Component Process Ref Name of Process

6 1.00 Cash Management Process of Government of Bangladesh

Prepared by Date Version
Nazmul
Sadi
Dec 010 1.0
B. PROCESS BACKGROUND SU!!AR"
!he "rocesses #hich com"ose cash and de$t management s%stem evolved from recei"t &
"a%ment in local currenc%' foreign de$t & grant' and internal de$t' is maintained $% $lend of
automated & manual "rocesses. !ransactions ta(e "lace in different deliver% channels li(e over
the counters of Bangladesh $an( $ranches' Sonali Ban( $ranches & Post offices. )ll
government "a%ment & recei"t' recei"t & encashment of saving de"osit $onds are made
through these $ranches' consolidated at district level in res"ective regional $ranches and $eing
u"dated at DC) & D)* offices. +inall%' these are consolidated at )ccounts & $udgeting
de"artment of Bangladesh $an(.
!he main in"uts of the s%stem are che,ue & $ill for "a%ment' de"osit voucher-challan are for
recei"t. !he in"uts are organized for entering into iB)S s%stems at district accounts office.
Different re"orts for different offices are generated from the iB)S' after distri$ution of the re"orts
res"ective offices reconcile the accounts.
C. Entity !ode#s
Ref
.
!ain Entities Responsibi#ities
Commercial Ban( ./ecutes Pa%ment & 0ecei"t for
G*B
Bangladesh Ban( Maintenance of Ban( account of
G*B
Directorate of National Savings Collects & encashment of 1ocal Bond
Post office Sales "ostage stam" in addition to
Collection & encashment of 1ocal
Bond
)ccounts *ffices of CG) Process Bills' maintains accounts of
G*B
D. Process description
Ref Process $%
Ref
Process Description
1.0 Sonali $an( $ranches onl% conduct
receiving of "a%ment for
Government of Bangladesh 2GoB3
#here Bangladesh Ban( has its
Branch offices
4nderta(e transactions related
government receipts on#y' sends dail%
re"ort #ith de"osit vouchers-challan and
scroll to the 0egional s SB *ffice.
1.1 Sends clearing chec( to regional
clearing house for collection' if it5s
#ithin the same $ranch a transfer
ta(es "lace.
BB regional office or Sonali Ban( collects
the "roceed and sends $ac( to the $ranch
#here collection "rocess successfull%
occurs or returns or insufficient fund.
1. 6nternal che,ues are !ransferred or Branch transfer the amount and credits to
return due to insufficient fund. government account #here fund is
availa$le or no transaction ta(es "lace.
.0 Che,ue return for 6nsufficient funds
from clearing 7ouse & from internal
transfer "rocess
Branch collects the returned che,ue from
clearing house. !he Branch office returns
transfer che,ues for insufficient fund.
8.0 Pre"ares a re"ort for D)*-D)* &
regional Bangladesh Ban( office
Sonali Ban( $ranch office "re"ares a
re"ort #ith all che,ue and scroll num$er
and sends to D)*-DC) along #ith the
che,ue9leaf #here D)*-DC) office enters
the data #ith iB)S s%stems. D)*-DC)
offices also receives a re"ort from
Bangladesh $an( #ith detail "a%ment &
recei"t transaction #here the net
difference has $een re"orted' CG)
matches that re"ort #ith the data it
received from Sonali Ban( Branches'
chec(s the che,ue9leaf & scroll num$ers if
no difference is identified the% u"date the
"rocess.
:.0 SB !reasur% Branches 2#here BB
has no $ranch3 0eceives "a%ment
in cash' transfer & collection. Pa%s
in cash & transfer to res"ective
accounts.
4nderta(e transactions related
government receipts payment' sends
dail% re"ort #ith co"% of $ill-che,ue'
de"osit vouchers- challan and scroll to the
0egional *ffice.
:.1 Sends clearing chec( to regional
clearing house for collection' if it5s
#ithin the same $ranch a transfer
ta(es "lace.
BB regional office or Sonali Ban( collects
the "roceed and sends $ac( to the $ranch
#here collection "rocess successfull%
occurs or returns for insufficient fund.
:. 6nternal che,ues are !ransferred or
return due to insufficient fund.
Branch transfer the amount and credits to
government account #here fund is
availa$le or no transaction ta(es "lace.
;.0 Sonali Ban( Branches e/ecutes
"a%ment
+or all Government "a%ment Sonali Ban(
$ranches ta(es the role' "a%s for
Government against che,ues & Bills in
cash' and "re"ares the "a%ment histor%
along #ith che,ue leaf & $ills.
6.0 Che,ue return for 6nsufficient funds
from clearing 7ouse & from internal
transfer "rocess
Branch collects the returned che,ues from
clearing house. !he Branch office returns
transfer che,ues for insufficient fund.
