Chapter 1

Introduction

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1.1. Introduction

Generally, by the word “Bank” we can easily understand that the financial institution deals
with money. But there are different types of banks such as; Central Banks, Commercial
Banks, Savings Banks, Investment Banks, Industrial Banks, Co-operative Banks etc. But
when we use the term “Bank” without any prefix, or qualification, it refers to the
‘Commercial banks’. Commercial banks are the primary contributors to the economy of a
country. So we can say Commercial banks are a profit-making institution that holds the
deposits of individuals & business in checking & savings accounts and then uses these funds
to make loans. Both general public and the government are dependent on the services of
banks as the financial intermediary. As, banks are profit-earning concern; they collect deposit
at the lowest possible cost and provide loans and advances at higher cost. The differences
between two are the profit for the bank.

The internship report is a basic requirement for the BBA program. The proposed topic is
“General Banking Activities of Janata Bank Limited”. The topic is assigned Sumon Kumar
Mozumdar, Lecturer, Dept. of Management Studies, Jagannath University, Dhaka.

The main objective of this report is to fulfill partial requirements of B.B.A program. In order
to be able to obtain the B.B.A program from Bangladesh University of Business &
Technology, every student is required to do internship program in a well-reputed
organization, after completing all the required courses. After the internship period, each
student or intern has to submit a report about the respective organization. I have completed
my internship program in Janata Bank Ltd. at corporate Branch and my topic is “General
Banking activities” and this report is about this bank.

1.2. Scope of Study

The report done on the basis of “General Banking Activities” of Janata Bank Ltd. of
Chompatoli Branch. General banking consists of account opening section, local remittance
section, clearing & bills section, cash section, and accounts section. It also covers the
organizations structure, function and different department of Janata Bank Ltd. The main part
of the report consists of the “General banking activities of Janata Bank Ltd.”.

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1.3. Objectives of the Study

 To know the General Banking Activities of Janata Bank Limited.

 To know the current situation of Janata Bank ltd. Through trend analysis.
 To know the comparison of Janata Bank Ltd and conventional bank.
 To identify the future prospect of Janata bank.
 To Provide some Recommendations to occur the problematic solution.

1.4. Methodology of the Study

Methods followed to perform a job or conducting activities to complete a task is called

methodology. In conducting this study the following methodology was adopted in collecting
data & information, preparation of reports etc. The methodology of report is given below:

1.4.1. Research type:

This report briefly reveals the General Banking Activities of Janata Bank Limited.

1.4.2. Sources of Data collection:

The data collection method of study consists of both of primary and secondary sources. But
majority of the information was collected from secondary sources.

1.4.2.1. Primary sources:

A. Expert opinion.
B. Practical deskwork.

1.4.2.2. Secondary sources:

o Annual report of Janata Bank Ltd.

o Website of Janata Bank Ltd.
o Office files and documents
o Study related books and journals.

1.4.3. Data collection procedure:

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To analyze the General Banking activities of Janata Bank Limited the qualitative analysis
(questionnaire analysis) has been used to collect information and to analyze the gathered data
and different types of computer software was used for reporting gathered data from analysis,
such as - MS Word, Excel & other related computer software.

1.5. Limitation of the Study

To prepare a report on the topic like this in a short duration is not easy task. In preparing this
report some problems and limitations have encountered which are as follows:

☞ The main constraint of the study was insufficiency of information, which was
required for the study. There are various information the bank employee cannot
provide due to security and other corporate obligations.
☞ Due to time limitation, many of the aspects could not be discussed in the present
report.

☞ Lack of opportunity to access to internal data.

☞ Based on secondary data for preparing this report.

☞ Legal action related information was not available.

☞ All the clients whom I interviewed did not want to provide necessary information.

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 Chapter 2
An Overview of Janata Bank Ltd.

