BRANCH OPERATIONS MANUAL

Version 2.0, December 2010

All rights reserved. This document is the property of

MCB Bank Limited and is classified and will only be
circulated amongst the relevant departments for
internal consumption. No part of this document
should be printed, quoted or copied in any form
outside the bank
TABLE OF CONTENTS

PREFACE ...................................................................................................................................................... 11

SECTION 1 PRODUCTS................................................................................................................................. 13
CHAPTER 1 PRODUCT FEATURES & ELIGIBILITY CRITERIA ............................................................................................ 14
1.1 OVERVIEW ................................................................................................................................................................... 14
1.2 CURRENT ACCOUNTS ..................................................................................................................................................... 15
1.3 SAVING ACCOUNTS........................................................................................................................................................ 20
1.4 TERM DEPOSITS ............................................................................................................................................................ 32
1.5 REMOTE CHANNELS ....................................................................................................................................................... 35

SECTION 2 ACCOUNT OPENING ................................................................................................................... 40

CHAPTER 1 ACCOUNT OPENING DOCUMENTATION & GENERAL POLICIES .................................................................. 41
1.1 DOCUMENTATION REQUIREMENT .................................................................................................................................... 41
1.2 SYMBOLS ACCOUNT TYPES, CURRENCY, SERVICE TYPES & INTREST TYPES.............................................................................. 48
1.3 ACCOUNT ACTIVATION DEPOSIT....................................................................................................................................... 49
1.4 COMPUTERIZED NATIONAL IDENTIFICATION CARD (CNIC) /ONLINE VERIFICATION/ VALIDATION.................................................. 49
1.5 CLEARANCE OF ACCOUNT HOLDER’S NAME FROM UN/ OFAC/ BOE/ EU/ OTHER LISTS ........................................................... 51
1.6 EXEMPTION FOR SENIOR CITIZENS TO OPEN AN A/C AGAINST EXPIRED CNIC ............................................................................ 51
1.7 OPENING OF CONSUMER CUSTOMER’S COLLECTION ACCOUNT (CCA) .................................................................................... 51
1.8 RESTRAINT TYPES .......................................................................................................................................................... 52
1.9 EXEMPTION OF SERVICE CHARGES .................................................................................................................................... 53
1.10 LETTER OF AUTHORITY ................................................................................................................................................... 53
CHAPTER 2 CUSTOMER DUE DILIGENCE / KNOW YOUR CUSTOMER ........................................................................... 55
2.1 ELEMENTS OF BANKS CDD/ KYC POLICY ........................................................................................................................... 55
2.2 CDD/ KYC POLICY ........................................................................................................................................................ 55
2.3 COMPLETION OF ACCOUNT OPENING & KNOW YOUR CUSTOMER FORMS ............................................................................... 56
2.4 THRESHOLD LIMITS ........................................................................................................................................................ 56
2.5 EXCEPTION REPORTS...................................................................................................................................................... 57
CHAPTER 3 ACCOUNT OPENING PROCESS FLOWS ....................................................................................................... 58
3.1 OVERVIEW ................................................................................................................................................................... 58
3.2 ACCOUNT OPENING – NORMAL BRANCHES (OTHER THAN E2E) ............................................................................................. 59
3.3 ACCOUNT OPENING – CENTRALIZED BRANCHES (E2E) ......................................................................................................... 64
3.4 ACCOUNT ACQUISITION BY DIRECT SALES FORCE ................................................................................................................. 69
CHAPTER 4 ACCOUNT OPERATING AND MAINTENANCE ............................................................................................. 71
4.1 JOINT ACCOUNT............................................................................................................................................................ 71
4.2 PROPRIETORSHIP ACCOUNT............................................................................................................................................. 71
4.3 PARTNERSHIP ACCOUNT ................................................................................................................................................. 71
4.4 TRUST ACCOUNTS ......................................................................................................................................................... 74

Branch Operations Manual – Version 2.0 - December 2010

 4.5 COMPANIES REGISTERED UNDER COMPANIES ORDINANCE 1984 ............................................................................................ 74
4.6 CLUBS/ SOCIETIES/ ASSOCIATIONS ................................................................................................................................... 74
4.7 LOCAL BODIES ACCOUNT ................................................................................................................................................ 75
4.8 LOCAL / DISTRICT ZAKAT/ USHR COMMITTEE ACCOUNT ....................................................................................................... 75
4.9 MINOR ACCOUNT ......................................................................................................................................................... 76
4.10 STUDENT ACCOUNT ....................................................................................................................................................... 76
4.11 ILLITERATE/ DISABLE/ BLIND PERSONS BANK ACCOUNTS ...................................................................................................... 77
4.12 SHARES COLLECTION ACCOUNT........................................................................................................................................ 77
4.13 COLLECTION ACCOUNT ................................................................................................................................................... 78
4.14 NON-RESIDENT ACCOUNTS ............................................................................................................................................. 78
4.15 NEW FOREIGN CURRENCY ACCOUNTS SCHEME, (F.E. 25) .................................................................................................... 81
4.16 DECEASED ACCOUNT ..................................................................................................................................................... 82
4.17 ACCOUNT CLOSURE ....................................................................................................................................................... 84
4.18 PROCEDURE FOR ACCOUNT CLOSURE ................................................................................................................................ 85
4.19 NOTICE UNDER SECTION 140 OF THE INCOME TAX ORDINANCE - 2001 .................................................................................. 86
4.20 POWER TO CALL FOR INFORMATION BY THE INCOME TAX OFFICER (ITO) ................................................................................... 86
4.21 ATTACHMENT OF CREDIT BALANCE (GARNISHEE ORDER) ...................................................................................................... 87
4.22 PROCEDURE FOR MARKING FUNDS ON HOLD ..................................................................................................................... 87
4.23 STOP PAYMENT OF CHEQUES ........................................................................................................................................... 88
4.24 PROCEDURE TO MARK ACCOUNT ACTIVITY SEIZE ................................................................................................................. 89
4.25 PROCEDURE TO MARK TAX EXEMPTION RESTRAINT .............................................................................................................. 89
4.26 REMOVAL OF RESTRAINT FROM ACCOUNT .......................................................................................................................... 90
4.27 CHANGE IN CUSTOMER ACCOUNT INFORMATION (MASTER DATA) ......................................................................................... 91
CHAPTER 5 CLASSIFICATION OF ACCOUNTS ................................................................................................................ 92
5.1 DORMANT/ INOPERATIVE ACCOUNTS & FINANCIAL INSTRUMENTS ......................................................................................... 92
5.2 UNCLAIMED DEPOSITS & FINANCIAL INSTRUMENTS ............................................................................................................. 92
5.3 MARKING OF RESTRAINT FOR EXEMPTION FROM UNCLAIMED ................................................................................................ 93
5.4 ACTIVATION & OPERATION IN DORMANT, INOPERATIVE & UNCLAIMED DEPOSIT ACCOUNTS ...................................................... 93
5.5 SURRENDER OF UNCLAIMED DEPOSIT TO SBP .................................................................................................................... 95
5.6 REFUND PROCEDURE FOR UNCLAIMED DEPOSITS SURRENDERED TO SBP ................................................................................. 97
CHAPTER 6 CHEQUE BOOK MANAGEMENT ................................................................................................................. 98
6.1 GENERAL INSTRUCTIONS FOR NEW ACCOUNT HOLDERS......................................................................................................... 98
6.2 GENERAL INSTRUCTIONS FOR EXISTING ACCOUNT HOLDERS ................................................................................................... 98
6.3 PROCEDURE FOR ISSUANCE OF CHEQUE BOOKS (NIFT) ......................................................................................................... 99
6.4 COLLECTION OF CHEQUE BOOK BY THE CUSTOMER (NIFT) .................................................................................................. 100
6.5 ISSUANCE OF MANUAL CHEQUE BOOKS ........................................................................................................................... 102
6.6 MANUAL CHEQUE BOOK STOCK ENTRY & MAINTENANCE ................................................................................................... 102
6.7 MICR ENCODED CHEQUE BOOKS BY NIFT - FEATURES ....................................................................................................... 103
6.8 NIFT CHEQUE BOOK STOCK ENTRY & MAINTENANCE ......................................................................................................... 103
6.9 HANDLING OF UNDELIVERED CHEQUE BOOKS ................................................................................................................... 104
CHAPTER 7 TERM DEPOSIT ........................................................................................................................................ 105
7.1 TERM DEPOSIT PRODUCTS ............................................................................................................................................ 105
7.2 TERM DEPOSIT APPLICATION FORM (SF265-NEW) ........................................................................................................... 105
7.3 INSTRUCTIONS FOR TERM DEPOSIT.................................................................................................................................. 105
7.4 PROCESS – BOOKING OF FDA / MPA (CENTRALIZED PRODUCT) .......................................................................................... 106
7.5 PROCESS – MATURITY OF FDA / MPA (CENTRALIZED PRODUCT) ......................................................................................... 108
7.6 PROCESS – PREMATURE ENCASHMENT OF FDA / MPA (CENTRALIZED PRODUCT) ................................................................... 109
7.7 PROCESS – LIEN MARKING / RELEASING OF FDA / MPA (CENTRALIZED PRODUCT) .................................................................. 110
7.8 ANNEXURES & ACCOUNTING FOR FDA/ MPA (CENTRALIZED PRODUCTS) ............................................................................. 111
7.9 SMART FOREIGN CURRENCY TERM DEPOSITS – (NON CENTRALIZED PRODUCT) ....................................................................... 111
7.10 MANAGEMENT OF TDR/STDR/SND (OPENED PRIOR TO CENTRALIZATION) .......................................................................... 113

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 7.11 MANAGEMENT OF MATURED/ OUTSTANDING CAPITAL GROWTH CERTIFICATES ...................................................................... 117
CHAPTER 8 GUIDELINE ON DEDUCTION OF ZAKAT .................................................................................................... 118
8.1 ZAKAT ON PLS SAVINGS & OTHER SIMILAR ACCOUNTS (ASSET CODE: 101) ........................................................................... 118
8.2 ZAKAT ON TERM DEPOSIT PRODUCTS (ASSET CODE: 103) .................................................................................................. 118
8.3 ZAKAT EXEMPTIONS..................................................................................................................................................... 118
8.4 PROCEDURE FOR CALCULATION & DEDUCTION OF ZAKAT ON TERM DEPOSITS ........................................................................ 119
8.5 PROCEDURE FOR CALCULATION & DEDUCTION OF ZAKAT ON PLS SAVINGS & OTHER SIMILAR ACCOUNTS .................................... 120
8.6 DEDUCTION OF ZAKAT.................................................................................................................................................. 121
8.7 REPORTING PROCEDURE FOR BRANCHES / CIRCLE OFFICES .................................................................................................. 121

SECTION 3 CASH MANAGEMENT & TELLER SERVICES ................................................................................. 122

CHAPTER 1 CASH MANAGEMENT .............................................................................................................................. 123
1.1 DAILY CASH BALANCING ............................................................................................................................................... 123
1.2 CASH HANDLING & CASH POSITION STATEMENT ............................................................................................................... 123
1.3 PROCEDURE FOR CASH FOUND EXCESS ............................................................................................................................ 124
1.4 SECURITY ARRANGEMENTS FOR CASH ............................................................................................................................. 125
1.5 CASH IN HAND & CASH IN HAND INSURANCE LIMIT ........................................................................................................... 125
1.6 CASH DEPOSIT BY BRANCHES WITH CASH HOUSE / CASH FEEDING BRANCH ........................................................................... 126
1.7 CASH DEPOSIT BY UP-COUNTRY BRANCHES WITH CASH HOUSE / CASH FEEDING BRANCH ........................................................ 127
1.8 CASH TRANSFER FROM CASH HOUSE TO BRANCHES ........................................................................................................... 127
1.9 TRANSFER OF CASH FROM CASH HOUSE TO SBP ............................................................................................................... 128
1.10 CHARGES FOR CASH COUNTING AND SORTING OF CASH...................................................................................................... 128
1.11 HIRING CHARGES FOR ARMORED VEHICLES OF SECURITY SERVICE AGENCY ............................................................................. 128
1.12 CASH HOUSE CHARGES FOR SUPPLY AND COLLECTION OF CASH ........................................................................................... 128
1.13 CASH TRANSFER FROM CASH FEEDING BRANCH TO BRANCHES ............................................................................................ 128
1.14 PROCEDURE FOR TRANSFERING FOREIGN CURRENCY TO MAIN BRANCH................................................................................. 129
1.15 PROCEDURE FOR RECEIVING FOREIGN CURRENCY FROM MAIN BRANCH ................................................................................ 131
1.16 LATE RECEIPTS ............................................................................................................................................................ 132
1.17 TELLER CASH TRANSFER ............................................................................................................................................... 132
1.18 KEYS & KEY REGISTERS................................................................................................................................................. 132
1.19 APPLICATION OF TEST .................................................................................................................................................. 132
1.20 RESTORE OFFLINE FINANCIAL TRANSACTIONS ................................................................................................................... 133
1.21 USAGE & SAFE CUSTODY OF CASH RECEIPT/PAID STAMPS .................................................................................................. 134
1.22 IMPOSITION OF SBP PENALTIES ..................................................................................................................................... 134
1.23 BASIC GUIDELINES FOR MCB COLLECTION SYSTEM FOR TBD TRANSACTIONS .......................................................................... 135
1.24 CURRENCY TRANSACTION REPORTING (CTR) .................................................................................................................... 136
CHAPTER 2 CASH DEPOSIT & WITHDRAWAL ............................................................................................................. 137
2.1 PROCEDURE OF CASH DEPOSIT ...................................................................................................................................... 137
2.2 PROCEDURE FOR CASH DEPOSIT REVERSAL....................................................................................................................... 137
2.3 PROCEDURE FOR CASH WITHDRAWAL VIA CHEQUE............................................................................................................ 138
2.4 PRECAUTIONS AGAINST FAKE/ CHEMICALLY ALTERED / RUBBED / DEFACED CHEQUES .............................................................. 139
2.5 PROCEDURE FOR CHEQUE WITHDRAWAL REVERSAL .......................................................................................................... 139
2.6 PAYMENT OF ON-LINE CASH CHEQUES OVER BRANCH COUNTERS......................................................................................... 140
2.7 PROCEDURE FOR PAYMENT OF PKR AGAINST FCY A/C CHEQUE........................................................................................... 141
2.8 CALL BACK CONFIRMATION PROCESS (CBC)..................................................................................................................... 142
2.9 PROCEDURE FOR CREDIT CARD PAYMENTS AGAINST CASH - ONLINE PAYMENT FACILITY ........................................................... 143
2.10 PROCEDURE FOR CREDIT CARD PAYMENT THROUGH CHEQUE – DROP-BOX FACILITY ................................................................. 144
2.11 PROCEDURE FOR CASH ADVANCE TO CREDIT CARD CUSTOMERS........................................................................................... 145

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CHAPTER 3 INWARD & OUTWARD CLEARING ........................................................................................................... 147
3.1 OUTWARD CLEARING ................................................................................................................................................... 147
3.2 PROCEDURE FOR OUTWARD CLEARING – NIFT BRANCHES .................................................................................................. 148
3.3 PROCEDURE FOR OUTWARD SAME-DAY CLEARING – NIFT BRANCHES .................................................................................. 150
3.4 INWARD CLEARING ...................................................................................................................................................... 152
3.5 PROCEDURE FOR INWARD CLEARING – NIFT BRANCHES ..................................................................................................... 152
3.6 RESOLUTION OF DISCREPANCIES ..................................................................................................................................... 154
3.7 INWARD CLEARING – CHEQUE DEBIT REVERSAL ................................................................................................................ 155
3.8 CHEQUE RETURN MEMO .............................................................................................................................................. 155
CHAPTER 4 INWARD / OUTWARD BILLS FOR COLLECTION ........................................................................................ 156
4.1 INWARD & OUTWARD LOCAL BILLS FOR COLLECTIONS ....................................................................................................... 156
4.2 OUTWARD FOREIGN BILLS FOR COLLECTION ..................................................................................................................... 159
4.3 FBC - LOCAL BANK’S FCY CHEQUE DEPOSITED IN MCB FCY ACCOUNT................................................................................. 161
4.4 FBC - MCB FCY CHEQUE (OF OTHER BRANCH) DEPOSITED IN MCB PKR ACCOUNT ............................................................... 162
4.5 OUTWARD FBC - LOCAL BANK’S FCY CHEQUE DEPOSITED IN MCB PKR ACCOUNT ................................................................. 162
4.6 INWARD FOREIGN BILLS FOR COLLECTION ........................................................................................................................ 163
CHAPTER 5 INTERNAL FUNDS TRANSFER................................................................................................................... 164
5.1 OVERVIEW – APPLICATION FOR INTERNAL FUND TRANSFER ................................................................................................. 164
5.2 PROCEDURE FOR INTERNAL FUNDS TRANSFER ................................................................................................................... 164
5.3 PROCEDURE FOR CHEQUE DEPOSIT (OWN BANK) .............................................................................................................. 166
5.4 PROCEDURE FOR TRANSACTION REVERSALS ...................................................................................................................... 166
CHAPTER 6 UTILITY BILLS MANAGEMENT ................................................................................................................. 167
6.1 COLLECTION ARRANGEMENT ......................................................................................................................................... 167
6.2 TELLER’S LIMIT FOR COLLECTION OF UTILITY BILLS ............................................................................................................. 168
6.3 PTCL – UTILITY BILLS COLLECTION PROCESS .................................................................................................................... 168
6.4 KESC – UTILITY BILLS COLLECTION PROCESS- SPECIFIC/INDUSTRIAL CONSUMERS ONLY .......................................................... 169
6.5 UTILITY BILLS STANDARD COLLECTION PROCESS – KESC/ WAPDA/ SNGPL/ SSGC .............................................................. 170
6.6 UTILITY BILLS COLLECTION – VIA MCB BOOTHS ............................................................................................................... 172
6.7 AUTHORITY TO DELETE ARREARS .................................................................................................................................... 172
CHAPTER 7 PRIZE BONDS .......................................................................................................................................... 174
7.1 SALE AND ENCASHMENT TRANSACTIONS.......................................................................................................................... 174
7.2 MAINTENANCE OF MONTHLY PRIZE BONDS STATEMENT..................................................................................................... 174
7.3 REQUIREMENT DURING SHUT PERIOD ............................................................................................................................. 175
7.4 MAINTENANCE OF PRIZE BONDS REGISTER....................................................................................................................... 175
7.5 MAINTENANCE OF PRIZE BONDS SHUT PERIOD REGISTER- SB-107 ...................................................................................... 175
7.6 PROCEDURE FOR SALE OF PRIZE BONDS (CASH) ................................................................................................................ 176
7.7 PROCEDURE FOR SALE OF PRIZE BONDS (DEBIT TO ACCOUNT) ............................................................................................. 177
7.8 PROCEDURE FOR ENCASHMENT OF PRIZE BONDS (CASH) .................................................................................................... 178
7.9 PROCEDURE FOR ENCASHMENT OF PRIZE BONDS (CREDIT TO ACCOUNT) ............................................................................... 179

Branch Operations Manual – Version 2.0 - December 2010

SECTION 4 REMITTANCES ......................................................................................................................... 180
CHAPTER 1 GENERAL INSTRUCTIONS FOR PO / DD ................................................................................................... 181
1.1 OVERIEW - APPLICATION FORM ..................................................................................................................................... 181
1.2 SCRUTINY OF DEMAND DRAFT & PAY ORDER ................................................................................................................... 181
1.3 BALANCING OF PO / DD PAYABLE ACCOUNTS .................................................................................................................. 181
1.4 ISSUANCE OF NEW PAYMENT ORDER / DEMAND DRAFT SERIES ........................................................................................... 181
1.5 BALANCING OF PAYMENT ORDER / DEMAND DRAFT LEAVES ............................................................................................... 182
1.6 TRANSFER OF DDS & POS TO UNCLAIMED ACCOUNT ........................................................................................................ 182
CHAPTER 2 PO / DD / CDR & LCY-TT PROCESSES ....................................................................................................... 183
2.1 PO ISSUANCE – SELL AGAINST CASH................................................................................................................................ 183
2.2 PO ISSUANCE – SELL AGAINST ACCOUNT ......................................................................................................................... 184
2.3 PO PURCHASE – TRANSFER INTO ACCOUNT ..................................................................................................................... 185
2.4 LCY DD ISSUANCE – SELL VIA CASH................................................................................................................................ 186
2.5 LCY DD ISSUANCE – SELL VIA ACCOUNT.......................................................................................................................... 187
2.6 LCY DD PURCHASE – TRANSFER INTO ACCOUNT............................................................................................................... 188
2.7 FCY DD ISSUANCE – SELL VIA ACCOUNT ......................................................................................................................... 189
2.8 FCY DD PURCHASE – UNDER RUPEE DRAWING ARRANGEMENT .......................................................................................... 190
2.9 FCY DD PURCHASE – UNDER DOLLAR DRAWING ARRANGEMENT ........................................................................................ 191
2.10 PO/ DD ISSUANCE – SELL AGAINST HEAD OFFICE ADVISE ................................................................................................... 192
2.11 REVALIDATION OF PAY ORDER / DEMAND DRAFT .............................................................................................................. 193
2.12 CHANGE OF PAYEE’S NAME........................................................................................................................................... 193
2.13 ISSUANCE OF DUPLICATE PAY ORDER / DEMAND DRAFT ..................................................................................................... 193
2.14 CANCELLATION OF DEMAND DRAFT ................................................................................................................................ 194
2.15 CANCELLATION OF PAY ORDER ...................................................................................................................................... 196
2.16 PAYMENT OF CANCELLED PAY ORDER / DEMAND DRAFT (ISSUING BRANCH) .......................................................................... 196
2.17 ISSUANCE OF CALL DEPOSIT RECEIPT (CDR) ..................................................................................................................... 197
2.18 PAYMENT OF CALL DEPOSIT RECEIPT (CDR) ..................................................................................................................... 198
2.19 LCY TELEGRAPHIC TRANSFER......................................................................................................................................... 199
CHAPTER 3 FOREIGN WIRE TRANSFER ....................................................................................................................... 205
3.1 FOREIGN WIRE TRANSFER – INWARD .............................................................................................................................. 205
3.2 PROCEDURE FOR FOREIGN WIRE TRANSFER – INWARD ....................................................................................................... 206
3.3 FOREIGN WIRE TRANSFER – OUTWARD ........................................................................................................................... 207
3.4 PROCEDURE FOR FOREIGN WIRE TRANSFER – OUTWARD.................................................................................................... 208
CHAPTER 4 RUPEE TRAVELERS CHEQUES (RTC) ......................................................................................................... 210
4.1 INTRODUCTION ........................................................................................................................................................... 210
4.2 DENOMINATION ......................................................................................................................................................... 210
4.3 COMMISSION / TAXES .................................................................................................................................................. 211
4.4 RTC STOCK AND REPLENISHMENT .................................................................................................................................. 211
4.5 RTC SALE PROCEDURE ................................................................................................................................................. 214
4.6 SURRENDER OF UNCLAIMED DEPOSITS/INSTRUMENTS TO SBP ............................................................................................ 217
4.7 RTC PURCHASE PROCEDURE ......................................................................................................................................... 217
4.8 REPORT OF LOST / STOLEN RTC ..................................................................................................................................... 223
4.9 REFUND / REPLACEMENT OF LOST / STOLEN RTC .............................................................................................................. 225
4.10 PROCESSING OF REFUND APPLICATION / RE-ISSUE / ACCOUNTING........................................................................................ 227
4.11 REFUND PROCEDURE OF RTCS....................................................................................................................................... 228
4.12 REPLACEMENT OF TORN / SOILED & DAMAGED RTCS ........................................................................................................ 229
4.13 SAFE CUSTODY OF RTC ................................................................................................................................................ 230
4.14 COMPLIANCE / REGULATORY / OPERATIONAL INSTRUCTIONS............................................................................................... 230
4.15 FLOAT INCOME DISBURSEMENT TO BRANCHES .................................................................................................................. 231

Branch Operations Manual – Version 2.0 - December 2010

CHAPTER 5 HOME REMITTANCE................................................................................................................................ 232
5.1 MCB HOME REMITTANCE ............................................................................................................................................ 232
5.2 EXPRESS MONEY ......................................................................................................................................................... 235
5.3 MONEY GRAM ........................................................................................................................................................... 236
5.4 SPEED CASH NOW....................................................................................................................................................... 237
5.5 PAYMENT THROUGH RAM ........................................................................................................................................... 238

SECTION 5 REMOTE CHANNELS ................................................................................................................. 239

CHAPTER 1 AUTO TELLER MACHINE .......................................................................................................................... 240
1.1 FUNDS TRANSFER VIA ATM .......................................................................................................................................... 240
1.2 MNET- MCB NETWORK FOR ELECTRONIC TRANSACTIONS ................................................................................................. 240
1.3 INTER-SWITCH CONNECTIVITY ........................................................................................................................................ 240
1.4 ACQUIRER TRANSACTIONS ............................................................................................................................................ 240
1.5 ISSUER TRANSACTIONS ................................................................................................................................................. 241
1.6 DISABLED, RETAINED & CAPTURED CARDS ON ATMS ........................................................................................................ 241
1.7 CARD FACILITATION CENTER (CFC)................................................................................................................................. 242
1.8 ATM CUSTODIANS RESPONSIBILITIES .............................................................................................................................. 243
1.9 ATM CASH REPLENISHMENT ......................................................................................................................................... 244
1.10 CASH VAULT OPENING / CLOSING ON AN OFF-DAY / HOLIDAY ............................................................................................ 245
1.11 DAILY BALANCING OF ATM CASH .................................................................................................................................. 245
1.12 STEPS TO FOLLOW FOR CASH BALANCING IN CASE RAMS REPORT IS NOT AVAILABLE ................................................................. 249
1.13 SBP MANDATED TIMELINES FOR ”AUTOMATIC CREDIT” OF SUSPENSE ATM CASH .................................................................. 250
1.14 RECONCILIATION OF ATM CASH WITH CASH-IN-ATM GL .................................................................................................. 251
1.15 STEPS TO FOLLOW FOR GL BALANCING IN CASE RAMS REPORT IS NOT AVAILABLE .................................................................... 253
1.16 MCB ATM / SMART CARD PROACTIVE TRANSACTION SETTLEMENT ..................................................................................... 254
1.17 ATM CLAIM MANUAL SETTLEMENTS .............................................................................................................................. 255
1.18 DISPUTE RESOLUTION UNIT .......................................................................................................................................... 256
1.19 ESCALATION MATRIX – ATM CASH & GL BALANCING ....................................................................................................... 256
CHAPTER 2 SMART CARD .......................................................................................................................................... 258
2.1 SMART CARD – LIFE CYCLE............................................................................................................................................ 258
2.2 SMART CARD REQUEST ORDER TAKING ......................................................................................................................... 258
2.3 SMART CARD & PIN PRODUCTION & DELIVERY ................................................................................................................. 261
2.4 CUSTODY OF SMART CARD & PIN ................................................................................................................................... 261
2.5 HANDOVER OF SMART CARD & PIN ................................................................................................................................ 261
2.6 DAILY BALANCING OF SMART CARDS & PIN MAILERS ....................................................................................................... 261
2.7 HANDLING OF UNDELIVERED SMART CARDS ..................................................................................................................... 261
2.8 SMART CARD ACTIVATION ............................................................................................................................................ 262
2.9 SMART CARD BLOCKING (LOST/ STOLEN) ........................................................................................................................ 262
2.10 SMART CARD DELETION ............................................................................................................................................... 262
2.11 SMART CARD PIN CHANGE............................................................................................................................................ 262
2.12 ACTIVATION OF WARM (DISABLED) SMART CARD ............................................................................................................. 262
2.13 ISSUANCE OF SMART CARDS TO NON-RESIDENT RUPEE ACCOUNT HOLDERS ......................................................................... 263
2.14 HANDLING OF RETAINED/ CAPTURED CARDS ON ATMS ..................................................................................................... 263
2.15 COLLECTION & RECORD KEEPING OF RETAINED/CAPTURED CARDS ....................................................................................... 263
2.16 DISPOSITION OF RETAINED / CAPTURED CARDS ................................................................................................................. 264

Branch Operations Manual – Version 2.0 - December 2010

CHAPTER 3 PREPAID VISA CARD ................................................................................................................................ 266
3.1 BRANCH RESPONSIBILITIES ............................................................................................................................................ 266
3.2 PREPAID VISA – CARD ISSUANCE PROCESS ....................................................................................................................... 267
3.3 PREPAID VISA – CARD & PIN ISSUANCE PROCESS.............................................................................................................. 268
3.4 PREPAID VISA – LOAD / RE-LOAD PROCESS ...................................................................................................................... 268
3.5 PREPAID VISA – BALANCE ENQUIRY ................................................................................................................................ 270
3.6 PREPAID VISA – STATEMENT REQUEST ............................................................................................................................ 270
3.7 PREPAID VISA – INVENTORY MANAGEMENT ..................................................................................................................... 271
3.8 PREPAID VISA – PROCESS FOR CAPTURED CARDS IN ATM................................................................................................... 272
CHAPTER 4 VIRTUAL BANKING .................................................................................................................................. 273
4.1 VB REGISTRATION PROCESS FOR INDIVIDUAL CUSTOMERS ................................................................................................... 273
4.2 VB REGISTRATION PROCESS FOR CUSTOMERS ABROAD ...................................................................................................... 273
4.3 VB REGISTRATION PROCESS FOR CORPORATE CUSTOMERS .................................................................................................. 273
CHAPTER 5 CALL CENTER ........................................................................................................................................... 274
5.1 CALL CENTER REGISTRATION PROCESS FOR NTB CUSTOMERS .............................................................................................. 274
5.2 CALL CENTER REGISTRATION PROCESS FOR OLD CUSTOMERS (PRIOR 01-JAN-09) ................................................................... 274
5.3 CONTROL GUIDELINES .................................................................................................................................................. 274
CHAPTER 6 MOBILE BANKING ................................................................................................................................... 275
6.1 REGISTRATION PROCESS ............................................................................................................................................... 275
6.2 MCB MOBILE REGISTRATIONS POS TERMINAL MANAGEMENT ........................................................................................... 276

SECTION 6 CENTRALIZED & AUTOMATED OPERATIONS ............................................................................. 278

CHAPTER 1 CENTRALIZATION & AUTOMATION OF BRANCH BACK-END PROCESS ..................................................... 279
1.1 ROLE & RESPONSIBILITIES OF STAKEHOLDERS .................................................................................................................... 280
1.2 COLLECTION OF FED FROM BRANCHES & ONWARD PAYMENT TO GOVERNMENT .................................................................... 280
1.3 COLLECTION OF WHT FROM BRANCHES & ITS ONWARD PAYMENT TO THE GOVERNMENT ........................................................ 281
1.4 PAYMENT OF WHT TO THE GOVT BY BRANCHES UNDER JURISDICTION OF AZAD JAMMU KASHMIR ............................................. 282
1.5 RECOVERY OF SERVICE CHARGES FROM CUSTOMERS .......................................................................................................... 282
1.6 RECOVERY OF APPLICABLE CHARGES FROM CUSTOMERS MAINTAINING BBA ACCOUNT ............................................................ 283
1.7 COMPILATION & SETTLEMENT OF HO. POOL MARK-UP BETWEEN BRANCHES & HO................................................................ 283
1.8 BULK SALARY PROCESSING ............................................................................................................................................ 283
1.9 SETTLEMENT OF TREASURY (TROPS) ADVICES ................................................................................................................. 284
1.10 ALLOCATION OF COD POSTAGE EXPENSES TO BRANCHES RELATED TO CENTRALIZED CLEARING & ACCOUNT OPENING ................... 284
1.11 ALLOCATION OF NIFT EXPENSES TO BRANCHES FOR PROCESSING OF CLEARING & CHEQUE BOOKS ............................................. 285
1.12 ALLOCATION OF CASH–IN–TRANSIT & CASH HOUSE CHARGES TO BRANCHES DIRECTLY DEALING WITH CASH HOUSE ...................... 285
1.13 CENTRALIZATION OF CASH IN TRANSIT CHARGES AT CASH FEEDING BRANCHES ....................................................................... 286
1.14 ALLOCATION OF SWIFT PROCESSING CHARGES TO BRANCHES ............................................................................................. 287
1.15 ALLOCATION OF STATIONERY CHARGES OF MCBEF TO BRANCHES........................................................................................ 288
1.16 PROCESSING & ALLOCATION OF HRMG COST (SALARIES) OF CONTRACTUAL STAFF TO BRANCHES ............................................. 288
1.17 PROCESSING OF ACCOUNT SWEEP INSTRUCTIONS FOR UTILITY COMPANIES & TPD CUSTOMERS ................................................ 289
1.18 SUBMISSION OF DATA TO CIRCLES FOR UNCLAIMED DEPOSITS/ INSTRUMENTS FOR GENERATION OF NOTICE PERIOD LETTERS ......... 289
1.19 ALLOCATION OF SEMI-ANNUAL STATEMENT RENDITION CHARGES TO BRANCHES..................................................................... 289
1.20 RENDITION OF SEMI-ANNUAL ACCOUNT STATEMENT ......................................................................................................... 290

Branch Operations Manual – Version 2.0 - December 2010

SECTION 7 GENERAL BANKING OPERATIONS / MISCELLANEOUS ................................................................ 292
CHAPTER 1 GENERAL LEDGER.................................................................................................................................... 293
1.1 OVERVIEW ................................................................................................................................................................. 293
1.2 GENERAL LEDGER CONTROL ACCOUNTS .......................................................................................................................... 293
1.3 CENTRALIZED POSTING IN GENERAL LEDGER..................................................................................................................... 294
1.4 TRANSACTION PROCESSING IN GL MODULE ..................................................................................................................... 296
CHAPTER 2 BRANCH REPORTS ................................................................................................................................... 300
2.1 MANDATORY BRANCH REPORTS .................................................................................................................................... 300
2.2 MANDATORY REPORTS – BRANCH RESPONSIBILITIES .......................................................................................................... 302
2.3 MISCELLANEOUS BRANCH REPORTS ................................................................................................................................ 303
2.4 MISCELLANEOUS REPORTS – BRANCH RESPONSIBILITIES ..................................................................................................... 305
CHAPTER 3 IT SECURITY GUIDELINES ......................................................................................................................... 306
3.1 PASSWORD PROTECTION .............................................................................................................................................. 306
3.2 EMAIL USAGE ............................................................................................................................................................. 306
3.3 REMOVABLE STORAGE PROTECTION................................................................................................................................ 307
3.4 VIRUS AND MALICIOUS PROGRAMS PROTECTION .............................................................................................................. 307
3.5 SYSTEM ACCEPTABLE USE ............................................................................................................................................. 307
CHAPTER 4 START & END OF DAY.............................................................................................................................. 308
4.1 START OF DAY ............................................................................................................................................................ 308
4.2 END OF DAY ............................................................................................................................................................... 308
CHAPTER 5 LOCKER MANAGEMENT .......................................................................................................................... 309
5.1 RIGHTS & OBLIGATIONS OF LICENSEE .............................................................................................................................. 309
5.2 ISSUE OF LICENSE ........................................................................................................................................................ 309
5.3 TERMINATION OF LICENSE............................................................................................................................................. 310
5.4 RIGHTS OF THE BANK (LICENSOR) IN CASE OF NON-PAYMENT OF RENT.................................................................................. 310
5.5 LIABILITIES OF THE BANK (LICENSOR)............................................................................................................................... 311
5.6 USE OF LOCKER........................................................................................................................................................... 311
5.7 RENEWAL / EXPIRY ...................................................................................................................................................... 311
5.8 KEY DEPOSIT .............................................................................................................................................................. 311
5.9 PAYMENT OF RENT ...................................................................................................................................................... 311
5.10 RECOVERY OF RENT IN CASE OF DEFAULT ......................................................................................................................... 311
5.11 BREAK OPENING OF LOCKERS ........................................................................................................................................ 312
5.12 GENERAL INSTRUCTIONS FOR THE LICENSEE/ LICENSOR....................................................................................................... 313
5.13 LOCKER INSURANCE POLICY ........................................................................................................................................... 313
5.14 CONTROL GUIDELINES .................................................................................................................................................. 313
CHAPTER 6 INTER-BRANCH RECONCILIATION APPLICATION CORONA....................................................................... 314
6.1 OUTSTANDING TRANSACTIONS AT BRANCH END AGING ANALYSIS ........................................................................................ 314
6.2 OUTSTANDING /UNRESOLVED AMOUNT AT BRANCH END ................................................................................................... 315
6.3 TRANSACTIONS TO BE RESPONDED BY OTHER BRANCHES ..................................................................................................... 315
6.4 TRANSACTIONS AMOUNT (VALUE) TO BE RESPONDED BY OTHER BRANCHES............................................................................ 315
6.5 HEAD OFFICE GENERAL LEDGER ACCOUNT MOVEMENT ..................................................................................................... 315
6.6 SUMMARY SCHEDULE .................................................................................................................................................. 316
CHAPTER 7 INVESTMENT SERVICES - MUTUAL FUNDS .............................................................................................. 319
7.1 SALES OF MUTUAL FUNDS ............................................................................................................................................ 319
7.2 DISCREPANCIES AND REVERSALS..................................................................................................................................... 321
7.3 AFTER-SALES SERVICES................................................................................................................................................. 322

Branch Operations Manual – Version 2.0 - December 2010

CHAPTER 8 GOVERNMENT SECURITIES (DSC/ SSC) .................................................................................................... 324
8.1 ABOUT DEFENCE SAVING CERTIFICATES (DSC) ................................................................................................................. 324
8.2 ISSUANCE OF DSC ....................................................................................................................................................... 325
8.3 ENCASHMENT OF DSC ................................................................................................................................................. 328
8.4 ABOUT SPECIAL SAVING CERTIFICATES (SSC) .................................................................................................................... 332
8.5 ISSUANCE OF SSC........................................................................................................................................................ 333
8.6 ENCASHMENT OF SSC .................................................................................................................................................. 335
8.7 ENCASHMENT OF SSC COUPONS .................................................................................................................................... 339
8.8 DSC & SSC STOCK RECEIVING PROCEDURE ..................................................................................................................... 343
8.9 PROCEDURE FOR RE-ISSUANCE OF LOST SECURITIES .......................................................................................................... 343
8.10 PROCEDURE FOR MAIN BRANCHES NOT DEALING IN HO A/C FOR DSC/SSC CLAIM SETTLEMENT ................................................ 344
8.11 GENERAL CONTROLS .................................................................................................................................................... 345
8.12 MIS PREPARATION AT BRANCH END ............................................................................................................................... 345
CHAPTER 9 OPERATIONAL RISK AND CONTROLS ....................................................................................................... 346
CHAPTER 10 HIGH PRIORITY DOCUMENTS & RETENTION PERIOD............................................................................... 350
CHAPTER 11 BRANCH MANDATORY NOTICES/ WALLBOARDS/ MATERIAL .................................................................. 354
CHAPTER 12 SBP GUIDELINES FOR SUB-BRANCHES ..................................................................................................... 355
CHAPTER 13 BRANCH TRANSACTIONAL AUTHORITIES & THRESHOLD LIMITS ............................................................. 356

ANNEXURES............................................................................................................................................... 363
PROCESS DEVIATION .................................................................................................................................. 387
GLOSSARY ................................................................................................................................................. 388

Branch Operations Manual – Version 2.0 - December 2010

PREFACE

We are pleased to present updated version of the Branch Operations Manual (version 2.0 – December 2010).
The Branch Operations Manual was last updated in December 2007 and since then various policies and
procedural instructions, having impact on branch banking operations, have been issued. Hence, it was necessary
to update the existing version of the Manual and incorporate all substantial changes. Resultantly, the Manual
has undergone significant revision through reorganizing the structure of the previous version, updating all
material and increasing the coverage of critical subject matter.