<.0 Pre"aration of re"ort on "a%ment &
recei"t
Sonali Ban( $ranches "re"are a re"ort on
"a%ment & recei"t #ith scroll num$er and
sends to regional office for reconciliation
=.0 Sonali Ban( regional offices carr%
out the chec( clearing "rocess
#here Bangladesh $an( authorised
them to act
0eceives clearing chec( from $ranch
offices ta(es necessar% ste" to collect the
"roceed or return for insufficient fond
=.1 Clearing chec( collection -return 6f the chec(s are cleared the regional office
sends it $ac( to originating $ranch #ith
collection ac(no#ledgement or return
mentioning insufficient fund.
>.0 0econciliation "rocess of Pa%ment
& recei"t from its $ranch offices
0egional office receives all "a%ment &
recei"t re"ort from the $ranches of its
district region and reconcile for error
omission.
>.1 Pre"ares re"ort on net "a%ment &
recei"t in its district $raches to
re"ort the D)*-DC* and the Sonali
Ban( head *ffice
Sonali Ban( regional offices "re"are a
re"ort sho#ing all "a%ment & recei"t
transaction' net difference & scroll
num$ers #ith date of all the re"orts it
receives from the $ranch offices of its
region.
10.0 Collection & "a%ment made $%
Sonali $an( #ith in Dha(a
"residenc%
Sonali Ban( ?ithin Dha(a Presidenc%
conducts onl% the receiving for
Government
10.1 0econciliation of all transaction of
;; district offices
0eceive the information from regional
offices of Sonali Ban(. Sonali Ban(
$ranches in Dha(a send transaction data
to G)SD and the% consolidate using their
o#n "rogram' carr% out validation and
generate hardco"%.
10. +inal re"ort on "a%ment & recei"t Government )ccounts & Services
de"artment of Sonali Ban( receives all the
re"ort from its ;; regional offices including
of Dha(a "residenc% 2e/ce"t those #here
BB offices are "resent3.
11.0 Bangladesh Ban( Pa%ment &
recei"t reconciliation "rocess
Pu$lic accounts de"artments of > regional
office of BB sends re"ort to D)B 2de"osit
)ccounts De"artment3 on their dail%
transaction #hich in turn u"dates
)ccounting and Budgeting de"artment of
BB head *ffice.
11.1 0eceive & "a%ment transaction of
internal de"artments of BB' 7ead
*ffice'
!he internal transaction includes dra#ing
overdraft from #a%s & means' recei"t &
"a%ment from de$t management of their !9
$ill-!9$ond "urchase & retirement'
domestic $ond "urchase & encashment'
"a%ment received & e/ecuted $% +0!MD
etc
11. )d@ustments & u"date of accounts
at )ccounting & Budgeting
De"artment
)BD receives the re"ort from Sonali Ban(
on the sur"lus or deficit of "a%ment and
instruct D)B to e/ecute Dr-Cr to Sonali
Ban( accounts accordingl% #hich o"erates
#ith D)B
11.8 4"date at De"osit )ccounts Bivagh
2BivaghADe"artment3
)ll the commercial Ban(s have their
accounts o"erating #ith BB #ith its D)B.
D)B e/ecutes re,uired Dr-Cr for $alancing
the sur"lus-deficit #ith the commercial
$an(.
11.: Determining Cash "osition )BD send a cash "osition to De$t
management de"artment #hich is a result
of consolidating its all "a%ment & recei"t'
and net $alance of transaction from other
de"artments and net of "a%ment & recei"t
of loans & grants.
1.0 Sell & .ncashment of local De"osit
$onds
Directorate of National Savings "re"ares
the monthl% statement consolidating sales
from all commercial $an(s 2through BB3 &
$% its o#n .
1.1 NSD "re"ares the consolidated
re"ort
NSD "re"ares the final re"ort
consolidating all sell & "a%ment of $ands.
1. 0e"ort "re"aration !he final re"ort sho#s the entities & their
sell & "a%ment after consolidating all
transaction collected from different
"rocess. Sends to )BD & De$t
management de"artment of Bangladesh
Ban(.
1.8 1ocal de"osit $ond sell $%
commercial $an(s
Commercial $an(s sell & retire $onds of >
different scheme' sends re"ort #ith net
"a%ment ad@ustment to regional $ranch BB
#ithin given time
18.0 Sells of Bonds & Stam" at Post
offices
Bet to identif% the "rocess
18.1 0e"ort "re"aration Bet to identif% the "rocess' re"ort is made
on the net of sells & collection from local
$ond mar(et.
E. PROB&E!S RE'U(R!EN)S
Ref (dentified *ea+ness,prob#em $%
Ref
S-..ested
impro/ement,re0-irement
1 De$t management de"artment is
$ac( to cash "osition of Se"tem$er
as )BD is una$le to "rocess the
transaction data' it receives' as
,uic(l% as it is re,uired.
Bet to finalise