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2.1. Brief History of Janata Bank

Janata Bank, the second largest commercial Bank in Bangladesh. Janata Bank Limited, one of
the state owned commercial banks in Bangladesh, has an authorized capital of Tk. 20000
million (approx. US$ 250 million), paid up capital of Tk. 11000.00 million, reserve of
Tk.17234 million. The Bank has a total asset of Tk. 508567 million as on 31 st December
2012. Immediately after the emergence of Bangladesh in 1971, the erstwhile United Bank
Limited and Union Bank Limited were renamed as Janata Bank. On 15th November, 2007 the
bank has been corporatized and renamed as Janata Bank Limited.

Janata Bank Limited operates through 902 branches including 4 overseas branches at United
Arab Emirates. It is linked with 1202 foreign correspondents all over the world.

The Bank employees’ more than 15(fifteen) thousand persons.

The Board of Directors is composed of 13 (Thirteen) members headed by a Chairman. The

Directors are representatives from both public and private sectors.

The Bank is headed by the Chief Executive Officer & Managing Director, who is a reputed
banker.

The corporate head office is located at Dhaka with 10 (ten) Divisions comprising of 38
(thirty-eight) Departments.

2.2 Vision

To becomes the effective largest commercial bank in Bangladesh to support socio economic
development of the country and to be a leading bank in south Asia.

2.3 Mission

The mission if the bank is to actively participate in the socio economic development of the
nation by operating a commercially sound banking organization, providing credit to viable
borrowers, efficiently delivered and competitively priced, simultaneously protecting
depositor’s funds and providing a satisfactory return on equity to the owners.

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The bank will be a confluence of the following three interests:

* Of the bank : Profit maximization and sustained growth.

* Of the customer : Maximum benefit and satisfaction.
* Of the society : Maximization of welfare.

2.4 Objectives of Janata bank Limited

The objective of Janata Bank Limited is to provide all types of banking service at the
doorsteps of the people. The bank participates in various social and development programs
and also takes part in implementation of various policies and promises made by the
government. It will be a world-class organization in terms of service quality and establishing
relationships that help its customers to develop and grow successfully.

2.5 Values

⇛ Customer focus.
⇛ Growth.

⇛ Professionalism.

⇛ Diversity.

⇛ Accountability.

⇛ Integrity.

⇛ Dignity.

2.6 Products of Janata Bank Limited

Deposit Products:

☞ Current Deposit Account.

☞ Savings Bank Deposit Account
☞ Fixed Deposit.

☞ Special Notice Deposit Account.

☞ Short Term Deposit.

☞ Foreign Currency Deposit.

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 ☞ Monthly Savings Scheme.
☞ Monthly Profit Based Savings Scheme.
☞ Janata Bank Savings Pension Scheme (JBSPS).
☞ Janata Bank Deposit Scheme (JBDS).
☞ Education Deposit Scheme (EDS).
☞ Medical Deposit Scheme (MDS).
☞ Janata Bank Monthly Savings Scheme (JBMSS).
☞ Janata Bank Special Deposit Scheme (JBSDS).
☞ Janata Bank School Banking Savings Karjakram.

New/Special Products:

 Financing IT Sector.
 Financing of Industries.
 Ready Cash.
 Windows for SMEs.
 Loan to Travel Agencies.
 Loan to Diagnostic Centers.
 NRB Escrow Account.
 NRB Gift Cheque.

2.7 Business Strength

i. Second largest bank of the country.

ii. Wide network of 902 branches across the countries.
iii. Holds sound reputation in the banking industries.
iv. Sponsoring by the government.
v. Personalized service.
vi. Well-connected distribution channel from head office to all branches.
vii. Health correspondent relationship with foreign banks.
viii. Provide a record business in international trade and remittance.
ix. Majority of the branches run with computers under centralized network.
x. Sound and large capital base.
xi. Sustainable growth.

2.8 Business prospects

☞ Maintaining required Capital Adequacy.

☞ Business expansion in capital market.
☞ Gradual expansion of branch network.
☞ Progressive automation of the branches.
☞ Real online banking software will be in function soon.
☞ Expansion of ATM and Credit Card.
☞ Consideration of prime customers.

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2.9 Principal Activities of JBL

▲ Compliant to country laws and regulations.

▲ Reject bribery and corruption.

▲ Avoid compromise gift and entertainment.

▲ Speak up if suspects any actual, planned or potential behavior that may breach any
laws and regulations.