The primary audience of this Manual is individuals involved in the management & performance of branch
banking operations and related activities, Compliance & Controls Group and Audit & Risk Assets Review Group.
The Manual covers regulatory requirements, policies and procedural instructions relevant to branch banking
operations. However, the users of the Manual, for better understanding, are recommended to read it in overall
context of relevant policies approved by the Board, Application User Manuals and other documents such as the
Accounting Manual etc.

The actions of this audience must be in line with the policies and procedures stated in the Manual. Any un-
authorized deviation can result in disciplinary action being initiated against the concerned individual(s)
depending upon the seriousness of the action. Branches, in particular, are expected to follow the instructions
laid down in this manual for achieving business objectives and maintaining effective control environment. This
will improve their operations and also help them achieve compliance with regulatory requirements and better
audit rating.

The Content of the Manual is classified into various sections based on broader categories of banking operations
and is further split into different chapters. The Section Summaries on the Section header pages spell out the
content of the section for users’ benefit. Efforts have been made to organize each chapter so that the coverage
is more thorough on all aspects, emphasizing the critical regulatory/policy requirements on one hand, whilst
aided by detailed process flows on the other hand. Process flows are carefully included in a sequential manner
and have been simplified without compromising the quality of substance and objectivity.

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Besides procedural instructions to perform various operations, in this version, the branches and supervisory
staff have also been facilitated with provision of various tools to monitor their financial transactions and non-
financial operational activities to strengthen the control environment. Another emphasis in this version is to
supplement the process flows with steps for usage of Symbols application. The Bank has undertaken approach
of centralization of business processes with an objective of improved controls and process efficiency. To date,
various processes have been centralized that also affect branch operations and processes. These processes have
been included in the Manual, specifically, highlighting the functions to be performed by the branches with their
respective responsibilities.

The instructions of the Manual, since its issuance, may be further revised, amended, modified or overridden
through subsequent issuance of policies and circulars, hence, the users are instructed to conform to those
policies and circulars and use them as addenda to the Manual. In this regard, whenever a change of a
permanent nature is made to any operational policies and/or procedures, a new circular will be issued by giving
reference to the particular Chapter / Section / Subsection of the Manual.

To update the Manual was a huge exercise and could not be possible without active participation of resources
across the Bank. We would like to thank various groups involved in providing valued feedback and suggestions
including Commercial Branch Banking, Islamic Banking, Consumer Banking, Compliance & Controls, Financial
Control, Risk Management, Information Technology and Audit & Risk Assets Review. Finally, we would like to
appreciate Business Process Management Division who led this critical assignment in collaboration with other
Divisions of Operations Group.

Dated: December 24, 2010

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 12

SECTION 1 PRODUCTS

SECTION 1

PRODUCTS

Section Summary:
This section elaborates the features and eligibility criteria of liability products and
remote channels being offered by an MCB Branch.

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Chapter 1 PRODUCT FEATURES & ELIGIBILITY CRITERIA

1.1 OVERVIEW
Currently MCB Branch is offering following types of accounts / banking services to its customers. Specific
features and eligibility criteria of each product is elaborated in the following pages.

Current Accounts 1.2 Saving Accounts 1.3

Current Account 1.2.1 (PLS) Savings Account 1.3.1
Basic Banking Account 1.2.2 Smart Savings Account 1.3.2
Current Life Account 1.2.3 365 Savings Gold Account 1.3.3
Business Account 1.2.4 Khushali Bachat Account 1.3.4
New Foreign Currency Current Account 1.2.5 Savings Xtra Account 1.3.5
Call Deposit Receipts 1.2.6 Savings Maximizer Account 1.3.6
Salary Club Gold Account 1.3.7
365 Savings Account 1.3.8
Smart Saving Foreign Currency Account 1.3.9
New Foreign Currency Savings Account 1.3.10
Enhanced Savings Account (Discontinued) 1.3.11
Rupee Maximizer Account (Discontinued) 1.3.12

Term Deposits 1.4 Remote Channels 1.5

Flexi Deposit Account 1.4.1 Call Center 1.5.1
Mahana Profit Account 1.4.2 Auto Teller machine 1.5.2
Special Foreign Currency Term Deposits 1.4.3 Smart Card 1.5.3
Special Term Deposit Receipt (Discontinued) 1.4.4 Visa Debit Card 1.5.4
Special Notice Deposit (Discontinued) 1.4.5 Virtual Banking 1.5.5
Mobile Banking 1.5.6

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1.2 CURRENT ACCOUNTS
1.2.1 Current Account
A Non-profit bearing account with absolutely no transactional
Benefit
restrictions.
Account Activation Deposit PKR 1,000
Min Balance Requirement PKR 10,000
Permissible Currency PKR
Transaction Limit Unlimited withdrawals and deposits
Charges as per the SOBC
ATM/Debit Card Yes
Virtual Banking, MCB Mobile and Call
Available
Center
No Zakat is deducted on Current Accounts as per the Zakat & Usher
Zakat
Ordinance, 1980
Taxes as per applicable Government Advance Tax 0.3% on all Cash withdrawals which are >25K in a single
Laws day (Under section 231AA of Income Tax Ordinance 2001)
Individuals, Firms (Sole Proprietor, Partnership), Companies (Public
Eligibility
and Private Limited), Trust/ Clubs/ Societies and Associations

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 1.2.2 Basic Banking Account
A Non-profit bearing account for small depositors who cannot
Benefit maintain a minimum balance in their accounts and who wish to carry
out the basic banking needs.
Account Activation Deposit PKR 1000
Min Balance Requirement PKR 0
Permissible Currency PKR
2 Free over the counter deposits (per month) & 2 Free over the
Transaction Limit
counter withdrawals (per month)
Charges as per the SOBC
ATM/Debit Card Yes

Virtual Banking, MCB Mobile and Call

Available
Center

No Zakat is deducted on Current Accounts as per the Zakat & Usher

Zakat
Ordinance, 1980
Taxes as per applicable Government Advance Tax 0.3% on all Cash withdrawals which are >25K in a single
Laws day (Under section 231AA of Income Tax Ordinance 2001)
Eligibility Individuals only

Limitations In case where balance in BBA remains “ZERO” for a continuous 06

month period, the account will be closed.

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 1.2.3 Current Life Account
A Non-profit bearing account with the benefit of Free Life Insurance
Benefit
Cover. More the balance maintained, higher the cover
Account Activation Deposit PKR 1000
Min Balance Requirement PKR 25,000
Permissible Currency PKR
Transaction Limit Unlimited withdrawals and deposits.
Charges as per the SOBC
ATM/Debit Card Yes

Virtual Banking, MCB Mobile and Call

Available
Center

No Zakat is deducted on Current Accounts as per the Zakat & Usher

Zakat
Ordinance, 1980
Taxes as per applicable Government Advance Tax 0.3% on all Cash withdrawals which are >25K in a single
Laws day (Under section 231AA of Income Tax Ordinance 2001)
Life Insurance Cover Double the amount of last three months average balance
Death of the customer is Natural or Accidental
At the time of death the customer's age is between 18-60 year
Given Balance does not fall below PKR 25000 on any day in the last 3
Condition: months.
The maximum cover will be 1 Million PKR
In case of non completion of 3 months, the number of days completed
will be considered and the average of days completed will be taken
Eligibility Individuals only

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 1.2.4 Business Account
A Non-profit bearing account for Businessmen who can maintain high
Benefit deposits and get waivers on POs, DDs, Cancelations, recurring cheque
books, multiple bank statements and more
Account Activation Deposit PKR 1000
Min Balance Requirement PKR 50,000
Permissible Currency PKR
Transaction Limit Unlimited withdrawals and deposits.
Charges as per the SOBC
ATM/Debit Card Yes (free Joining)
Virtual Banking, MCB Mobile and Call
Available
Center
No Zakat is deducted on Current Accounts as per the Zakat & Usher
Zakat:
Ordinance, 1980
Taxes as per applicable Government Advance Tax 0.3% on all Cash withdrawals which are >25K in a single
Laws day (Under section 231AA of Income Tax Ordinance 2001)
Free PO, DD, Cancellations, recurring cheque books, multiple bank
Special Features
statements as per the SOBC
Individuals, Firms (Sole Proprietor, Partnership), Companies (Public
Eligibility
and Private Limited), Trust/ Clubs/ Societies and Associations

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 1.2.5 New Foreign Currency Current Account
A Non-profit bearing Foreign Currency account with absolutely no
Benefit
transactional restrictions
Account Activation Deposit USD 500
Min Balance Requirement USD 500
Permissible Currency USD / GBP / EUR/ JPY
Transaction Limit Unlimited withdrawals and deposits.
Charges as per the SOBC
ATM/Debit Card No

Virtual Banking, MCB Mobile and Call

Not Available
Center

No Zakat is deducted on Current Accounts as per the Zakat & Usher

Zakat:
Ordinance, 1980
Taxes as per applicable Government Advance Tax 0.3% on all Cash withdrawals which are >25K in a single
Laws day (Under section 231AA of Income Tax Ordinance 2001)
Individuals, Firms (Sole Proprietor, Partnership), Companies (Private
Eligibility
Limited), Trust/ Clubs/ Societies and Associations

1.2.6 Call Deposit Receipt

Security deposit Issued in favor of Government, Semi-Government,
Benefit Institutions, Corporations, and Semi-Autonomous Bodies etc. It is also
issued in favor of Individuals
Profit Call Deposit does not earn any income or profit.
Permissible Currency PKR
Charges as per the SOBC

Zakat Not applicable

Individuals, Firms (Sole Proprietor, Partnership), Companies (Private

Eligibility
Limited), Trust/ Clubs/ Societies and Associations

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1.3 SAVING ACCOUNTS
1.3.1 PLS Savings Account
Benefit A plain Savings account for everyone with no transactional restrictions
Account Activation Deposit PKR 1000
Min Balance Requirement PKR 10,000
Profit expected rate of return
Profit Calculation Minimum Monthly Balance (calculation based on 365 days a year)
Profit Payout Semi - Annually
Permissible Currency PKR
Transaction Limit Unlimited withdrawals and deposits.
Charges as per the SOBC
ATM/Debit Card Yes

Virtual Banking, MCB Mobile and Call

Available
Center

Zakat Zakat is deducted as per the Zakat & Usher Ordinance, 1980
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
Individuals, Firms (Sole Proprietor, Partnership), Companies (Public
Eligibility
and Private Limited), Trust/ Clubs/ Societies and Associations

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 1.3.2 Smart Savings Account
A Savings Account offering high profit rates to depositors maintaining
Benefit between 200k - 300k. This is a non checking account (No cheque book)
but Smart Card is available
Account Activation Deposit PKR 1000
Min Balance Requirement PKR 10,000
Profit Profit Upto 7% (as per the expected rate of return)
Profit Calculation Minimum Monthly Balance (calculation based on 365 days a year)
Profit Payout Quarterly
Permissible Currency PKR
Transaction Limit only via ATM (no Cheque Book)
Charges as per the SOBC
ATM/Debit Card Yes

Virtual Banking, MCB Mobile and Call

Available
Center

Zakat Zakat is deducted as per the Zakat & Usher Ordinance, 1980
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
Eligibility Individuals only

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 1.3.3 365 Savings Gold Account
A Daily Product for high net worth customers with monthly returns
Benefit
and higher profit on higher deposits as well
Account Activation Deposit PKR 1000
Min Balance Requirement PKR 500,000
Profit Profit Upto 8.25% (as per the expected rate of return)
Profit Calculation Daily Ending Balance (calculation based on 365 days a year)
Profit Payout Monthly
Permissible Currency PKR
Transaction Limit Unlimited withdrawals and deposits
Charges as per the SOBC
ATM/Debit Card Yes

Virtual Banking, MCB Mobile and Call

Available
Center

Zakat Zakat is deducted as per the Zakat & Usher Ordinance, 1980
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
Individuals, Firms (Sole Proprietor, Partnership), Companies (Public
Eligibility
and Private Limited), Trust/ Clubs/ Societies and Associations

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 1.3.4 Khushali Bachat Account
A Daily Product for small Investors with semiannual returns and no
Benefit
restriction on transactions.
Account Activation Deposit PKR 1000
Min Balance Requirement PKR 20,000
Profit 5% (as per the expected rate of return)
Profit Calculation Daily Ending Balance (calculation based on 365 days a year)
Profit Payout Semi - Annually
Permissible Currency PKR
Transaction Limit Unlimited withdrawals and deposits.
Charges as per the SOBC
ATM/Debit Card Yes

Virtual Banking, MCB Mobile and Call

Available
Center

Zakat Zakat is deducted as per the Zakat & Usher Ordinance, 1980
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
Eligibility Individuals only

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 1.3.5 Savings Xtra Account
A product offering high rate of return: higher the deposit, higher the
Benefit
returns with 3 free cash withdrawals over the counter per month.
Account Activation Deposit PKR 1,000
Min Balance Requirement PKR 100,000
Profit Profit Upto 8.5% (as per the expected rate of return)
Profit Calculation Minimum Monthly Balance (calculation based on 365 days a year)
Profit Payout Monthly
Permissible Currency PKR
Transaction Limit 3 over the counter withdrawals per month
Charges as per the SOBC
ATM/Debit Card Yes. Gold (free Joining)

Virtual Banking, MCB Mobile and Call

Available
Center

Zakat Zakat is deducted as per the Zakat & Usher Ordinance, 1980
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.

Individuals, Firms (Sole Proprietor, Partnership), Companies (Public

Eligibility
and Private Limited), Trust/ Clubs/ Societies and Associations

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 1.3.6 Savings Maximizer Account
Benefit Higher returns, Greater access
Account Activation Deposit PKR 1,000
Min Balance Requirement PKR 1000,000
Announced profit rate according to the defined slabs I-e less than IM,
Profit
1M to 3M, above 3M
Profit Calculation Minimum Monthly Balance (calculation based on 365 days a year)
Profit Payout Monthly
Permissible Currency PKR
Charges as per the SOBC
Cheque book 10 leaf “account payee only” ONLY
ATM/Debit Card Yes with higher withdrawal limit of 50,000

Virtual Banking, MCB Mobile and Call

Available
Center

Zakat Zakat is deducted as per the Zakat & Usher Ordinance, 1980
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.

Individuals, Firms (Sole Proprietor, Partnership), Companies (Public

Eligibility
and Private Limited), Trust/ Clubs/ Societies and Associations

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 1.3.7 Salary Club Gold Account
A Payroll Account offering no minimum balance requirement and a
Benefit
host of free services such as POs, DDs and more
Account Activation Deposit PKR 10
Min Balance Requirement PKR 0
Profit 5% p.a. (as per expected rate of return)
Profit Calculation Minimum Monthly Balance (calculation based on 365 days a year)
Profit Payout Quarterly
Permissible Currency PKR
Transaction Limit Unlimited withdrawals and deposits
As per SOBC
Note: Salaries are processed via centralized operations of Transaction
Charges Banking Division at a fixed charge per salary disbursement. If customer
is unwilling to pay salary processing charges, then branch may process
salaries on their own, as per existing salary disbursement process
(Manually or via RB Upload)
Discounts and Waivers on Cheque book (new and recurring), Demand
Facilities Drafts and Pay Orders, Smart Card, Online Transactions (within and
intercity). Free SMS alert on Salary Credit.
Zakat Zakat is deducted as per the Zakat & Usher Ordinance, 1980
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
Individual employees who maintain their salary account with MCB and
their respective employers have signed up for the payroll account for
their organization with minimum 50 salary accounts along with
Eligibility average salary of PKR 15K per employee
Before signing on any new company, branches are required to consult
and take approval from Salary Club Product Team.
Company to sign Legal Agreement (available from Salary Club Product
Team)
Mandatory Requirements
Customer's address will always be the customer's office address
(company’s office address)

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 1.3.8 365 Savings Account
A Daily Product for Medium net worth customers with monthly returns
Benefit
and higher profit.
Account Activation Deposit PKR 1000
Min Balance Requirement PKR 300,000
Profit 5% (as per the expected rate of return)
Profit Calculation Daily Ending Balance (calculation based on 365 days a year)
Profit Payout Semi-Annually
Permissible Currency PKR
Transaction Limit Unlimited withdrawals and deposits.
Charges as per the SOBC
ATM/Debit Card Yes

Virtual Banking, MCB Mobile and Call

Available
Center

Zakat Zakat is deducted as per the Zakat & Usher Ordinance, 1980
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
Individuals, Firms (Sole Proprietor, Partnership), Companies (Public
Eligibility
and Private Limited), Trust/ Clubs/ Societies and Associations

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 1.3.9 Smart Saving Foreign Currency Account
Benefit A Foreign Currency Account with ease of banking in Pakistan
Account Activation Deposit USD 500
Min Balance Requirement USD 500
expected rate of return (Min. Bal. required USD 10,000/- to qualify for
Profit
Profit)
Profit Calculation Minimum Monthly Balance (calculation based on 360 days a year)
Profit Payout Semi - Annually
Permissible Currency USD
Transaction Limit Unlimited withdrawals and deposits. NO Smart Card
Charges as per the SOBC
ATM/Debit Card No

Virtual Banking, MCB Mobile and Call

Not Available
Center

Zakat Not Applicable

Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
Individuals, Firms (Sole Proprietor, Partnership), Companies (Public
Eligibility
and Private Limited), Trust/ Clubs/ Societies and Associations

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 1.3.10 New Foreign Currency Savings Account
Benefit A Foreign Currency Account with ease of banking in Pakistan
Account Activation Deposit FCY 500
Min Balance Requirement FCY 500 – To avoid min. balance charges
expected rate of return (Min. Bal. required FCY 10,000/- to qualify for
Profit
Profit)
Minimum Monthly Balance
Profit Calculation For USD: calculation based on 360 days a year
For GBP/ EUR/ JPY: calculation based on 365 days a year
Profit Payout Semi - Annually
Permissible Currency USD / GBP / EUR/ JPY
Transaction Limit Unlimited withdrawals and deposits.
Charges as per the SOBC
ATM/Debit Card No

Virtual Banking, MCB Mobile and Call

Not Available
Center

Special Features Waiver and discounts on Lockers, Bank Statements and Loans
Zakat Not Applicable
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
Individuals, Firms (Sole Proprietor, Partnership), Companies (Public
Eligibility
and Private Limited), Trust/ Clubs/ Societies and Associations

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 1.3.11 Enhanced Savings Account (Discontinued)
Account Activation Deposit PKR 1000
Min Balance Requirement PKR 5000
Profit 5% (as per the expected rate of return)
Profit Calculation Minimum Monthly Balance (calculation based on 365 days a year)
Profit Payout Quarterly
Permissible Currency PKR
Transaction Limit Unlimited withdrawals and deposits.
Charges as per the SOBC
ATM/Debit Card Yes

Virtual Banking, MCB Mobile and Call

Available
Center

Zakat Zakat is deducted as per the Zakat & Usher Ordinance, 1980
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
Individuals, Firms (Sole Proprietor, Partnership), Companies (Public
Eligibility
and Private Limited), Trust/ Clubs/ Societies and Associations

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 1.3.12 Rupee Maximizer Account (Discontinued)
Account Activation Deposit PKR 1,000
Min Balance Requirement PKR 20,000
Profit 5% (as per the expected rate of return)
Profit Calculation Daily Ending Balance (calculation based on 365 days a year)
Profit Payout Semi Annually
Permissible Currency PKR
Transaction Limit Unlimited withdrawals and deposits.
Charges as per the SOBC
ATM/Debit Card Yes

Virtual Banking, MCB Mobile and Call

Available
Center

Zakat Zakat is deducted as per the Zakat & Usher Ordinance, 1980
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
Individuals, Firms (Sole Proprietor, Partnership), Companies (Public
Eligibility
and Private Limited), Trust/ Clubs/ Societies and Associations

Note:
All Saving accounts as discussed above are Profit bearing accounts. Branch must ensure to educate the customer
on all features. In-case customer’s need necessitates a non-profit bearing product; he/she should open a current
account. Saving accounts cannot be mis-constituted/ operated as Non-Profit bearing account. In-case the
customer carry’s a Saving Account and wants to shift to Current Account, a New Current account will be opened.
This clarification is being provided explicitly as few cases have been reported in the past where branches
forcefully convert Savings accounts into Current Accounts by changing ‘Interest Parameters’ in the system which
is strictly prohibited.

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1.4 TERM DEPOSITS
1.4.1 Flexi Deposit Account
Min Deposit Requirement PKR 500,000
Profit expected rate of return
Profit Calculation Based on 365 days a year
Permissible Currency PKR
1 month, 2 months, 3 months, 6 months, 9 months, 1 year, 2 years, 3
Tenors Available
years and 5 years
Profit Payment Options Quarterly, Semi Annually, Annually and Maturity.
Charges as per the SOBC
Zakat Zakat is deducted as per the Zakat & Usher Ordinance, 1980
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
(Existing Account Holders) Individuals, Firms and Companies. It is a
Eligibility mandatory requirement for booking a Term Deposit to have a checking
account (Current/Savings) in the Bank.

1.4.2 Mahana Profit Account

Min Deposit Requirement PKR 500,000
Profit expected rate of return
Profit Calculation Based on 365 days a year
Permissible Currency PKR
2 months, 3 months, 6 months, 9 months, 1 year, 2 years, 3 years and
Tenors Available
5 years
Profit Payment Monthly
Charges as per the SOBC
Zakat Zakat is deducted as per the Zakat & Usher Ordinance, 1980
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
(Existing Account Holders) Individuals, Firms and Companies. It is a
Eligibility mandatory requirement for booking a Term Deposit to have a checking
account (Current/Savings) in the Bank.

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 1.4.3 Special Foreign Currency Term Deposit - SFTD
Tenor Options 3 Months, 6 Months & 1 year Fixed Deposits
Min Deposit Requirement USD 10,000
Profit expected rate of return
Profit Calculation Based on 360 days a year
Minimum retention period is 01 month. Cash payment of Interest
Profit Pay Out Criteria
amount is not allowed
Profit Payment Options On Maturity for 3 & 6 months and Semi Annually for 1year booking
Permissible Currency USD
Charges as per the SOBC

Privileges Free of charge Locker and bank statement

50% Discount on Processing charges of Personal Loan and Car Loan
Zakat Not Applicable
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
(Existing Account Holders) Individuals, Firms and Companies. It is a
Eligibility mandatory requirement for booking a Term Deposit to have a checking
account (Current/Savings) in the Bank.

1.4.4 Special Term Deposit Receipt – STDR (Discontinued)

Min Deposit Requirement PKR 100,000
Profit expected rate of return
Profit Calculation Based on 365 days a year
Tenors Available 3 months, 6 months, 1 year, 3 years and 5 years
Profit Payment Options On Maturity for 3 & 6 months and Quarterly for 1, 3 & 5 year booking
Permissible Currency PKR
Charges as per the SOBC
Zakat Zakat is deducted as per the Zakat & Usher Ordinance, 1980
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
(Existing Account Holders) Individuals, Firms and Companies. It is a
Eligibility mandatory requirement for booking a Term Deposit to have a checking
account (Current/Savings) in the Bank.

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 1.4.5 Special Notice Deposits- SND (Discontinued)
Options 7 days and 30 days
Min Deposit Requirement PKR 500,000
Profit expected rate of return
Profit Calculation Based on 365 days a year
Profit Pay Out Criteria If encashed AFTER 7 days (both 7 and 30 days SND)
Profit Payment Options Maturity
Permissible Currency PKR
Charges as per the SOBC
Zakat Zakat is deducted as per the Zakat & Usher Ordinance, 1980
Withholding Tax Withholding Tax is deducted on Profit as per the Government’s policy.
If a depositor withdraws deposit on a date prior to the date of
declaration of profit rates, the profit due can be paid at the rate of
profit declared for the last half year. This, however, shall be a
provisional payment with the prior approval of Regional Head. If the
Special Notes rate declared for said half year is more than what was paid to such
deposit holders then the difference shall be paid through Payment
Order. In case rate of profit announced on Special Notice Deposit is
less, then customer should pay the difference. It will be appropriate if
an undertaking from the customer is taken in this respect.
(Existing Account Holders) Individuals, Firms and Companies. It is a
Eligibility mandatory requirement for booking a Term Deposit to have a checking
account (Current/Savings) in the Bank.

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1.5 REMOTE CHANNELS
1.5.1 Call Center
i. MCB Mobile Registration/Activation/De registration
ii. Virtual Banking Activation/Blocking
iii. Debit Card Activation/Blocking
iv. Internal Funds Transfer
Features
v. Utility Bill Payments
vi. Mobile Postpaid Bill Payments/Top ups
vii. Credit Card Bill Payments
viii. TPIN Maintenance/Issuance
Eligibility All customers having singly operated accounts in MCB Bank Limited
Charges as per the SOBC

1.5.2 ATM
i. Fast Cash
ii. Cash Withdrawal
iii. Funds Transfer from one registered account to another
iv. Mobile Banking Registration
v. Virtual Banking Registration
vi. Utility Bill Payments
vii. Mobile Bill Payments
Features
viii. Mini Statement
ix. Balance Inquiry
x. MCB ATM/Smart Card PIN Change
xi. Block Smart Card
xii. PIN Reset for MCB Mobile users
xiii. IDP Relief Fund Collection
xiv. Credit Card Cash Advance transaction
Any customers having MCB Smart Card/Credit Card/Prepaid Card or any other banks
Eligibility account holder having Debit/Credit Card with M-NET/1-LINK/Cirrus/Maestro/VISA
logo can utilize the ATM machine
Charges as per the SOBC

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 1.5.3 Smart Card
i. Secure and convenient deposit access instrument for payments
ii. 24 hour access to deposit account
iii. Bill payments
iv. Cash withdrawals
Features v. Fund transfers
vi. Statement Requests
vii. Utility Bill Payments
viii. Account enquires
ix. MCB remote banking channels registration through remote banking channels

Acceptability Locally: accepted at over 4,000 M-Net & 1-Link ATMs

Internationally: Cirrus & Maestro supported ATM & POS
ONLY one Smart Card can be issued against one account. All CASA holders are eligible
for MCB Smart Card with exception to the following:

Eligibility i. FCY accounts

ii. Jointly operated account
iii. Photo accounts
iv. NRP accounts (Non-Resident Pakistanis) – Ref: SBP Circular # 10 of 2004

Categories Daily Withdrawal Limit Daily POS Limit

International Gold 25,000 150,000
International Classic 15,000 100,000
Categories
Saving Maximizer* 50,000 250,000
Salary Club* 25,000 150,000
Privilege* 50,000 250,000
* These cards are only issued against their respective account types
Charges as per the SOBC

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 1.5.4 Pre-paid Visa Card
A Prepaid Card is pre-funded reload-able card that is easy to use and is safer than
cash. Operating in a similar fashion to debit card accounts, but with greater flexibility
Benefits and lesser risk. Visa prepaid cards can be used to access previously deposited funds in
a Prepaid account. The funds in the account may be spent by the cardholder through
purchase transactions or cash withdrawals.
MCB VISA Prepaid Card can be used to withdraw cash, shop, dine, fuel and make
online payments locally and internationally at more than 29 Million outlets including
Acceptability
35000 local merchants in 160 countries worldwide. Each purchase is debited directly
from your card balance, making it easy for you to be Cash free.
Avail free travel inconvenience insurance coverage on your card.

Travel inconvenience Insurance Coverage

Delay of Flight (exceeding 06 hours) PKR 15,000
Travel Insurance
Delay of Baggage (exceeding 06 hours) PKR 15,000
Loss/Damage to Baggage PKR 30,000
Annual Aggregate Limit PKR 3,000,000
Note: Travel insurance coverage only available on the Freedom Package.
The Card can be used over more than 450+ MCB, 4000+ M-Net and 1-Link ATMs
Cash accessibility
nationwide. The card is also accepted at over 1 million VISA ATMs around the world.
View Card transactions free of cost, directly through your email.
E-statement & SMS
Get an SMS alert as a receipt, every time card is used
MCB VISA McDonald’s Upsize every regular meal free of cost every time card is swiped at McDonald’s
Co-brand Card
Card Limits As per Policy & Product Program
Charges as per the SOBC
Prepaid Card issuance is based on the providing following mandatory requirements.
Copy of CNIC is mandatory requirement which is acceptable after original seen.
Eligibility
Source of Income is mandatory (to fill up in the Application Form in the section “For
Branch Use”.)

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 1.5.5 Virtual Banking
i. Detailed Account Summary of all listed accounts.
ii. Mini-statements/ Statement-by-Period
iii. Transfer of Funds
iv. Scheduled Payments
v. Payment of utility bills, credit card bills
vi. Donations
Features
vii. Bulk Salary Transfer for Corporate Customers
viii. Cheque Book Request
ix. Personal Alerts
x. Buy Internet Hours
xi. Mobile Recharge facility for all mobile companies
xii. Purchase Mutual Funds & Stocks
The customer must have an MCB ATM Smart Card (not mandatory for abroad and
Eligibility
corporate customers)
Charges as per the SOBC

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 1.5.6 Mobile Banking
i. Non Financial
ii. Do a Balance Inquiry
iii. View Mini-Statement
iv. Turn your Smart Card off ( card will activate after EOD)
v. Receive Transaction Alerts via Push SMS
vi. Add/Remove Frequent Payees
vii. Financial
Features
viii. Make Utility Bill payments for KESC ,HESCO ,IESCO, SSGC, SNGPL & PTCL
ix. Make MCB VISA Credit card bill payments
x. Transfer funds to any MCB Account
xi. Buy Mobile pre-paid top ups for all Telecom companies
xii. Make a Mobile post paid bill payment for Telecom companies
xiii. Make donations
xiv. Purchase Insurance
i. MCB Account Holder
ii. Active ATM/Smart Card
Eligibility
iii. Cell Phone Number
iv. Customer data registered at call center
Charges as per the SOBC
i. 10 financial transaction in a single day
Mobile Limit ii. Financial transactions limited to PKR 100,000 per day. (credit card payment
do not fall under limits)

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SECTION 2 ACCOUNT OPENING

SECTION 2

ACCOUNT OPENING AND MAINTANENCE

Section Summary:
This section encompasses Account Opening documentation, KYC, Account Opening
Process flows, General policies & guidelines, Symbols Account/ Service/ Restraint/
Currency and Interest types. Account Operating Instructions for all kinds of accounts
are detailed. Classification of accounts covering instructions on dormancy and
Inoperative accounts and its related processes are documented. Additional to the
above, Cheque Book Management, Term Deposits, KYC and Zakat Deduction/
Reporting are detailed in this section.

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Chapter 1 ACCOUNT OPENING DOCUMENTATION & GENERAL POLICIES

1.1 DOCUMENTATION REQUIREMENT

The details of required documents to be obtained for opening of different types of accounts are as follows:
1.1.1 Individuals Accounts
i. Duly filled Account Opening Application
ii. Specimen Signature Card (SF-6A2A2).
iii. Photocopy of Computerized National Identity Card (CNIC) or copy of Passport of the individual attested
by BM or BOM or Designated Authorized Officer of the bank. (When copy of CNIC/Passport is attested
by the authorized officer of the bank he/she must affix the stamp “Original Seen” along with AS/IBS
number under his seal and signature).
iv. CNIC of the individual must also be verified through NADRA on-line VeriSys System.
v. In case the CNIC does not contain a photograph, the bank in addition to CNIC, should also obtain any
other document such as driving license etc. that contains a photograph. However, if the individual does
not have any other valid document which bears photograph following documents should be obtained:
 A copy of the photograph duly attested by gazetted officer or Nazim
 A copy of CNIC without photograph duly attested by the same person who attested the copy of
photograph as per above. (Ensure that the CNIC and the photograph are of the same person whose
account is being opened.)
 A confirmation in writing to the effect that the individual have no other document bearing
photograph.
vi. In case of a salaried person, attested copy of his/her service card/ salary slip or any other acceptable
evidence of service, including but not limited to a certificate from the employer.
vii. In case of non-salaried/un-employed individual, KYC should be conducted with extra vigilance and
source of income/ funds should be validated prudently.
viii. In case of illiterate person, a passport size photograph of the new account holder besides taking Left
and Right thumb impressions on the account opening application & Specimen Signature Card (SSC).
ix. In case of a customer with shaky signatures the account should be opened as ‘Photo Account’. All
cheque withdrawals are in physical presence of customer.
x. In case the signatures mismatch with CNIC, undertaking as per Annexure XXII to be obtained from
him/her.

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 1.1.2 Sole Trader / Proprietorship
Bank should exercise extra care in view of the fact that constituent documents are not available in such cases
to confirm existence or otherwise of the proprietorships. All efforts should be made to obtain Relevant
document(s) in order to establish the existence of the sole trader / proprietorship concern. Following
documents must be obtained:
i. Duly filled Account Opening Application
ii. Specimen Signature Card (SF-6A2A2).
iii. Copy of CNIC or Passport of the individual attested by an officer of the bank. (Authorized officer of the
bank must affix the stamp “Original Seen” along with AS/IBS number under his seal and signature).
iv. CNIC must also be verified through NADRA on-line VeriSys.
v. In case CNIC does not contain a photograph, the bank in addition to CNIC, should also obtain any other
document such as driving license etc. that contains a photograph. However, if the individual does not
have any other valid document which bears photograph following documents should be obtained:
 Photograph duly attested by gazetted officer or Nazim.
 Copy of CNIC with photograph duly attested by the same person who attested the photograph as
per above. (Ensure that the CNIC and the photograph are of the same person whose account is
being opened).
 A confirmation in writing to the effect that the individual have no other document bearing
photograph.
vi. In case of illiterate person, a passport size photograph of the new account holder besides taking Left
and Right thumb impressions on the account opening application & Specimen Signature Card (SSC).
vii. In case of a customer with shaky signatures the account should be opened as ‘Photo Account’. All
cheque withdrawals are in physical presence of customer.
viii. In case the signatures mismatch with CNIC, undertaking as per Annexure XXII to be obtained from
him/her.

1.1.3 Partnership Account

i. Duly filled Account Opening Application
ii. Specimen Signature Card (SF-6A2).
iii. Copy of CNIC of all the Partners attested by an officer of the bank. (Authorized officer of the bank must
affix the stamp “Original Seen” along with AS/IBS number under his seal and signature).
iv. CNIC of all the Partners must also be verified through NADRA on-line VeriSys System.
v. Attested copy of “Partnership Deed” duly signed by all partners of the firm.
vi. Attested copy of Registration Certificate with Registrar of Firms. In case the partnership is
unregistered, this fact should be clearly mentioned on the Account Opening Form.
vii. Authority letter in original, in favor of the person authorized to operate the account of the firm duly
signed by all partners.

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 1.1.4 Companies registered under companies ordinance 1984
i. Duly filled Account Opening Application
ii. Specimen Signature Card (SF-6A2)

iii. Resolution of Board of Directors for opening of account specifying the person(s) authorized to operate
the company account (Duly Signed by all Directors OR Company Secretary along with One Director) and
company seal affixed however the signatories on Board of Resolution for opening an account shall be
governed by Authorities spelled out in the Memorandum & Articles of Association.

iv. Certification of the following documents by Company Secretary/ Notary Public:

 Memorandum and Articles of Association
 Certificate of Incorporation.
 Certificate of Commencement of Business (not required for Private Ltd companies)
 Latest List of Directors on Form 29 issued by the Registrar SECP.

v. Copies of CNIC of all the Directors verified through NADRA Online VeriSys and attested by an officer of
the bank.

Note : Authorized officer of the bank must see the Original documents and affix the stamp “Original
Seen” along with AS/IBS number under his seal and signature before placing the copies in record

In case of Companies of Foreign Origin:

The condition of obtaining Board Resolution and Certificate of Commencement of Business for opening
bank account has been relaxed for only such foreign companies/entities belonging to countries where said
requirements are not enforced under their laws/regulations.
However such foreign companies will have to furnish the following documents in lieu of resolution passed
by BOD for opening of account and Certificate of Commencement of Business to the satisfaction of the
bank:
i. Power of Attorney from the competent authority duly notarized for opening bank account.
ii. A certificate from the company secretary, duly authorized by the Board, clearly stating that the
company/entity started its business from certain date and that Certificate of Commencement of
Business is not issued in that country.
iii. Approval to open branch/office in Pakistan from concerned departments of Government of
Pakistan.

