves of Bank: Bank reserves or central bank reserves are banks' holdings of deposits in
accounts with their central bank (for instance the European Central Bank or the Federal
Reserve, in the latter case including federal funds), plus currency that is physically held in the
bank's vault (vault cash). The central banks of some nations set minimum reserve
requirements, which require banks to hold deposits at the central bank equivalent to a
specified percentage of their liabilities (such as customer deposits). Even when no reserve
requirements are set, banks commonly wish to hold some reserves, called desired reserves,
against unexpected events such as unusually large net withdrawals by customers or even bank
runs.

17

Cash Flow Statement: In financial accounting, a cash flow statement, also known as
statement of cash flows, is a financial statement that shows how changes in balance sheet
accounts and income affect cash and cash equivalents, and breaks the analysis down to
operating, investing, and financing activities. Essentially, the cash flow statement is
concerned with the flow of cash in and out of the business. The statement captures both the
current operating results and the accompanying changes in the balance sheet. As an analytical
tool, the statement of cash flows is useful in determining the short-term viability of a
company, particularly its ability to pay bills. International Accounting Standard 7 (IAS7), is
the International Accounting Standard that deals with cash flow statements.
People and groups interested in cash flow statements include:

Accounting personnel, who need to know whether the organization will be able to
cover payroll and other immediate expenses

Potential lenders or creditors, who want a clear picture of a company's ability to repay

Potential investors, who need to judge whether the company is financially sound

Potential employees or contractors, who need to know whether the company will be
able to afford compensation

Shareholders of the business.

Various reports and returns send to higher agencies such as PSCB, NABARD AND RBI
Head office sends daily, monthly, quarterly, half yearly and yearly reports to RBI, NABARD
AND PSCB. These reports are:
1. Advances
2. CRR
3. SLR
4. CTR
5. STR
18

6. DM meeting reports
7. Development action plan
8. Other financial statements
Income tax department
HO pays advance tax to Income tax department. Advance tax is paid on the basis of projected
profit for next year. This tax is paid in three parts.

In 1st part, 40% of tax is paid upto 30th September.

In 2nd part, 30% of tax is paid upto 31st December.

In 3rd part, 30% of tax is paid upto 31st March.

Clearing section
The Head Office clearing section acts as Service Branch and functions as a Clearing Centre
for all the instruments such as Drafts, Cheques etc. received from its Head Office customers
and those of its branches. These instruments will have to be presented for collection through
the Clearing House. The Clearing House functions during the stipulated hours (Prefixed
hours) which are communicated to all Member Banks. The Member Banks strictly adhere to
these Clearing House hours.

Inward clearing cheques

The Head Office (clearing section) will arrange to collect the inward clearing

instruments from the Clearing House by 10 AM and by 10.30 AM .

On getting the inward clearing instruments, the staff of the clearing section, Head

Office, will have to verify the number of cheques as per the claim slip received from
Clearing House. Then record the number of instruments and the total value against the
respective branches in the inward clearing Register and debit the respective Branch for
the total value of the presentation on the Branch. It will then send the claim slip to the
Branch along with the relative instruments.
19

With the Claim slip the clearing cheques will be sent to the respective branches which

will be de livered to the branches between 3pm and 3:15pm

While verifying the inward clearing instruments with the Claim Slip received from the

clearing section, Head Office. If there is any difference in the amounts claimed, the same
will be notified to the Head Office clearing section
Outward clearing

All the outward clearing instrument s received from the branches with a covering

schedule called Local Clearing Cheques List, the clearing section (Head Office) staff will
first count the number of instruments attached to such a list and verify whether the same
agrees / tallies with the number of cheques recorded therein.

Then the cheques will be encoded. Under the process of Encoding only the amount

for which the said cheque is drawn will be printed in the white Band at the bottom of the
cheque.

For each branch a Batch Ticket will be prepared which will relate to presenting

branch code number, number of instruments and total value of cheques presented in
outward clearing.

For the bank as a whole a Block Ticker will be printed this will contain bank code

number, service branch code number, number of Batch tickets and total value of outward
clearing cheques lodged.

20