▲ Resolve customer complaints and quickly and fairly.

▲ Compliant to Anti money laundering guidelines and other prudential regulations

provided by Banks regulations.

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 Chapter 3
Theoretical Aspect

3.1 General Banking of Janata Bank Limited

General banking department is the heart of all banking activities. This is the busiest and
important department of a branch, because funds are mobilized, cash transactions are made;
clearing, remittance and accounting activities are done here. Banks perform this function in
two ways- taking deposits from various areas in different forms and lending that accumulated
amount of money to the potential investors. General Banking is the starting point of all the
banking operating. General Banking department aids in taking deposits and simultaneously

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provides some ancillaries services. It provides those customers who come frequently and
those customers who come one time in banking for enjoying ancillary services. In some
general banking activities, there is no relation between banker and customers who will take
only one service form bank. On the other hand, there are some customers with who bank are
doing its business frequently. It is the department, which provides day-to-day services to the
customers. Every day it receives deposits from the customers and meets their demand for
cash by honoring cheques. It opens new accounts, demit funds, issue bank drafts and pay
orders etc. since bank in confined to provide the service everyday general banking is also
known as retail banking.

3.2. Functions of General Banking

The functions of general banking department of Janata Bank Ltd. are as follows:

▬ Closing and transfer of different types of accounts.

▬ Collection of Cheques & Bills.
▬ Executing customers standing Instructions.
▬ Handling transfer transactions.
▬ Issue and payment of Demand Drafts, Telegraphic Transfers and payment orders.
▬ Keeping good relation with valued customer.
▬ Maintenance of accounts with Bangladesh Bank & other banks.
▬ Maintenance of Deposit Accounts:
▬ Maintenance of Internal Accounts of the banks.
▬ Maintenance of safe Deposit Lockers.
▬ Operations of clearing house.
▬ Providing necessary support to the customers
▬ Receipts & payment of cash.
▬ Reporting to head office about daily position.
▬ Saving all transaction record in computer.

3.3. Section of General Banking

During my practical orientation in Janata Bank Limited, UGC Branch, Dhaka, it came to the
observation that general banking section is divided with five areas. These are:
1. Account Opening Section

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 2. Remittance Section
3. Clearing & Bills Section
4. Cash Section
5. Account Section

3.3.1. Customer Service of JBL

Bank is committed to deliver better service to their distinguished customers. Customers are
their first priority and driving force. Superior quality customer service through the integration
of the least state- of-the art technology is their motto. Their customers are come from all
walks of life. They are professionals, businessman, public servant, entrepreneurs, home
makers, men and women, and non-residents, maintaining local and foreign currency
accounts. Introducing n products and developing the quality of existing ones are the strategies
adopted by the bank to the customer.

3.3.2. Account Opening Section

This section deals with opening of different types of accounts. It is also deals with issuing of
checkbooks and different accounts openers. A customer can open different types of accounts
through this department such as:

 Opening of different types of account.

 Account opening procedure.

 Issue of check book.

 Transfer of account.

 Closing of account.

 Enquiry of account.

3.3.2.1. Opening of different types of account.

Janata Bank Ltd. offers various types of account to its different types of customer. These are
as follows

 Current Deposit Account

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  Savings Bank Deposit Account

 Special Notice Deposit Account

 Fixed Deposit

3.3.2.1.1. Current Deposit (CD) Account:

A current account is an account, which is generally opened by business people for their
convenience. A current account is a running and active account, which may be operated upon
any number of times during a working day. There is no restriction on the number & amount
withdrawals from current a/c. It does not allow any interest on this account.

 Opening Amount/ Initial Deposit Tk. 1,000.

Current a/c may be individual, joint / partnership or can be formed any name. It provides the
following facilities:
 Overdraft facility.
 Other facilities like collection of checks transfer of money, rendering agency and
general utility services.