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 1.1.5 Clubs, Societies & Associations
i. Duly filled Account Opening Application
ii. Specimen Signature Card (SF-6A2).
Certified copies of:
 Certificate of Registration issued by the Registrar of Co-operative Societies/ Registration Authority.
 Bye-Laws/ Memorandum & Articles of Association of the Society containing official seal of the
Registration Authority on each page thereof.

iii. Resolution of the Governing Body/Executive Committee for opening of Account authorizing the
person(s) to operate the account and attested copy on CNIC of the authorized person(s). (It must be
ensured that the mandate for operations of account given in the resolution is not in violation of the
provision of by-laws/memorandum & articles of associations).
iv. List of the members of the Managing Committee duly certified by the Registrar of Co-operative
Societies.
v. Permission of the Registrar of Co-operative Societies for opening of account in the name of society is
required under Section 37 (d) of Co-operative Societies Act 1925.
vi. In case of Associations, permission of the Registration Authority for opening of account in the name of
Association as required under Section 7 © of Voluntary Social Welfare (Registration & Control)
Ordinance 1961.
vii. An undertaking signed by all the authorized persons on behalf of the institution mentioning that when
any change takes place in the persons authorized to operate on the account, the banker will be
informed immediately.
viii. Bank should obtain copies of CNICs of all the members of Governing and Executive Bodies of DHA etc,
or ask for delegation of power to Administrator under section (7) & (8) of the Pakistan Defense
Housing Authority Order, 1980 and accept copy of CNIC of Administrator as well as authorized
signatories for the purpose of opening accounts of DHA or similar other authorities subject to the
condition that all other requirements laid down under PR-M1 shall be complied with in letter and
spirit.
ix. CNIC must also be verified through NADRA on-line VeriSys System.

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 1.1.6 Agents Accounts
i. Duly filled Account Opening Application
ii.Specimen Signature Card (SF-6A2).
iii.
Certified copy of “Power of Attorney”
iv.Copy of CNIC of the Agent attested by an officer of the bank. (Authorized officer of the bank must affix
the stamp “Original Seen” along with AS/IBS number under his seal and signature).
v. CNIC of the Agent must also be verified through NADRA on-line VeriSys System.

1.1.7 Executors and Administration

i. Duly filled Account Opening Application
ii. Specimen Signature Card (SF-6A2).
iii. Photocopy of Computerized National Identity Card (CNIC) of all the Executor/Administrator attested by
an officer of the bank. (When copy of CNIC is attested by the authorized officer of the bank he must
affix the stamp “Original Seen” under his seal and signature).
iv. CNIC of the Executor/Administrator must also be verified through NADRA on-line VeriSys System.
v. Certified copies of Letter of Administration or Probate.

1.1.8 Trust Accounts

i. Duly filled Account Opening Application
ii. Specimen Signature Card (SF-6A2).
iii. Certified copy of Registered Instrument of Trust OR Trust Deed by Registrar of Trust. please check
purpose, source of funds and dissolution clause of the trust
(Requirement for obtaining ‘Certificate of Registration’ for trust account has been abolished vide SBP
Circular Letter No. 10 of 2007 & BPRD/BLRD-09/2010-872 dated Feb 06, 2010).
iv. Resolution duly passed by the Trustees regarding opening and operation of Account in the Bank in the
name of Trust. It must be ensured that mandate for operation of account given in the resolution is not
in violation of the provision of Trust Deed.
v. Copy of CNIC of all the Trustees attested by an officer of the bank. (Authorized officer of the bank must
affix the stamp “Original Seen” along with AS/IBS number under his seal and signature).
vi. CNIC of the Trustees must also be verified through NADRA on-line VeriSys System.
vii. List of Trustees duly certified at least by two Trustees should be obtained.
viii. Certified copies of Letter of Administration/ Instrument of Trust or Trust Deed.
Bank may open accounts of Trust covered under section 227 of Companies Ordinance 1984 including Provident
Fund, Gratuity Fund and Pension Fund after obtaining evidence of registration with any Government Authority.
Branch Manager has to ensure that the opening of Trust Account and subsequent operation in the account is in
accordance with the spirit of KYC, Customer Due Diligence (CDD) and other Money Laundering/Combating
Financing of terrorism (AML/CFT) safeguards.

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 1.1.9 Minor Accounts - (Age below:18)
A Minor is a person who has not attained the age of 18 years, if the Court appoints guardian of his/her person
or property, then the period of his minority extends to the age of 21.
i. Duly filled Account Opening Application
ii. An account in the name of minor is allowed to open by his guardian, jointly in the name of guardian
and Minor, payable to either or survivor opener of the Account.
iii. Title of Account is on the Minor’s Name (As per Form–B) & word “Minor” be added to the Title of
Account.
iv. Account/Client must be opened by using the CNIC No. of the Minor which is provided in the Form B
v. In the Account Opening Application, the particulars of the Guardian will be filled out in the column of
“Personal Information”.
vi. Photocopy of Computerized National Identity Card (CNIC) of the Guardian attested by an officer of the
bank. (When copy of CNIC is attested by the authorized officer of the bank he must affix the stamp
“Original Seen” along with AS/IBS number under his seal/ signature).
vii. CNIC of the Guardian must also be verified through NADRA on-line VeriSys System.
viii. Attested photocopy of Form-B of Minor.

1.1.10 Illiterate / Disable/ Blind Persons/ Photo Accounts

i. Duly filled Account Opening Application
ii. Specimen Signature Card (SF-6A2).
iii. Photocopy of Computerized National Identity Card (CNIC) of the individual attested by an officer of the
bank. (Authorized officer of the bank must affix the stamp “Original Seen” along with AS/IBS number
under his seal and signature).
iv. CNIC of the individual must also be verified through NADRA on-line VeriSys System.
v. Two passport size attested Photographs. (One photograph shall be pasted on the Account Opening
Form and the other one will be pasted on Specimen Signature Card.
vi. Left and Right thumb impressions on the account opening application & Specimen Signature Card
(SSC).
vii. In case of a customer with shaky signatures the account should be opened as ‘Photo Account’. All
cheque withdrawals are in physical presence of customer.

1.1.11 Government Accounts

It must be ensured that government accounts are not opened in the personal names of the government
official(s). Any such account, which is to be operated by an officer of the Federal/Provincial/Local Government
in his/her official capacity, shall be opened only on production of a special resolution/authority from the
concerned administrative department duly endorsed by the Ministry of Finance or Finance Department of the
concerned provincial or Local Government.

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 1.1.12 MCB Employee Salary Accounts
i. Duly filled Account Opening Application
ii. Specimen Signature Card (SF-6A2).
iii. Copy of CNIC or copy of Passport of the individual attested by BM or BOM or Authorized Officer of the
bank. (Authorized officer of the bank must affix the stamp “Original Seen” along with AS/IBS number
under his seal and signature).CNIC of the individual must also be verified through NADRA on-line
VeriSys System.
iv. Request email/ letter from the Manager or Unit or Department head
v. Accounts for MCB Employee & Spouse & MCB retired staff that is getting pension will be opened under
“STF” client type whereas employees of Outsourced companies will be opened under “OSS” client
type.

1.1.13 Non-Resident Accounts

Obtain following additional documents along with the documents mentioned for opening an individual
account:
i. Copy of Passport 1st 4 pages.
ii. Copy of the page of the passport where last-entry into Pakistan was stamped.
iii. Copy of Valid Visa of Pakistan for foreigners.
iv. Copy of Valid Visa of the relevant country for Non-Resident Pakistanis.
v. Copy of “Work Permit” or “Employer Certificate” or “Employer Card”.
vi. Written request to open an account which clearly states that he/she is a foreign national and purposes
of account opening.

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1.2 SYMBOLS ACCOUNT TYPES, CURRENCY, SERVICE TYPES & INTREST TYPES
Following are the Symbol Account Types, allowed Currency and Default Service Types for all Products. All
branches are advised to ensure strict adherence while opening accounts in SYMBOLS.
Default Applicable
Current Accounts Symbols A/C Type Allowed Currency Service Interest Type
Type
i. Current Account CUR PKR SVC Not Applicable
ii. Basic Banking Account BBA PKR N/A Not Applicable
iii. Current Life Account LIF PKR SVL Not Applicable
iv. Business Account BUS PKR SVB Not Applicable
v. New Foreign Currency Current Account NFC USD / GBP / EUR/ JPY SVC Not Applicable
vi. Collection Accounts CCA PKR N/A Not Applicable
vii. Call Deposit Receipts Manual Issued PKR N/A Not Applicable
viii. FCY Current Account CUR Discontinued - Not offered to Customers

Default Applicable
Saving Accounts Symbols A/C Type Allowed Currency Service Interest Type
Type
i. (PLS) Savings Account PLS PKR SVP PLS
ii. Smart Savings Account SSA PKR SVP SSA
iii. 365 Savings Gold Account GLD PKR SVG GLD
iv. Khushali Bachat Account KBA PKR SVK KBA
v. Savings Xtra Account MSX PKR SVX MSX
vi. Salary Club Gold Account MEA PKR N/A MEA
vii. Savings Maximizer Account MSM PKR SVP MSM
viii. New Foreign Currency Savings Account NFS USD/ GBP/ EUR/ JPY SVP NFS
ix. Smart Saving Foreign Currency Account SSF USD SVP SSF
x. 365 Savings Account 365 PKR SVM 365
xi. Enhanced Savings Account ESA Discontinued - Not offered to Customers
xii. Rupee Maximizer Account RMA Discontinued - Not offered to Customers
xiii. Dollar Khushali Bachat Account KBF Discontinued - Not offered to Customers
xiv. PLS FCY Saving Account PLS Discontinued - Not offered to Customers

Default Applicable
Term Deposits Symbols A/C Type Allowed Currency Service Interest Type
Type
F1M PKR N/A FDA
F1Y PKR N/A FDY
F2M PKR N/A FDA
F2Y PKR N/A FDY
F3M PKR N/A FDA
i. Flexi Deposit Account (FDA)
F3Y PKR N/A FDY
F5Y PKR N/A FDY
F6M PKR N/A FDA
F9M PKR N/A FDA
FHD PKR N/A FDD
1MY PKR N/A FDY
2MM PKR N/A FDA
2MY PKR N/A FDY
3MM PKR N/A FDA
ii. Mahana Profit Account (MPA)
3MY PKR N/A FDY
5MY PKR N/A FDY
6MM PKR N/A FDA
9MM PKR N/A FDA
iii. Smart Foreign Currency Term Deposits (SFTD) Manually booked USD N/A N/A
iv. Special Notice Deposit (SND) Manually booked Discontinued - Not offered to Customers
v. Term deposit Receipts (TDR) Manually booked Discontinued - Not offered to Customers
vi. Special Term Deposit Receipt (STDR) Manually booked Discontinued - Not offered to Customers
vii. Fixed Deposit - FCY Manually booked Discontinued - Not offered to Customers

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1.3 ACCOUNT ACTIVATION DEPOSIT
Account Activation Deposit can be accepted in cash or as a cross cheque from the customer once account is
opened i.e., account number is generated and communicated to the customer.
Cheques may only be accepted as part of Account activation deposit in case of undoubted parties and on the
personal responsibility of Branch Managers. In all such cases, the cheque must be crossed by the customer
before being lodged for clearing / collection. If cheque is deposited before the account number is generated it
will be kept in safe custody under dual control.
In case the cheque is returned unpaid it is the responsibility of the Branch Manager to re-conduct the KYC and
ensure activation deposit is made in the account.
Above requirement applies across the board unless approved otherwise by the competent authority in the
Product Program for specific products

1.4 COMPUTERIZED NATIONAL IDENTIFICATION CARD (CNIC) /ONLINE VERIFICATION/

VALIDATION
i. Valid CNIC of the customer and its on-line verification from NADRA’s VeriSys system is one of the
prerequisite for new account opening and must be strictly followed. To evidence that the verification of
CNIC was performed branches are required to print copies of customer’s CNIC from VeriSys system and
retain the same with account opening forms. Ensure CNIC verification through NADRA Online VeriSys
BEFORE opening of account/ establishment of any relationship.
ii. In case where the customer do not have a ‘valid’ CNIC the bank may open the account on the basis of
expired CNIC and a receipt issued by NADRA evidencing that customer has applied for renewal of his
CNIC along with an undertaking in writing stating that the valid CNIC will be submitted within 15 days of
the issuance of CNIC as evidenced by the receipt. Further, in case of ‘registered aliens’ who wish to open
a bank account in Pakistan in Pak Rupee, the bank may accept a copy of valid ‘Alien Registration Card’
issued by National Aliens Registration Authority (NARA) instead of CNIC. Likewise, bank may also accept
copy of National Identity Card for Overseas Pakistani (NICOP) & Pakistan Origin Card (POC) issued by
NADRA in lieu of CNIC for opening of account in Pak Rupee or Foreign Currency (same verification
process applies as for CNIC). Proof of Registration (PoR) issued by NADRA to Afghan Refugees is not
acceptable for opening of account.
Note: if the account is Opened with expired CNIC and hence on basis of receipt issued by NADRA, it is
prime responsibility of the Branch Manager/ Operations Manager to keep close liaison with the
customer and update the CNIC number in the system/ bank records as soon as the customer gets his
new CNIC. In-case the customer is unable to furnish the same within 30 days, BM/ BOM should
immediately block the account for any further withdrawal activities (irrespective of the mode of
payment) and mark restraint type ‘STW’ to the account.
iii. While opening the account Authorized Officer should check that customer address provided on Account
Opening Form (AOF) is the same as given on CNIC. In case the address given on AOF is different from the
one given on CNIC, proper justification /documentary evidence should be obtained from the customer.
Documentary evidence could be a copy of the Utility bill OR Original Registration of the new residence.
In case of rental residence, lease / tenancy agreement OR a letter from the landlord along with Landlord
NIC/ Utility bill stating that the person wishes to open the account lives in his or her property as a tenant
etc.

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 iv. Branches will not recover “CNIC verification charges” from their accountholders and/or prospective
customers. The verification of CNIC is not a direct service to the customers rather it is an effort of the
bank towards mitigation of its own risk.
v. All the documents mentioned above MUST be seen in original by an authorized officer of the bank. After
seeing the original documents the authorized officer will affix a rubber stamp on its copies saying
“Original seen & copy attested” along with AS/IBS number under his/her signature/stamp.
vi. While opening the account Authorized Officer should check that customer Signature provided on
Account Opening Form (AOF) is the same as per CNIC. Incase Signatures differ; an undertaking of the
fact must be obtained from the customer as per Annexure XXII
Note: NADRA Verification facility is meant to be used strictly for bank’s internal operations / purpose as
prescribed by the bank / regulations it should not be used for any other purposes and any such verification print
out to remain with banks record. In case of misuse it is a clear violation of VeriSys service agreement with
NADRA.

Guidelines for Existing Customers with In-Valid NIC:

SBP had given the final opportunity to banks for regularizing accounts without CNIC up to Dec 31, 2009. Upon
expiry of this deadline bank is required to adopt the following procedure: (BPRD Circular letter No. 30 of 2009)
 Inform its customers through print and electronic media that upon expiry of extended deadline of
Dec 31, 2009 accounts without CNIC will be blocked for all debit transactions/ withdrawals,
irrespective of mode of payment until subject regulatory requirement is fulfilled.
 Debit block option should be exercised after one month prior notice is served upon to such
customers who have not submitted copies of their CNICs. Remove the debit block from the accounts
upon submission of copy of CNIC.
 Remove the debit block from accounts upon submission of copy of CNIC.
In light of the above regulation from SBP, BM/ BOM can exercise debit Block option; restraint type “STW” to
block withdrawal from customer’s account
Note: As per BPRD Circular letter # 32 of 2010 dated 22-dec, 2010, Credit Transactions are allowed in accounts
where Bank/ DFI does not have latest attested copy of CNIC.

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1.5 CLEARANCE OF ACCOUNT HOLDER’S NAME FROM UN/ OFAC/ BOE/ EU/ OTHER LISTS

UN: Al-Qaida & Taliban List of United Nations

OFAC: List from Office of Foreign Asset Control
BOE: Sanctions List from Bank of England
EU: Sanctions List from European Union

i. Another prerequisite for opening of customer account is to check and get clearance of account holder
name from UN / OFAC/ BOE/ EU and other lists for Black listed names. These lists are updated and sent
to branches by Compliance Group (CCG) from time to time; also is available at from MCB Intranet Portal
 Compliance  Compliance Library  SDN Lists
ii. Branch Manager (or BOM in absence of BM) should notify on AOF “NAME CLEARED FROM UN/OFAC/
BOE/ EU LISTS” along with AS/IBS number under his signature.
iii. In case of any positive match the query should be sent to Compliance under a copy to respective GM for
further check and necessary action.

1.6 EXEMPTION FOR SENIOR CITIZENS TO OPEN AN A/C AGAINST EXPIRED CNIC
For senior citizen having age of 65 years or above Central Bank has allowed banks to open an account on the
basis of expired CNIC. This change in the policy is based on the fact that NADRA has provided a relaxation to the
senior citizens from renewing their CNICs after attaining the age of 65 years or above.
(Refer SBP circular BPRD/BLRD-09/2009-3857 dated June 09, 2009).

1.7 OPENING OF CONSUMER CUSTOMER’S COLLECTION ACCOUNT (CCA)

i. Opening of CCA accounts is to be handled by Consumer Asset Operations and NOT Branches.
ii. The purpose of such accounts (CCA) is to collect Customer Consumer Loan Periodic Installments
iii. All CCA accounts will be a non-checking account where no cheque book and ATM will be issued and no
minimum balance and/or service charges will be applicable and no dormancy should be placed to this
account
iv. Once account is opened by and regularized by Consumer Sales Staff and Consumer Asset Operations, all
documents will be sent to nominated branches (as under) for their record.

Central North South

Lahore: Allama Iqbal Town Rawalpindi: Murree Road Karachi: Gulistan-E-Joher
Faisalabad: People’s Colony Islamabad: Super Market Hyderabad: Latifabad No.8
Sialkot: Trunk Bazar
Gujranwala: Model Town
Multan: Mall Plaza, Cantt.

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1.8 RESTRAINT TYPES
The following Restraint Types can be used by Branches. BMs/ BOMs are advised to mark the correct restraint
type according to the need. No other restraints other than the ones given below are to be used by branches.

SYMBOLS SYSTEM
Type Purpose/ Instructions
DESCRIPTION
To restrict account transaction forcefully e.g. In case of a customer's
death. As a precaution, Branch should amend Customer's name in the
AAD Account Activity - Deseized
System and add "Deceased" after the name. In-Case of" AAD" is marked;
Service Type ZAK must be removed from the account.
To block the account’s financial transactions on the request of customer
AAS Account Activity - Seize OR instructions of Court Or any other Competent Authority. It is
Mandatory to record the details in the Narration field in the system.
To block the account activity with regard to Consumer Product
ASC Account Seize Consumer
Operations
BSW BSA Stopped Activity To stop Withdrawal from Business Sarmaya A/c
CLA Classified Accounts To mark classification on Loan accounts
This is an Informatory Restraint. Provide information about Customer
CNI Computerized NIC Update
CNIC Expiry. Computerized NIC need to be updated in the account
This is an Informatory Restraint. Provide information that this is an "EPZ
EPZ EPZ Branch Account
Branch account". This restraint should be used by EPZ Branch Only.
CMD CMD Corporate Clients Provide Information about CMD customers.
CSH Cash Only To restrict customer to Cash transactions ONLY
This is an Informatory Restraint. Provide information about exemption of
EUN Exempted Unclaimed Account
an account from being marked as 'unclaimed'
This is an Informatory Restraint. Provide information about an account
EWT Exempted Withholding Tax
being Exempted from W/H Tax
In case of Garnishee Order/ Legal or investigation cases, Funds can be
FOH Funds-On-Hold
restricted on amount.
To Stop Withdrawal in an account due to any specific reason mentioned
STW Stop Withdrawal by branch e.g. documentation issues (specially Expired CNIC), customer
requests etc
This is an Informatory Restraint. Provide information about waiver of
PRB Charges Waived PO/DD/TT/etc.
Service charges on a particular product/ account as per SOBC
SCB Stop Cheque – BT To Stop particular Cheque(s) for payment in BT
STC Stop Cheque To Stop particular Cheque(s) for payment in EOC
SDA Stop Any Deposit To Account To Stop deposit in any particular account on special instructions
This is an Informatory Restraint. Provide information about a staff
STA Staff Account
account
This is an Informatory Restraint. Provide Information about Zakat
TZA Zakat Applicable On TDA
applicability on TD.
This is an Informatory Restraint. Provide information about return of
WAU Whereabouts Unknown "Letter of Thanks/ Bi-annual statement/ any other correspondence" and
that the customer address is incorrect.

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1.9 EXEMPTION OF SERVICE CHARGES
i. Accounts maintained by Employees of Government /Semi Government institutions for Salary, Pension &
Benevolent Fund purpose including widows/children of deceased employees eligible for family pension /
benevolent fund grant etc. in any manner whatsoever.
ii. Accounts opened and maintained by School Management Committees (SMCs) duly constituted by
Education Department, Government Sindh shall not be transferred/flagged as “Dormant” and shall be
exempted from levy of ‘Service Charges’ on account of non maintenance of minimum balance
requirement. (BPRD Circular Letter # 02 dated Jan 25, 2010)
iii. Where an account has become ‘Dormant’ as per the approved policy of the bank, no ‘Service Charges’
shall be deducted from these accounts. (BPRD Circular No. 02 of January 02, 2010).\
iv. Students
v. Mustahqeen of Zakat.
vi. Zakat accounts maintained for collection and disbursement of Zakat funds
vii. MCB Employees and their spouses.
viii. All Basic Banking (BBA) Accounts.
ix. ‘MCB Privilege’ Banking Customer
x. All Collection Accounts i.e. Non-Checking accounts from where the balances/funds as per
standing instructions, are transferred to customers’ main collection account whether daily or
on periodic basis.
The above exemption would be applicable only on those accounts where account holders have provided
documentary evidence to the branch.

1.10 LETTER OF AUTHORITY

i. Branches are allowed to accept a Letter of Authority from a customer / account holder who wishes to
give authority to a third party such as Father, Mother or any other family member etc; to operate
account on his/her behalf through Letter of Authority or through Standard Form 67 (SF-6A27).This
‘authority’ must be duly signed, completed and be backed by a written request giving therein the
reasons / relationship amongst the account holder(s).
 For third party mandate holder, Branch is required to perform/complete KYC requirements also on a
separate KYC Form.
ii. Branches are also permitted to open Bank Account on the basis of Letter of Authority provided Donee is
specifically empowered to open and operate the Bank Account.
iii. The branches will retain the original Letter of Authority if it is exclusively for opening and operation of
Bank Account. In case it is for various other transactions, original can be returned after retaining an
attested copy thereof and a stamp like one below shall be affixed on the original and copy thereof and
the serial number noted on them.
MCB BANK LIMITED,
Branch: _______________________
Registered Number: ______________
iv. When Power of Attorney lapses or is revoked, proper marking/noting must be made in the
system/signature cards wherever applicable.
v. When Letter of Authority is revoked/cancelled by the constituents the cancellation/effective date must
be recorded on Attorney form or SF-6A27. Moreover, clearly mark SF-6A27 as CANCELLED. An index to
the Power of Attorney Register, giving the names of both the grantor(s) and the grantee(s) of each
power of attorney must be maintained.

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 vi. A Power of Attorney is required to be stamped in accordance with the provisions of the Stamp Act. A
Power of Attorney executed abroad for use in Pakistan must be authenticated by Pak Embassy or
Consulate General of Pakistan abroad in the country in which it is executed but it must be stamped
within three months of its first arrival in Pakistan.
vii. The Power of Attorney executed in Pakistan should either be registered under the Registration Act or
authenticated by Notary Public or Class-I Magistrate.
viii. Important clauses of the Power of Attorney shall be scrutinized specially with regard to the opening of
account and the borrowing powers.
ix. The exercise of powers by the agent must be watched to ensure that the same does not exceed the
authorized limits. A general authority to transact business does not give an agent power to draw, accept
and endorse bills nor does an authority to draw bill, confer authority to accept or endorse and vice
versa. If government securities are to be dealt with, specific reference to such securities must be made;
a general reference for dealing in securities will be insufficient. In the event of an attorney delegating
any of his power to a third party, it must be ascertained that substitution is provided for in his Power of
Attorney.

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Chapter 2 CUSTOMER DUE DILIGENCE / KNOW YOUR CUSTOMER

2.1 ELEMENTS OF BANKS CDD/ KYC POLICY

1- Customer Identification: Establishing the identity of customers is central to the CDD / KYC policy both for the
customer acceptance or rejection decision and for the on-going monitoring of customers' accounts and
transactions. By identifying customers effectively, you are able to deal with them in the appropriate manner and
comfortably.

2- Customer Acceptance: The point at which a new customer is accepted or rejected is the easiest point at
which the risk of dealing with illegal money can be avoided. By following good customer acceptance policies, you
can avoid dealing with entities and individuals who might engage in illegal transactions.

3- Accounts & Transactions Monitoring: In an effective CDD / KYC policy, customer accounts and transactions
are properly classified in terms of risk and are regularly monitored. Through checks and thresholds, unusual
activities or activities by high-risk customers are detected and reviewed.

4- Risk Management: To ensure that the risks posed by money laundering / terrorist financing and other
criminal customer activities are consistently dealt with, good risk management practices are essential. In this
way the Bank can 'scale' its operations by remaining vigilant about customer-driven risk.

2.2 CDD/ KYC POLICY

The general misperception of Branch Managers on Customer Due Diligence (CDD) / KYC / AML policy is that SBP
regulations make the new account opening difficult. On the contrary, proper account documentation and CDD /
KYC procedures provide satisfaction and protection to the Branch Managers / staff against unforeseen events
and assist in establishing relationship in accordance with the bank’s policies. Getting maximum reliable
information about the customer is the basic principle of good banking which enables the Bank to make correct
decisions to meet with customer’s genuine banking requirements promptly. Branch officers / staff must ensure
that all the necessary documents have been obtained at the time of account opening or at the time of ongoing
reviews of CDD / KYC formalities.
The Bank has a statutory obligation to know its customers (which includes Customer Identification (CI),
Customer Acceptance (CA), Assigned Risk Rating (Normal or High) and subsequent monitoring of transactions). It
is also obligatory to understand the nature of the business to be conducted with us, beneficial ownership(s) and
3rd party mandates. This applies to all type of customers regardless of who they are, their personal status (For
PEPs see Section 4.12 of CDD-AML-Handbook), or the type of account or service that they require.
Knowing your customer means:
i. Seeking evidence of identity and address and independently confirming that evidence at the start of a
business relationship with the Bank.
ii. Seeking information regarding the nature of the business that the customer expects to conduct with the
Bank, establishing sources of income and expected patterns of transactions, and keeping that

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 information up to date, to show what might be regarded as normal activity for that customer.
iii. All resident prospective customers for accounts with MCB must be seen face to face except those
customers who are living abroad and wants to open a non-face-to-face/on-line account; adequate
measures in this regard should be taken, for example, independent verification by a reliable 3rd party,
client report from the previous bank / DFI of the customer, etc.
Branch Manager: Will be responsible for reviewing all HR Accounts once in a year and NR accounts once in
three years.

2.3 COMPLETION OF ACCOUNT OPENING & KNOW YOUR CUSTOMER FORMS

All prospective customers must completely fill-in all the appropriate columns of Account Opening Form (AOF)
and provide the necessary documentary evidence of identity and financial information. If any column on AOF is
not applicable it should be stroked out as “N/A”; and no section should be left blank. The customer must be
interviewed by the Branch Manager (BM) and he MUST sign the KYC Form.(In the absence of Branch Manager
BOM may interview and sign the KYC Form which at a later stage MUST be ratified and signed by the Branch
Manager). Having completed the CDD/KYC requirements the AOF be handed over to Branch Operations
Manager (BOM). Branch Operations Manager (BOM) must sign the AOF in order to keep intact the maker-
checker policy of the Bank. The details of the AOF must invariably be input in the system by the BOM. The
system generated report after this input MUST be checked by the BM.
i. Any additional information obtained during the interview about the customer’s background, country of
origin, public or high profile position (PEP), nature of business and financial standing should be recorded
by the branch manager and kept in customer’s file.
ii. No account will be opened until the Account Opening & Know Your Customer Forms have been
completed and all documents have been received and examined to ensure that they are valid.

2.4 THRESHOLD LIMITS

All transactions across accounts, above the following specified financial thresholds, will be reviewed and signed
off as being in line with CDD / KYC information retrospectively by the respective Branch Managers. System
generated reports will be produced for accounts with a debit or credit transactions or turnover above the
following threshold limits:
High Value Transactions Limit PKR 1,000,000 and above

Personal and Business Accounts: Thresholds will be input into the system as per the account holder’s profile.
For Sole Traders / Partnership accounts branch managers will decide the expected debit and credit turnover in
the account after a thorough interview with the prospective customer, and in case of personal accounts,
individual’s monthly income / salary will be input as threshold limits in the system.

Corporate Accounts & All Other Accounts: In line with the financials or expected turnovers in corporate
accounts, Branch Managers / Regional Head will decide the respective parameters to be used as threshold
limits for accounts falling into this category.

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 The above limit has been put in place to monitor the accounts’ activities and by no means suggest that any
transaction exceeding the limits will constitute a “Suspicious Transaction”. Branch managers should use their
judgment when they review such transactions and must refer to their respective RH / GMs or Business Heads
when in doubt.

2.5 EXCEPTION REPORTS

Income / Salary / Turnover Exceptions Report

This report shows all the accounts where income/salary or Dr/Cr Turnover exceeds the financial profile set
in the account. This report will be basic tool for monitoring KYC. The parameters will be updated as and
when the KYC is updated as per the CDD / EDD criteria of the Bank.

High Value Transactions Report

In order to monitor the exceptions, the above report is generated by Knowledge Manager (KM) and
forwarded to respective branches on very next day; which will be a vital tool for monitoring customer
transactions:
i. This report will include the high value cash transaction over the counter for PKR 1,000,000/- and
above as well.

Responsibility of the Branch Manager

i. Will be to review these reports and take actions where necessary and update KYC as per CDD / EDD
procedures as well as make notation on the above mentioned reports as to what action has been taken.
These reports will be checked /audited by the respective RCO during the visit of the branch.
ii. Any change in client’s profile (change in turnover) already established in the record/system must be
supported by source document.
For further details on the Policy guidelines, please refer “CDD/KYC & AML Procedures Hand Book” from
Compliance Group that is available on MCB Portal.

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Chapter 3 ACCOUNT OPENING PROCESS FLOWS

3.1 OVERVIEW
There are multiple kinds of account opening processes that are to be followed by different type of branches/
channels which are listed as under:

3.1.1 Normal Branches (Other than E2E)

As a general rule, customer’s in-person presence is required for establishing the new account relationship
with the bank. Fulfillment of account opening requirements, obtaining the required documentation and
compliance with institutional and SBP mandated ‘Know Your Customer’ policy related requirements is the
direct responsibility of the concerned branch.
Role and responsibilities of the staff involved in account opening process are defined in 3.2 - Account
Opening – Normal Branches (other than E2E)

3.1.2 E2E Account Opening – by Centralized Branches (Accounts being opened at CPUs)
Account Opening Function is centralized at Central Processing Units in two cities (Lahore & Karachi).
Fulfillment of account opening requirements, obtaining the required documentation and compliance with
institutional and SBP mandated ‘Know Your Customer’ policy related requirements is the direct
responsibility of the concerned branch whereas data entry, Account # generation, completion of docs,
generating/dispatching LOT and record keeping (e-filing) etc are performed by respective CPUs.
Role and responsibilities of the staff involved in account opening process are defined in 3.3 - Account
Opening – Centralized Branches

3.1.3 Direct Sales Channel: Accounts being opened by Direct Sales Force
For handling the new account relationship by designated branches of CBBG under the umbrella of ‘Direct
Sales Channel’ there are approved exceptions to the general rule in terms of roles of staff involved in
soliciting and processing the new accounts.
These exceptions are defined in Section2: 3.4 - Account Acquisition by Direct Sales Force

IMPORTANT NOTE: For Sub-Branches: Ref. to BPRD Circular # 15 of 2007 Revised Branch Licensing Policy,
Account opening & issuance of account number and other formalities including Know Your Customer (KYC)
and Customer Due Diligence (CDD) shall be performed by the controlling branch (not by sub-branch)

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3.2 ACCOUNT OPENING – NORMAL BRANCHES (OTHER THAN E2E)
Customer: comes into the branch and requests for opening an account.
Designated officer: delivers the Account Opening Application along with the Terms and Conditions (AT&C) and
relevant documents to the customer.
Customer: receives the Account Opening Form (AOF) from Designated officer and submits duly completed AOF
and relevant documents to the Designated officer.
Designated Officer:
i. Checks that all the fields in the Account Opening Form have been duly filled, and the relevant account
documentation required from the customer depending on the type of account are completed and
attached.
ii. Obtain customer’s signatures on the AOF and SS Card (in person). Only Black Ink to be used on SS Card.
iii. Moreover one signature card will be used to capture per signature of the client (In case of Joint
Account Holders use additional signature card). Stamp of Mandate Confirmation should also be affixed
on SS Card.
iv. Ensures that all un-used blank fields/ sections of Account Opening Application are crossed/ cancelled.
v. Subsequently takes the form to the Operations Manager and Branch Manager for verification and
authorization.
Operations Manager (BOM):
i. Verification of CNIC through NADRA’s online VeriSys system and attach a copy of the same with AOF.
i. Checks all required documents along with CNIC in original and affixes “Original Seen” Stamp on copies
along with his/her authorized signature & AS/IBS number
ii. Admits customer signature.
iii. Sign-off and affix stamp on the Account Application.
iv. Forwards AOF & Client Profile Form to Relationship/Branch Manager.
Branch Manager (BM):
i. Interviews the customer.
ii. Check & ensure that the individual is not listed in UN/OFAC/ BOE/ EU list (from MCB Intranet Portal 
Compliance  Compliance Library  SDN Lists) for black listed names. BM or (BOM in absence of BM)
should notify on AOF with the wording “NAME CLEARED FROM UN/OFAC/ BOE/ EU LISTS” under his
signature and AS/IBS number.
iii. In case of any positive match the query should be sent to Compliance with a copy to respective GM for
further check and necessary action.
iv. Completes and sign off Know Your Customer (KYC)/ Client Profile Form.
v. Returns the same to the Designated Officer for further processing.
Designated Officer:
i. Selects SYMBOLS Branch Teller Module > Transaction > Non-Financial Transaction > Client Definition
(Screen # BT41) to create a client.
ii. Insert Client Short Name. This is used as the default Title of Account whenever an account is opened.
iii. Input Client full Name.
 Pop-up box will appear on the screen:
 Input or select appropriate ID Type & insert CNIC/Passport number & press OK. (Box will close
automatically)
iv. Insert Country Code, State, Country of Citizen, Country of Risk.
v. In the next section of the same screen, insert Client Indicator as “N” Normal, or “S” Staff

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3.2 ACCOUNT OPENING – NORMAL BRANCHES (OTHER THAN E2E)
vi. Input address as written in Account Opening Application
vii. Select Account Executive & Client Type then press F-10 or click save icon available on Tool Bar. System
generates the client number and Pop-up box appear on the screen with the following message:
“SUCCESSFULLY OPENED 09 DIGIT CLIENT NO xxxxxxxxx”
viii. Designated Officer notes down the client number on the account opening form.
ix. In case of joint account holders, separate client numbers will be given to each client.
Account Opening:
i. Uses SYMBOLS BT Module > Transaction > Non-Financial Transaction > Account Opening > select type
of account Current or PLS (Screen # BT42) and for Term Deposit (Screen # BT42).
ii. Input Account Type, insert Client Number and press enter. Client information will be retrieved on the
screen
Account Details:
i. Input Title of Account in Account Description.
ii. Input or select Account Currency.
iii. Select Statement or Passbook.
iv. Select ownership as Association, Single, Joint or Succession. If Designated Officer will select Joint,
JOINT ACCOUNT TAB will be activated. (Link secondary clients with the account)
v. Select Client Indicator as “N” Normal or “S” Staff
vi. Free Cheque (Optional field)
vii. Input or Select appropriate SBP Classification code.
viii. Tolerance Amount & Auto fund transfer fields (Optional).
Joint Account:
i. Input client number and press Enter, Client name and address will appear on screen. (If secondary
client will not be linked with account then ownership type will be changed into Single).
Account Statement:
i. Select Contact Type as PO or PO1
ii. If customer's existing address is different from the already opened account then BOM will insert
customer's address which is mentioned in the Account Application in the Kernel Module >> Static
>> Client Information >> Client- screen # FM 144 (Contact information in the field of Address.
Contact Type will be defined as PO1 or PO2)
iii. Address given in PO1 should be attached with the second account by using Deposits Module>>
Static >> Acct Maint >> Current or Savings >> Account Open Maintenance RB212. (In the Statement
Option, Contact Types will be defined as PO1).
iv. Select Default Statement Frequency or as per customer’s request from List of Values (LOV).
v. Select Statement Handling options from LOV as MA for Mail & CO for Collection. (Collection- CO
will only be used in case where customer wishes to have a Hold Mail facility).
Service Charges:
Service Charges TAB shows following two charges attached with the account.
 Service Charges – Select appropriate ‘Service Type’ according to Section 1: 1.2 SYMBOLS Account
Types, Currency, Service Types. Service Charges are not linked with the exempted accounts. (The
exemption to Service charges would be applicable only on those accounts where account holders
have provided relevant documentary evidence to the branch)

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3.2 ACCOUNT OPENING – NORMAL BRANCHES (OTHER THAN E2E)

 Withholding Tax on Cash Withdrawal: Ensure that restraint type “CSW” is marked on all accounts.
For exceptions refer to Section 2: 4.25 Procedure to mark Tax Exemption Restraint

 ZAK- Zakat Service Charge

i. Zakat Deduction service charge type (ZAK) is only attached with the accounts where Zakat
Declaration Form is not submitted by the customer (Only for Muslims). In case of joint account
Declaration is required for both. Zakat deduction is not applicable on Non-Muslims.
ii. Select ZAK as Type, ZK as frequency & press enter Next Charge Date by default appears as for the
next year. For example: If account opening date is 07th November, 2006 than Next Charge date
should be 07th November, 2007.
Note: ZK is the auto frequency type for Zakat Deduction.
System generates the account number:
i. Designated Officer notes down Client &/or Account Number on the Account Opening Application
and Deposit slip.
ii. Provides the Activation Deposit slip to the customer.
iii. Forwards the Account Opening Form, relevant documents, cheque book requisition & ATM
Request to the Branch Operations for further processing. (For Cheque book & ATM procedural
guidelines, refer to the relevant chapters)
Customer: Deposit cash & obtains the receipt from the teller and leaves the branch.
Operations Manager: Admits customer’s signature, affix stamp & sign-off the Application / SS Card. Verifies
customer data with the Account Opening form & other documents.
Designated Authorized Officer/ Operations Manager: Scanning and tagging Specimen Signature Card (SSC):
Scanning and tagging Customer’s Specimen Signature Card (SSC) will be done after account is opened.
Designated Authorized Officer will write respective account numbers on SSC, scan SSC and tag it in SYMBOLS,
as mentioned in the process below:
Note: For photo Accounts, paste Photograph on the front side of SSC

Step 1: Client Activation in BT:

i. “Client activation” is a prerequisite for customer signatory activity. The Designated Officer logs into
relevant branch’s Branch Teller (BT) Module for carrying out this exercise. BT  Enquiry  Customer
information. Screen BT 51 will show up.
ii. Insert complete 9 digits Client Number of the Primary Client.
iii. Press Enter, system automatically retrieves Primary Client data on screen.
iv. This will activate the particular client’s information on BT. Designated officer then exits the screen by
clicking “exit” icon.

Step 2: Customer Signature Scanning & Uploading Activity:

i. Designated officer scans all properly filled and stamped SSCs for a particular account and saves in a
separate folder. Designated Officer logs into Screen BT 44 with the following path: BT Module  Select

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3.2 ACCOUNT OPENING – NORMAL BRANCHES (OTHER THAN E2E)
Transaction  Non-Financial Transaction  Customer Signatory  Screen (BT 44) will show up.
ii. The Designated Officer inserts 9-digit Primary Client number in the relevant field and presses Enter
key. The system asks for Name of Signatory and Description.
iii. The Designated Officer inputs required information of Primary Client and presses Enter Key.
iv. The Designated officer then clicks Scanning button for loading specimen signature(s) from file. System
displays a dialogue box asking for loading a pre-scanned image.
v. The Designated Officer clicks “Yes” Icon and defines path of the folder where SSCs are stored.
vi. The system loads image and displays a preview of SSC.
vii. After re-checking the loaded image with the SSC, the Designated Officer presses F10 to save the SSC, at
Client level, in the BT module.

Note:
i. The Designated Officer has to repeat this activity individually for each SSC to be tagged with a client.
ii. The Designated officer exits the screen by clicking “Exit” icon

Step 3: Attach SSC with Account on BT Module

i. To attach SSC with Account, Designated Officer performs the following exercise: BT Module  Select
Transaction  Non-Financial Trans  Account Signatory. Screen BT 45 will show up.
ii. Designated Officer inputs 16 digit account number and presses Enter key twice. A window will show
the account details.
iii. The cursor reaches by default to “Signatory Number” field which shows primary client number. The
processor presses “Enter” key.
iv. System displays Primary Client’s details. Designated officer presses “Enter” key in limit field, start date
and end date field and reaches to Signature Number field. Here the Designated officer assigns serial
number to the SS Card and presses “F10” key.
v. System displays 3 dialogue box windows for confirmation of saving the data. Designated Officer
presses OK in all of them.
vi. Exits the screen by clicking the “Exit” icon

Step 4: Attach SSC with EOC (Deposit Module):

i. Signatures captured on BT Module have to be attached to EOC so that the signatures are available
throughout the network, otherwise Cross Branch Transactions cannot be performed. Following activity
has to be performed for attaching SSCs to their respective accounts in EOC:
ii. EOC  Deposits  Static  Acct Maintenance  Current Account/ Saving Account. Screen RB 211 will
show up.
iii. Designated Officer will insert 16-digit account number.
iv. Press F8, customer details appear on Screen;
v. Designated Officer clicks “SG Capture” icon
vi. Another window RB49 opens up. Designated Officer enters 9-digit Primary Client number in “Client
Number” field and presses Enter key.
vii. Cursor will move to Signatory Number field, where designated officer will insert the serial number of
SSC, fed earlier in BT. System will display preview of SSC.
viii. Cursor will move to “Start Date” and “End Date” field showing default date of the particular day of
account opening. Designated Officer will keep the Start Date same and change the End Date to 2099
and press Enter key.

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3.2 ACCOUNT OPENING – NORMAL BRANCHES (OTHER THAN E2E)
ix. Designated Officer cross-checks the SSC preview with details appearing on the system in order to
ensure correctness of signature tagging.
x. Designated Officer also check-marks “Attach” field to confirm data correctness and presses “F10” key
to save the data.
xi. Presses “Exit” icon to exit from the screen.

Keep Specimen Signature Cards (SSC) in fire proof cabinets.

Designated Officer:
i. Selects Kernel Module > Static > Client Information > Client (Screen # FM144) and completes client
opening screen # 144 in Kernel Module (Financial Management).
ii. Ensure Information regarding ‘Client Turn-over’ and ‘Client Status’ (NR/HR/PEP etc) on FM-144 >Client
Data is complete in every aspect.
iii. Ensure correct ‘Ownership’ e.g. SG for Individual accounts and JN for joint accounts on FM-144>Client
information is mentioned
iv. Ensure correct ‘ID type’ e.g. NIN for Pakistani residents and FIN for Pakistanis residing abroad etc on
FM-144>Client information is mentioned
v. Dispatches Thank You Letter to the customer.
Designated Authorized Officer/ Operations Manager:
i. Keep Account Opening Forms & the relevant documents in the Fire Proof Cabinets or Vault for record.
ii. Keep Signature Cards in the Fire Proof Cabinets in a sequential order.
iii. If there is any undelivered Letter of Thanks, BOM will mark Restraint on the account by using Deposits
Module >> Transaction>> Acct Facility >> Restraint Setup (Screen # RB 51).
iv. Enter Account Number; account details will appear on the screen. Select Restraint Type from LOV
(WAU- Where About Unknown).
v. Press enter, effective date will auto appear in the field of “Start Date”. Press enter, Popup box appear
on the screen for Narration.
vi. Input Narration in the popup box and press ok, End date appear. Press F10 to save.

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3.3 ACCOUNT OPENING – CENTRALIZED BRANCHES (E2E)
Customer walks in to branch and requests to open an account
Designated Officer delivers the Account opening Application along with necessary guidance to Customer.
Customer receives the Account Opening Form (AOF) from Designated Officer and submits duly completed AOF
along with required relevant documents back to Designated Officer.
Designated Officer checks all the fields in the AOF are filled in properly and the required relevant documents
(depending on the type of account) are attached. Ensures that all un-used blank fields/ sections of Account
Opening Application are crossed/ cancelled.
In case of any discrepancy, Designated Officer returns the AOF to the customer for regularization otherwise the
AOF is forwarded to Branch Manager/Operations Manager for KYC, NADRA verification
Branch Manager/Operations Manager/ PBA/ ASM interviews the Customer.
i. Fills the KYC form and signs off the same
ii. Verifies CNIC via NADRA VeriSys (Online Verification System) and attaches the same with AOF
iii. Checks all required documents along with CNIC in original and affixes “Original Seen” Stamp on copies
along with his/her authorized signature and AS/IBS number.
iv. Check & ensure that the individual is not listed in UN/OFAC/ BOE/ EU list (from MCB Intranet Portal 
Compliance  Compliance Library  SDN Lists) for black listed names. BM or (BOM in absence of BM)
should notify on AOF with the wording “NAME CLEARED FROM UN/OFAC/ BOE/ EU LISTS” under his
signature and AS/IBS number.
v. In case of any positive match the query should be sent to Compliance with a copy to respective GM for
further check and necessary action.
vi. Obtains customer’s signatures (In Person) on Specimen Signature Card (SSC). Only Black Ink to be used
on SS Card. Stamp of Mandate Confirmation should also be affixed on SS Card.
vii. After completion of initial account opening process, customer leaves the branch.
*KYC of customers with turnover of 1 Million PKR and above will be carried out by BM only.
viii. Dispatches the AOF and all required relevant documents, except the Specimen Signature Card (SSC),
along with a covering sheet, in a sealed envelope to CPU via courier service. The branch will retain
SSCs with them.
*SSC, Cheque book and ATM request forms will NOT be sent to CPU with AOF as this activity does not come
under CPU’s ambit.
*Keep Specimen Signature Cards (SSC) in fire proof cabinets
CPU:
i. CPU coordinator receives the sealed envelope containing original AOFs along with relevant documents.
ii. Counter matches details with covering sheet received from the respective branch.
Information of these forms is entered into an MIS and AOFs are distributed among designated staff for
scrutiny
CPU: Designated Officer scrutinizes the forms.
i. If these do not contain any discrepancy, same are forwarded for processing.
ii. In case of any discrepancy, the concerned branch is informed via email.
iii. Depending on the nature of discrepancy, AOF is either held till regularization or is returned to the
branch for rectification.
iv. For the regularization of discrepancies, branches mostly reply by fax and forward scanned images of

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3.3 ACCOUNT OPENING – CENTRALIZED BRANCHES (E2E)
documents through email.
v. Designated Officer checks the discrepancies resolved by the branches. He should ensure resolution of
all discrepancies before forwarding the AOFs for further processing.

Note: Compliance team has been deputed with centralized processing department for reviewing all the
‘High Risk’ accounts before any final decision in made by the business on all such accounts."
CPU: Client Generation in Kernel Module
i. Path for Client Opening in Kernel Module: EOC  Kernel Module  Static  Client Information 
Client (Screen FM 144).
ii. Input complete details of client in required fields (mandatory)
vi. Ensure Information regarding ‘Client Turn-over’ and ‘Client Status’ (NR/HR/PEP etc) on FM-144 >Client
Data is complete in every aspect.
vii. Ensure correct ‘Ownership’ e.g. SG for Individual accounts and JN for joint accounts on FM-144>Client
information is mentioned
viii. Ensure correct ‘ID type’ e.g. NIN for Pakistani residents and FIN for Pakistanis residing abroad etc on
FM-144>Client information is mentioned
iii. After completion of all the fields, press F10.
iv. System opens another window (RB 7F) and generates 9 digit Client Number.
v. Marks Statement Frequency and Next applicable statement date.
vi. Note down client number on account opening form.
Note: Incase Client already exists go on next step for Opening of an Account.
CPU: Account Opening in Deposit Module:
After the client is generated on Kernel module, account opening is done through the following process:
i. Path for Account Opening in Deposit Module:
ii. EOC  Deposit Module  Static  Account Maintenance
iii. Select Account Type i.e. Current Account (RB 211) or Savings Account (RB 212).
iv. Press Ctrl Q for inserting product type i.e. BBA, Current, KBA, Business, etc.
v. Press enter key. Cursor will move to “Customer No” Field.
vi. Insert 9 Digit Client Number and press Enter key. System will show client details on the screen.
vii. In the “Branch Code” field (default code set at 0000), insert 4 digit code of the branch where customer
wishes to open his account. A pop-up window will show up for authorization. Processing Officer will
either authorize it or request designated officer for authorization (this depends on the role and rights
given to the processing officer).
viii. Screen will show various fields to be filled in. Processing Officer inputs all the necessary information.
Presses F10 key to save the data.
ix. System generate 16 (sixteen) digit Account Number.
x. Notes down the account number on AOF in appropriate field.
CPU: Information to Branch via Email For Opened Account:
Complete Account Number along with Customer Name, Type of Account and Date of Account Opened & PBA
code is emailed to the concerned branch.
CPU: Report Checking:
After completion of opening of an account, Processing Officer generates two reports, FM-9149 (client details
listing) and RBA-26 (Account Opening/ Maintenance Details) for verification of details inputted.

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3.3 ACCOUNT OPENING – CENTRALIZED BRANCHES (E2E)
For FM-9149 Report Generation:
i. EOC  Kernel  Reports  Client Information  Client Details.
ii. Insert 9-digit client number and press F10 key. System will generate the required report. Take a print
out for validation of information against AOF. Upon completion of review exercise, the checker will
sign and affix REVIEWED stamp on the report. In case of any discrepancy, the checker will get the
information rectified through the processor.
For RBA-26 Report Generation:
i. EOC  Deposit  Reports  Operational  Account Open Maintenance.
ii. Detail Screen (RBA26) will show up; insert branch code, account type and account number, and press
F10 key. System will generate the required report. Take a print out for validation of information against
AOF. Upon completion of review exercise, the checker will sign and affix REVIEWED stamp on the
report. In case of any discrepancy, the checker will get the information rectified through the processor.

CPU: Generating Letter of Thanks (LOT)

i. Processing Officer generates "Letter of Thanks" via MCB Reports by following path: MCB Reports 
Letter of Thanks  RBMR059: Runtime Parameter Form.
ii. The officer inputs Branch Code(s) and Date in the respective fields and presses Enter key.
iii. System generates LOTs for each account opened for the particular date and shows a preview in Screen
RBMR059 – Previewer.
iv. The Processing Officer saves the generated LOTs for e-filing and also takes a print out of these for
signing by authorized officer and dispatching to the customer.
Dispatch of Letter of Thanks (LOT):
Designated officer dispatches original copy of LOT to customer and obtains shipment advice from the
courier company. Shipment advices are attached with respective AOFs.
Returned LOT:
i. In case LOT is returned by the courier, the same is dispatched to concerned branch after being properly
entered branch wise in MIS of LOT returned.
ii. An email is sent to the branch providing details of returned LOT(s).
Restraint Marking for Returned LOT
i. A restraint "WHERE ABOUT UNKNOWN" has to be marked on the account where LOT has been
returned undelivered.
ii. EOC  Deposits  Transactions  Acnt Facility  Restraint. Restraints screen will appear. Processor
inputs complete 16-digit account number and press F8 key. System will show all the details of the
account.
iii. Processor selects the appropriate restraint type i.e. WAU and presses enter. Presses enter key twice to
set the default dates (start date and end date). Thereafter, a dialogue box will appear that requires
updating with information about restraint reason. Processor inputs “LOT Returned” and presses F10 to
save the transaction.

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3.3 ACCOUNT OPENING – CENTRALIZED BRANCHES (E2E)
CPU: Record Keeping – E-filing on daily basis
i. Proper E-filing of All AOF forms opened in a day, with their LOT is done.
ii. In exceptions and deferral cases, approval emails from BH/GM for the account opening are also made
a part of E-filing in the same day.
For special cases (PEP, etc), which are forwarded to Compliance and Controls Group for obtaining World Check
Report, reply of the Compliance and Controls Group is also made a part of E-filing.
CPU: Dispatch of AOF:
i. Designated officer dispatches processed AOFs for branch record and unprocessed AOF for discrepancy
resolution at branch end.
ii. Individual branches envelops are prepared with individual branches summaries which contains all AOF
details.
iii. A courier summary, which acknowledges the details of all AOFs, is dispatched to branches along with
envelopes.
iv. A receiving of all envelopes handed over by CPU is also obtained by courier representative.
v. Branches also send back the receiving copy of summaries to confirm that they have received
those forms.
Branch : Scanning and tagging Specimen Signature Card (SSC):
Scanning and tagging Customer’s Specimen Signature Card (SSC) will be done at branch after account is opened
at CPUs.
Upon receipt of original processed AOFs at branches, concerned personnel at branch will write respective
account numbers on SSC, scan SSC and tag it in SYMBOLS, as mentioned in the process below:
Note: For photo Accounts, paste Photograph on the front side of SSC
Step 1: Client Activation in BT:
i. “Client activation” is a prerequisite for customer signatory activity. The Designated Officer logs into
relevant branch’s Branch Teller (BT) Module for carrying out this exercise. BT  Enquiry  Customer
information. Screen BT 51 will show up.
ii. Insert complete 9 digits Client Number of the Primary Client.
iii. Press Enter, system automatically retrieves Primary Client data on screen.
iv. This will activate the particular client’s information on BT. Designated officer then exits the screen by
clicking “exit” icon.

Step 2: Customer Signature Scanning & Uploading Activity:

i. Designated officer scans all properly filled and stamped SSCs for a particular account and saves in a
separate folder. Designated Officer logs into Screen BT 44 with the following path: BT Module  Select
Transaction  Non-Financial Transaction  Customer Signatory  Screen (BT 44) will show up.
ii. The Designated Officer inserts 9-digit Primary Client number in the relevant field and presses Enter
key. The system asks for Name of Signatory and Description.
iii. The Designated Officer inputs required information of Primary Client and presses Enter Key.
iv. The Designated officer then clicks Scanning button for loading specimen signature(s) from file. System
displays a dialogue box asking for loading a pre-scanned image.
v. The Designated Officer clicks “Yes” Icon and defines path of the folder where SSCs are stored.
vi. The system loads image and displays a preview of SSC.

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3.3 ACCOUNT OPENING – CENTRALIZED BRANCHES (E2E)
viii. After re-checking the loaded image with the SSC, the Designated Officer presses F10 to save the SSC, at
Client level, in the BT module; the Designated Officer presses F10 to save the SSC, at Client level, in the
BT module.
Note:
i. The Designated Officer has to repeat this activity individually for each SSC to be tagged with a client.
ii. The Designated officer exits the screen by clicking “Exit” icon

Step 3: Attach SSC with Account on BT Module

i. To attach SSC with Account, Designated Officer performs the following exercise: BT Module  Select
Transaction  Non-Financial Trans  Account Signatory. Screen BT 45 will show up.
ii. Designated Officer inputs 16 digit account number and presses Enter key twice. A window will show
the account details.
iii. The cursor reaches by default to “Signatory Number” field which shows primary client number. The
processor presses “Enter” key.
iv. System displays Primary Client’s details. Designated officer presses “Enter” key in limit field, start date
and end date field and reaches to Signature Number field. Here the Designated officer assigns serial
number to the SS Card and presses “F10” key.
v. System displays 3 dialogue box windows for confirmation of saving the data. Designated Officer
presses OK in all of them.
vi. Exits the screen by clicking the “Exit” icon

Step 4: Attach SSC with EOC (Deposit Module):

i. Signatures captured on BT Module have to be attached to EOC so that the signatures are available
throughout the network, otherwise Cross Branch Transactions cannot be performed. Following activity
has to be performed for attaching SSCs to their respective accounts in EOC:
ii. EOC  Deposits  Static  Acct Maintenance  Current Account/ Saving Account. Screen RB 211 will
show up.
iii. Designated Officer will insert 16-digit account number.
iv. Press F8, customer details appear on Screen;
v. Designated Officer clicks “SG Capture” icon
vi. Another window RB49 opens up. Designated Officer enters 9-digit Primary Client number in “Client
Number” field and presses Enter key.
vii. Cursor will move to Signatory Number field, where designated officer will insert the serial number of
SSC, fed earlier in BT. System will display preview of SSC.
viii. Cursor will move to “Start Date” and “End Date” field showing default date of the particular day of
account opening. Designated Officer will keep the Start Date same and change the End Date to 2099
and press Enter key.
ix. Designated Officer cross-checks the SSC preview with details appearing on the system in order to
ensure correctness of signature tagging.
x. Designated Officer also check-marks “Attach” field to confirm data correctness and presses “F10” key
to save the data.
Presses “Exit” icon to exit from the screen.

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3.4 ACCOUNT ACQUISITION BY DIRECT SALES FORCE
i. Solicitation of new account relationship - outside the bank premises.
ii. Fulfillment of account opening requirements and documentation.
iii. KYC will be done by ASM / BM of the concerned branch
iv. Account opening on the system will be done as per processes mentioned above i.e., Normal & E2E
branches as applicable

i. Sales Acquisition
Responsibility: Direct Sales Consultants (DSC), Area Sales Manager (ASM)
 DSC under the supervision of Area Sales Manager (ASM) will contact the prospective customers
outside the bank premises through appointments to solicit new account relationships.
 Provide all required information and AOF/KYC Forms to the customer.
 Complete “KYC” Form in consultation with the customer as per KYC policy.
 Collect Account Opening Form (duly filled-in by the customer) along with the copy of CNIC, KYC
Form and other required documents.
 Check completeness of the documents and ensure that all required information is provided in AOF &
KYC Forms.
 Fills out Sales Visit report, mention the DSC code and signs the report.
 Affix ‘Direct Sales’ stamp and his code on Account Opening Form.
 DSC code is required for input in the system at the time of account opening

ii. Vigilance & KYC Certification:

Responsibility: Branch Manager (BM); Area Sales Manager (ASM); Personal Banking Advisor (PBA)
 Scrutinizes AOF/documents and ensures that they are complete in all respect.
 Verifies original CNIC with NADRA’s on-line VeriSys system.
 It is mandatory for BM or ASM or PBA to meet the customer in-person to interview him and ensure
that information provided on AOF/KYC Form is correct and complete. BM or ASM or PBA who meet
and interview the customer will perform the following:
 See the ‘originals’ of all the documents including CNIC submitted with AOF and attest the copies
thereof.
 Admits customer’s signature on AOF and Specimen Signature Card – (SSC). Only Black Ink to be used
on SS Card. Stamp of Mandate Confirmation should also be affixed on SS Card
 Sign off the AOF & KYC Form to evidence that all above requirements are met.
 Branch Manager/ Area Sales manager shall approve/authorize the account opening under his
signature/ Stamp & mention his IBS/AS number.
Notes:
 Where the customer does not come to the branch, BM/ASM or PBA will visit the customer at his
place and verify his business and complete the KYC formalities and admission of his specimen
signatures.
 No account will be opened or forwarded to Centralized Processing Unit (CPU) without face-to-face
interaction of the customer with BM/ ASM or PBA.
 It is mandatory for the Branch Manager to conduct KYC requirements himself if the account turn-
over exceeds PKR 1 million per month.

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3.4 ACCOUNT ACQUISITION BY DIRECT SALES FORCE
iii. Account Activation Deposit:
 The DSC may collect the account activation deposit in the form of Cross Check or Pay Order or
Demand Draft in favor of customer’s name only. If needed, DSC will provide acknowledgment of the
receipt of activation deposit to the customer on the copy of the instrument. BM / BOM has to
ensure that all such instruments pick up from the customer are kept in safe custody under dual
control until account is opened. The same will be lodged in clearing / collection the same day. DSC is
strictly NOT allowed to pick up Cash from the customer outside the bank premises.

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Chapter 4 ACCOUNT OPERATING AND MAINTENANCE
4.1 JOINT ACCOUNT
An account in the name of two or more, other than partners or trustees is called a Joint Account. Operational
instructions in the Application for Account Opening must be filled in clearly. The following points should be kept
in mind regarding the Operations of Joint Account.
i. Cheques are signed appropriately i.e. according to the operational instructions.
ii. All Joint Account holders must sign “Letter of Authority or SF-6A27” while delegating authority to
operate the account by the third party(s).
iii. While making payments of cheques drawn jointly, care should be exercised to verify each signature.
iv. In case of Death of any Joint account holder:
CREDIT BALANCE DEBIT BALANCE
Return cheques signed by “DECEASED” Stop withdrawals in the account in order to preserve
presented for payment. bank’s rights against the deceased party.
Cheques signed by SURVIVOR may be paid, if
Refer the case to Regional Office for guidance giving
the account is operated under the either or
full details including securities held if any.
survivor operational instructions.

4.2 PROPRIETORSHIP ACCOUNT

A Business Account Opened/ Operated by a single person. Sole proprietorship is a business that legally has no
separate existence from its owner. A sole proprietorship can operate under the name of its owner or it can do
business under a fictional name. The fictional name is simply a trade name--it does not create a legal entity
separate from the sole proprietor owner.

4.3 PARTNERSHIP ACCOUNT

Partnership is defined as an association of two or more persons who have agreed to share profit of a business
carried on by all or any of them acting for all. The terms and conditions are either spelled-out in a properly
drawn partnership deed or formally agreed upon between partners without incorporating them in a partnership
deed, however, where the partnership deed is not made or it is made but silent on any point then the
Partnership Act 1932 will apply. Procedure for opening of Accounts should be followed and operation in the
account is allowed according to the instructions contained in partnership deed. Letter of Authority (SF-6A27) /
Power of Attorney should be obtained signed by all partners, if power is to be delegated for operation of
account.
Section - 14 of the Companies Ordinance 1984, provides that an association or partnership consisting of more
than 20 persons requires to be registered compulsorily as the company under the Companies Ordinance 1984.

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 4.3.1 Minor as a Partner:
i. A minor who is otherwise incapable of binding himself by contracts can be admitted as a “Partner” to
the benefits of partnership but his position is a peculiar one. A person who is a minor according to the
law to which he is subject may not be a partner in a firm, but, with the consent of all the partners for
the time being, he/she may be admitted to the benefits of partnership.
ii. He/ She has a right to such share of the property and of the profits of the firm as may be agreed upon
and as to liabilities such minor is liable for the acts of the firms, but he/she is not personally liable for
any such act. His/ Her position is, therefore, identical with that of a shareholder in limited companies.

4.3.2 Minor Attaining Majority:

At any time within six months of his attaining majority, or of his obtaining knowledge that he/she had
been admitted to the benefits of partnership, whichever date is later, such person may give public notice
that he/she has elected to become or that he/she has elected not to become a partner in the firm and
such notice shall determine his/her position as regards the firm. Provided that, if he/she fails to give such
notice, he/she shall become a partner in the firm on the expiry of the said six months

4.3.3 Death of a Partner:

The following actions should be taken in case of Death of a Partner:
i. If there is a provision in partnership deed that the partnership is NOT DISSOLVED by death of partner,
the remaining partners may continue the business and operate the account uninterrupted if in credit.
ii. Cheque signed by the deceased partner alone before his death but presented after notice of his death,
may be paid with the consent in writing of surviving partners.
iii. If the partnership deed provides that the partnership be DISSOLVED, the surviving partners may
continue operation of the firm’s account, if in credit, for the purpose of winding up the business.
iv. The balance is payable to surviving partners, who will account for to the heirs of the deceased partner
for his share of the firm’s assets.
If the account is overdrawn:
v. Stop operation in the account, whether the firm stands dissolved or not, to establish the liability of the
deceased partner’s estate towards the bank in respect of firm’s debts.
vi. A fresh account, to be kept in credit, may be opened for continuing the firm’s business or for winding
it up.

4.3.4 Retirement of Partner:

i. Until notice of Retirement is received by bank from a partner, he/she is liable for firm’s debts incurred
after date of his/her retirement.
ii. In case Bank Finance is being availed against the securities relating to retiring partner, fresh securities
as well as charge forms may be obtained if replacement is desired.
iii. If the account is overdrawn: Further withdrawals from account should be stopped and facilities to be
reviewed keeping in view the existing partners.

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 4.3.5 Admission of New Partner:
i. He/ She can only be admitted with consent of all the existing partners.
ii. He/ She is liable for the firm’s debts incurred after date of his/her admission, he/she will also be liable
for debts prior to his/her admission in partnership business provided he/she agrees and accepts such
liabilities.
Documents to Be Obtained:
i. Take a fresh mandate signed by existing and new partner to cover future operations.
ii. Obtain his/her acknowledgement of joint and several liabilities.
iii. It may be noted that there is no need to stop operation of the account.

4.3.6 Insolvency of Firm:

i. Stop operation in the account, whether in credit or debit.
ii. Refer the case to Circle Office and Regional Office for guidance.

4.3.7 Dissolution of a Firm:

The dissolution of a firm means the dissolution of partnership between all the partners of the firm. Firms
may be dissolved in the following five ways:
i. Dissolution by Agreement
ii. Compulsory Dissolution
iii. Dissolution on the happening of certain contingencies
iv. Dissolution by notice of partnership at will
v. Dissolution by Court
As soon as banker receives an order or notice of bankruptcy petition or information through reliable
sources, banker should stop operation of account, as the power is not vested in an Official Liquidator
besides this, operation on all private account of partners should also be stopped because bankruptcy of
firm means bankruptcy of each and every partner. It is pertinent to note that:
i. All creditors of firm will be first adjusted from the firm balances and similarly private creditors from
credit balances of partner’s private accounts.
ii. The remaining balance in the accounts will be paid to firm and private creditors as the case may be.
For a banker, when there is credit balance it should be put on the disposal of an Official Liquidator
and when there is debit balance a claim should be lodged with Official Liquidator.

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4.4 TRUST ACCOUNTS
A “Trust” has been defined in Section 3 of Trust Act, 1882, in the following terms:
“A ‘Trust’ is an obligation annexed to the ownership of property and arising out of a confidence proposed in and
accepted by him for the benefit of another, or of another and the owner.”
i. All trustees should preferably sign the Application for Opening Account.
ii. Trust Deed for relevant extracts must be obtained and filed.
iii. All withdrawals from the account shall be allowed under joint signatures of Trustees named in the Trust
Deed unless power is given to the trustees for operating the account singly.
iv. Cheques or Credit vouchers issued in favor of Trust Account should not be collected for credit to the
private account of the trustees.

4.5 COMPANIES REGISTERED UNDER COMPANIES ORDINANCE 1984

A Companies registered under companies ordinance 1984 is an association of persons who contribute funds to
raise capital of the company. The persons to whom the capital belongs are referred as members (share-holders)
of the company. Following guidelines must be followed:
The Memorandum and Articles of Association must be carefully read. The Memorandum is the constitution of
the company and the Articles define the powers of the directors; when these powers are not clear, the company
should be asked to explain what procedure has been adopted to regularize the position. A company cannot do
business of a character not included in the Memorandum, but usually these powers are very extensive. The
Memorandum will show what are the borrowing powers, etc; and what was the capital of the company at the
time of formation.

4.6 CLUBS/ SOCIETIES/ ASSOCIATIONS

No cheques drawn on the accounts of Clubs, Association or Societies shall be collected for credit of private
account of the office-bearers of Clubs, Association or Societies.
Death of an Authorized Officer:
In case of transfer or death of any of the office-bearer of Clubs, Associations or Societies operating the
account, all withdrawals in the account should be stopped till the receipt of fresh resolution passed by
Managing Committee delegating powers to the new Office-bearers.

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4.7 LOCAL BODIES ACCOUNT
Local bodies are defined as Municipalities, District Boards, Development bodies etc; whose functions and
powers are governed by the respective Acts creating them and rules and bye-laws made in pursuance of such
Acts from time to time.
These bodies usually have at their disposal substantial funds and banks regard them as desirable customers, but
their accounts must be conducted strictly in accordance with the statutory rules and regulations.
4.7.1 Conduct of the Local Bodies Accounts:
i. Local authorities are to be regarded as trustees of the funds under their control and therefore all
banking transactions must always be consistent with the rules and bye-laws and within the scope of
their respective authority.
ii. Local bodies have no implied power to borrow money as a general rule, unless some statutory power
exists to authorize borrowing, a local authority cannot validly contract a loan. Before considering the
grant of a loan to such bodies, reference must be made to the relevant Act & Rules governing their
power to borrow, limitations if any and authorized form of borrowing. In some cases the prior sanction
of the Provincial and Federal Government is necessary.
iii. It is important to remember that not only the borrowing is strictly in accordance with the provisions of
the statute under which it takes place but the money borrowed is to be utilized for the purpose for
which it was raised.
iv. After looking into all these aspects it would be necessary to get a resolution passed by the local
authority through its governing body/managing committee in accordance with its constitution. Since a
number of legal technicalities are involved, proper legal advice would have to be taken before
entertaining proposal for advance from legal affairs div through consultation with region/circle offices

4.8 LOCAL / DISTRICT ZAKAT/ USHR COMMITTEE ACCOUNT

These accounts are opened, maintained and operated upon in accordance with Banking Procedure as laid down
in the “Operational Arrangement for Local Zakat Fund” Booklet supplied to the branches.
i. After the constitution of a Local Zakat Committee (LZC) has been formally notified by the District Zakat
Committee, the LZC will meet to pass a resolution on Form LZ - 01 to open a Current Account to be
known as LZF Current Account with the branch.
ii. After the said resolution has been passed, the Chairman of the LZC will write on Form LZ - 02 to the bank
manager concerned, requesting to open a Current Account in terms of the LZC resolution.
iii. Each LZC will open and maintain only one account.
iv. Once the said account has been opened, it will not be shifted nor closed, nor any other change with
regard to its operation effected, except with the prior knowledge and clearance from the PZA (Provincial
Zakat Administrator).

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4.9 MINOR ACCOUNT

These are Joint accounts opened in the joint name of Minor and Guardian However the Title of account can be
of “Minor” in the System. The account is operated by the Guardian till the Minor attains age of 18

4.9.1 Death of Minor:

If the Account was opened by Natural Guardian, jointly with or in the name of Minor, if minor is dead,
survivor account holder will be allowed to withdraw the balance and close the Account.

4.9.2 Death of Natural Guardian:

In case of death of Natural Guardian, operation in the Account will be stopped. The Minor will be allowed
to withdraw after attaining age of majority by producing evidence in this regard and after getting Legal
Opinion from Legal Affairs Division.
If the Minor is survivor and has not yet reached the age of majority, the balance can be paid on the
production of Guardianship Certificate from the competent Court of Law.

4.9.3 Guardian Appointed by Court:

In case of Account opened in the name of Minor and operated by the Guardian appointed by Court, the
withdrawal in the account will be stopped on the death of Minor or Guardian. If the Guardian is dead,
operation will be allowed after appointment of new Guardian by the Court and in case, Minor is dead;
instruction of the Court will be followed.

4.9.4 Minor attaining Majority:

Cases where a minor account is converted into a major account following are the documents required:
i. Request letter from the minor to convert his/her a/c to major upon presentation of Original CNIC.
ii. A request letter from the guardian is also required to convert the minor account to major
requesting to delete his/her signature from the account.
iii. A new specimen signature card from the major to be taken
iv. Branch Updates Account personal information after conducting a fresh KYC of the Customer

4.10 STUDENT ACCOUNT

Student accounts are account opened specifically for students and have been exempted from levy of service
charges by the State Bank of Pakistan as per BPD circular no. 23 dated: July 04, 2003. While opening account of
students; banker should ensure the bonafide of the applicant as a student by asking for the students school /
college ID card or if required a letter from the institution confirming the applicant as regular student of their
institute. The PBA should also inquire about the term of the applicant as student of that institute. It is the
responsibility of the banker to convert the account to normal account (for application of service charges) after
completion of the term of the applicant as student.

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4.11 ILLITERATE/ DISABLE/ BLIND PERSONS BANK ACCOUNTS
i. Account should be opened with a photograph affixed on the Account Opening Application as well as on
the Specimen Signature Card (Front side) along with a stamp “All Drawing in Person”. The photograph
must be attested by an independent person and the Branch Manager/ Branch Operations Manager with
his/her AS/IBS number under his stamp and signature.
ii. In case a disable/ blind person can sign, his/her signature plus his/her thumb impression should be
taken on the Account Opening Application as well as on Specimen Signature Card (Front side) along with
the stamp “Thumb impression affixed in my Presence” which must be attested by the Branch/
Operations Manager.
iii. These accounts should be marked in Bold Letters on the Account Opening Application as well as
Specimen Signature Card and Cheque book “All Drawing in Person”.
iv. Further, the Branch Manager is required to put a note on the Account Opening Form to the effect that
the visually impaired person has been informed about the terms & conditions of the operations of the
account under his signature/name.

Note: Keeping in view the risk involved MCB ATM Smart Card will not be issued to ‘visually impaired / blind’
account holders until the time required technology (voice guided ATMs with brailed keyboard) are
introduced.
i. For the purpose of Withdrawal from the account of illiterate/blind person, he/she must visit the parent
branch personally, produce the Cheque book, and affix his/her right/left hand thumb impression on the
cheque in the presence of the Branch /Operations Manager. However, if a visually impaired person is
capable to sign then he should sign the cheque
ii. In case of withdrawal of large amounts in excess of PKR 10,000/= it is advisable that the thumb
impression should be affixed in the presence of an independent witness known to the Branch Manager
or Operations Manager and his full name and address should be recorded below his signatures.
iii. In case of Deposits in an individual account of visually impaired / blind person may be made by
representative of the account holder in any Branch.

4.12 SHARES COLLECTION ACCOUNT

Current account should be opened for Share Collection Account after receiving instructions from
Region/Circle/Group Office. Operating Instructions are as follow:
i. Separate account shall be opened for each company for Share Subscription which should be closed
immediately after the entire funds are transferred to the Main Branch.
ii. Account Opening Application will be used for opening Shares Subscription Account. Account Title and
Account number should be written clearly on Account Opening Form. Relevant circular should be
attached with the form for future record and reference.
iii. An attested copy of CNIC should be obtained from applicant of Share Application.
iv. Subscription amount should be received from applicant in the form of cheque drawn on applicant’s own
account or Bank’s Cheque.
v. Refund to unsuccessful Share Applicants will be credited in the respective accounts directly by
responding the refund Advice received from Main Branch.

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4.13 COLLECTION ACCOUNT
There are two types of collection account facility provided to customer
i. Main Collection Accounts
ii. Subsidiary Collection Accounts

i. Main Collection Accounts:

Main collection accounts are normally chequing collection accounts. All the collections from customer’s
subsidiary collection accounts are transferred to the main collection accounts as per standing instructions on
daily or periodical basis. Main collection account will be opened/ maintained in Current Account category, if
not specified by the customer.

ii. Subsidiary Collection Accounts:

Subsidiary collection accounts are normally non-chequing collection accounts. These accounts are opened
for customer funds collections and balance/funds are transferred to customers main collections account on
daily or periodical basis as per standing instruction.

4.14 NON-RESIDENT ACCOUNTS

Accounts of individuals, firms or companies residing in countries outside Pakistan are termed as Non-Resident
Accounts. All nationals of Pakistan and persons domiciled in Pakistan except persons holding office in the service
of Pakistan, who go out of Pakistan for any purpose such as employment, study, business tour, pleasure trip etc
are treated as Non-Resident, for so long as they remain outside Pakistan. All such accounts are considered for
the purpose of Foreign Exchange regulations as accounts of countries in which the account holder is residing.