3.3.2.1.2. Savings Bank (SB) Account:

This deposit is intended primarily for small-scale savers. The main object of this account is
promotion of thrift. Savings account is meant for those who want to save a certain amount of
their income and earn interest on that for future needs. All features are more or less like that
of CD a/c except for some restriction that is imposed by the bank. Number of withdrawals
over a period of time is limited. The withdrawing amount is not to exceed 25%of the total
balance. This A/C mainly open a person name.

 Initial deposit requires to opening a savings account is TK.500.

 Interest rate is5.75%

 One cannot withdraw money not more than two times in a week.

 To withdraw more than Tk.20,000 seven days’ notice is required.

 Service charge is not fixed.

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Restrictions:

 Customer cannot withdraw money more than twice in a week.

 If customers draw money more than 25% of the balance at a time then no interest is
given for that month.

 If interest accrued less than TK. 200/- for six month then no interest is given to
customer.

3.3.2.1.3. Special Notice Deposit Account (SND):

Special Notice Deposit Account is the net flow of current transactions including services and
interest payments. It is an easy-to-use

Features & benefits of SND:

Special Notice Deposit (SND) is an interest bearing deposit where advance notice is required
for withdrawal. SND Account is very much similar to CD Account.

 Attractive interest rate.

 Personalized Cheque Book is available.

 Nominal service charge. Any branch banking facility.

 Interest is payable on yearly basis.

 Interest rate is 3.5%

3.3.2.1.4. Fixed Deposit Receipt (FDR) Account:

Duration: 3 month, 6 month, 1 year and 2 year.

Deposit Amount: Minimum TK. 5, 000 require to open a fixed deposit account.

Interest rate:

 3 month interest rate @ 4.50%.

 6 month interest rate @ 4.75%.
 1 year and above interest rate @ 5.0%.

When a matured FDR is withdrawn, the principle amount along with the interest
amount (deducting 10% tax from the total interest) is paid to the client

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Documentation for Account Opening:

A. Bank a/c opening prescribed form, SS Card,2 copy passport size photo of holder
attested by introducer and 1 photo of nominee attested by holder.

B. National ID Card/Chairman/Commissioner certificate photocopy, Declaration of

yearly Transaction Profile.

C. If account is maintained by nominated person Mandate form is required.

D. If by Law/Article of Association of Club, organization, society, Cooperative or

organization is acceptable to the bank then account can be opened for that
organization.

E. Nominee is not accepted for company, club, cooperative and Joint/partnership

account.

Documentation for Private & Public Ltd. Company account:

I. Bank a/c opening prescribed form, SS Card,2 copy passport size photo of operator,
TIN certificate, NID Card photocopy of operator attested by officer.

II. List of directors (minimum 2 directors for private Ltd. Company & minimum 3
directors for Public Ltd. Company).

III. Resolution of Board of directors.

IV. Article of association.

V. Certificate of incorporation.

VI. Certificate of commencement for Public Ltd. Company

Documentation for Club, Society, Association and Religious organization account

a) Application from chairman/president/secretary of the organization

b) Photo copy of certificate of registration (attested by Chairman)

c) Resolution ( attested by chairman of the organization)

d) List of executive/managing committee

e) 2 photo of the authorized operator attested chairman of the organization

f) Signature with official designation (seal)

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Documentation for NGO’s account

A. Documentation for Club, Society, Association and Religious organization account

B. Photo copy of certificate of registration by NGO’s Bureau (attested by head of related

NGO)

C. 2 photo of the authorized operator (attested by introducer)

D. Signature authorized person attested by Head of managing committee

3.3.2.2. Account opening procedure:

For account opening a person goes to a procedure that determines the bank. In this procedure
bank authority tries to know about the client and take necessary information of the client.
That procedure is given below:

1. Applicant receives A/C opening form from the officer.

2. Fill up Bank Account Opening Form.
3. Give References for Opening your Bank Account.
4. Submit Bank Account Opening Form and Documents.
5. Account holder is required to fill up specimen signature card.
6. Officer will verify your Bank Account Opening Form.
7. Deposit initial amount.
8. New Account is opened.

3.3.2.3. Issue of cheque book:

After opening an account, the account holder need a cheque book to withdraw money from
the bank whenever he or she needed. However, cheque book issuance procedures of JBL are
as follows:
Issuance of cheque book for new account:

* To get a new cheque book the account holder need to fill up the specific application
form.