4.14.1 Categories of Non-Resident Accounts:

There are four major categories of Non-Resident Accounts:
i. Non-Resident accounts of Pakistan Nationals permanently residing and domiciled aboard.
ii. Non-Resident accounts of Pakistan Nationals who are abroad for short visits.
iii. Non-Resident Accounts of Foreign Nationals residing abroad.
iv. Non-Resident accounts of Foreign Nationals ordinarily resident in Pakistan but gone abroad for
short visit.

4.14.2 Change in Status of Accounts:

Non-Resident Accounts in the following categories should be treated as resident on account holder’s
permanent return or his temporary visit to Pakistan for which permission of the State Bank is not
necessary and there is no restriction on the account holders operating these accounts:-
i. Non-Resident accounts of Pakistani Nationals who had gone abroad for short visit.
ii. Non-Resident accounts of foreign nationals who are permanently residing and domiciled in
Pakistan but had gone abroad on temporary visit.
iii. Non-Resident accounts of Pakistani nationals permanently residing and domiciled abroad.
iv. Non-Resident accounts of foreign nationals residing abroad.
v. The accounts are to be re-designated as Non-Resident immediately after an account holder leaves
the country.

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 Non-Resident Accounts of Pakistanis who comes to Pakistan on temporary visits are to be treated as Resident
Account during the period of their short visit without prior approval of State Bank of Pakistan. The accounts
are to be re-designated as Non-Resident immediately after the account holder leaves the country.

4.14.3 Accounts of United Nations and its Organizations:

In terms of Section 05 of Article-II of the Schedule appended to the United Nations (Privileges &
Immunities) Act, 1948 the accounts of United Nations and its organizations are free from financial
controls. Therefore, branches shall treat these accounts as “Resident Accounts”.

4.14.4 Joint Accounts of Resident and Non-Residents:

There is no restriction on non-residents maintaining accounts jointly with residents. These accounts
should be treated as non-resident accounts irrespective of the fact that whether these accounts are to be
operated solely or jointly by the residents.

4.14.5 Opening of New Non-Resident Accounts of Persons Other than Banks:

New non-resident accounts in the names of persons or firms or companies other than banks may be
opened without the prior approval of the State Bank where accounts are to be opened with funds
received from abroad through banking channel or with Rupee funds which have been accepted by the
State Bank for remittance abroad. Reference of the Monthly Exchange Returns or the State Bank approval
number, as the case may be, should be quoted in the relevant Form A-7 (Annexure I) covering the credit.

4.14.6 Accounts of Foreign Nationals Resident in Pakistan- Form “Q.A.22”:

The accounts of all foreign nationals who are resident in Pakistan and the accounts of companies or firms
(other than banks) whose head offices or controlling interests are outside Pakistan but the accounts are
operated on by persons in Pakistan may be treated as resident accounts. The account holders or persons
in Pakistan authorized to operate on such accounts must sign Form “Q.A.22” (Annexure II) accounts. The
said form should be obtained by the branches from the customers in duplicate and a copy should be
forwarded to the State Bank for record as and when the account is opened.
Prior approval of the State Bank for opening such accounts is not necessary. In case of non-resident
accounts, declaration on form “Q.A.22” is not necessary.

4.14.7 Issuance of MCB ATM/Smart Cards to Non-Resident Rupee Accounts:

Branches are authorized to issue MCB ATM/Smart Cards as well as supplementary MCB ATM/Smart Card
in order to facilitate the non-resident account holders. The withdrawals through MCB ATM/Smart Cards
should, however, only be allowed in Pakistan. The existing requirement of filling in Form A-7 (Annexure I)
on account of all withdrawals in Pak Rupee from the above accounts for personal expenses would not be
applicable to the ATM transactions. However, the banks would be required to submit a consolidated
statement showing ATM transactions in the said accounts to the Director, Statistics Department, SBP,
Karachi on monthly basis.

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 4.14.8 Operation on Non-Resident Accounts of Persons, Firms and Companies other than
Banks:
Unless it is prescribed otherwise by the State Bank in respect of any particular Rupee Non-Resident
Account of persons, firms and companies other than banks, Authorized Dealers may raise following debits
/ credits to Non-Resident Accounts:
Debits:
i. Payments on account of the account holder direct to the institutions concerned in respect of
insurance premium, club bills or other payments of a regular nature provided payments are
supported by bills and vouchers.
ii. Government and Municipal dues provided payments are supported by official claims and payments
are made directly to the Government or Municipal agencies.
iii. Debits on account of disbursements in Pakistan limited to the extent of the funds received from
abroad through banking channel.
iv. Debits representing payments through cheques direct to the carriers or the travel agents for travel
within the country by rail or air for self, wife, children and parents and against valid “P” form
approvals for travel abroad.
v. Debits on account of purchase of shares of public limited companies and / or securities of the
Government of Pakistan, NIT Units, Prize Bonds, Defence Savings Certificates etc., provided such
shares / public securities are purchased by the Authorized Dealers themselves on behalf of the
account holder on the basis of non-repatriation of capital, dividend / interest etc. and registered at
their Pakistan address and also retained by the Authorized Dealers in their custody on behalf of their
constituents concerned so long as he resides outside Pakistan. Sale proceeds of such investments
and dividends / interest etc., accruing thereon should be credited to the Non-Resident Account only.
vi. Payments against bills for hotel expenses in Pakistan of the account holder and his family member
provided payment is being made direct to the hotel by cheque. The concession is restricted to first
class hotels only.
vii. Cheques drawn for self or in favor of his dependents resident in Pakistan for maintenance.
viii. Debits in reversal of previous credits.
ix. Debits in respect of approved remittances in foreign exchange.
x. Payments of installments of loans directly to the financial institution from whom the account holder
had obtained loan.
Credits:
i. Receipts on account of salary, allowances, bonus, commission etc. directly from the employers by
cheque.
ii. Dividend and interest income on investment in shares and securities directly from the Company by
cheque.
iii. Income from landed property and agricultural rent against identity of the depositor.
iv. Credits of remittances received from abroad through banking channel.
v. Interest accrued on the amount lying in Non-Resident Accounts.
vi. Amounts representing the maturity proceeds / surrender / paid up value of insurance policies and
proceeds of the shares of the public limited companies and / or securities of Govt. of Pakistan
purchased.
vii. Refund of amounts previously debited or over charged.
viii. Sale proceeds of landed property as evidenced from the registered sale deed.
All other debits and credits require prior approval of the State Bank of Pakistan.

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4.15 NEW FOREIGN CURRENCY ACCOUNTS SCHEME, (F.E. 25)
SBP have allowed opening of new foreign currency accounts under new scheme with effect from 22-June-1998
by Residents as well as Non-Residents, Pakistani and Foreign Nationals, Firms, Companies and other Legal
Entities.

4.15.1 Opening of Account:

Branches authorized to deal in Foreign Exchange or having restricted license for handling Foreign Currency
Accounts can open new Foreign Currency Accounts under new scheme with the prescribed initial deposit
from time to time.
Presently branches are allowed to open following types of Accounts in US Dollars, GB Ponds, Euro &
Japanese Yen.
i. Current Deposit Accounts
ii. Savings Account
iii. Fixed Deposit Account (Only in US Dollar)
Formalities / precautions applicable for opening of all types of Pak Rupee accounts mentioned in this
Manual are also to be observed in case of Foreign Currency Accounts.

4.15.2 Eligibility for Opening of New Foreign Currency Accounts:

Accounts can be opened in the name of Resident Pakistani Nationals, Resident Firms / Companies
including foreign nationals, firms, companies and other legal entities.
Joint Accounts of individuals or accounts of Proprietorship and Partnership concerns can also be opened.
Ref to Cir. Letter No. 26/EPP.16(326)NFCA-2000, All Banks are advised to obtain an undertaking from
Corporate bodies/legal entities that their foreign currency balances maintained with them are being fed
exclusively from the remittances received from abroad and not through the foreign currency funds
generated from kerb (open) market.
4.15.3 Acceptance of Deposits:
Deposits can be accepted in the shape of foreign currency notes of the same currency in which the
account is opened or other acceptable foreign currency notes at the prevailing exchange conversion rate.
i. Foreign Currency Demand Drafts.
ii. Inward Remittances received in the name of account-holder.

Foreign Exchange obtained/earned in the following cases cannot be deposited in Foreign Currency
Accounts.
i. Travelers Cheques issued in Pakistan.
ii. Exchange released by SBP for any specific purpose.
iii. Foreign exchange representing sale proceeds of goods exported from Pakistan.
iv. Payments received for services rendered in Pakistan.

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 4.15.4 Withdrawals from Foreign Currency Account:
Withdrawal from Foreign Currency Current Accounts is allowed by cheque for any amount within the
available balance in the account. Payment can be made in the Foreign Currency Notes or in equivalent Pak
Rupees

4.15.5 Payment of Profit:

i. Rate of profit on various types of deposits varies according to the period of deposits as well as status
of accounts (i.e. old frozen accounts / new foreign currency accounts). Rates of profit are
determined and declared by Treasury & FX Group, through their circulars on the basis of average
London Inter Bank Offer Rate (LIBOR) provided by British Bankers’ Association.
ii. Provision for payment of profit is made by branches at the end of each month. However, payment of
profit on outstanding SNDs/TDRs is made at the time of encashment of these deposits whereas
payment of profit on PLS accounts is credited on half yearly basis as per declared rate on 30th June
and 31st December each year.

4.16 DECEASED ACCOUNT

With the death of customer, the mandate comes to an end. Operation of the Bank account is ceased
immediately on receipt of information of the death of the customer and no withdrawal is allowed except in the
joint account where the operational instructions of survivorship apply.
i. As soon as information is received either through newspaper or some reliable source about the death of
an account holder, the date of death, source of information and time of information received shall be
noted and account shall be immediately marked as “Deceased Accounts”.
ii. All operations in the account shall be stopped, no debits will be allowed in the account however,
proceeds of any cheque/bills sent for clearance/ collection shall be credited into the deceased account.
iii. On realization of Cheque/Bill, collection and postages charges of the bank shall be debited from the
Deceased Customer’s account.
iv. In case of PLS Savings Account of a deceased person profit shall continue to be payable till the balance is
finally paid off to the legal heirs.
v. Unused cheques should be obtained from legal heirs of the deceased account holder and should be
destroyed/ discarded. In case un-used cheques are not returned, a letter should be taken from legal
heirs stating reason for non-submission of un-used cheques.
vi. Branches should invariably make payment of the amount lying in the account of the deceased account
holder only by means of a Payment Order issued in the joint names of all the heirs disclosed in the
indemnity bond.

4.16.1 Payment of Credit Balance against Succession Certificate:

The request received from the legal heirs for release / payment of credit balance against production of
Succession Certificate (copies) duly verified by the Branch through Bank’s authorized representative will
be referred to the Regional Office along with a Certificate regarding satisfaction of claimant by virtue of
Succession Certificate.

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 Regional Head can facilitate the request of PKR 100,000/- per case while the request exceeding PKR
100,000/- will be forwarded by the Regional Office to the Circle Office and will be approved by the General
Manager on proper scrutiny and after being satisfied.
If the Succession Certificate has been issued in the joint names without mentioning the share of the
recipient the payment may be made in the joint names of all the recipients involved. In such cases if the
recipients wish to authorize any one of them to receive and collect the amount, the payment will be made
against Power of Attorney duly attested / authenticated by a Notary Public. In all cases payment should be
made after proper verification and identification of the heirs or their attorney holding proper and valid
Power of Attorney.

4.16.2 Payment of Credit Balance without Succession Certificate:

i. The credit balance lying in the account of a Deceased Customer is paid to the legal heirs either on
production of Succession Certificate or against Bond of Indemnity-cum-Guarantee.
ii. Request for payment of amount up to PKR 100,000/- without Succession Certificate can be entertained
by the Branches against Bond of Indemnity-cum-Guarantee.
iii. The legal heirs may request for payment of balance not exceeding PKR 100,000/- without production of
Succession Certificates. The request of the legal heirs may be entertained provided following documents
are produced:
Letter of Indemnity-Cum-Guarantee:
Letter of Indemnity-cum-Guarantee on appropriate stamp paper according to the provincial stamp duty,
contains under noted two parts:
Part I: of the letter covers application from the legal heirs and is signed by all the adult legal
heirs or by a natural guardian on behalf of the Minor legal heir(s).
Part II: of the letter relates to the Guarantors for the legal heirs and is signed by two respectable
persons maintaining Accounts in a Bank, preferably in one of our Branches. Two witnesses will
also sign-off the Letter.
Death Certificate:
Issued by the competent authority confirming the death of the customer will be obtained.
On receipt of the above documents, Branch Manager will compile a report on the financial standing and
integrity of the guarantors/ indemnifiers and will retain the originals and forward the photocopies
thereof to the Regional Head along-with his report on financial standing and integrity of the guarantors/
indemnifiers and a Certificate regarding satisfaction about claimants.
The Regional Head can approve cases of payment up to PKR 50,000/- while General Manager is
empowered to release an amount up to PKR 100,000/-
The Branch, Regional Head or General Manager may, if any of them is not satisfied, at their own
discretion, insist for production of Succession Certificate even if amount involved is within their limits.

4.16.3 Document Retention and Mode of Payment:

The photocopy of Account Opening Form, attested copy of succession Certificate/Original Letter of
Indemnity-cum-Guarantee and other relevant documents will be placed in a separate folder and kept in
safe custody under dual control.

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 After obtaining necessary approval/s from Regional/General Manager, branch will debit the deceased’s
customer’s account and release the payment through Payment Order as per the terms of Succession
Certificate/ Letter of Indemnity cum Guarantee. After the release of payment to heirs, account shall be
immediately closed.

4.16.4 Profit Payable to Deceased Customer’s Account:

The Profit on PLS Savings Accounts of the Deceased Customers shall invariably be applied at the rates
announced by the Bank from time to time, on half yearly basis until such time the funds are released to
the legal heirs.
In most of the cases, Succession Certificates granted by the Court of competent jurisdiction provides for
payment of Profit/Interest. Even in such cases where the words Profit/Interest were not mentioned, the
Bank may pay the same at its discretion, even in the cases where the payment is released without
Succession Certificate.

4.17 ACCOUNT CLOSURE

In SYMBOLS, account closure option is available in Branch Teller Module as well as Retail Banking Module.
i. Branch Teller Module > Transactions> Non-Financial Transaction > Account Closure (Screen # BT48)
ii. Retail Banking Module: (Deposits) > Transactions > Non-Value Transaction > Account Closure (Screen #
RB41).
System only closes an account but the Client remains open in the system and it cannot be closed. On the
basis of the Client number, customers can any time open another account with the Bank.

4.17.1 Pre-formatted Account Closure Request Letter:

To inculcate the control culture and to ensure uniformity of account closure requests which meets the
institutional and regulatory requirements the format of ‘customer request’ has been standardized.
The standardized Account Closure Request Letter which is assigned a proper stationery code SF-2 has the
following distinctive feature:
i. Provision to accommodate account closure request of both PKR and FCY accounts.
ii. Contains a comprehensive checklist (printed on the back) to facilitate the branch in ensuring
fulfillment of the required tasks/approvals from other departments before closure of account.
iii. Contains a disclaimer clause to be signed by the customer as ‘Full & Final Settlement’ of his/her
account.
iv. The checklist on the back of Account Closure Request Letter must be completed and signed by Branch
Operations Manager & Branch Manager before closing the account.

Note:
i. It is mandatory for the branches to ensure that customer request for account closure is obtained on
‘Pre-formatted Request Letter SF-2’ except for the instances where customer request for account
closure is received via mail.

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 ii. Once the account has been closed in the system, the same account cannot and should not be
activated. If the customer requests for activation of a closed account, branches are instructed to
decline customer request and open a new relationship in the system with a new account number.

4.17.2 Account Closure Instruction Received Via Mail:

i. Customer written request for closure of account if received by mail will be accepted by the branch
(branches will NOT insist for request on Standardized ‘Account Closure Letter’ - SF-2).
ii. Operations Manager should ensure that Account closure application received along with the unused
leaves of cheque books/MCB ATM/Smart Card(s).
iii. Debit customer’s account and mark account as closed after verification of signature.
iv. Prepare Payment Order or demand draft for the entire balance after deduction of remittance and
postages charges as per the tariff & dispatch the same at the address recorded with the Bank.

4.17.3 Payment of Profit on Closed Account:

Profit on PLS Accounts which are closed before declaration of half yearly profit rates, profit will be paid on
the Provisional rates advised to the branches for that specific period. Non compliance to the same can
attract penalty by SBP.

4.18 PROCEDURE FOR ACCOUNT CLOSURE

Customer: Presents duly completed Account Closure Request Application (SF-2) to the CSO giving the reasons
for account closure.
Designated Officer: Receives account closure application (SF-2) from customer and forward it to Authorized
Officer for action.
Operations Manager:
i. Verifies customer’s signature on Account Closure application (SF-2) and perform following steps:
ii. Check if any ‘restraint’ is marked on the account.

In case of a restraint was marked based on customer’s instructions then inform the customer to submit a
written application to remove the restraint from the account. {In case the restraint was marked internally by
the bank (i.e. other than the customer originated instructions) it should not be removed without the written
consent of the authority who had asked to mark the restraint}.

Removal of Restraint:
To remove the restraint select the option “Deposit Module >> Transaction >> Account Facility >> Restraint
Set up” (RB51).
Recovery of Account Closure Charges:
Recover Account Closure charges and FED as per bank schedule of charges from the customer.
Recovery of charges through debit to customer account:
i. Login Deposit Module >> Value Transaction >> Withdrawal (RB32) Form.
ii. Insert Account Number and press F-8 to retrieve account information.
iii. Validate account information and recover the account closing charges using transaction type “ACSC”
and FED with “FEDC”
iv. Press F-10 to save the transaction.

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 4.18 PROCEDURE FOR ACCOUNT CLOSURE
Payment of Accrued Interest:
i. Select “Deposit Module >> Non-value Transaction >> Account Closure” (RB 41).
ii. Insert account number and press F-8 to retrieve the account details.
iii. Verify the account details against customer request & press ‘ENTER’.
iv. For payment/recovery of interest insert “P” (up to previous day) in payment option field’ and press
ENTER. (Do not use other available options i.e. “A” (up to last accrued date) & “F” (Forfeit Interest
Accrued).
v. System will show the ‘unpaid interest accrued amount’ and Tax thereon (if applicable). Net interest will
be added in the closing balance of the account.
vi. If the balance amount in the account exceeds PKR 25,000 and customer requests for its payment in
‘cash’ then calculate applicable Cash Withdrawal charges manually and obtain cheque from customer
for remaining balance amount.
vii. Perform the transaction using Withdrawal option appearing on top of account closure screen and debit
the cheque with transaction type “CQWR” and Tax with “WHCW” respectively.
viii. If customer request for transfer of remaining balance in another account then perform the transaction
using “Transfer” option available on top of account closure screen.
ix. Before closing the account, ensure that account balance is ‘zero’ and the reason given for closure of
account is updated on the system.
x. System will prompt the message for confirmation of account closure. Select “Y” and press F-10.
xi. System will perform account closure activity & generate the accounting entries.
xii. Having closed the account, generate “Closed Account List” from Deposit Module >> Reports >> Daily
Activities >> Closed Accounts List (RBA13).
xiii. Validate the transaction against customer request and sign off the sheet.
xiv. Keep the signed off sheet along with customer request in “Closed Account File” as an audit trail.
Note: To avoid any change in ‘Accrued Interest Amount’ all above activities should be completed the same
day.
i. Operations Manager or Designated Authorized Officer destroys the lower right hand portion of all un-
used cheques in order to prevent the misuse of unused cheques.
ii. De-activate & discard the punched MCB ATM/Smart Card.
iii. File Account Closure application along with the cancelled cheque book leaves and Specimen Signature
Card.

4.19 NOTICE UNDER SECTION 140 OF THE INCOME TAX ORDINANCE - 2001
The Commissioner Income Tax under section 140 of the Income Tax Ordinance – 2001 for the purpose of
recovering any tax payable by the taxpayer may, by notice, in writing, require any person to pay to the
Commissioner so much of the money as set out in the notice by the date set out in the notice.
Branches, on receipt of such notices, are advised to seek further guidance and clarification from the Regional
Office/Circle Office or Legal Affairs Div and respond accordingly.

4.20 POWER TO CALL FOR INFORMATION BY THE INCOME TAX OFFICER (ITO)
Under Section 176 of the Income Tax Ordinance, 2001, the ITO or any officer authorized in this behalf by the
Commissioner or the Central Board of Revenue, may, by notice in writing, require any person including a
banking company, to furnish such information or such statements or accounts as may be specified in such
notice.

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The notice must be in respect of a specific account / client. General information required need not be furnished
by the Branch and the matter be immediately referred to the Compliance & Control group for guidance.
However, it is advised to seek further guidance or clarification from the Regional Office/Circle Office or Legal
Affairs Division.

4.21 ATTACHMENT OF CREDIT BALANCE (GARNISHEE ORDER)

When a creditor has knowledge that the person indebted to him/her has a credit balance in his/her bank
account, he/she may obtain a court order for attachment of the said credit balance in the hands of banker. The
person obtaining such order is the “Judgment Creditor” and the bank against whom such order is passed is
known as “Garnishee”.
On receipt of such court orders, the branches should take the following action.
i. When an attachment order is received, manager should thoroughly check / verify the names / title of
the account, addresses and other particulars and also the fact whether said order is binding on Bank.
ii. Right of set-off should be used if there is any claim of the Bank on the customer.
iii. If the court order specifies an amount to be attached, the said amount should be put on hold (refer to
Section 2: 4.22 - Procedure for Marking Funds on Hold) and customer will be at liberty to utilize
remaining balance in the account.
iv. If order does not specify the amount then withdrawals from the account of said customer should be
stopped altogether by marking restraint type SW
v. Branch Manager upon receiving Garnishee Orders marks restraint according to the order and
immediately send a copy of the Order to the Legal Affairs Division for their opinion before
releasing/sending the amount to the court.
vi. The customer should be duly intimated about the order and attached amount should be duly deposited
with the said court when called upon to do so.

4.22 PROCEDURE FOR MARKING FUNDS ON HOLD

Concerned Department: Requests the Authorized Person to hold the funds.
Authorized Officer: Uses SYMBOLS EOC Module > Deposits > Transactions > Account Facility >Restraint
Setup. Inserts account number and other mandatory information and execute the query.
i. Marks FOH in the Restraint Type
ii.Enters today’s date
iii.
Restraint Expiry date is auto-selected by the system i.e., “year 2999”
iv.New Input box Opens
 Enters the amount to be held
 Enters the narrative mentioning the Department and Reason for the funds held.
 Click Okay
v. Save the restraint by pressing F-10.

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4.23 STOP PAYMENT OF CHEQUES
i. Stop Payment instructions should always be obtained in writing on standard form SF-18R duly signed
by the Account holder.
ii. SF-18 has 2 copies – “A” as Original meant for branch’s record and “B” Carbonized copy to be
delivered to the Customer. Terms and conditions are printed on the face of the memo.
iii. Operations Manager will verify account holder’s signature on the form, put ‘date’ and ‘time’ and sign
off the SF-18R form. Handover the copy of SF-18R to the customer for his record.
iv. After receiving the Stop Payment Request the authorized officer will immediately enter the pertinent
details of the cheque, payment of which has been stopped, in the system.
v. If a Cheque is presented, payment of which has been stopped, the stamp “Payment Stopped by
Drawer” must be affixed on the top left-hand corner of the Cheque or written in red ink and returned
to the Payee with Cheque Return Memo. In such cases, Stop Payment instructions shall be cancelled
from the Account with a note “Cheque Returned on (Date & Time)” duly initialed by the Authorized
Officer.
vi. When the customer withdraws his Stop Payment instructions or the cheque in question is returned
unpaid by the branch, suitable remarks indicating withdrawal of instructions or return of the cheque
(as the case may be) should be recorded on the copy “A” of SF-18 in bold letters in red ink.
vii. Stop Payment Applications / Letters received from the Customers / Accountholders shall be filed in
the “Stop Payment File”.

4.23.1 Important points for consideration:

i. Stop Payment application be routed through Dak Inward Register and affixed with Dak Receiving
Rubber Stamp thereon along with Dak Received Number.
ii. While receiving the Stop Payment application it should be confirmed from the system that the
cheques required to be stopped for payments have already not been paid.
iii. In such cases the A/C holder should be informed accordingly on the spot.
iv. In case of Stop Payment instructions received through FAX, intimation through Letter/Fax should
immediately be sent to account holder concerned that we have noted your instructions.

4.23.2 Procedure to mark Stop Payment:

Branch Teller Module: Transactions >> Financial Transactions >> Restraint Setup Screen # BT43
i. Enter Account number, press enter.
ii. Press F9 for List of Values (LOVs); select SCB- Stop Cheque- BT in the field of Restraint Type.
iii.Press enter; effective date will appear in the field of “Start Date”.
iv. Pop-up Box will appear on the screen, enter Cheque number(s). Input narration as “Cheque Stop
Payment” and also mention the request time given on the form.
v. System will automatically select End date (100 years from the system date)
vi. Press F10 or click on save icon.

Similar option is also available in Enterprise Operation Center (EOC): Deposit Module >> Transactions >>
Account Facility >> Restraint Setup Screen RB51. SCB Stop Cheque
i. BT must be selected in the field of Restraint Type for changing the status of cheque from ‘Active’ to
‘Stopped’.
ii. Please do not use Screen RB 1814; as any cheque marked ‘stop’ from this screen will remain stopped
only for few days and after that request status will automatically be changed into Expired.

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 Note: BOMs are advised to review the request received every day to ensure all requests are properly
marked in the system.

4.23.3 Revoking/ Removal of Stop Payment Instruction:

i. In case of application for revoking the Stop Payment instructions the Branch Manager should follow
the same procedure as for receiving the application for Stop Payment. The Manager should properly
verify the cheque number minutely, record in application for revoking of Stopped Cheques and
remove the instructions of Stop Payment cheques according to the application of revoking
instructions.
ii. In case of any instruction in respect of Stop Payment received verbally over telephone, we have to
take precautionary measures accordingly but no commitment will be made by us over telephone to
avoid any misunderstanding between the Customer and Bank. The presence of Customer is required
to complete the Bank’s procedure (in writing) for the stop payment of cheques.
iii. As per revised specimen of Stop Payment Memo (SF-18) condition is given that the Stop Payment
instructions / marking should be invalid after expiry of 06 months from the date of delivery of SF-18,
which may be considered.
iv. Branch will be fully responsible for the payment of any Stale/ Post dated / Out of date cheque (after 6
months since the date of its issuance). Payment of which was stopped by the account holder.
v. Stop payment against a blank cheque/ cheque book will remain enforce continuously.

4.24 PROCEDURE TO MARK ACCOUNT ACTIVITY SEIZE

“Account Activity Seize” option in SYMBOLS is used by the branches in case where Customer or Competent
Authority requests to seize the account in order to restrict the financial transactions.
i. Designated Authorized Officer (DAO) selects Transactions >> Financial Transactions >> Restraint setup
Screen # BT43.
ii. Enter or select Account number from the List of Values (LOV), select “AAS- Account Activity Seize” in
the field of Restraint Type.
iii. Press enter, effective date appears in the field of “Start Date”
iv. Pop-up Box will appear on the screen, input narration as “Account Activity Seize on request of Customer,
or any Banking or Government Authority”. Further the name of the officer who authorized to mark
activity seize and the code of the branch performing the activity seize maintenance should also be
provided.
v. System will automatically select End date. (End date validity should be for a longer period otherwise
“Active” status of restraint will be automatically changed into Expired and transaction will be executed
without any indication/message).
vi. Press F10 or click on save icon.

4.25 PROCEDURE TO MARK TAX EXEMPTION RESTRAINT

“Tax Exemption Restraint” option is available on SYMBOLS to mark an account for tax exemption. For this
purpose, a restraint type “EWT (Exempted WHT) is created. This option can be used by the branches in case
where an account genuinely falls under tax exemption category. To facilitate the understanding of branches
certain parameters of exemptions provided in Section 49 of the Income Tax Ordinance 2001 are given below:

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 4.25.1 Persons / Recipients exempted under the law:
i. Federal Government.
ii. Provincial Government or;
iii. A Local Authority

4.25.2 Persons / Recipients requiring ‘valid tax exemption certificate’

i. A Corporation
ii. A Company
iii. A Regulatory Authority
iv. A Development Authority
v. Other body or institution established by or under any law of authority.

4.25.3 Process to mark tax exemption

To mark tax exemption restraint the designated Authorized Officer (DAO) will:
i. Login SYMBOLS >> Deposit Module >> Transaction >> Account Facility >> Restraint Setup (RB51).
ii. Insert account number and press F8, system will display account details that needs to be validated.
iii. Input restraint type “EWT” and press enter.
iv. Input start date i.e. day which customer submitted the valid request and press enter.
v. Input validity date that is available in FBR provided tax exemption certificate (for category (ii) above)
and 31-Dec-2999 for category (i) above) and press enter.
vi. System will show narrative screen. Input the reference number of FBR letter along with its issuance
date and press enter.
vii. Press F10 to save the transaction.

4.26 REMOVAL OF RESTRAINT FROM ACCOUNT

Authorized Officer will use the above mentioned option for removal of restraint from the account.
i. Select the specific restraint which needs to be removed from the account on customer or competent
authority’s request and click on DELETE icon available on the Tool Bar.
ii. Press F10 or click on save icon.

Similar option is available on Enterprise Operation Center (EOC) - Deposits Module >> Transactions >>
Account Facility >> Restraint Setup Screen # RB51.
i. It should be ensured that all requests are marked from any one of the above options. Operations
Managers are instructed to daily review the entire Standing Instructions request received in a day in
order to ensure that all requests are properly marked in the system.

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4.27 CHANGE IN CUSTOMER ACCOUNT INFORMATION (MASTER DATA)

In case of any change in customer account information i-e Title, Address, Contact #, E-mail; a written request
must be taken from the account holder personally. Signatures are verified from the SSC. Please note that
CUSTOMER’S PRESENCE is MANDATORY for any change in master data.
According to the kind of change request, supporting documents (ref to example below) are obtained from the
customer in original. BM/ BOM will approve the same with their signature/ stamp along with AS/ IBS number.
e.g. In case of Address change either Updated/fresh CNIC with new address is obtained; If address is different
than the one given on CNIC, documentary evidence should be obtained which can copy of the Utility bill OR
Original Registration of the new residence OR lease / tenancy agreement/ letter from the landlord along with
Landlord NIC/ Utility bill stating that the person lives in his or her property as a tenant etc.
The request along with provided documentation will be preserved with Account Opening Application or in a
separate file maintained with BM/ BOM.

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Chapter 5 CLASSIFICATION OF ACCOUNTS

5.1 DORMANT/ INOPERATIVE ACCOUNTS & FINANCIAL INSTRUMENTS

Checking accounts are classified as dormant accounts due to the conditions mentioned in the table below. The
account become dormant if there is no activity in the account (excluding system generated activity e.g. Profit
disbursement) shall be classified and flagged by the system as “dormant accounts”. (No financial entry is
passed). However half yearly profit shall continue to be applied as usual on Savings accounts only.

Type of Account Dormancy Inoperative Un-Claimed (Escheated)

Current Accounts 6 Months 2 Years 10 Years
Saving Accounts 1 Year 3 Years 10 Years
Financial Instruments - - 3 years from Date of Issuance

Note: Accounts opened and maintained by School Management Committees (SMCs) duly constituted by
Education Department, Government Sindh shall not be transferred / flagged as “Dormant” and shall be
exempted from levy of ‘Service Charges’ on account of non maintenance of minimum balance requirement.
(BPRD Circular Letter # 02 dated Jan 25, 2010)

5.2 UNCLAIMED DEPOSITS & FINANCIAL INSTRUMENTS

A debt payable either in Pakistani currency or any other (foreign) currency is owing by a banking company by
reason of a deposit (time / demand deposit or any other kind of deposit) or a financial instrument (Pay slips /
Pay orders / DDs / TTs / Travelers Cheques or any other financial instrument) not being recorded in the name of
a minor or a government or a court of law, in respect of which no transaction has taken place and non
statement of account has been requested or acknowledged by the creditor during a period of 10 years as
reckoned under Sub-section (1) of Section 31 of BCO 1962 will be classified as unclaimed deposit / instrument.
For details refer to
i. BPD Circular Letter No. 07 dated July 21, 2006,
ii. BP&RD (SLD-02)/317/X/207-3214 dated April 05, 2007 &
iii. BPD Circular Letter No. 37 dated December 03, 2009).

5.2.1 Unclaimed Deposits – Savings & Current Accounts:

Current & Savings Accounts not operated for 10 years from the date of last activity in the account
(excluding system generated activity e.g. Profit disbursement) will be classified and flagged by the system as
“Unclaimed Deposit Account”. (Accounts are just ‘flagged’ by the system as un-claimed and no financial
entry is passed).
Note: As per SBP BPRD Circular 02 of Jan 05, 2010 banks are NOT allowed to deduct ‘Service Charges’ on
customer accounts which are classified as Dormant, In-operative & un-claimed. And it is further notified that

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 Bank Statement for such accounts will also not be dispatched after the change of status from active to
Dormant.
5.2.2 Unclaimed Instruments:
Bank Drafts, Government Drafts, Payment Orders, Mail Transfers, Fixed and Term Deposits etc, if remains
outstanding for 03 years from the date of issuance will be classified as Unclaimed and will be transferred
from ‘Outstanding DDs/POs’ to “Unclaimed DDs/POs”.
No profit/interest is paid on Term deposits transferred to Unclaimed Accounts. Similarly, no service charges
are deducted.
Payment of Unclaimed Instruments: Un-paid instruments are moved to Respective Unclaimed GLs after 3
years of issuance and if presented for payment before 10 years (for surrender to SBP) of issuance will be
paid after due verification and re-validation at Issuing Branch end. For re-validation of instruments please
refer to Section 4, Chapter 2: 2.11 Revalidation of Pay Order / Demand Draft

5.3 MARKING OF RESTRAINT FOR EXEMPTION FROM UNCLAIMED

To mark the accounts which are exempted from unclaimed category for surrendering of funds to SBP (refer to
Section 2: 5.5 Surrender of Unclaimed Deposit to SBP) a restraint type (“EUN’ – Exempted Unclaimed Accounts)
is created. Accounts falling under this category which are classified by the system as unclaimed accounts should
be identified from the list of ‘unclaimed accounts’ for marking the restraint.
Tagging of ‘EUN’ restraint in SYMBOLS will be performed as under:
i. Deposit Module >>>> Transaction >>>> Account facility >>>> Restraint set up (RB51).
ii. Insert account number & press F-8. System will provide account details that need to be verified.
iii. Input restraint type “EUN” and press Enter.
iv. System will ask to input start date. Insert the account opening date (DD-MMM-YYYY) and press Enter.
(Account opening date can be obtained through – Deposit Module >>>> Enquiry >>>> Account Details
>>>> Enter (RB7A).
v. Input End Date as 31-Dec-2999 (DD-MMM-YYYY).
vi. System will show ‘narrative screen’. Input the exemption category i.e. Minor Account, Government
Organization, Deposit favoring Court of Law as applicable.
vii. Press F-10 to save the transaction.

5.4 ACTIVATION & OPERATION IN DORMANT, INOPERATIVE & UNCLAIMED DEPOSIT ACCOUNTS
Prime responsibility to approve operation and activation of a Dormant, Inoperative and Unclaimed (not yet
surrendered to SBP) Accounts as well as payment of a claim lies with PARENT BRANCH ONLY.
i. Any request for operation in above accounts should be initiated in-person by the account holder in
writing and must be supported by attested copy of valid CNIC (If customer CNIC do not exist in the
system, then it is required to verify it’s genuineness through NADRA’s online VeriSys system). To
evidence the verification, a copy of customer’s CNIC should be printed from VeriSys and retain the same
as a record and update customer’s record with CNIC number on the system. Requests received from
person other than the account holder himself should not be entertained.
ii. Request received by the parent branch for execution of any customer initiated transaction (financial or
non-financial) will invariably be referred to the Branch Manager who will scrutinize the request
personally and satisfy himself beyond doubts as to the genuineness thereof.

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 iii. After being so satisfied, the Branch Manager and Branch Operations Manager will jointly approve the
operation in Dormant, Inoperative and Unclaimed accounts OR will pay to a rightful claimant by means
of Payment Order only, as the case maybe.
iv. In case any particular does not match with NADRA records with the CNIC provided by the customer,
account should not be activated till complete information is not updated on NADRA VeriSys.
v. In case where customer is reported as having dual CNIC’s as per NADRA VeriSys, only valid CNIC should
be obtained at the time of activation of Dormant Account and this account should be marked as High
Risk and should be monitored at regular intervals. Further branches must ensure that the duplicate CNIC
has been surrendered.
vi. Where customer is holding dual CNIC as per NADRA VeriSys, and the account was opened against
surrendered CNIC, branch should immediately close the account after completing all the formalities /
requirements in light of instructions provided in CDD / AML handbook.

5.4.1 In case of Cross Branch Transaction:

If customer approaches a Branch other than the ‘parent’ branch, for operation in Dormant, Inoperative
and Unclaimed accounts the concerned branch before execution of customer initiated transaction
(financial or non-financial), is required to obtain written approval from the parent branch. For this
purpose:
i. Concerned branch will forward customer’s written request to the Branch Manager of parent branch
via fax or e-mail with scanned copy of customer request.
ii. Branch Manager of parent branch will verify customer signature on customer’s request, affix
signature verification stamp and scrutinize the request personally, and satisfy himself beyond
doubts as to the genuineness thereof. Also check the account for complete documentation and KYC
/ AML requirements.
iii. After being so satisfied, the customer request will be jointly approved by the Branch Manager and
Branch Operations Manager of the parent branch mentioning their IBS number and will forward the
customer request back to the concerned branch through fax or e-mail.
iv. This will be done only where the customer visits the paying branch in person.
v. Parent branch should retain a copy of the duly approved customer request as an evidence and
record in its dormant account activation file.
vi. To ensure better customer service staff at both the branches should ensure that process is
completed in shortest possible time.
vii. Account status will not be changed to ‘normal’ until customer personally performs a financial
transaction (deposit or withdrawal) in his account on the counter.
viii. Branches will print the “Change in Account Status Report – KM0099” on daily basis and file it
chronologically as a branch record and for onward review by ROM.

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 5.4.2 In case of Inward Remittance in Dormant Account:

When the Remitter and Beneficiary is the same person:

If remittance is received in an account which is dormant, but the remittance has been sent by the
beneficiary himself, the bank will make the account operative and accept the remittance PROVIDED the
account is normal otherwise i.e., the account was opened without any discrepancies and a valid CNIC is
available for the account. In case the account has discrepancies, BM/ BOM will ensure to complete all
formalities to regularize the account.

When the Remitter and Beneficiary are different persons:

If remittance is received in an account which is dormant and the remittance received has NOT been sent
by the beneficiary himself, the Branch Manager/ Branch Operations Manager should make full efforts to
contact the customer and complete all formalities to regularize the account. After being satisfied with the
purpose of the remittance and obtaining all relevant information/ documents to regularize the account,
Account will be activated and the remittance will be accepted

Note: It is the prime responsibility of the supervisor to validate and read the “override conditions”
carefully and incase system prompts the message “Account is dormant or inactive”, he must ensure,
before authorizing the transaction that all required formalities as discussed above have already been
completed.

5.4.3 Review of Activation process & Activity over Dormant, Inactive & Un-Claimed
Accounts:
Regional Operations Managers (ROMs) during their monthly visit of branches will review the ‘activation’
process and activity performed over Dormant, Inactive and Un-claimed account during the month. For this
purpose ROM will review “KM0099 - Change in Account Status Reports of the branch and will ensure that
the above requirements are strictly followed. To evidence the review, ROMs are required to sign off the
related reports.

5.5 SURRENDER OF UNCLAIMED DEPOSIT TO SBP

5.5.1 Reporting Of Unclaimed Deposits to Head Office by Branches:
i. Branches are required to report and transfer LCY and Frozen / Unfrozen FCY unclaimed
deposits/instruments (excluding deposits/instruments recorded in the name of minor or Government
Department/Agency, or Court of Law) outstanding in their books as on Dec 31 at each calendar year
to H.O within seven (07) days after the close of each calendar year.
ii. For transferring the unclaimed LCY deposits use Transaction Code 3334. For surrender of Frozen FCY
deposits, in coordination with Treasury Back Office, valid contract rates will be provided to branches in
the last week of February. Branches will raise credit advices using Transaction Code 3366 and send the
same through Regional Offices under intimation to treasury back office.
For detail Batch Processing, please refer to Section 7: 1.4 Transaction processing In GL Module
iii. Branches are required to report the same via their respective Regional Offices. Regional Office MUST
ensure the information being reported are checked and verified by Area Audit Head and Regional
Manager to avoid SBP criticism and penal action.

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 iv. SBP Reporting Unit will consolidate the details of all unclaimed deposits/ instruments at country level
and will Submit report in last week of January and surrender funds of unclaimed deposits/instruments
in first week of April to SBP
Note:
i. For detailed instructions & required formats, please refer to
 SBP BPRD Master Circular No 07 dated July 21, 2006
 COD Circular No. POK/COD/FEX/46 dated August 07, 2006
 BPRD Circular Letter No.16 dated May 27, 2009
 COD Circular No.COD/GEN/2009-136 dated June 01,2009
ii. Reporting of any irrelevant or inconsistent data in violation of provision of law and laid down
procedure for unclaimed deposits shall invoke the penal provisions of law.

5.5.2 Notice to the Holder of Unclaimed Deposits/ Instruments:

i. Upon completion of a ten year time period as stipulated in relevant provision of Sub-section (1) of
Section 31 of BCO 1962, branches are required to serve a three month notice in writing by registered
post acknowledgement due to the creditor or the beneficiary of the deposit /instrument on his/her
address last made known to the bank.
ii. Apart from giving a notice to the respective account holder at the end of 10 year period, branches will
also make cognizable effort from time to time to contact such account holders where there has been
no activity in the respective accounts for a considerable period.
iii. Branches are required to maintain complete record of letters/ envelopes etc posted at the address of
the Unclaimed Deposit/instrument holder.
iv. Branches are also required to intimate in writing to the government departments/agencies, court of
law and minors (after acquiring the age of maturity) for settlement of their deposits/ instruments lying
with them for more than 10 years.

5.5.3 Preservation of Documents:

Branches are required to preserve all signature cards and documents indicating the “Signing Authorities”
given to them and other documents relating to the debt or instrument in the dual custody of Operations
Manager and Designated Authorized Officer until informed by SBP in writing that they need not be
preserved the same any longer.

5.5.4 Display of Unclaimed Deposits Information:

An updated list of Unclaimed Deposits surrendered to State Bank of Pakistan should be kept available with
CSO and a notice to this effect should be displayed on the notice board of the branch for customer
information.

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5.6 REFUND PROCEDURE FOR UNCLAIMED DEPOSITS SURRENDERED TO SBP
Claims lodged with the Branches for refund of Unclaimed Deposits / Instruments already transferred to State
Bank of Pakistan (SBP) will be forwarded to Centralized Operations Division, SBP Reporting Unit, Karachi through
respective Circle Offices for onward submission to State Bank of Pakistan.
Before submitting any claim request to SBP Reporting Unit it is the concerned Branch Manager’s responsibility
to satisfy itself on the genuineness of the customer/client and will ensure that:
i. Customer / client signatures are verified.
ii. Necessary documents are obtained from customer and verified from branch record.
iii. Certificate on Annexure III (SBP Revised Annexure “C”) also available with BPRD Circular Letter No. 20
dated July 29, 2009 (COD Circular No. PO/COD/GEN/204 dated August 04, 2009) is prepared with all
pertinent details. This certificate MUST be signed by the Branch Manager and Head of Internal Control
(Audit)
iv. Having completed the above requirements, forward the claim request Annexure III (Certificate on SBP
specified Revised Annexure C) along with all necessary documents) to SBP Reporting Unit through Circle
office under their cover letter.

5.6.1 Required Documents

i. Original application for refund along with verification of attested signature/thumb impression of the
claimant by the Branch Operations Manager or Designated Authorized Officer containing signature
and stamp with name/designation/bank name/branch name.
ii. Copy of 3 months notice served by the branch to the holder of unclaimed deposit/instrument. Duly
attested, signed and stamped by branch manager showing his/her name and designation.
iii. Attested copy of CNIC of the claimant with signature/name/ designation of branch manager.
iv. Copy of the relevant portion of (SBP Annexure- A) detail of Unclaimed Deposits Surrendered to SBP as
available on SBP website.
v. Succession Certificate (in case of deceased customer). Duly attested by branch manager and Area
Audit Head and stamped showing name and designations of the signatories.
vi. Indemnity bond on PKR 100/= stamp paper duly signed by Branch manager and Area Audit Head, in
case of any inconsistency/error/omission in above noted documents.

On receipt of confirmation from Centralized Operations Division (SBP Reporting Unit) in coordination with
SBP Reconciliation Department, of receipt of proceeds from State Bank of Pakistan, same shall be paid to
the Claimant.

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Chapter 6 CHEQUE BOOK MANAGEMENT

6.1 GENERAL INSTRUCTIONS FOR NEW ACCOUNT HOLDERS

i. To ensure compliance of KYC Policy, cheque books to the new accountholders shall ONLY be issued on
production of Letter of Thanks by the account holder that was dispatched to him/her by CPU/branches
on the given address. A copy of Letter of thanks produced by the customer will be filed by the branch
along with Account Opening Form.
ii. In case of any undelivered ‘Letter of Thanks’ for new account holder, Designated Authorized Officer
(DAO) will mark “whereabouts unknown – WAU” restraint on the relevant account and file the customer
copy of Letter of Thanks returned undelivered along with AOF. For accounts marked WAU, message will
pop-up, whenever account holder will make any financial transaction on the branch’s cash counter.
Designated Authorized Officer will inform the customer about the same on his/her visit to branch and
request him/her to validate the address, In case of incomplete/ incorrect address the customer should
submit a written application in order to update the address in order to provide proper verification of
his/her whereabouts to the bank.
iii. Customer can authorize his/her representative for the collection of cheque book by signing off the
same. (Customer’s signature should be duly verified as per the required practice).

6.2 GENERAL INSTRUCTIONS FOR EXISTING ACCOUNT HOLDERS

i. Customer is required to approach his/her parent branch for issuance of cheque book. Prior to issuance
of a new cheque-book, branch should ensure that the account is not dormant/ blocked or in-operative
ii. Cheque book will NOT be issued to a customer if the status of his/her account is marked/flagged as
Dormant, Inoperative or Unclaimed. To change the status of account from Dormant, Inoperative or
Unclaimed to ‘Active’ refer to Section 1: 5.4 Activation & Operation in Dormant, Inoperative &
Unclaimed Deposit Accounts
iii. Cheque books should be issued to the account holder or his/her authorized representative at the Bank’s
counter if designated authorized officer is fully satisfied. However, in case of doubt a call back
confirmation may be obtained from the account holder on his/her phone numbers available in bank’s
record. Under no circumstance should the cheque book be dispatched through mail.
iv. In case of loss of original ‘cheque book requisition slip’ by the customer, the issuance on MF-80R should
only be allowed in customer’s personal presence and after proper verification by BOM.
v. For Cheque book issuance, the customer is required to sign on the requisition slip at two different
intervals i-e One at the time of requisition and other at the time of delivery allows the bank to keep a
stringent control on the issuance of the Cheque books.
vi. In case customer require multiple Cheque books and have one requisition slip; a written request must
be furnished clearly spelling out total no. of leafs/ cheque books required. Designated Authorized Officer
to verify account #/ signatures on the same and get approval from BOM.

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6.3 PROCEDURE FOR ISSUANCE OF CHEQUE BOOKS (NIFT)
Customer: Visits the branch and presents cheque book requisition slip. (Available in the existing cheque book)
In case of new customers or lost requisition slip/Cheque book, customer fills out a cheque book Requisition slip
(MF-80 R) in person.
GBO / Designated Officer:
i. Receives requisition slip from the customer and enquire about the status of existing cheque
book/leaves from the customer. In case of lost cheque book/leaves stop payment request should be
obtained from the customer and stop payment must be updated on the system before issuance of new
cheque book.
ii. Confirms Account balance from the Branch Teller Module > Enquiries > Account Enquiries > Account
Balance (Screen # BT521). Also confirm the status of account (Active, Dormant, and Inoperative).
iii. CBR System does not permit the processor to submit the cheque book request by disabling the
“SUBMIT” icon on the screen, if account has dormant or inoperative status.
iv. Forwards cheque book requisition slip to Designated Authorized Officer to verify customer’s signature
from the Branch Teller module- BT.
Designated Authorized Officer/ Branch Operations Manager:
i. Verifies customers signature through Branch Teller Module > Transactions> Non-Financial Transactions
> Customer Signatory (Screen # BT44).
ii. Input account number, press enter, account information & signature appears on the screen.
iii. Sign-off and affix stamp “Signature Verified” stamp on the requisition slip.
iv. Returns requisition slip to GBO for further processing.
GBO / Designated Officer (Input USER):
i. Receives Requisition Slip.
ii. Log in to Cheque book Registration System (CBR).
iii. Input Account Number & click on submit icon.
iv. Next screen shows the customer’s account details. (At the bottom of the screen all the Cheque Book
Request that are linked to the customer’s account are shown along with their status).
v. Click to the option “Proceed” available on the above screen. Another screen appears; the top portion
shows the SYMBOLS Account Information for the customer. Input “Number of Leaves” as requested by
the customer.
vi. Click on submit icon, system saves the cheque book request with the “New” status.
Designated Authorized Officer/ Branch Operation Manager (Approver):
i. Approver inserts Login ID and password in the Cheque book Request System in order to approve the
cheque book requests. Click on submit icon.
ii. Main Menu Bar screen appears, clicks on View Request Tab on the top Menu Bar.
iii. Click on customer’s Name link, Cheque book Request Details will appear on the screen.
iv. Check details with the Requisition Slips and select Application Status as “Accepted”
v. Click on “SUBMIT” ICON.
Approver ensures that all the above fields are properly filled by the Input user and approve the Cheque Book
Request accordingly.
i. Generate “Cheque book Request Report” for the day from CBR system. Match the total number of
cheque books requested for the day with system generated report.
ii. Keep Cheque book Requisition Slips in the Fire Proof Cabinets under Dual Control.

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6.3 PROCEDURE FOR ISSUANCE OF CHEQUE BOOKS (NIFT)
Centralized Operations Division (COD):
i. Receives Text File from Printer and reconcile the data
ii. Main Menu Bar screen appears, clicks on Print Cheque book Tab on the top Menu Bar.
iii. Screen will show the details and total number of request received from all the Branches.
iv. Click on “Print” Icon & system gives following message “The Cheque book Request has been set to
Printed”.
v. Details of the Cheque book Request automatically upload in the text file.
vi. Forwards Text File to NIFT via e-mail.
NIFT:
Forwards Text file to Printer for marking “Magnetic Ink Character Recognition” (MICR) & Account Details
(Number & Title of Account)
Printer:
i. Receives cheque book requisition slips from the NIFT for marking MICR codes.
ii. After one Business day, delivers the same to the NIFT for onward delivery to respective branches along
with the covering schedule.
iii. Forwards the details (Via e-mail- Text file) of the printed cheque books to the CPU for reconciliation
Centralized Operations Division (COD):
i. Receives Text File from Printer and updates the cheque series in the system.
ii. After uploading the series in the system, “Printed” status automatically changed into “Received”.
Designated Authorized Officer:
i. Receives processed cheque books from NIFT along with the covering schedule.
ii. Mark received on the cheque book covering Schedule (report) and sign off the same.
iii. Notes down cheque series on the Cheque book requisition slip on which customer’s signature is
already verified. Note down the receipt date on the right corner of the cheque book.
iv. Attach requisition slips with the respective cheque books.
v. Log onto EOC, enter customer a/c #, transaction code: CBIC and debit customer a/c with charges.
vi. Keeps the cheque books in the safe custody under dual control. (Strong Room or Fire Proof Cabinets).
vii. Designated Authorized Officer daily delivers the cheque book Box to Designated Officer for onward
delivery to the customers.

6.4 COLLECTION OF CHEQUE BOOK BY THE CUSTOMER (NIFT)

Customer: Visits the branch to collect his/her cheque book.
GBO / Designated Officer:
i. Retrieves the cheque book from the box.
ii. Detach requisition slip from the cheque book.
iii. Obtains Customer’s signature (acknowledgment) on the cheque book requisition slip & Issuance
Report.
iv. Forwards cheque book requisition (acknowledgment) slip to Designated Authorized Officer to verify
customer’s signature from the Branch Teller module- BT.
Designated Authorized Officer/ Branch Operation Manager (BOM):
i. Ensure that customer signatures on both side/portions of MF-80 match with one another. In case of
disagreement between signatures matter will be referred to BOM for guidance.
ii. Verifies customers signature through Branch Teller Module > Transactions> Non-Financial Transactions
> Customer Signatory (Screen # BT44).

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6.4 COLLECTION OF CHEQUE BOOK BY THE CUSTOMER (NIFT)
iii. Input account number, press enter, account information & signature appears on the screen.
iv. Sign-off and affix stamp “Signature Verified” stamp on the requisition (acknowledgment) slip.
v. Returns requisition (acknowledgment) slip to GBO / Designated Officer for further processing and
activation of the cheque book.
vi. Without having a valid authority from the customer/account holder no cheque book should be issued
to ‘third party’.
GBO / Designated Officer:
i. Ensures that the signatures are duly verified.
ii. Delivers the cheque book to the customer.
Customer: Collects cheque book and leaves the branch.
GBO / Designated Officer:
i. On the basis of acknowledgement of delivery of cheque book duly signature verified:
ii. Attach Cheque book series with the account by using Branch Teller- BT >> Transactions >> Non-
Financial Transactions >> Cheque book Issuance (BT-47)
iii. Input or Select Account Number, press enter
iv. Input appropriate Size Type e.g. “S” Small, Select Book Type as STUB
v. System will show Number of Leaves. Input Start Cheque Number, system shows the End Cheque
Number.
vi. Press F10 or Click on save icon available on the tool bar.
vii. GBO / Designated Officer enter Login ID & Password in CBR system in order to change the “Received”
Status to “Delivered”.
Designated Authorized Officer:
i. Receive ‘Cheque book Issuance Report’ generated by CMIS team through KM and verify the number
and details of Cheque books delivered & activated on the report against the requisition
(acknowledgment) slips and ensure that all the requirements have been fulfilled before the activation
of cheque books in the system.
ii. There is a report available in SYMBOLS that provides details of the entire cheque books issued to all the
account holders in the branch since the account opening date.
iii. Report is available in Deposit Module >> Reports >> Cheque Processing >> Cheque Number Issued
(Screen # RBA22).
iv. Back Office files all the cheque book requisition slips & Reports in the relevant file for the record.

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 6.5 ISSUANCE OF MANUAL CHEQUE BOOKS
Customer: Visits the branch to get his/her cheque book.
Manual cheque book is not issued without prior approval of BM/ BOM. BM/ BOM interviews customer and
know the reason why customer need manual cheque book. BM/ BOM signs requisition slip and authorize
manual cheque book issuance.
Designated Authorized Officer:
i. On BM/BOM approval, Designated Authorized Officer takes out the required number of cheque books
from the stock after due verification of customer’s signature.
ii. Affix Account number stamp on every cheque leaf.
iii. Note down the cheque series in the requisition slip and SB-6.
iv. Note down the account title & number and issue date in SB-6.
v. Obtains customer’s acknowledgement on requisition slip and SB-6
vi. Affix Account # before delivering cheque book to customer
vii. Hands over cheque book to customer under proper acknowledgement.
viii. Log onto EOC, enter customer a/c #, transaction code: CBIC and debit customer a/c with charges.
ix. Logs into BT and selects cheque book issuance screen and enters account number, number of leaves
and serial number to mark cheque book as 'active' and save record to complete the transaction
x. DAO generates and print 'cheque book issuance'/ cheque book activated report and 'RBA 11' report' and
verify against NIFT cheque book report/ requisition slip and sign off. Requisition slips are attached with
the report to be sent to BOM for verification/ counter sign off.
BOM receives report (cheque book issuance/ cheque book activated report and RB 11 reports) and slip, verify
against serial number and sign on the report.

6.6 MANUAL CHEQUE BOOK STOCK ENTRY & MAINTENANCE

Branch receives new stock/consignment of cheque books for issuance without MICR coding from Centralized
Stationery Department along with the covering invoice. Branch takes the following steps:
i. Designated Authorized Officer matches the cheque book series from the invoice.
ii. Checks and verifies that the entire cheque leaves are intact.
iii.Affix Branch’s Name stamp on each cheque book.
iv. Note down the stock details in the Cheque book Stock & Issuance Register- SB-6 in the separate folios
allocated for current and Savings accounts.
v. Weekly balance the physical stock of cheque books with the Cheque book Stock Register- SB-6.
vi. After issuing manual cheque book to the customer, note down the cheque book series, account title &
number in SB-6 in the relevant section and simultaneously update the cheque book stock.

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6.7 MICR ENCODED CHEQUE BOOKS BY NIFT - FEATURES
National Institutional Facilitation Technologies (NIFT) arranges to supply MICR (Magnetic Ink Character
Recognition) encoded and personalized cheque books to the branches. The MICR encoded cheque books are
issued to the customers of MCB branches at selected centers for checking accounts.

Contents of MICR Coded Cheque are as under:

The serial number of cheques along with other banking data appears at the bottom of printed MICR
cheque books. The cheque is numbered as follows:
“0014051” 0621473  : 0000005378 “000”
The numbers on cheque as appearing above when decoded will read as under:
i. The first seven digit of the cheque from the left hand side on bottom of the cheque i.e. 0014051
denotes serial number of the cheque.
ii. The next “3” digit after the “7” digit serial number of cheque from left side i.e. “062” denotes Bank’s
code i.e. MCB Bank Limited.
iii. The next “4” digit after the cheque serial number and bank code number i.e. “1473” denotes branch
code of the respective branch.
iv. The next “10” digit from left hand side after cheque serial number, Bank code and branch code i.e.
0000005378 denotes Account Number of the customer.
v. The last “3” digit from left hand side of the cheque i.e. “000” represents as under:
 1st “2” Zero denotes that the type of instrument is cheque.
 The last one Zero denotes that currency of the instrument is Pak Rupee.
vi. The symbol resembling comma/colon is transaction symbol and will be ignored while reading the
numbering.
vii. All Computer Operators, data entry operators and concerned office and staff will note that cheque
serial number will be read from the first “7” digit from the left hand side at the bottom of the cheque
and this number will only be noted/recorded wherever cheque serial numbers are required to be
recorded and not the entire numbers appearing on the cheque at the bottom line.

6.8 NIFT CHEQUE BOOK STOCK ENTRY & MAINTENANCE

NIFT rider delivers printed cheque books to branch in bag attached with covering schedule (detail Scroll)
including customer name, account number, number of leaves, total number of cheque books and type of
account. Branch takes the following steps:
i. Designated Authorized Officer counts the cheque books received.
ii. DAO matches the cheque books against the covering schedule provided by NIFT
iii. Checks and verifies that the entire cheque leaves are intact.
iv. Mark received on the cheque book covering Schedule and sign off the same.
v. DAO segregate cheque books according to the requisition slip
vi. Notes down cheque series on the Cheque book requisition slip on which customer’s signature is already
verified.
vii. Note down the receipt date on the right corner of the cheque book.
viii. Attach requisition slips with the respective cheque books.
ix. Note down the details (cheque book serial number, account number title and date received from NIFT)
in the Issuance Register- SB-6 and sign-off the same.

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 x. Log onto EOC, enter customer a/c #, transaction code: CBIC and debit customer a/c with charges.
xi. Keeps the cheque books in the safe custody under dual control. (Strong Room or Fire Proof Cabinet)
xii. Weekly balance the physical stock of cheque books with the Cheque book Stock Register- SB-6.

6.9 HANDLING OF UNDELIVERED CHEQUE BOOKS

All processed cheque books that remain uncollected by the customers for six months from the date of issuance
must be destroyed by the branches after the recovery of Cheque book issuance charges and Excise Duty (If any).
i. The cheque-book custodian (Designated Authorized Officer) records the details of all such cheque books
in the “Statement of Uncollected Cheque Book Register” specimen as under.
ii.
STATEMENT OF UNCOLLECTED CHEQUE BOOKS

As on _________________________________

S. No Date of Receipt Account Number/ Type Title Of Account Cheque Serial Number

Signature of Authorized Officer Signature of Operations Manager

iii. Branch Operation Manager would approve the list for destruction and sign-off.
iv. Custodian (Designated Authorized Officer) destroys the books/leaves in the presence of the Branch
Operation Manager and obtains his/her signature.
v. Ensure proper notation on cheque-book issuance Report for the books destroyed.

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Chapter 7 TERM DEPOSIT
‘Term deposits’ are profit-bearing fixed deposit accounts offered by the bank to its existing and prospect
customers.

7.1 TERM DEPOSIT PRODUCTS

Presently, following products are being offered by the Bank:
i. Flexi Deposits Account (FDA) – Centralized Product
ii. Mahana Profit Account (MPA) – Centralized Product
iii. Smart Foreign Currency Term Deposits (SFTD) – Non-Centralized
iv. Term Deposits Receipts (TDR) – Discontinued – Existing bookings are being phased out
v. Special Term Deposits Receipts (STDR) – Discontinued – Existing bookings are being phased out
vi. Special Notice Deposits (SND) – Discontinued

Centralized products are being handled E2E by Centralized Processing Unit Karachi (CPUK) as per defined
frequency, whereas, the non-centralized products are being handled by the branches manually.

7.2 TERM DEPOSIT APPLICATION FORM (SF265-NEW)

The new TD Application form has the following distinctive features:
i. Set of three carbonized copies – (1st copy for CPU Karachi, 2nd copy for Customer and 3rd one for
Branch record).
ii. Field for marking of Zakat and Tax Exemption details.
iii. Field to provide the Customer Current or Savings account number to credit the deposit amount at
maturity.
iv. Has a facility for marking of pay out frequency.
v. Has separate space available to mention the relationship (Client No.) of Customer.

7.3 INSTRUCTIONS FOR TERM DEPOSIT

i. All details on the application form should be provided / filled by the customer, clearly indicating the
required action on maturity, i.e. principle to be credited back to linked account or rollover with/without
profit.
ii. Before booking New Term Deposit for the existing customer, branches should ensure that the said
application is signed by the accountholder(s)/ authorized signatory.
iii. Signature(s) on the TDA should be verified religiously by the authorized officer of the Bank.
iv. Moreover, designated Authorized Officer should ensure that the required funds are available in
customer’s account before accepting the application for further processing.
v. As a standard rule TDs will be established with pre-established interest rates. However, if the branch
wishes to offer a better rate (depending on the value of deposit or relationship with the customer)
Branch Manager is required to obtain proper written approval from Group Head Business & Treasury for
the ‘special rate’ as per the existing process before establishing the TD.
vi. Roll over of Term Deposits which were opened prior to centralization and were being handled by the
branches at their end shall now be handled as new booking under FDA/MPA products through

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 Centralized Processing Unit (CPUK). Please refer to Section 1, Chapter 2: 1.4.1 Flexi Deposit Account and
1.4.2 Mahana Profit Account

7.4 PROCESS – BOOKING OF FDA / MPA (CENTRALIZED PRODUCT)

Customer: Request for Issuance of Fixed Term Deposit in the branch.
Branch
i. Designated officer delivers the TD Application Form SF-265-Revised to customer along with necessary
guidance about the product.
ii. For New Customers - He/she is required to open a checking account in order to make the placement.
TD Application form has 3 copies. One for Bank (COD) copy, 2nd is Branch copy and 3rd one is Customer Copy.
Customer will fill first copy with others being carbon copies. Branch officials will approve all 3 forms.
Customer receives the TD Application from Authorized Officer and submits it duly completed. (Customer must
be an existing client of MCB Bank with an active account in any branch).
Branch Scrutiny
i. Designated officer receive TD application from customer and check it thoroughly. Validate complete
application and their relevant information.
ii. After proper validation, TD application is forwarded to Branch Manager for authorization.
iii. Branch Manager interviews the customer.
iv. Check all details in TD Application & check that whether there are sufficient funds in customer’s
account for TD opening.
v. After proper validation of TD application note down the existing client number of customer on TD
application. In case of new customer branch should request customer to open relationship (CASA)
account.
vi. Update the customer of the applicable interest rate. (In case of ‘special rate’ Branch Manager should
get the required approval from Group Head – Business/Treasury through proper channel as per the
existing procedure).
vii. Obtain Customer’s Signature on TD Application verify signatures, signoff TD application (all copies of
TDA) by Branch Manager or any Authorized Officer with IBS/AS and forward to designated officer for
further processing.
(In case of any discrepancies in TD application, request customer for updating and hold the application till
Regularization)
Customer obtain customer copy of TDA (duly signed and stamped by Branch Manager or Branch Operation
Manager and any Authorized Officer with IBS/AS) and leave the branch.
Branch
i. Designated officer will scan duly authorized TDA (COD Copy).
ii. Send via email (either BM or BOM) to Central Processing Unit, Karachi (CPUK) at COD email ID
([email protected]) on specific email template (Annexure-E) for further processing.
iii. In case scanning could not be done, Fax TDA to CPUK with all details of TD mention in the email.
iv. Keeps TDA Branch Copy for record.
v. Mark Original TD Application as (already faxed/scanned when they are scanned / faxed.
vi. Dispatch TD application Bank Copy to CPUK through courier / Rider.
CPUK (Day-1):
i. Designated Officer/Unit at Central Processing Unit, Karachi will receive scanned TD Application via

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7.4 PROCESS – BOOKING OF FDA / MPA (CENTRALIZED PRODUCT)
email from branch on specific email template (Annexure-E).
ii. TD Applications received till CUT-OFF time of 1.00 pm will be processed on the same day. The
application that received after CUT-OFF time i.e. 1.00 pm will be entertained in next Business day as
per product features (PPG and T&C).
iii. Authorized officer check TD application thoroughly and send to processor for TD account opening.
Incase Request is received via FAX the same is checked with email details, signed and stamped by
receiving officer.
iv. In case of ‘special rate’ ensure that the required approval is obtained by the branch and attached with
the TD application.
(In case of any discrepancy such as blur/improper scan of incomplete details an intimation is sent to branch for
regularization and returned upon branch request)

i. Open Term Deposit account on Deposit Module.

ii. Use SYMBOLS >> Deposit Module >> Term Deposit >> TD Account Open/ Maintenance (RB213), Select
type (Term select from LOV) of account for Term Deposit, insert client and other required information.
iii. Note down the system generated account # on TD application.
iv. Generate Report “Account Open / Maintenance Details-RBA26” from EOC.
v. The authorized officer verifies the data from report on case to case basis which is input by processor. In
case of any miss-postings rectifies the same by processor.
vi. Placement of Funds: SYMBOLS >> Deposits Module >> Term Deposit >> Placement >> Transfers
(RB332). Input the TD Account # and press F8, system will show the account details, after verification
input withdrawal account # and amount which should be equal to principle amount. Press F10 to save
the transaction.
vii. Generate Account Placement Report (Annexure-G)
viii. System will generate auto entries in customer branch books:
ix. Fund placement transaction report RBA11 will be validated by supervisor. In case of miss postings
processor will rectify and supervisor will validate and sign-off.
Inform to branch: TD account details send to branch via Email (Branch Wise) on specific email template
(Annexure-E).
Branch information received of TD Open / Issued.
CPUK (Day-2):
i. Dispatcher receives TD application in sealed envelope, affix the receiving date on TDA and hand over to
concern staff (COD) for further processing.
ii. The authorizer matches original TD Application with the scanned copy/fax and mark it, (Matched with
scanned/fax copy) and sign-off.
iii. TD Advice (Annexure-B) is generated from KM Module for record.
iv. TD Advices are emailed on specific email template to respective Branches automatically through KM
Module.
v. Keep Soft Copy of T. D. Advices at Central Processing Unit, Karachi for record.
Branch
i. Branch receives TD Advices, take two prints and hand over one copy to customer. Obtain
acknowledgement on second copy and keep it with TDA for record.
ii. Keep the record in fire proof cabinet for Audit/Compliance trail.
Customer will receive the TD advice from branch after acknowledging/signing the branch copy as evidence.

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7.5 PROCESS – MATURITY OF FDA / MPA (CENTRALIZED PRODUCT)
CPU Karachi
i. CPUK staff will generate a report, T. Ds to be matured during the day (Annexure-D) from KM Module.
Maturity/Encashment in System
i. Based on the report (Annexure-D) CPUK staff will come to know the TDs that are to be matured on the
proceeding day. They will perform following activities for this transaction.
ii. Log into System and perform activity.
iii. Use EOC > Deposit > Term Deposit > Redemption/ Pre-termination & Int. payout > RB62. (Annexure-J)
iv. At every day end, CPUK staff will generate a report of TDs Matured/Encashed for the day (Annexure-C)
for validation purpose.
v. Generated Reports are validated by supervisor and sign off.
vi. Authorized officer conveys (via email on specific email template (Annexure-E) the information of TD
Maturity to respective branches for their information, record and necessary customer relationship.
vii. Branch intimation proof is kept in fire proof Cabinet for Audit Trail.
Branch
i. Branch receives the details of matured T.D Account No. from CPUK.
ii. BM / BOM review the details and branch books / GL
iii. Maintain TD record in fire proof cabinet.
System
i. Account mentioned by Customer earlier is credited with due profit and debited with necessary
deductions, i.e. WHT@10%, and Zakat (if any). (Refer to TD Accounting Manual for accounting entries if
any)
ii. System will pass auto entries as per prescribed bank procedure.

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7.6 PROCESS – PREMATURE ENCASHMENT OF FDA / MPA (CENTRALIZED PRODUCT)
Customer Submit request for premature Maturity on Encashment Slip (Annexure-I) along-with T.D. Application
(customer copy) to Bank / Branch Manager Stamp and sign.
Branch (Day-1)
Designated officer receive encashment Slip (filled by customer) and T.D. Application (customer Copy)
i. Verify all details mentioned in encashment Slip and T.D. Application (customer Copy)
ii. Verity the signature of Term Deposit Authorized Signatory.
iii. Authorized officer endorse the customer request with stamp, signature and scan the encashment slip.
iv. TD account details and encashment slip scan copy send to CPUK via Email on specific email template.
v. Dispatch the original Encashment Slip to CPUK.
CPU Karachi
Intimation received for Term Deposit Premature Encashment. Requests received till CUT-OFF time of 1.00 pm
will be processed on the same day
i. Designated staff at CPUK receives email; verify all details and customer request duly endorsed by
branch.
ii. Calculate Penalty and Zakat deductions (if any) amount as per the product features and forward to
concern staff for further processing. Zakat will be calculated after finalization of mechanism as
explained in PPG (refer page # 4, point 8 of PPG).
iii. Refer to TD Accounting Manual for accounting entries if any

Premature Encashment in System

i. Log into System and perform premature Encashment activity.
ii. For Premature Encashment: Use EOC >> Deposit >> Term Deposit >> Pre-termination & Int. payout >>
RB62. (Annexure-J)
iii. For Zakat Deductions transaction: Use EOC >> Deposit >> Transactions >> value Transactions >>
Withdrawal (RB32). (Annexure-K)
iv. Penalty amount will be recovered through Symbols >> Deposit >> Transaction >> Value Transaction >>
Transaction File Process (RB371)
v. Authorized officer will accept the batch through Symbols >> Deposit >> Transaction >> Value
Transaction >> Transaction File Authorization (RB372)
vi. At every day end CPUK staff will generate a report T. Ds Enchased for the day (Annexure-C) for
validation purpose.
vii. Intimation sent to branch via email on specific email template (Annexure-E)
viii. Generated Reports duly checked, validated and sign off along with branch intimation proof are kept in
Fire proof Cabinet for Audit Trail.
ix. Encashment Slip received via Courier at CPUK (Day-2):
x. CPUK Staff check the status of request and mark it.
Branch
i. Branch received the T.D Account No. and details from CPUK.
ii. BM / OM review the details and branch books / GL and note for balancing purpose.
iii. Maintain TD record and keep in safe custody.
System
Account mentioned by Customer earlier is credited with due profit and debited with necessary deductions, i.e.
WHT@10%, Prepayment penalty and Zakat (if any)

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7.7 PROCESS – LIEN MARKING / RELEASING OF FDA / MPA (CENTRALIZED PRODUCT)
In case request received from MCB Branch
Branch:
i. Request for Lien Marking/Releasing on Specific T.D. Account shall be prepared on prescribed format
providing pertinent details of the Term Deposit.
ii. The request shall be approved/signed off by two authorized officers (one of the signatories must be IBS
/ AS holder) under their seal and signature.
iii. Request for Lien Marking/Releasing shall be forwarded to CPUK through e-mail along with the scanned
copy of the approval.
CPU Karachi – Scrutiny & Processing:
i. Designated officer receive the email from the branch and thoroughly check the contents of email
ii. Validate authorized IBS / AS signature of requesting branch staff.
iii. Forward the branch request to processing staff.
iv. Processor Log into Symbols EOC and Mark/Release Lien on relevant TD Account as requested. (refer to
Annexure-L)
v. At Day-end CPUK will generate report. Supervisor will validate the contents of the report, sign off and
keep for record.
vi. Send intimation mail to respective branch for Lien Marking/Releasing activity.
Branch receives the intimation email and keeps it for record.
In case Branch request on behalf of other Bank / Agency
Branch
i. Will seek approval from their Regional Head or Regional Operations Manager and send “Other Bank /
Agency request for Lien Marking/Releasing.
ii. Branch request received at RH/ROM Office.
iii. Respective RH /ROM duly authorize / forward branch request after taking necessary approvals from
respective offices (CRC) as per normal procedure or defer branch request in case of non-approval from
concerned office (CRC) and send to branch for further action.
iv. In case Approval received from RH/ROM office.
v. Request for Lien Marking/Releasing on Specific T.D. Account (s) is sent on email along with scanned
approval by Regional Head or Regional Operations Manager of relevant branch on Other Bank/Agency
Letter Head.
CPU Karachi – Scrutiny & Processing:
i. Designated officer receive the email from branch and check thoroughly the contents of email.
ii. Validate authorized IBS / AS signature of requesting branch staff.
iii. Forward the request to processing staff.
iv. Processor Log into Symbols EOC and mark Lien on relevant TD Account as requested. (refer to
Annexure-L)
v. At Day-end CPUK Staff will generate report (Annexure-L). Supervisor will validate the contents of
report, sign off and keep for record.
vi. Send intimation mail to respective branch for Lien Marking/Releasing activity.
Branch receives the intimation email and keeps it with Original Letter and record.

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7.8 ANNEXURES & ACCOUNTING FOR FDA/ MPA (CENTRALIZED PRODUCTS)
There are several specific Annexure for Centralized Term Deposit Products. For detail of Annexure and related
accounting entries please refer to MCB Intranet PortalOperationsCirculars “Automation and
Centralization of Deposits Dated June 20, 2009”

7.9 SMART FOREIGN CURRENCY TERM DEPOSITS – (NON CENTRALIZED PRODUCT)

Smart Foreign Currency Fixed Deposits are not centralized and will continue to be handled by the branches at
their end until further notice.