Issue of cheque book (for existing account):

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In case of existing account, the cheque requisition are in the cheque book where a white
pages lies containing the name and account number of the account holder. Whenever the
leaves of the cheque finished the account holder submit it to cheque issue officer requesting
to issue a new cheque book with his/her signature.

However, for both the cases the following procedures are needed to follow to issue a new
cheque book:

1. Client has to fill up (name, date and sign) a clip.

2. After getting the requisition the respective officer required to verify the account holder’s
signature and identification. It is very important task. No cheque can be issued without
verification.
3. Now the officer needs to attach round and branch seal on cheque.
4. After that it needs to be attached account number seal on the cheque.
5. In this stage two officers’ initial is needed on the cheque.
6. Now it needs to entry on the cheque issue register and signature on the register of the
client.
7. Finally verifying all the necessary seal, initial the officer issue the cheque and submit the
requisition form to the computer section.
8. Thus a new cheque book can be issued for both the new or existing client.

3.3.2.4. Account Closing:

A customer may close out his A/C at any time by submitting an application to the branch. The
customer should be asked to draw the final cheque for the amount standing to the credit of his
A/C less the amount of closing and or other incidental charges and surrender the unused
cheque. The A/C should be debited for the account closing charges etc. and an authorized
officer of the branch should destroy unused cheque leaves.

3.3.2.5. Account Transfer:

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Account holder may transfer his account from one branch to another branch. For this he/she
must apply to the manager of the branch where he is maintaining account. Then manager of
Local Office sends a request letter to the manager of the branch where the account holder
wants to transfer his account. With his request he sends original copy of account opening
application and specimen Signature Card and photocopy of application for transferring the
account with the balance remained account.

3.3.2.6. Account inquiry:

A customer can obtain the statement of his account by the submission of an application in
prescribed balance inquiry receipt. JBL not charges any amount for this statement.

3.3.3. Remittance Section

The major function of commercial Banks is mobilization of fund. Other than this, banks
provide supplementary services to its clients. Clients need to remit money from one place to
another for their business or other purposes. Banks fulfill this need of customers by means of
remittance service. Money can be remitted domestically or internationally, which known as
local remittance and foreign remittance.

There are three ways of transferring fund domestically. The modes of transferring funds are:
 Pay-Order (PO).
 Demand Draft (DD).

 Telegraphic Transfer (TT).

3.3.3.1. Pay Order (P.O):

This is an instrument issued by the branch of a bank for enabling the Customer/Purchaser to
pay certain amount of money to the order of a certain person/firm/organization/office within
the same clearing house area of the pay order-issuing branch.

Characteristics of P.O:

⇛ The issuing branch and paying branch are same.

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 ⇛ Application for payment within the clearing house area of the issuing branch.

⇛ This may be open or can be crossed.

Procedure of Issuing Pay Order:

o Obtain P.O, application form duly filled in and signed by the
Purchaser/applicant.
o Receive the amount in cash/transfer with commission amount.
o Issue pay order.
o Enter in pay order register.

Charge for Pay Order:

Amount Commission Vat Total Charge

Less than TK. 1,000 20 3 23
TK.1,001-1,00,000 30 5 35
Tk. 1,00,01-5,00,000 50 8 58
TK. 5,00,001 above 100 15 115
Table: The Charge for Pay Order.

3.3.3.2. Demand Draft (D.D.):

This is an instrument through which customer's money is remitted to another

person/firm/organization in outside the clearinghouse area from a branch of one bank to an
outstation branch of the same bank or to a branch of another bank (with prior arrangement
between that bank with the issuing branch): This is an order instrument in which the issuing
branch gives instruction to the payee/drawer branch to pay certain amount of money to the
order of certain person/firm/organization. Commission, vat and postage are charged for
issuing DD.
Example: - To transfer money from Rajshahi to Dhaka

Procedure for issuing D.D.:

1. Obtain D.D. application form duly filled in and signed by the purchaser/applicant.
2. Receive the amount in cash/transfer with prescribed commission & postage amount.