7.9.1 Booking Process – Non-Centralized Product – SFTD

Customer requests for creating a Term Deposit in the branch.
Customer Service Officer (CSO) delivers the Term Deposit Application SF- 265 Revised.
Designated Authorized Officer (DAO):
i. Customer submits duly completed SF-265 Revised.
ii. Reviews the form. (TDA is a customer’s authorization to debit his/her account).
iii. Checks availability of funds in the account before accepting the application for further processing.
iv. Forwards TDA to the CA/SA Incharge for customer’s signature verification.
Designated Officer / TSS:
i. Verifies the customer’s signature.
ii. Sign-off along with the IBS/AS number.
iii. Affix “Signature Verified” stamp on TDA.
iv. Forwards the same to the Operations / Branch Manager for admitting the signature.
v. In case of signature differ, returns the form to DAO, in order to obtain another signature on the form
or fill-out another TDA.
Designated Authorized Officer:
i. Re-check the application.
ii. After scrutiny of the application, sign-off and also mention IBS/AS number on TDA.
iii. Affix “Signature Admitted” stamp.
iv. Debits customer’s account on the basis of debit authority, for creating a Term Deposit.
v. Prepares and issues Term Deposit Receipt.
vi. Term Deposit Receipt bears the stationery control number on the face of the receipt.
vii. Affix Branch stamp.
viii. Note down the amount in figures and words.
ix. Mention beneficiary’s name and date of maturity.
x. Forwards the same along with TDA to the Operations Manager to sign-off TDR.
Operations Manager:
i. Verify the amount from TDA.
ii. Sign-off and mention IBS/AS numbers on TDR. (On customer’s receipt and Bank’s copy)
iii. Removes TDR from the Term Deposit Receipt Booklet. Retains Bank’s copy in the Booklet.
iv. Delivers TDR to the customer.
Customer collects the TDR and leaves the branch.

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 7.9.1 Booking Process – Non-Centralized Product – SFTD
Designated Authorized Officer:
i. Makes necessary entries in the PLS Term Deposit Receipts/ Certificate Register (SB-9 Revised)
ii. TDA will be used as a Credit voucher (Term Deposit) and DAO will prepare Debit voucher for debiting
the customer’s account.
iii. Notes down the vouchers in the Transfer Sheet.
iv. DAO and OM sign off the vouchers and forwards the same to processor for posting.
v. Review End of day reports with the source documents.
Supervisor:
i. Reviews the vouchers with the source document.
ii. Forwards the same to the processor for posting in the system.

For detail Batch Processing, please refer to Section 7: 1.4 Transaction processing In GL Module

7.9.2 Issuance of Deposit Receipt:

The branch must ensure that the “Term Deposit Receipt” is issued to the depositor, and mention the
indicative rate of profit on the receipt.

7.9.3 Payment of Profit of FCY Term Deposit:

Profit amount will only be credited into the depositor’s linked/specified current or Savings account. Cash
Payment of profit is not allowed. Branches are required to maintain maturity and profit payment dates for
each account so that there is no delay in payment of profit to the depositor.

7.9.4 Pre-mature Encashment:

Minimum retention period for the term deposit is 01 month, irrespective of the tenor for which the
deposit is booked. In case the depositor wishes to encash the depositor before completion of one month,
only principle amount will be paid to the customer. If the customer wishes to encash the deposit after
completion of 1 month, but before maturity, the branch will pay at the Savings rate on such deposit for
the number of days completed. If interim profit payment has been made to the depositor, in case of 1 year
deposit, then the differential will be recovered from the principle amount.

7.9.5 Normal Encashment:

On maturity date, the profit will be credited to the depositor’s checking account. When the receipt is
presented to the branch, the principle will be credited to the customer’s checking account.

7.9.6 Renewal/ Rollover:

Rollover of principle only or principle plus profit amount, upon maturity will be processed by the branch if
instructions have been provided by the customer before the maturity of the deposit.

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 7.9.7 Overdue Account:
In the absence of renewal instructions, the principle and profit will be transferred to the overdue account
and a new term deposit will be placed on the date when fresh instructions are received. The depositor will
be eligible for profit at the prevailing Savings account rate for the overdue period.

7.9.8 Financing against Smart Foreign Currency Term Deposit:

Smart Foreign Currency Term Deposit can be used as a security/collateral and the depositor can avail up to
90% of the principle amount in Pak Rupee. The depositor also has the option of increasing the financing
limit up to 95% of the principle amount, upon obtaining the necessary approvals from the relevant
authority. The tenor of the financing facility should be within the maturity date of the deposit. The Pak
Rupee limit of 90-95% would be calculated based on the exchange rate, which is applicable for such
purposes from time to time.

7.9.9 Monitoring and Controls:

Designated Authorized Officer (DAO) notes down the accounting entries in Registers and Ledgers under a
separate category. Also note down the profit/ interest rate payable on each deposit for payment and
accrual of profit on the due dates.

7.10 MANAGEMENT OF TDR/STDR/SND (OPENED PRIOR TO CENTRALIZATION)

7.10.1 Rollover of TDR/STDR (Opened Prior to Centralization)

Roll over of Term Deposits which were opened prior to centralization and were being handled by the
branches at their end shall now be handled as new booking under FDA/MPA products through
Centralized Processing Unit (CPUK). Please refer to Section 1, Chapter 2: 1.4.1 Flexi Deposit Account and
1.4.2 Mahana Profit Account
i. For rollover of a Term Deposit branches are required to submit the rollover requests supported by new
TD Form (SF-265-New) duly filled in and signed by the customer clearly mentioning the date, rate,
amount and other necessary details.
ii. As per the institutional and regulatory requirements, no Term Deposit can be booked / renewed without
having a linked Current/Saving account with the bank.
iii. Before forwarding the roll over request to CPUK branch must ensure that customer maintain account
relationship (Current or Savings Account) with the bank and the related account number is provided in
TD Form SF-265-New.
iv. The profit amount will be credited by the system directly in the related Current/Savings account and
same will be the case with principle at maturity.

Note: Branches across the country and respective ROMs/RHs should ensure that all new requests for booking of
“PKR Term Deposits” are forwarded for processing through Centralized Processing Unit, Karachi.

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 7.10.2 Maintenance of Term Deposit Register for Non-Centralized Products:
i. The Date, Deposit Number, Deposit Receipt Number, SBP CPUK, Name of Depositor, Period of Deposit
Accepted, Amount and Due-Date of every deposit receipt will be entered before it is issued in Term
Deposit Register (SB-9). The layout of Term Deposit Register is as under:

SB-9 (Revised)
PLS TERM DEPOSIT RECEIPTS / CERTIFICATES REGISTER
(Category: SND/ TERM DEPOSIT)
Date of Deposit Deposit Receipt SBP Code Depositor's Period of Deposit in AMOUNT Due Date Initial
Deposit Number No Name Months Rupees
1 2 3 4 5 6 7 8 9

Period Profit Paid Profit Disposal of Receipt / Certificate

Date Profit

Initials

Remarks
Initials
Paid Date Date Trf. to Date Period
Paid
Days Months Years (PKR) Paid Overdue A/c Renewed Renewed
10 11 12 13 14 15 16 17 18 19

When deposit paid or renewed or transferred to PLS Overdue Term Deposit A/c, details thereof should be noted
in appropriate columns provided for this purpose in the register.
i. SB-9A (REVISED)
ii. The Term Deposit Category Ledger (SB-9A) will be written daily from the Day Book where category-wise
receipt/withdrawals will be written separately and should be checked by authorized officer. This Ledger
will be written Term-Group-wise. Separate account will be opened in each category of term deposits. In
this way, “9” accounts will be opened for deposits of 1-month, 2-months, 3-months, 6 months, 1 year, 2
years, 3 years, 4 years and 5 years & above and posting in this ledger will be done in relative account
according to period of deposits.
iii. The columns and layout of Term Deposit Category Register (SB-9A) is given hereunder:-
Profit Register SB-9A (Revised)
(SND / TERM Deposit)
Deposit Deposit Receipt Debit Withdrawal Credit Receipts Balance Deposits
Date of Issue
Number Number (PKR) (PKR) Outstanding (PKR)

1 2 3 4 5 6 7
Tenure _____________ Days / Months / Years
Debit Profit Paid Credit Profit Balance Profit
Number of Days Products Initial Remarks
(PKR) Payable (PKR) Payable (PKR)

8 9 10 11 12 13 14

iv. Deposits if not paid on reaching maturity will be transferred to "OVERDUE PLS TERM DEPOSIT
ACCOUNT" in the Supplementary Ledger (SB-3) and these overdue TDRs receipts should be transferred
to the last few pages of SB-9 which are allocated for this purpose (according to the needs) irrespective
of categories of deposits.

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 7.10.3 Balancing of Ledger
At the end of last day of the month amount of outstanding receipts must be jotted on SF-12 from SB-9.
The total thereof shall agree with the General Ledger Balance. It should be ensured before taking jotting
on SF-12 from Register (SB-9) entries in columns of DATE PAID /DATE TRANSFER TO OVERDUE Account
has been made otherwise balance will not tally with General Ledger.
Balancing of the PLS Overdue Term Deposits should also be done on monthly basis at the end of the last
day of the month. Amount of outstanding receipts should be jotted down on SF-12 from SB-9 (where few
pages are reserved at the end for this purpose). Total of such receipts should tally with General Ledger
Balance of "PLS Overdue Term Deposits".

7.10.4 Distribution of Profit:

i. Profit and loss will be distributed on half-yearly basis on receipt of the rates for the preceding half year
from the Head Office.
ii. Profit and loss for a period beyond the close of the half year will not be outright settled, at the time of
encashment of a term deposit on maturity and the depositor will have to leave his instructions for the
receipt / payment of profit / loss pertaining to the un-accounted period which will be settled after the
closing of the relevant half year. e.g. if a term deposit received on 15-05-1999 is encashed on 15-05-
2000, the depositor will be paid profit for the period 15-05-99 to 31-12-99. The profit for the
remaining period i.e.: 01-01-2000 to 15-05-2000 will be paid to him after the closing of the next half-
year when profit is declared.
iii. On expiry of the deposit period, the deposit will cease to be eligible for sharing in the profits at the
Term Deposit Rate. It will be transferred to an account to be called "Overdue PLS-Term Deposit
Account" and the depositor will be advised accordingly. Provided, however, if within a period of one
month after the expiry date, the depositor requests for renewal, the PLS Term Deposit will be
renewed for the desired period from the date immediately following the expiry date. In case, the
depositor fails to turn up for giving renewal instructions, the overdue deposit will be eligible for
payment of profit at PLS Savings Account Rate.
iv. If PLS Term Deposits withdrawn from the bank within a period of less than “7” days, the deposit
holder will not be paid any profit.
v. If one month and over but less than two months PLS TDR is withdrawn after seven days before
maturity will be eligible for sharing of profit, if any, at PLS-SND seven days rate.
vi. If PLS Term Deposits withdrawn after completion of two months but before maturity will be eligible
for sharing of profit, if any, at the rate determined for PLS Savings Accounts.
vii. While paying the amount of return at Savings account rate the branch shall ensure that any return
paid for the preceding half year has been deducted from the amount of return payable against
encashment before maturity. For example, if a PLS TDR of PKR 10,000/- issued for one year on 1st
April, 1999 is presented for encashment on 16th October, 1999, the branch shall calculate the return,
assuming that the profit rate declared for the preceding half year (30.06.1999) was 7% P.A. for PLS
Savings Account, and 10.5% P.A. for PLS Term Deposit, in the following manner.

Return on PKR 10,000/- at Savings rate for “197” days 01-Apr-99 to 15-Oct-99 at 7% PKR
P.A. 377.85
Less: return already paid on PKR 10, 000/- For “91” days (01-Apr-99 to 15-Oct-99) @ PKR
10.50% (P.A.) at PLS TDR rate 261.81
Net return payable to the depositor PKR
116.04

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 NOTE: In case the amount of return already paid for the preceding half year is higher than the amount of
return payable at Savings Account rate, the difference shall have to be deducted from the principle
amount of the PLS TDR.
i. The profit on PLS Term deposit to be disbursed to the depositors through credit of PLS Savings/Current
account (where it is maintained)/bank's payment order on receipt of circular from Head Office on half
year basis. With-holding tax would be deducted as per rules from the gross amount of profit to be paid
/ credited in GL 1090601020 WHT ON MARK-UP PAID –SEC 151 before deduction of the amount of
Zakat as per rules unless otherwise specified. In case any deposit has not completed six months, the
profit to be distributed at pro rata basis.
ii. As and when circular received from Head Office for payment of profit to deposit holders, the
calculation thereof should be made on processing sheets taking jotting from Term Deposit Ledger (SB-
9). The amount of those deposits will be jotted on the sheets, which are entitled for profit. All
outstanding deposits at the end of half year will be jotted down first and balanced with the General
Ledger and subsequently other deposits, which are entitled for profit, will be written on processing
sheets. A separate sheet should be used for each term-group. The calculation and other particulars
should be checked by two authorized officers before payment of profit.

7.10.5 Monthly Provision of Profit:

i. Profit payable on all deposits should be calculated on monthly basis by the branches and shown as
expenses to be paid before arriving at a monthly Profit /Loss figures in monthly Provisional Statement
of Income & Expenses.
ii. Product should be worked out in Term Deposit Category Ledger (SB-9A) in 'PRODUCTS' column on the
basis of total deposits outstanding under each Term-group. At the end of the month, the column of
'No. of days' should be totaled and it should be ensured that total of number of days correctly worked
out. Products should also be totaled at the end of each month and it should be ensured that total of
Products is progressive up to the end of half year i.e.; January to June and July to December.
iii. The products and the working as well as balance should be checked by two responsible officers.
iv. No entries are to be passed for the provisions. The net amount of profit payable under each category
will be shown under column 'D' as expenses to be paid under the relative head of account in the
monthly Statement of Profit and Loss. However, at the time of Annual Closing i.e.; 31st December
provision entries will be passed to the debit of appropriate head of Expenses A/c and crediting relative
head of account of Profit/Mark-up payable on Deposits. This entry should be reversed on 1st January.
v. While reporting the figures of provision for the month of January in statement of Provisional Income &
Expenses, branches should report the amount in column 'D' provision made on 31st December plus
provision for the month of January in case amount of provision made for 2nd half year not distributed
up to 31st January as generally profit for half year ending 31st December are paid in the month of
February.
vi. Similarly, reporting of figures of provision for the month of July should be reported correctly i.e.
provision made up to June plus provision for the month of July in case distribution of profit for the half
year ending 30th June NOT made in the month of July.
vii. It should also be ensured that provision for profit payable on Overdue Term Deposits have also been
made at applicable rates up to the date of maturity and at Savings rate from date of transfer to
Overdue Account till the end of month and it is correctly reported in Monthly Statement of Provisional
Income & Expenses.

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 7.10.6 Payment of profit:
Profit amount will only be credited into the depositor’s linked/ specified current or Savings account. Cash
payment of profit amount will not be allowed. Branch will have to maintain maturity date and profit
payment dates for each account so that there is no delay in payment of profit to the depositor.

7.10.7 Pre-mature Encashment:

i. Minimum retention period for a deposit is 1 month. In case the depositor wishes to encash the
deposit before completion of one month, only principle amount will be paid to the customer.
ii. If the customer wishes to encash the deposit after completion of 1 month, but before maturity,
the branch will pay the PLS Savings rate on such deposit for the number of days completed.
iii. If interim profit payment has been made to the depositor (in case of 1, 3 and 5 years deposit) than
the differential amount will be recovered from the principle
iv. SNDs of any category encashed before “7” days will not be eligible for profit. However, SNDs
issued for “30” days and encashed after “7” days will be eligible for profit payable for “7” days
Notice Deposits.

7.10.8 Normal Encashment:

On the maturity date, the profit and the principle will be credited to the depositor’s checking account. The
branch will not wait for the depositor to present the receipt.

7.10.9 Financing Facility against Term Deposits:

This deposit can be used as a security/collateral and the depositor can avail up to 75% of the principle
amount upfront. The depositor also has the option of increasing the financing limit up to 90% of the
principle amount, upon obtaining the necessary approvals from the relevant authority. The tenor of the
financing facility should be within the maturity date of the deposit.

7.10.10 Monitoring and Controls:

i. Entries in Registers and ledgers will be made under a separate category and profit rate payable on
each deposit will also be registered for payment and accrual of profit on the due dates.
ii. Separate GL codes in the Statement of Affairs are allocated so that product volumes and deposit
mix can be monitored.
iii. Branches are required to submit a monthly report to their Circle Office indicating customer wise
information, so that an independent check can be conducted.

7.11 MANAGEMENT OF MATURED/ OUTSTANDING CAPITAL GROWTH CERTIFICATES

 Outstanding CGCs must be transferred in Over Due CGC account immediately after maturity and should
stay there unless & until the beneficiary claims it or acknowledges the receipt of “Notice sent to
customer before Surrender to SBP”. These CGCs should not be transferred in Unclaimed Account
(Subsidiary).
 If a CGC remains overdue after maturity (outstanding in overdue liability head) for a period of 10 year,
Principal along with Profit shall be surrendered to SBP.

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Chapter 8 GUIDELINE ON DEDUCTION OF ZAKAT

8.1 ZAKAT ON PLS SAVINGS & OTHER SIMILAR ACCOUNTS (ASSET CODE: 101)
st
On 1 of Ramadan every year, Zakat is deducted at source on all categories of PLS saving and other similar
Accounts (Asset code 101) except those fulfilling the exemption criteria as per Zakat & Usher ordinance 1980.

8.2 ZAKAT ON TERM DEPOSIT PRODUCTS (ASSET CODE: 103)

st
On 1 of Ramadan, Zakat will be calculated on all Term Deposits except those fulfilling the exemption criteria as
per Zakat & Usher ordinance 1980. Please note that all term deposits that are liable for Zakat, there will be no
actual deduction of Zakat on 1st of Ramadan from principal amount of Term Deposits. The amount will be
calculated and noted by the respective staff in their Term Deposit registers against each eligible Term Deposit.

Definitions of some the terminologies and calculation/deducted process is mentioned below:

Sahib-e-Nisab: Means a person who owns or possess assets not less than “Nisab” as announced by the
Administrator General Zakat each year before the start of Ramadan
Rate of Zakat: The current rate of Zakat is 2.5%
Valuation Date: The 1st day of the Zakat year (i.e. 1st of Ramadan).

8.3 ZAKAT EXEMPTIONS

Following are exempted from Zakat as per Zakat & Usher Ordinance 1980:

i. A person who is not a “Sahib-e-Nisab”.

ii. All Non-Muslims & All Non-residents.
iii. Customers who died on or before 1st of Ramadan.
iv. Federal Government, Provincial Government or a Local Authority.
v. Any organization which is owned wholly, directly or indirectly, by the Federal or Provincial Government
or a Local Authority.
vi. Subsidiary of any organization which is owned wholly, directly or indirectly, by the Federal or Provincial
Government or a Local Authority.
vii. National Investment (Unit) Trust.
viii. Investment Corporation of Pakistan & Its Mutual Fund.
ix. A Recognized Provident Fund.
x. Any Unit fund maintained by Defense Services including Civil Armed Forces.
xi. A Zakat Fund.
xii. All registered charitable organizations.
xiii. A deeni madrassah registered by Zakat Department.
xiv. A mosque.
xv. A registered orphanage.

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 xvi. A Workers Participation Fund.
xvii. Customers who have submitted the certificate/affidavit of Zakat Exemption (CZ-50) before 1st Shabban
in their respective Branches.
xviii. All FCY Accounts/FCY Term Deposits.

8.4 PROCEDURE FOR CALCULATION & DEDUCTION OF ZAKAT ON TERM DEPOSITS

8.4.1 Calculation of Zakat:

Zakat calculation will be calculated using the following formula:
2.5% X Principal Amount of Term Deposit
Please note that any accrued but unpaid profit or profit that has already been paid will not be taken into
account for Zakat.

8.4.2 Deduction of Zakat:

i. According to rules profit on PLS TDRs irrespective of its maturing date is paid twice in a
calendar year. Such payments are to be treated as interim payments and Zakat @ 2.5% from
such assets which existed on the valuation dates should be deducted on the face value of the
asset only once in each Zakat Year at the time of disbursement of first profit. It may also
happen that there may not be sufficient amount of profit available then in such cases the
remaining amount of Zakat, should be recovered at the time of disbursement of second
profit. The reporting of such assets should be shown under asset code 103 in the reporting
form CZ-07.
ii. For assets belonging to this category where return becomes receivable by the asset holders
on a certain date in a Zakat year, but is not collected by him, Zakat shall be deducted for each
Zakat year involved of if the return had been collected by the asset holder when receivable by
him.
iii. The amount of Zakat deducted will be entered date-wise in the relevant folio of the “ Zakat
Deduction/Refund Register for Assets Other than Savings::(CZ-02).
iv. The amount of Zakat Deducted will be credited to the “CZ Collection Account- Other Assets”
and will be reported in the quarterly Report (CZ-07) under Asset code 103.

Zakat Amount will be deducted at the 1st profit payment or maturity whichever comes first after the 1st of
Ramadan. The calculation for deduction of Zakat will be as follows:
 Profit to be paid – Zakat Amount – WHT
 With-holding tax will be levied on the profit left after the deduction of Zakat amount.

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 Example:
Principal Amount Rs 1,000,000
Rate: 12%
Profit Payment Frequency: Quarterly
Zakat Amount = 1,000,000 X 2.5% = Rs 25,000

8.4.3 Recovery of Zakat Un-realized:

Where the amount of Zakat due cannot be fully realized due to the return payable to the asset holder, at
the time when he calls for receiving his first return/profit being less than the amount of Zakat due (as
could be the case with Short Term Deposit & Term Deposit), the amount of Zakat unrealized, if any, may
be entered in the “Remarks” column in CZ-02 against the respective entry. The respective Short Term
Deposit shall also be endorsed accordingly so that the amount of Zakat Unrealized is recovered at the time
of payment of subsequent return(s) or payment of maturity/encashment value, whichever be earlier.

The above mentioned calculations/methodologies will apply for all tenors and all products of Term
Deposits (Term Deposits, STDR etc).

8.5 PROCEDURE FOR CALCULATION & DEDUCTION OF ZAKAT ON PLS SAVINGS & OTHER SIMILAR
ACCOUNTS

8.5.1 Procedure necessary prior to deduction of Zakat:

It is important that branches have updated Zakat Deduction status of all accounts so to enable correct levy
of Zakat. In this branches are provided with the following CMIS/KM reports:
Zakat Applicable Report:
Other than current accounts, this report shows all accounts whereby Zakat service charge (ZAK for
savings accounts and TZK for term deposits) is marked.

Zakat Not Applicable Report:

Other than current accounts, this report shows all accounts on which Zakat service charge (ZAK for
savings accounts and TZK for term deposits) is NOT marked.

Current Accounts with Zakat Check:

Report shows all current accounts whereby Zakat service charge (ZAK or TZK) has been marked.
Using the above reports, Branches were advised to confirm the Zakat status of their customer accounts
well before the deduction time. The following accounts may please be noted for exemption of Zakat:
i. Accountholder is a non-Muslim as per the original AOF;
ii. Accountholder has submitted CZ-50 Form which is attached to the original AOF.

If the above conditions are not fulfilled by your accountholders, their accounts in SYMBOLS – CBS must be
marked with the following:

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 Conventional i. Service charge type ZAK (in case of savings accounts) or
ii. Service charge type TZK (in case of term deposits).
Islamic i. Service charge type TZK (in case of savings and term deposits)
The above reports also bear complete set of instructions for convenience and prompt action.

8.6 DEDUCTION OF ZAKAT

i. Zakat will be deducted centrally on 1st Ramadan every year and deducted amount will automatically be
credited to 1090801690 – Collect A/C Cent. Zakat Fund.
ii. Branches will Validate the Zakat deduction report (KM_KM_0025) provided by CMIS with their General
ledger (1090801690 – Collect A/C Cent. Zakat Fund) on Valuation date
iii. The outstanding amount in Zakat Collection GL Code will be transferred to Head Office on the same day
under transaction code 9090

8.7 REPORTING PROCEDURE FOR BRANCHES / CIRCLE OFFICES

Saving Accounts whereby ‘ZAK’ or Term Deposits Accounts whereby “TZK” service charge is not marked
on the 1st of Ramadan would be treated as exempted accounts. CMIS team would produce the account
listing of such accounts along with the actual balances which will then be forwarded to CAD.
Following categories are available for exemption cases as per Zakat & Usher Ordinance/directives:
i. Non-Muslim/ Non-Pakistani
ii. Due To Fiqh
iii. Other Reasons

CAD will e-mail the Account listings of exempted accounts to the respective Circle Offices, who will further
route the information to each branch in its jurisdiction. Branches are required to identify the reasons of
Zakat exemption against each account and submit the sheet to their respective Circle Offices timely by
deadline communicated (as provided for each year).
Circle Offices will furnish Branch-wise summary of Zakat exempted account on the following format (Below
NISAB accounts not included):

Br. Exemption Reason (Other than Below NISAB)

Br. Name
Code Non-Muslim/ Non-Pakistani Due to Fiqh Other Reasons
No. of A/Cs Value (PKR) No. of A/Cs Value (PKR) No. of A/Cs Value (PKR)
1 2 3 4 5 6 7 8

The above information must reach to CAD on timely basis (as provided each year).

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SECTION 3 CASH MANAGEMENT & TELLER SERVICES

SECTION 3

CASH MANAGEMENT & TELLER SERVICES

Section Summary:
This Section entails policies, processes & Operating guidelines for cash management;
discussing in detail cash related functions like Daily Cash Balancing, Cash handling,
sorting, insurance, arrangements with cash houses, cash feeding branches, handling
of foreign currency etc. The section also documents all processes related to Cash
Deposit/Withdrawal, Inward & Outward Clearing, Inward & Outward Collection (LCY &
FBC), Internal Funds Transfer, Utility Bills management & Prize bonds.

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Chapter 1 CASH MANAGEMENT

1.1 DAILY CASH BALANCING

At every end of day, the following cash balancing process needs to be followed:

i. Teller views the screen of Teller Totals BT  Totals  Teller Totals. This will ensure that Teller has
totaled his/ her own TIL.
ii. Teller generates following reports to validate daily postings:
 For Current/Saving transactions: EOC  Reports  Daily transaction by branch/officer
 For GL transactions: EOC  Reports  Daily Activities Daily Batch listing per user
iii. For any differences, generates BT  Enquiry  Electronic Journal and verifies that all transactions are
successfully posted in BT to ensure there is no transaction which is “Rejected by Host” or “Unknown” or
“Hold”. If any entry is found in any of the above statuses, the same should be cancelled and re-posted.
iv. Generates “Cash Details” report from MCB reports. Ensure that Net-off of ‘Cash Details’ report (debit &
credit) added to the opening balance of the same day should be the Closing Cash-in-hand of the day.
v. Generates “Daily Cash Day’s journal” from MCB reports. Validate all transactions in order to detect any
Flying entry/transaction.
vi. Generate ‘GL Balances’ report to check the Cash in Vault and LCY Coins Balance for balancing purpose.
Compare this report with ‘Cash Details’ report (generated from MCB reports). Total Physical Cash-in-
Hand must tally with Cash-in-Vault and LCY Coins.
vii. A summary of cash transactions of the day must be recorded in Cash Book SB 57 and signed by TSS.
Branch Operations Manager signs off the Cash Book after proper validation and scrutiny of few Cash
Packets, on a random basis. Moreover, Operations Manager fortnightly reviews/checks the entire Cash
in Hand and the Cash Book is counter signed by Operations Manager as a token of this verification. Also
mention narration “Checked and Verified”.
viii. Keep Cash in Vault along with the Cash Received and Paid Stamp under dual custody of Designated
Teller and Operations Manager.
ix. Keep Cash Book in Fire Proof Cabinets.

Besides performing the above steps for balancing; BOM should perform following steps:
i. All Cash related batches should be accepted at the day end and no batch should remain opened.
ii. On the following days BOM must validate the closing balance of Cash in vault of GLA-91 with Closing
Balance of Cash Book and should confirm that both the balances should tally. Any difference if traced
should be investigated and if required should be reported to Region/ Circle Offices.

1.2 CASH HANDLING & CASH POSITION STATEMENT

This is a prerequisite for the branches to maintain Daily Cash Position Statement as per the Annexure IV Tellers
and Operations Manager have to ensure that cash must be organized in the following manner:
i. Branches are required to maintain, on a daily basis, minimum surplus cash balance in sorted re-issuable
balances of at least ONE DAY’S average requirement for the preceding month. While calculating

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 Average, the following transactions will be excluded from the payments i) Cash deposited in their
accounts with the main/feeding branches, chests/sub-chests and/or SBP offices. ii) Issuance of MTs, TTs
and DDs via account.
ii. Once a packet of banknote is sorted the sorting bank/branch shall clearly identify/stamp on the wrapper
of the packet as “SORTED” along with the name of the bank, branch and the date of sorting. Once such
packets are in circulation, further sorting would not be required till the packet is broken into pieces.
iii. Cash must be sorted, arranged and banded (denomination wise) in packets of “100” notes each and in a
lot of ten packets duly tied into a bundle called a RING.
iv. Affix “Sorted” stamps on the sorted packets of Banknotes.
v. Removing Staple pins from the packets of Banknotes (If there are any).
vi. Sort out cut/soiled/mutilated and defective notes and transfer/ surrender to Cash House/Cash feeding
branch for onward submission to SBP.
vii. At the end of day, sorted and un-sorted /defective / soiled shall be separately placed in cash vault and
separately recorded in SBP register in separate columns.
viii. As per SBP’s instructions, use Electronic Banding Machines (EBM) for banding of bank notes. However
branches that have not so far been provided with EBM are advised to use manual banding of Currency
Notes through Paper Tapes. Stapling of Banknotes ruin the notes and reduces its longevity.
ix. Prepare Cash Position Statement and clearly mention the number of packets and amount in the
respective columns.
x. Cash received in a day should be properly sorted before using for the same payments over the cash
counter.
xi. Branch should make extra effort for on spot sorting of Bank Notes (PKR 100 and above) over the Counter
immediately once received especially in case where average daily payment is exceeding PKR 1.5 Million.
Not complying with the same can attract SBP penalty.

NOTE: Branches must ensure strict adherence to the above guidelines. For ref. please refer to SBP Master
Circular # 1 as of March 05, 2004.

1.3 PROCEDURE FOR CASH FOUND EXCESS

There are multiple instances where Cash can be found excess at the Branch cash counters at the day end
balancing. Few are stated as under:
i. Customer after depositing cash took along cash deposit voucher.
ii. Utility bill deposited in cash and bill is returned to customer without detaching the stub
iii. Excess cash deposited by the customer as opposed to amount filled in the deposit slip.
iv. Short counting of notes by the Sorter during sorting of cash packets

However, to handle such scenarios, following process need to be strictly followed

Process Steps
On physical counting of entire cash at the end of the day including utility bills collection, the Teller/ Supervisor
find out Excess Cash
Teller’s conducts detailed scrutiny of the said amount i.e. rechecking & recounting of Physical Cash, Ticking of
Vouchers against RBA- 11 to verify the amounts on the vouchers & amount posted.

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Teller/ Supervisor reports the cash excess of PKR xx to the BOM. Teller also notes the entry in the Cash Excess
Register and signs it.
BOM himself investigates for the said difference. If the difference is not traced, books the excess cash in GL
head "Cash Found Excess" on cash credit voucher. The amount stays in the GL Head for a maximum of 30 days
In case claim is Received within 30 days, BOM asks the claimant to produce evidence such as PAY in Slip, utility
Bill etc. Branch also requires an application from the claimant and copy of CNIC to honor the claim. After
proper verification branch Debits "Cash Found Excess GL head" on cash debit voucher and hands over the
claimed amount to the claimant or Credit customer's account as per customer’s request.
In case claim is NOT received within 30 days, BOM remits excess cash through HO credit advice SF-0179 in OGL
Head "Cash Found Excess, Account # 1051100003 & Transaction code 3900”, Central Accounts Division (CAD).
In case claim is received After 30 days and branch has transferred the funds to CAD, Branch forward the case to
CAD along with all supporting documents mentioned above and requests for refund of Excess Cash transferred
CAD after proper verification issues Credit advice SF-0179 to the branch for the claimed amount

1.4 SECURITY ARRANGEMENTS FOR CASH

Security of Cash Department is an important matter hence branches are required to adopt the following
measures for safe guarding the security aspects of the Cash Department:
i. Cash Department of the Branch should be in a separate area, within which entry of Customers is not
allowed.
ii. Burglary alarm/ security system should be installed and activated in the branch.
iii. Cash holding at the branch counters should be kept at minimum to the specific requirements of Cash
Counter.
iv. Maintain a file of updated record (Photo, copy of CNIC etc) of security company guards.

1.5 CASH IN HAND & CASH IN HAND INSURANCE LIMIT

Branches are required to maintain their daily Cash-in-Hand (CIH) limit within their pre-established Cash-in-Hand
ceiling. However, in case the total Cash-in-Hand (PKR + PKR equivalent of Foreign Currency + Prize Bonds)
exceeds the “Cash-in-Hand Insurance Limit”, the same must be reported to Centralized Insurance Unit (CIU) as
per the format given under.
Branches should not get confused with CIH Insurance Limit and CIH limit. The matter should be referred to CIU
only if closing CIH on a certain day exceeds CIH Insurance Limit.

BRANCH DATES OF TOTAL CASH IN CIH INSURANCE EXCESS CASH IN

BRANCH NAME
CODE EXCESS HAND LIMIT HAND

XXX XXXX dd-mm-yy 10,000,000 9,000,000 (1,000,000)

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1.6 CASH DEPOSIT BY BRANCHES WITH CASH HOUSE / CASH FEEDING BRANCH
Branches are required to transfer their daily excess/surplus cash to Cash House via Debit Advice (SF-180).
Following procedure will be followed:
i. If the amount of cash being transferred is WITHIN the pre-established ‘threshold limit’ of PKR 10M,
the BOM with joint approval of BM contacts their respective Cash House Centers via e-mail or fax and
requests them to collect excess/surplus cash from the branch. Further the requests through e-mail or
fax will carry AS/IBS number of BM/ BOM.
ii. In case the amount of cash being transferred EXCEEDS the pre-established ‘threshold limit of PKR
10M, BOM with joint approval of BM before arranging the shipment will first send an e-mail or fax to
their RH/ ROM informing them of the shipment and total amount of cash being transferred and
requesting for their approval. On receipt of approval from RH/ ROM, the BOM/ BM will contact their
respective Cash House Centers via e-mail or fax requesting them to collect excess/surplus cash from the
branch. Further the requests through e-mail or fax will carry AS/IBS number of BM/ BOM.
 Pre-established “Threshold Limits” are defined in Section 7: Chapter 13: Branch Transactional
Authorities & Threshold Limits
iii. Designated Authorized Officer (BOM/TSS) prepares Inter Branch Debit Advice (SF-180) in quadruplicate
drawn on the Cash House and also prepares Shipment Receipt in triplicate. The details of denominations
of currency notes must be written in the debit advice.
iv. Two authorized officer (BOM/TSS/GBO) sign off the Debit Advice & Shipment Receipt.
For detail Batch Processing, please refer to Section 7: 1.4 Transaction processing In GL Module
v. Enters the amount of cash in Cash Book SB-57 in the Payments Column.
vi. Operations Manager of the branch verifies the identity of the staff members of Security Service Agency
from the photographs and signatures supplied by the Cash House.
vii. Delivers cash along with the 1st copy of Debit Advice and the Shipment Receipt to the authorized person
of the Security Service Agency.
viii. The two staff members of the Security Service Agency deputed by Cash House for collection of cash
from the calling branch will count the bundles/packets of cash as per denominations mentioned in the
cash debit advice SF-180.
ix. After the bundles/packets of cash are counted and found correct, the Security Service Agency keeps the
cash in canvas bag(s) which is provided by the Security Service Agency in presence of BOM/TSS.
x. The two copies of transit/shipment receipt and the original cash debit advice SF-180 along with its
quadruplicate will also be handed over to the Security Service Agency.
xi. When the cash is packed in bag(s), the same will be tied with plastic numbered seal(s) by the Designated
Authorized Officer (BOM/TSS).
xii. Designated Authorized Officer (BOM/TSS) obtains acknowledgement for cash receipt on the Shipment
Receipt from the two staff members of Security Service Agency.
xiii. Operations Manager must ensure that the cash delivered by them to the representative of Cash House
(Security Company) has been properly noted and duly entered in the Cash Book SB-57 and necessary
accounting entries are posted in the system.

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1.7 CASH DEPOSIT BY UP-COUNTRY BRANCHES WITH CASH HOUSE / CASH FEEDING BRANCH
i. Up-country branches having surplus cash informs their Regional/Circle offices which in turn takes up
with the Head of Cash Houses for making necessary arrangements for cash deposit with Cash house.
ii. On receipt of approval from Regional/Circle offices branches prepare debit vouchers for the amount
being deposited by them using Inter Branch Debit Advice (SF – 180).
iii. Cities where there is no road transport arrangements are available the surplus cash (along with the
related Debit Advice) will be transferred to Cash House by Air through BOM/Teller Services Supervisor
and for other cities the shipment will be made through Security Service Company (Phoenix Armor/
Wackenhut/ Askari Guards).
iv. The Cash House receive the cash from branch by signing and affixing cash received stamp with date on
the face/back of D copy (SF-180) of voucher by authorized officer and cashier as an acknowledgment.
v. The cash received is also entered in Cash House Register in the presence of branch official and will be
initialed by the authorized officer of Cash House / Chief Cashier.

1.8 CASH TRANSFER FROM CASH HOUSE TO BRANCHES

i. Branches within the jurisdiction of Cash House intimate their cash requirements in the evening prior to
working day as well as in the morning to the Cash House through telephonic message, e-mail or letter
conveyed through fax.
ii. If the amount of cash being requested by the Branch WITHIN the pre-established ‘threshold limit’ of
PKR 5M, BM/ BOM contacts their respective Cash House Centers via e-mail or fax and requests them for
the cash. Verbal request via telephone for requisition of supply of cash will not be entertained. Further
the requests through Fax or e-mail will carry AS/IBS number of BM/ BOM.
iii. In case the amount of cash being requested EXCEEDS the pre-established ‘threshold limit of PKR 5M,
BOM with joint approval of BM will first send an e-mail or fax to their RH/ROM for their approval. On
receipt of approval from RH/ ROM, the BM/BOM will contact their respective Cash House Centers via e-
mail or fax requesting them for the cash. Further the requests through e-mail or fax will carry AS/IBS
number of BM/ BOM.
 Pre-established “Threshold Limits” are defined in Section 7: Chapter 13: Branch Transactional
Authorities & Threshold Limits
iv. On arrival, Designated Authorized Officer in the branch verifies the identity of the staff members of
Security Service Agency from the photographs and signature supplied by the Cash House, who attend
the branch for delivery of requisite cash.
v. Security Service Agency provides the original Cash Debit Advice on SF-180 along with its quadruplicate
copy of the same. Designated Authorized Officer checks that the exact amount of cash is supplied by the
Cash House.
xiv. Verify the embossed/printed numbers of seal on the cash bags with the transit/shipment advice.
xv. Ensures that the seals as well as cash bags have not been broken / tempered.
vi. When it is found that the bundles/packets count is correct and in accordance with the denominations of
the currency notes mentioned in the cash Debit Advice on SF-180 and transit/shipment Receipt,
Designated Authorized Officer acknowledges receipt of the cash on the quadruplicate copy of SF-180
and original of transit/shipment receipt and delivers the same to the staff of Security Service Agency and
retains the original Debit advice for accounting and record purpose.
vii. Enters the amount of cash in Cash Book SB-57 in the Receipts Column. Also post the relevant accounting
entries in the system.