3. Issue the D.D. duly in and signed by the authorized officer.

4. Insert test number (where applicable).

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 5. Enter in the D.D. issue register.

6. Issue advices to the payee branch.

Procedure for payment of D.D:

1. Examine the D.D. by verifying the signature, test number, serial number etc.
2. Enter the D.D. payable register.
3. Verify with the IBCA number. Pass necessary vouchers.

Charge for Demand Draft:

a) Minimum amount for a DD is TK. 25.

b) Commission is the 0.10% of the DD amount.

c) Vat is TK. 15% on the commission amount.

3.3.3.3. Telegraphic Transfer (T.T):

This is a mode of transfer of customer's money from a branch of one bank to another branch
of the same bank through telegraphic/telephonic message.

Characteristics of T.T
Issued by one branch to other branch and message is telecommunicated.
Remittance/ transfer of money are done through tested tale-messages.

Remittance is a fleeted on the basis tested message.

Test key apparatus is required.

Procedure for issuing T.T.:

1. Obtain T.T. application form duly filled in and signed by the purchaser/applicant with
full A/C particulars of the beneficiary.
2. Receive the amount in cash/transfer with prescribed commission, telephone/telex and
postage amount.
3. Enter in T.T. issue register.
4. Prepare T.T. message inserting the test no.
Procedure for payment of T.T.:
1. Note the message T.T. and verify the test number and confirm the T.T serial no. is ok.
2. IF ok make entry in to T.T. payable register
3. Pass necessary vouchers for payment.

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For quickest remittance customer use this means to transfer money from one place to another
place. Within 10 minutes’ beneficiary will get the amount.

Charge for T.T.:

▲ Minimum amount for a TT is TK. 25.

▲ Telephone Charge is TK. 50
▲ Commission is the 0.10% of the TT amount.
▲ Vat is TK. 15% of the commission amount & Telephone charge.

3.3.4. Clearing & Bill Section

The amount of Cheques, Pay Order (P.O), and Demand Draft (D.D) Collection from other
banks on behalf of its customer is a basic function of a Clearing Department.

 Clearing: Clearing is a system by which a bank can collect customers fund from one
bank to another through clearing house.
 Clearing House: Clearing House is a place where the representatives of different
banks get together to receive and deliver Cheques with another banks.

 Normally, Bangladesh Bank performs the Clearing House in Dhaka, Chittagong,

Rajshahi, Khulna and Bogra. Where there is no branch of Bangladesh Bank, Sonali
Bank arranges this function.

 Member of Clearing House: Janata Bank Limited is a scheduled Bank. According to

the Article 37(2) of Bangladesh Bank Order, 1972, the banks which are the member of
the clearinghouse are called as Scheduled Banks. The scheduled banks clear the
cheque drawn upon one another through the clearinghouse.

3.3.4.1. Types of Clearing:

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 A. Outward Clearing: When the Branches of a Bank receive cheques from its customers
drawn on the other Banks within the local clearing zone for collection through
Clearing House, it is Outward Clearing.
B. Inward Clearing: When the Banks receive cheque drawn on them from other Banks in
the Clearing House, it is Inward Clearing.

Types of clearing house: There are two type of clearing house: Those are:

1. Normal clearing house

2. Same day clearing house

Normal clearing house:

1) 1st house: 1st house normally stands at 10 a.m. to 11a.m
2) 2nd house: 2nd house normally stands after 3 p.m. and it is known as return house.

Same day clearing house:

1) 1st house: 1st house normally stands at 11:00 am to 12:00 pm
2) 2nd house: 2nd house normally stands after 2 p.m. and it is known as return house.

* Who will deposit cheque for Clearing: Only the regular customers i.e. who have
Savings, Current, STD & Loan Account in the bank can deposit cheque for
collection of fund through clearing house.

* Precaution at the time of cheque receiving for Clearing, Collection of LBC, OBC
& Transfer:

I. Name of the account holder same in the cheque & deposit slip.

II. Amount in The cheque & deposit slip must be same in words & in figure

III. Date in the cheque may be on or before (but not more than six months back)
clearing house date.

IV. Bank & Branch name of the cheque, its number & date in the Deposit slip.

V. Cheque must be signed.

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 VI. Signature for confirmation of date, amount in words / in figure Cutting &
Mutilation of cheque

VII. Cheque should be crossed (not for bearer cheque).

VIII. Account number in the deposit slip must be clear.

IX. Depositor’s signature in the deposit slip.

Return house: Return House means 2nd house where the representatives of the Bank meet
after 3 p.m. to receive and deliver dishonored chouse which placed in the 1st Clearing House.

Cheque may be dishonored for any one of the following reasons:

i. Insufficient fund.
ii. Amount in figure and word differs.

iii. Cheque out of date / post- dated.

iv. Payment stopped by the drawer.

v. Payee’s endorsement irregular / illegible / required.

vi. Drawer’s signature differs / required.

vii. Crossed cheque to be presented through a bank.

viii. Other specific reasons not mentioned above.

The dishonor Cheques entry in the Return Register & the party is informed about its Party‘s
signature required in the return register to deliver the dishonor cheque. After duration, the
return cheque is sent to the party’s mailing address with Return Memo.

If the cheque is dishonored due to insufficiency of funds then Janata Bank Limited charges
TK.25 as penalty.

Responsibility of the concerned officer for the Clearing Cheque

a) Crossing of the cheque.

b) (Computer) posting of the cheque.

c) Clearing seal & proper endorsement of the cheque.

d) Separation of cheque from deposit slip.

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 e) Sorting of cheque 1st bank wise and then on branch wise.

f) Computer print 1st branch wise & then bank wise.

g) Preparation of 1st Clearing House computer validation sheet.

h) Examine computer validation sheet with the deposit slip to justify the computer
posting

i) Copy of computer posting in the floppy disk.

Bills Collection: In modern banking the mechanism has become complex as far as smooth
transaction and safety is concerned. Customer does pay and receive bill from their
counterpart as a result of transaction. Commercial bank’s duty is to collect bills on behalf of
their customer.

3.3.4.2. Types of Bills for Collection:

A. Outward Bills for Collection (OBC).

B. Inward Bills for Collection (IBC).

What is OBC?

OBC means Outward Bills for Collection .OBC exists with different branches of different
banks outside the local clearinghouse. Normally two types of OBC:
1. OBC with different branches of other banks
2. OBC with different branches of the same bank

Inward bills for collection (IBC):When the banks collect bills as an agent of the collecting
branch, the system is known as IBC. In this case the bank will work as an agent of the
collection bank. The branch receives a forwarding letter and the bill.

3.3.5. Cash Section

Cash department is an important department of any bank. Cash amount is the main source of
all banking activities. For that every day bank has to remain certain amount in cash in
accordance with the rules and regulations of Bangladesh Bank. Cash section is a very
sensitive organ of the branch and handle with extra care.

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Functions of Cash Section:
The cash department mainly performs the following functions:
* Cash Receipt
* Cash Payment.

3.3.5.1. Procedures of Cash Receive:

A. Credit voucher in by the customer.

B. Cash receiving officer will check the title number, A/C number and amount in figure
and words in the deposit slip of credit voucher.

C. After receiving the cash, receiving officer will record the denomination of the
currency on the back of the voucher and enters the particulars or voucher in the cash
receiving book under progressive serial number. He will put his signature with the
date stamp both in the counter foil and deposit slip/voucher and pass the same along
with the register to the officer in charge of cash department for his signature.

D. Again it will be checked and signed by tic authorized officer.

E. Receiving officer total the amount entered in the cash receiving book at the close of
banking hours.

3.3.5.2 Procedures of Cash Payment:

A. Instrument is checked by the cash in-charge whether the A/C name. A/C number and
the amount in written in words and figures are correct.
B. The officer in-charge also checks the instrument and signed in it.

C. The particulars of the instrument are checked in the computer:

D. In case of any error, another will be needed;

E. The payment is made if there is available amount in the account;

F. Paid instruments are kept by the officer.

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 G. This department is also made payment against various debit vouchers for various
miscellaneous expenses of the branch.

3.3.6 Accounts Section

Accounts Department is called as the nerve Centre of the bank. In banking business,
transactions are done every day and these transactions are to be recorded properly and
systematically as the banks deal with the depositors’ money. Improper recording of
transactions will lead to the mismatch in the debit side and in the credit side. To avoid these
mishaps, the bank provides a separate department; whose function is to check the mistakes in
passing vouchers or wrong entries or fraud or forgery. This department is called as Accounts
Department. If any discrepancy arises regarding any transaction this department report to the
concerned department.

Besides these, the branch has to prepare some internal statements as well as some statutory
statements, which are to be submitted to the Central Bank and the Head Office. This
department prepares all these statements.

☞ To record all transactions in the cash book.

☞ To prepare daily fund position, weekly position, periodic statement of affairs.

☞ Prepare necessary statements for reporting purpose.

☞ To pay all expenditures on behalf of the branch.

☞ Make salary statements and pay salary.

☞ Branch to branch fund remittance and supporting accounting treatment.

☞ Prepare statements for customer.

☞ Publishing basic data of the branch etc.

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Chapter 4
Findings 2
4.1. Major Findings

☞ Initial Deposit to open Saving & Current Account of Janata Bank Limited is lower others
private bank
☞ The clients of Janata Bank Limited preferred this bank considering its low initial deposit.But
in case of other private commercial banks the clients put highest priority to the quick service
of their bank while selecting a bank.
☞ Most of clients of JBL said that employees are not helpful or co-operative to them. But most
of client’s opinion of private bank employees are always ready to help or co-operative of
their client to build good relationship between clients and employees.
☞ Janata Bank Limited does not provide proper online banking services to their clients.

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 Chapter 5
Conclusions and Recommendations
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5.1. Recommendations

Recommendations of these report has been made on the basis of the research findings for the
further improvement of the general banking division of Janata Bank Limited.

⇛ To attract more clients, Janata Bank Limited should introduce more products &
services comparing to the others bank.
⇛ Janata Bank Limited has skilled people on banking sector and it should give them
proper training to compete with the market. They can also learn from the other banks
in our country to improve their service quality.

⇛ Employees of JBL should be trained to be much more co-operative to their clients so

that the traditional perception about public bank’s service will be changed.

⇛ To attract more clients Janata Bank ltd. should establish more ATM booth.

⇛ They should cover most of their branches with online banking facilities. Otherwise
they may not be the competitor of third generation banks.

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 ⇛ The bank should take necessary steps to improve it general banking services by
making its employees more efficient, developing their transaction system, providing
modern services and so on.

5.2. Conclusions

“Customers are doing us a favor by giving us an opportunity to do so” this the vision of our
banking sector today. Now a day banking sectors are facing too much competitiveness to
finance their capital fund, investment activities, liquidity crisis and so on. Banking sectors do
not only consider the funding business from surplus units to deficit units in a nation. Besides
this, they play a major role in the economic development, factory services, employment and
overall hasten the flow of cash by the payment services. Banks essentially are social
organizations, rendering financial services to the socio-economic objectives of the society.
Service to the society, at the micro level, means service to customers, present and potential

General banking is the most and important department of any kind of banks. I have worked
general bank division in corporate branch of Janata Bank Limited. I talk to employee about
the general banking procedure they maintain and also talk to the client of the banks. I tried to
gain some practical experience on critical general banking system. From the study I have also

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gain some practical knowledge on account opening, local and remittances, complex clearing
process etc. I think this experience will set me in the advantageous position in future.

They have a lot of scheme of the general people. They have some corporate clients and they
are their main clients. There should be some attractive scheme for the clients because the
clients are the most important source of money. They deposit their money in the bank and
bank give this money to Loan others who required.

References

Books:

I. Block. Stanley. B & Hirt. Geoffrey. A, Foundation of Financial Management,

11th Edition, McGraw-Hill.
II. Lawrence, J Gitman (2003), “Principle of Managerial Finance”, 12th edition.

Prospectors:

* Annual report of JBL

Website:

* www.janatabank-bd.com

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