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1.9 TRANSFER OF CASH FROM CASH HOUSE TO SBP
i. Cash Houses on receipt of cash from branches both local/up-country respond the debit vouchers by
debiting to their cash-in-hand account.
ii. All the cash received/deposited is entered in the cash book of Cash House on daily basis and is balanced
with the cash in Affairs/General Ledger and Cash in Vaults of the Cash House.
iii. Cash Houses will pass the entry to the debit of main branch of the city maintaining the bank account
with SBP Banking Services Corporation with an exception to Cash House KHI which deals with SBP
through Treasury & Foreign Exchange Group.

1.10 CHARGES FOR CASH COUNTING AND SORTING OF CASH

i. MCB Employees Foundation has arranged sorters for counting and sorting of cash. Sorters are paid their
charges for cash counting and sorting periodically, for the total number of bundles of cash counted and
sorted during a fortnight as per rate prescribed by the Bank. The Charges Paid for cash counting and
sorting are debited to "CASH SORTNG CHGS TO FOUNDATION” -Symbol GL Code 4040122040. (Instead
of branches).

1.11 HIRING CHARGES FOR ARMORED VEHICLES OF SECURITY SERVICE AGENCY

i. Cash House has hired armored vehicles from Security Service Agency who provide CIT service and supply
of plastic pre numbered seals which are used to seal cash bags. The cash is transported to and from
branches in these sealed bags. Cash House pays total CIT bill including cost of seals received, overtime
and trip based charges on monthly basis as per the agreement with CIT company. Cash House pays their
bills through “CIT SERV CHGS TO SECURITY COMP” - GL Symbols code 4040124150. The charges are
recovered from the respective branches, being provided cash supply and collection facility through
security service agency. This amount is credited into income account “Central CCH Charges recovered -
GL Symbols code 3080101270”.
ii. The figures for cash carries will be worked out on the basis of transit/ shipment receipts of Security
Service Agency as well as relevant cash debit advices for supply and collection of cash to and from
branches.

1.12 CASH HOUSE CHARGES FOR SUPPLY AND COLLECTION OF CASH

Cash House recovers charges for cash supply and collection from the affiliated and non-affiliated branches at the
prescribed rate per bundle of each denomination of currency notes.

1.13 CASH TRANSFER FROM CASH FEEDING BRANCH TO BRANCHES

i. In every region outside the purview of Cash Houses, one or more branches have been nominated as
Cash Feeding Branches for delivery or collection of cash to and from all other branches of their region.
ii. The cash-feeding branch collects the requisitions for supply or collection of cash up to 30 minutes after
the commencement of office hours, either in writing or over the telephone, with proper identification of

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 the person calling from the other side.
iii. If the amount of cash being requested by the Branch WITHIN the pre-established ‘threshold limit’ of
PKR 5M, BM/ BOM contacts their respective Cash Feeding Branch via e-mail or fax and requests them
for the cash. Verbal request via telephone for requisition of supply of cash will not be entertained.
Further the requests through Fax or e-mail will carry AS/IBS number of BM/ BOM.
iv. In case the amount of cash being requested EXCEEDS the pre-established ‘threshold limit of PKR 5M,
BOM with joint approval of BM will first send an e-mail or fax to their RH/ROM for their approval. On
receipt of approval from RH/ ROM, the BM/BOM will contact their respective Cash Feeding Branch via e-
mail or fax requesting them for the cash. Further the requests through e-mail or fax will carry AS/IBS
number of BM/ BOM.
 Pre-established “Threshold Limits” are defined in Section 7: Chapter 13: Branch Transactional
Authorities & Threshold Limits
v. The TSS notes down all the requisitions in a register and notes down Branch Name, amount
supplied/collected and Debit Advice Control number. In addition to the above, the chief cashier will
arrange the required amount of cash and delivers the same to staff of Security Service Agency in order
to perform the following functions:
 After the bundles/packets of cash are counted and found correct, the same will be placed, in canvas
bag(s) which is provided to the Staff of Security Service Agency by the Cash Feeding branch.
 Also keep Debit Advice- SF-180 and transit/shipment receipt in the cash bags.
 Attach plastic numbered seals with the cash bags.
 Security Service Agency delivers requested cash, Debit Advice- SF-180 and Transit/Shipment Receipt.
 Staff of Security Service Agency provides packed cash bags, original Cash Debit Advice on SF-180
along with the quadruplicate copy of the same.
 Ensures that the seals as well as cash bags have not been broken / tempered
 Designated Authorized Officer in the branch checks that the exact amount of cash is supplied. Also
verify the embossed/printed numbers of seal on the cash bags with the transit/shipment advice.
 When it is found that the bundles/packets count is correct and in accordance with the
denominations of the currency notes mentioned in the cash Debit Advice on SF-180 and
transit/shipment Receipt, Designated Authorized Officer acknowledges receipt of the cash on the
quadruplicate copy of SF-180 and original of transit/shipment receipt and delivers the same to the
staff of Security Service Agency and retains the original Debit advice for accounting and record
purpose.
 Enters the amount of cash in Cash Book SB-57 in the Receipts Column. Also post the relevant
accounting entries in the system

1.14 PROCEDURE FOR TRANSFERING FOREIGN CURRENCY TO MAIN BRANCH

BM/ BOM of Branches dealing in Foreign Currency Cash are required to contact the Main Branch via email or fax
for surrendering of surplus cash in excess of pre-established ‘threshold limit’ (equivalent Pak Rupee) after
getting the required approvals of their respective ROM/RH. Further the requests through Fax or e-mail will carry
AS/IBS number of BM/ BOM.
i. Designated Authorized Officer (BOM/TSS) prepares Inter Branch Debit Advice (SF-180) in quadruplicate
drawn on Main branch and also obtain the triplicate copy of Shipment Receipt from Security Company.
The details of denominations of currency notes must be written in the shipment receipt.
ii. Two authorized officer (BOM/TSS/GBO) sign off the Debit Advice & Shipment Receipt by BOM / TSS

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 iii. Teller services supervisor delivers cash along with the 1st copy of Debit Advice and collects the Shipment
Receipt from the authorized person of the Security Service Agency.
iv. The two staff members of the Security Service Agency deputed by the Cash House for collection of cash
from the calling branch will count the bundles/packets of cash as per denominations mentioned in the
shipment receipt
v. After the bundles/packets of cash have been counted and found correct, the Security Service Agency
keeps the cash in canvas bag and ties them with plastic number seal/s in presence of BOM / TSS.
vi. The two copies of transit/shipment receipt and the original cash debit advice on SF-180 along with its
quadruplicate will also be handed over to the Security Service Agency.
vii. Security Company sign-off the debit advice and acknowledges the receipt of cash.
viii. BOM / TSS must ensure that the details of cash shipment are properly recorded in the Cash Book SB-57
and necessary accounting entries are posted in the system.
ix. On receipt of cash the authorized official of Main Branch will send “D” copy of debit advice SF-180 after
affixing “cash received” stamp to the branch as an acknowledgment having receipt the cash.

On monthly basis, branch receives Cash In Hand Services and Insurance Charges Inter Branch Debit Advice- SF-
180 along with the Original Bill from Centralized Main Branch. After proper scrutiny of Debit Advice- SF-180,
Branch responds the entry accordingly

1.14.1 Centralized Main Branch performs the following functions:

i. Calculates Cash in Transit (CIT) service charges (FCY) and number of days during Cash in Transit.
ii. Apply Foreign Currency Translation rate, calculate CIT service charges and pool expenses amount in
PKR.
iii. Convey total amount of charges to the branch.
iv. Contact Security Service Agency to transport Foreign Currency cash amount with insurance coverage.
v. After receiving the cash bags from branch along with the Debit Advice and Shipment Receipt, count
cash and respond to the Inter Branch Debit Advice SF-180.
vi. Note down the transaction amounts of Cash & Sundry Creditors in the Cash Book and Sundry Creditors
Register.
vii. Designated Authorized Officer is required to reconcile daily General Ledger balances with the Manual
Register (where applicable).

On monthly basis:
i. Centralized Main Branch receives Cash in Transit Services/ Insurance Coverage Charges (Domestic)
from Security Service Agency.
ii. Centralized Main Branch originates Inter Branch Debit Advice- SF-180 for each Foreign Currency
branch.
iii. Attach Original Bill with the Inter Branch Debit Advice- SF-180 and retain original summary sheet for
record keeping.
iv. Credit the Security Service Agency account

1.14.2 Branch: (Designated Authorized Officer)

i. Branch converts total Foreign Currency amount into Pak Rupees by applying FC translation rate.
ii. Deducts total expenses amount from converted PKR amount.
iii. Originate net amount Inter Branch Debit Advice in favor of Main Branch.
iv. Keep total Foreign Currency amount and Debit Advice in packed Cash bags provided by Security

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 Service Agency.
v. Close cash bag with the plastic numbered seal.
vi. Prepare Shipment Receipt and delivers the same to the staff of Security Service Agency.
vii. Staff of Security Service Agency affix stamp & acknowledges the copy of Shipment Receipt and
delivers the same to Branch for their future record.

1.15 PROCEDURE FOR RECEIVING FOREIGN CURRENCY FROM MAIN BRANCH

BM/ BOM intimate their Foreign Currency Cash requirements in the evening prior to working day to the
Centralized Main Branch through e-mail or fax after getting approval of their respective RH/ ROM if the amount
exceeds the pre-established ‘threshold limit’ (Equivalent PKR). Further the requests through Fax or e-mail will
carry AS/IBS number of BM/ BOM.
i. Upon arrival of cash at the branch the Designated Authorized Officer (Teller services supervisor) in the
branch verifies the identity of the staff members of Security Services Agency from the photographs and
signature supplied by the cash house.
ii. Designated Authorized Officer (BOM/TSS) obtains the triplicate copy of shipment receipt and inter-
branch debit advice (SF-180) from Security Company. The details of denominations of currency notes
must be written in the shipment receipt.
iii. Designated Authorized Officer (BOM/TSS) check that the exact amount of cash is supplied by the Cash
House. Also verify the embossed/printed numbers of seal on the cash bags with the transit/shipment
receipt.
iv. Upon verification and authentication of cash shipment amount / denomination the Authorized Officer
(BOM/TSS) acknowledge receipt of the cash on the transit/shipment receipt IBCA (SF-180) by affixing
cash receipt stamp and deliver the same to the staff of Security Service Agency and retain the duplicate
copy of transit shipment receipt for records.
v. Enter the amount of cash in Cash Book SB-57 in the receipt column. Also post the relevant accounting
entries in the system.

1.15.1 Centralized Main Branch performs the following functions:

i. Calculates Cash in Transit (CIT) service charges (FCY) and number of days during Cash in Transit.
ii. Apply Foreign Currency Translation rate, calculate CIT service charges and pool expenses amount in
PKR.
iii. Prepare Inter Branch Debit Advice- SF-180 & Shipment Receipt. Contacts Security Service Agency to
transport Foreign Currency cash amount with insurance coverage to the branch.
iv. After the bundles/packets of cash are counted and found correct, keep cash in canvas bag/s which is
provided to the branch by the Security Service Agency.
v. When the cash is packed in bag/s, the same will be tied with plastic numbered seal/s by the
Designated Authorized Officer.
vi. Security Service Agency provides the original Inter Branch Debit Advice on SF-180 along with its
quadruplicate copy of the same.

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1.16 LATE RECEIPTS
The amount of cash deposited by a customer in late hours, after the close of cash counter is also required to be
noted in the Cash Book- SB-57 and;
i. Clearly mark “Late Receipt” on the Deposits Slip.
ii. Designated Teller & Operations Manager will sign-off the Deposit Slip and affix “Cash Received” stamp
on the slip.
iii. Keep cash along with the Deposit Slip in vault under dual control.
iv. On the next working day, upon opening of the branch, promptly credit customer’s account.

1.17 TELLER CASH TRANSFER

i. During counter hours, Tellers can transfer cash from one teller to another Cash Teller in order to meet
his/her cash requirement. Such transactions of cash, between the two Tellers are performed under the
supervision of the Teller services supervisor.
ii. In SYMBOLS, the option is given to handle transfer of Cash between the two tellers on the system. Teller
selects BT Module >> Transactions >> Cash Management >> Cash Transfer >> (Screen # BT- 22).
iii. The Teller services supervisor supervises all Cash transfer transactions. Message appears on the Teller
services supervisor’s Screen for override, when Teller services supervisor authorizes the transaction.
Transaction completion message will appears on the Teller’s system screen.

1.18 KEYS & KEY REGISTERS

i. All Keys of the Branch including Strong Room, Cash Safe, and Main Door etc. should be recorded in Key
Register SB-80 with name of the Custodian duly acknowledged by them.
ii. All Movements i.e. Handing and Taking over of Keys in case of leave or transfer of staff are also recorded
in the said Register with Date and Signatures of respective staff.
iii. Besides, Test Keys, Morning / Evening / Utility Cash Received Stamps should also be recorded in the said
Register duly acknowledged by the respective staff.
iv. Duplicate Keys in sealed packets should be placed with the Main Branch of the bank or NBP/SBP branch,
duly recorded in Key Register. Acknowledgement thereof is placed as Safe Custody Item.
v. At the time of transfer of Manager, incoming Manager must exchange Duplicate Keys with the Set of
Keys already in use of the Branch.

1.19 APPLICATION OF TEST

i. Operations Managers have to ensure that all outgoing documents, advices and instruments should be
signed by two IBS and/ or AS holders in the branch. Officers who do not bear IBS/AS number are not
eligible to sign-off the above documents.
ii. Test should be applied on all the Inter Branch & Head Office Debit/Credit Advices amounting PKR 25,
000 and above.
iii. All Advices must be duly signed-off by Two Authorized Officers holding Inter Branch signatory or
Authorized Signatory number.
 Inter Branch Signatory (IBS): IBS holder is only authorized to sign off (Jointly with another IBS/AS
holder) the documents, instruments and advices which are originated with in the Bank Branches
and/or Offices. (Includes Payment Orders, Local Demand Draft, Local Telegraphic Transfer and other

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 inter branch/office Advices/documents)
 Authorized Signatory (AS): Authorized Signatory is authorized to sign off the
instruments/documents on behalf of the Bank. All Letter of Credit, Foreign Demand Drafts and all
other formal documents of the Bank should be signed by Authorized Signatory jointly with any one
IBS/AS holder.

1.20 RESTORE OFFLINE FINANCIAL TRANSACTIONS

Customers can withdraw cash from the branch counter in an “off-line” mode of SYMBOLS. In order to
accommodate the customers, system modifications have been made where Cash Withdrawals can be processed
on BT Module even if the branch is in “off-line” mode.
The following conditions however apply:
i. The branch has been in the off-line mode for 15 minutes.
ii. The customer is an account-holder of the off-line branch (i.e. customers of other branches will not be
serviced in an off-line mode).
iii. Cash withdrawal will be restricted to a maximum of Rupees Fifty Thousand only (PKR 50,000) per day
per customer.

1.20.1 Process for performing Offline transactions are as follows:

i. Teller receives cheque from the customer & uses SYMBOLS (BT)> Transactions> Single Transactions >
Current/Savings account> CHEQUE WITHDRAWAL SCREEN# BT3214” and processes the transaction.
(Transaction Type CQWR)
ii. In case of Insufficient Balance or Stop cheque marked in the account message will appear on the
screen with override option “RF not Set for this Account” or “Stop Cheque” respectively. If
transaction is accepted by the supervisor, transaction will be executed in off-line mode.
iii. As branch becomes online, Teller services supervisor or Supervisor selects Branch Teller Module >
System Admin > Other Functions > Initiate Off-line File Transmission > Initiate Store & Forward >>
screen displays option “Yes”. Press Yes.
iv. If there are any un-posted transactions on the system (Performed in “off –line” mode), total number
will appear on the BT Main Screen. As Teller services supervisor/Supervisor successfully performs the
above function on the system, the entire un-posted transactions will be updated on the system.
v. Report of transactions processed in off-line mode generated from Deposits (RB) module> Reports >
Cheque Processing > Off-line Cheque exceptions- Screen No- RB A84.
vi. Teller services supervisor reviews the report and if there are any un-posted transactions, will post the
same on the system.

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1.21 USAGE & SAFE CUSTODY OF CASH RECEIPT/PAID STAMPS

There are two Cash Received stamps:

i. Cash receipts below 100K – To be used by designated TSO (as per their assigned limit)
ii. Cash receipts above 100K – To be used by TSS/ BOM for approval above TSO limit.

Cash received and paid Stamps will be handed over to designated TSO at the start of the banking hours and will
be preserved back by TSS/ BOM at the close of the banking hours

‘Cash Received’ or ‘Cash Paid’ Stamps should not be left open or handed over to any other unauthorized officer
of the branch. Responsibility to safeguard any misuse of stamps during banking Hours lies with the TSO whom
the stamp is assigned.

Cash Received and Paid stamps should be placed in vault under dual custody of TSO/ TSS and BOM

1.22 IMPOSITION OF SBP PENALTIES

Sr. Nature of Violation Scale of SBP Penalties
For not maintaining the prescribed Statement of Daily PKR 5,000/- per instance plus PKR 500/- per day
1
Closing Cash Balance. during which the default continues.
Non-maintenance of minimum One Day’s fresh / re- PKR 5,000/- per instance plus PKR 500/- per day
2 issuable balance in accordance with the average daily during which the default continues.
cash payment requirements.
For not properly sorting Bank Note Packets / Bundles PKR 5,000/- per instance plus PKR 500/- per
into issuable/non-issuable condition over the payment packet of un-sorted /non-issuable Currency
3
counters. Notes of any denomination, if caught, being
pushed into circulation
For not providing extra effort for on spot sorting of PKR 5,000/- per instance.
4 Bank Notes over the Counter in case where average
daily payment is exceeding PKR 1.50 Million.
For not affixing SORTED” stamps on packets of Bank PKR 500/- per packet of any denomination is
Notes. caught on-site examination and PKR 500/- per
5
packet in case any stakeholder along with
evidence of the same lodges a complaint.
For not accepting small denomination Bank Notes of PKR 10,000/- per case with evidence.
6 PKR 10/- as well as Cut / Soiled / Mutilated and
Defective.
For not removing the Staple Pins from packet of PKR PKR 500/- per packet.
7 10/- denomination Bank Notes and not properly
banding them.

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1.23 BASIC GUIDELINES FOR MCB COLLECTION SYSTEM FOR TBD TRANSACTIONS
TBD does not designate all MCB branches for all TBD customers. While receiving any TBD deposit, branches must
ensure that they have been designated by TBD for receiving the Collections for a particular TBD customer. While
designating any branch TBD sends designation letters/emails to the branches along with the process to be
followed in that collection. Branches must retain the record of said designations. In case a depositor comes at a
branch & the branch is not a designated branch it should not receive the deposit & should report the instance to
TBD so that TBD can handle the situation accordingly

1.23.1 Guidelines While Receiving TBD Deposits at Branch Counter

i. Specific stationeries have been prescribed to receive various deposits of TBD. Branches are supposed
to accept the deposits only on prescribed stationery.
ii. Branches must monitor the stock of the prescribed stationery. Stationeries must be requisitioned from
MCB Employees Foundation in time to avoid any shortage. Receiving deposits on "Photocopies" of the
deposit slips etc is strictly not allowed.
iii. Deposits should only be received in branch banking hours. Deposits if received after banking hours
should be taken in next working date & be processed accordingly the next day.
iv. Proper stamps are supposed to be affixed for Cash, Internal Transfer & Local Clearing Instruments
acknowledgements. Use of incorrect acknowledgement stamps may be risky for branch/bank.
v. For branch deposits there are two main Collection Products. One is "Collectplus" & other is
"Remitplus". Deposits in the form of Cash, Internal Transfer Cheques, & Local Clearing Cheques can be
accepted under "Collectplus" mode of Collection. Deposits in the form of Cash, & Internal Transfer
Cheques, can be accepted under "Remitplus" mode of Collection. Local Clearing Cheques cannot be
accepted under "Remitplus" mode of Collection.
vi. Instruments that do not come under the local clearing i.e. Outstation Instruments/OBCs cannot be
accepted in any circumstances in both modes of Collections (Collectplus & Remitplus). Branches must
not receive such instruments from depositors.
vii. Post dated instruments cannot be accepted by branches.
viii. Branches are strictly prohibited for issuance of any post dated "Remitplus Receipt" under TBD's
"Remitplus" arrangement.
ix. Guidelines For Posting Of TBD Transactions
x. Keeping in view the real time online status of all MCB branches, branches are supposed to post all TBD
transactions at the same time the deposit is received at branch counters. Late posting is strictly not
allowed.
xi. Branches must use TBD's Collection System for TBD transactions.
xii. Branches must take extra care while making posting in TBD's Collection System. All fields either
mandatory/optional must be filled in with accurately with the information available on the deposit
slip. Branches must take extra care while selecting the "Payment Type" while posting in TBD's
Collection System. Posting with incorrect "Payment Type" may result in the form of unbalanced
accounting / GL heads of the branch.
xiii. No back dated reversals/debits are allowed from TBD's Collection Accounts being maintained at
Global Transaction Banking Branch (GTBB - 0069). If there is a need to do a back dated reversal,
branch must seek written approval from TBD.

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 1.23.2 Guidelines For Intimating TBD
i. All "Returned" instruments along with the "Return Memo" must be dispatched to TBD Karachi &
should not be handed over to the depositor.
ii. No deposit slip copies, scrolls are required at TBD. Branches should not send any such document to
TBD. SECP's Challan copy is an exception here & branches must send TBD's SECP Challan's copy to TBD
Karachi.

1.23.3 Asking Help From TBD

TBD runs a help desk for the convenience of our branches. Branches are supposed to interact with TBD in
case they are confused in anything related to TBD & want guidance from TBD.

1.24 CURRENCY TRANSACTION REPORTING (CTR)

This is Applicable to all Cash Transactions (Receipts & Payments) PKR 2.5M & above

Reference to latest provisions of Anti Money Laundering (AML) Act, 2010 whereby Currency Transaction Report
(CTR) has to be submitted to Financial Monitoring Unit (FMU) regarding the currency transactions of PKR 2.5M &
above on daily basis through Compliance & Controls Group (CCG).

To combat against money laundering and terrorist financing branches are advised to ensure that all cash
transactions (payments / receipts) of PKR 2.5M and above are properly scrutinized. In this regard branches are
advised to take the following preemptive measures before executing the transactions:

 Retain the copy of CNIC of the Person conducting the Transaction.

 Verify CNIC of the person through NADRA VeriSys.
 Record the purpose of the transaction.
 Ensure that the transaction is in line with the customer profile/ KYC.
(If the cash transaction is not in line with customer profile/ KYC, BM will take supporting documents for
the transaction and re-conduct/ update KYC)

In order to monitor the cash transactions and maintain proper records for ready reference; Branch Manager and
Branch Operations Manager are advised to verify each cash transaction of PKR 2.5M and above and fill out
necessary information of the person conducting the cash transaction as per “CTR Form” (Annexure XXIII). Please
note, in case the customer is present in the branch conducting the transaction, CTR Form will not be filled
however ‘Purpose’ of the transaction will be recorded for future reference.

Please note that it will be the responsibility of the transacting branch to provide the complete information of the
transaction(s) performed through their counter. “CTR Forms” will be filed/ preserved by the branch and shall be
furnished upon request of CCG.

All Branches /field staff / Controlling Offices are advised to go through the contents of AML Act, 2010 thoroughly
(available on MCB portal) and ensure strict compliance / adherence in letter & spirit.

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Chapter 2 CASH DEPOSIT & WITHDRAWAL
2.1 PROCEDURE OF CASH DEPOSIT
Customer presents duly filled Deposit slip to the Teller along with cash.
Teller:
i. Receives deposit slip along with cash.
ii. Counts and checks the currency notes.
iii. Verifies the amount from the deposit slip.
iv. Checks the deposit slip for completeness e.g. Date, Title of Account, Account number, Depositor’s
Signature and depositors contact no. (mandatory)
Teller uses SYMBOLS (BT)> Transactions> Financial Transactions >> Single Transactions > Current/Savings
account> CASH DEPOSIT (SCREEN # BT3211) and processes the transaction. (Transaction Type-CASD)
i. Input or select Transaction Type from the list of values. (Cash Deposit- CASD)
ii. Input or select Currency from the list of values.
iii. Inserts the account number (List of values available)
iv. Inputs the transaction amount.
v. Affix “posted” and “Cash Received stamp (as per his/her assigned limit stamp)” on the deposit slip.
vi. Sign off the same and gives the Copy (B) to the customer.
vii. Keep cash in the box.
In-case the transaction is over Teller Limit:
i. TSS/ BOM authorizes/approves the transaction via remote override BT> Override > Remote Override
(Screen # BT002020).
ii. Affix “Cash Received Stamp” and signs the deposit slip.
Customer receives the copy B of deposit slip and leaves the branch.
Teller/ DAO:
i. Validates the source documents (Deposit Slips & Cash Vouchers) with RBA-11 report and arranges filing
of the same.
ii. In case of any discrepancy, transactions will be thoroughly reviewed by the Branch Operations
Manager & necessary action will be taken accordingly. Subsequently amended report will be re-printed
for final review.
iii. After the complete validation of the reports, two (02) authorized officers will sign-off the same.

2.2 PROCEDURE FOR CASH DEPOSIT REVERSAL

Teller:
i. Select the BT Module>Enquiries> Electronic Journal.
ii. Selects the required details (account number & reference) for extracting the particular transaction to
be reversed.
iii. The journal displays the relevant transaction(s)
iv. Select/highlight the transaction to be reversed.
v. Press <Alt-9> for execution of the reversal (transaction type "CSD#" automatically generates- Cash
deposit reversal)
vi. A pop-up appears to confirm the reversal of the transaction.
vii. Upon clicking "Yes" screen pop-up message for the supervisor's override.
viii. Once authorized by the Supervisor/Teller services supervisor, the system shall then automatically
reverse the transaction

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2.3 PROCEDURE FOR CASH WITHDRAWAL VIA CHEQUE
Customer comes to the branch to withdraw cash from his/her current/Savings account via cheque. Customer
presents a cheque for the required amount to the Teller.
Teller receives cheque from the customer and examines details:
i. Date and signature.
ii. Amount in words and figures is same.
iii. No crossing stamp is there.
iv. It’s a bearer cheque.
Note: All cheques exceeding PKR 50,000 should be carefully examined under ultra violet lamp to detect the
chemical alteration, if any. It is preferred to affix stamp “UVL carried out by (name of teller)”.
Teller uses SYMBOLS (BT)> Transactions> Single Transactions > Current/Savings account> CHEQUE
WITHDRAWAL SCREEN# BT3214” and processes the transaction. (Transaction Type CQWR)
i. Inserts account number (Customer & Account information will be displayed on the screen).
ii. Verifies customer’s signature and affix ‘Signature Verified’ Stamp
iii. Input or select Currency.
iv. Verifies the transaction amount. (System checks the same with the available balance in the account)
v. Enter Effective Date and press enter.
vi. Input the Reference (Cheque) Number.
(If transaction amount exceeds the Teller’s limit or any Restraints are attached to the account, screen pop-ups
“Authorization Required” message. Teller services supervisor authorizes/approves the transaction by using
BT> Override > Remote Override Screen# BT002020) after verifying credentials on original instrument.
i. Deliver Cash to the customer.
ii. Affix ‘Cash Paid’ Stamp on cheque.
iii. Override transactions will be displayed on the Remote Override Screen # BT002020.
iv. Authorize the transaction and message will be appeared on Teller’s system. Sign-off the instrument
and delivers the same to Teller for Cash Payment.
Customer receives cash, counts the same and leaves the Branch.
Back Office
i. At End of Day, Pass all the paid cheques to the Back Office for checking along with the transaction
report.
ii. Check the cash transaction report with the paid cheques.
iii. Files the report and paid instruments.

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2.4 PRECAUTIONS AGAINST FAKE/ CHEMICALLY ALTERED / RUBBED / DEFACED CHEQUES
i. Examine all cheques for inconsistencies, whether in size, the quality of Printing or the general
appearance of the cheque.
 The finishing may feel un-even or softer than normal in fake cheques
 The Paper color may be Grayish, stained or the ink color somewhat different
 Chemical reaction may appear on the back-side of cheques printed on chemically sensitive paper
(easy Pull up) if they contact with chemical solvents
ii. Inspect the cheques under UVL by holding the cheque up to the light at a 45-degree angle. Watermark
and/or micro printing could be faint or non-existent in case of alteration
iii. In case of doubt, make the presenter sign the cheque in front of the TSS/ BOM who then checks the
same with copy of CNIC. This stops fraudsters taking time to perfect a forgery prior to committing the
Fraud. In case of doubt on the copy of CNIC, Check it with NADRA VeriSys
iv. Branches are also provided with BLACK INSTANT VERIFICATION (BIV) MARKERS. An original cheque will
change color to ‘black’ once applied. A fake/forged cheque will not change any color. Tellers are advised
to validate all high value transactions by setting a spot or a small line at the back of the
cheque/instruments. Further these markers can also be used on presented cheques/ instruments for
any kind of suspicion.

2.5 PROCEDURE FOR CHEQUE WITHDRAWAL REVERSAL

Teller
i. Select the BT> Enquiries>Electronic Journal- BT- 56 Online.
ii. Enter the required details (Transaction date and reference) and press Alt+ 8 for extracting the
particular transaction to be reversed
iii. The Journal displays the relevant transaction(s).
iv. Selects particular transaction.
v. Press <Alt-9> for execution of the reversal (transaction type "CQW#" – Cheque Withdrawal Reversal)
vi. A pop-up appears to confirm the reversal of the transaction. “Do you want to reverse the transaction”
vii. Upon clicking "Yes" screen pop-up message for the supervisor's override.
Teller Services Supervisor
Once authorized by the supervisor/Teller services supervisor, the system shall then automatically reverse the
transaction.

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2.6 PAYMENT OF ON-LINE CASH CHEQUES OVER BRANCH COUNTERS
Branches are required to follow the revised process which is as under:
Threshold for on-line cheque If presented by 3rd Party / Bearer More than PKR100,000 (Rupees
transaction amount for ‘over including presentment at the Parent Br One Hundred Thousand only)
the counter payment’
requiring verification from/by If presented by the customer himself/ More than PKR5,00,000 (Rupees
the Parent Branch herself at a br. other than the Parent Br Five Hundred Thousand only)

Verification Procedure:
Following steps must be taken by the branches for verification of a transaction above the threshold in the
respective category stated above:
i. The branch receiving the cheque will send copy of the cheque thru FAX / Email (scanned image) to
the Branch Operations Manager (BOM) of the Parent Branch with a request for verification of the
transaction.
ii. The BOM of Parent Branch will refer the cheque to the Branch Manager (BM) or the designated
Personal Banker (PB) and either one of them will make Call Back to the account holder (customer) at
his/her last known phone/cell number provided to the bank and will inquire about the issuance of
the cheque with pertinent details such as cheque number, date amount and beneficiary name from
the customer for confirmation.
iii. Date, time and phone number of all such calls made must be entered at the back of the cheque (for
3rd party/bearer cheques above the threshold limit presented in the Parent branch) or on the FAX
copy, as applicable, evidenced by signature of the calling executive/officer for record.
iv. In case of no response on the provided contact numbers, the transaction must be referred to the
Branch Manager and in the absence of the Branch Manager, to the Branch Operations Manager who
will make a judgment and decide whether to approve the transaction based on pattern of previous
transactions and his/her comfort with the customer’s KYC/relationship with the bank etc. Any such
approval will be evidenced through the BM/BOM’s signature on the cheque/FAX copy. Details of the
call(s) attempted (date, time, phone number) must also be entered on the back of the cheques/FAX
copy before authorizing/ making payment.
v. The BOM at the Parent Branch will sign the FAX copy of cheque along with his/her IBS/AS number
and branch’s stamp after verifying the signature on the FAX copy and confirming BM/PBA’s call back
or BM or BOM’s approval and return it through FAX to the requesting/paying branch.
vi. Minimum time must be taken by the Parent Branch to verify to verify or decline the requested
transaction, adhering to the Service Quality turn-around-time (TAT) standards at all times.

Note: Detailed Call Back Confirmation Process and Script is detailed under Section 3: 2.8 Call Back Confirmation
Process (CBC)

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2.7 PROCEDURE FOR PAYMENT OF PKR AGAINST FCY A/C CHEQUE
Customer visits the branch to encash Foreign Currency Cash Cheque and wants to obtain equivalent Pak
Rupees. Presents Cash Cheque on the counter.
Teller:
i. Receives Cheque and verify the instrument by checking:
 Date
 Amount in Words and Figures.
 Signature on the instrument.
ii. Process the transaction on System by using Branch Teller Module >> Transactions >> Financial
Transactions >> Single Transactions >> Current/ Savings Account >> Cheque Withdrawal (BT-3214)
iii. Input Foreign Currency Account number & press Enter account information will appear on the Cheque
Withdrawal screen.
iv. Input or select the appropriate Transaction Type (Cheque Withdrawal Cash- CQWI)
v. Input effective date and press enter
vi. Input Currency (PKR), Cross Rate pop-up box will appear on screen.
vii. Check Exchange Rate. In case of Frozen Accounts obtain Exchange Rate from Daily Rate Sheet and
insert exchange rate in the Cross Rate Box. Click Ok.
viii. Input Transaction Amount. (System checks the transaction amount with the available balance in the
account)
(If transaction amount exceeds the Teller’s limit, pop-up message regarding “Authorization Required”
appears on screen. Teller services supervisor authorizes/approves the transaction).
ix. Input the reference number - (Cheque number)
x. Press F10 or Click Save icon
xi. Affix posted stamp and sign-off the cheque as per the assigned limit.
xii. Count and deliver Cash to the customer.
xiii. Affix Cash Paid Stamp.
At End of Day, Pass all the paid cheques to the Back Office for verification with the system generated report.
Customer receives cash and leaves the Branch.
Back Office checks the cash transaction with the system generated report with the paid cheques.

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2.8 CALL BACK CONFIRMATION PROCESS (CBC)
Following steps must be taken for verification of a transaction from the Customer. This process is to be
followed in case the transaction is above the defined transactional threshold limit / KYC or is necessitated due
to account status/ restraints marked.
i. The BOM of will refer the cheque / Instrument to the Branch Manager (BM) or the designated Personal
Banker (PB) and either will call the account holder (customer) at his / her last known phone / cell
number provided to the bank and will inquire about the issuance of the cheque with pertinent details
such as cheque number, date amount and beneficiary name from the customer for confirmation.
Following script will be used:
Dear Sir/Madam,
I am <Name> calling from MCB bank <branch name, city name> regarding confirmation for a Cheque
that has been presented to us for Cash Payment/Clearing/ Funds Transfer bearing This call-back is
being conducted for your security.
1. Can you please confirm (ask some business/ profile related question other than CNIC info)
2. Can you kindly confirm that you wrote cheque # <xxxxx> amounting to PKR <xxxxx> drawn in the
name of Mr. / Ms. <name>?
(Once the customer confirms positively)
Thank you for your time and confirming. The cheque will be processed and as per your instructions the
amount stated on the cheque will be debited from your account. Khuda Hafiz.
i. Date, time and phone number of all such calls made must be entered at the back of the cheque /
Instrument evidenced by signature of the calling executive / officer for record.
ii. In case of no response on the provided contact numbers, Branch Manager or Branch Operations
Manager (in absence of BM) will make a judgment and decide whether to approve the transaction
based on pattern of previous transactions and his / her comfort with the customer’s KYC / relationship
with the bank etc. Any such approval will be evidenced through the BM / BOM’s signature on the
cheque/Instrument.
iii. In-case of negative verification, the issue is immediately brought in notice of BM/ BOM for appropriate
action
Note: All Transactions above PKR 1M should be closely reviewed by BM and CBC to be conducted by BM.
2.8.1 In case the transaction is taking place at a branch other than Parent Branch:
i. The transacting branch will send copy of the cheque through FAX / e-mail (scanned image) to the
Branch Operations Manager (BOM) of the Parent Branch with a request for verification of the
transaction.
ii. Parent Branch will conduct Call-back Confirmation as per the process given above.
iii. Paying Branch will execute the transaction according to the fate provided by the Parent Branch.
Note: Minimum time must be taken by the Parent Branch to verify or decline the requested transaction,
adhering to the Service Quality turn-around-time (TAT) standards at all times.

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2.9 PROCEDURE FOR CREDIT CARD PAYMENTS AGAINST CASH - ONLINE PAYMENT FACILITY
OVERVIEW
On-line branches across the country are authorized to handle cash payment of Credit Card installments by
customers. Salient Features are as follows:

i.
The main Collection Account for receiving Credit Card payment is opened in Sheikh Sultan Trust Branch
(0842), Karachi, in the SYMBOLS Data base. The account number is (0071956831001326). The type is
Current Account with the title of “Visa Card Collection Account”.
ii. This facility is available for existing customers or walk-ins for deposit of cash for on-line transfer to the
said collection account in SST Branch. (Walk-in refers to Credit Card customers that do not maintain
branch banking relationship).
PROCEDURE
Customer fills out a Special Credit Card Cash Payment Deposit Slip that already has the account number (on
beneficiary field) of VISA CARD COLLECTION A/C mentioned on it for customer’s ease along with the Cash
Payment and depositors contact no. (Mandatory).
Teller: Receives deposit slip, count cash as per deposit slip and ensure that all the prescribed control
requirements are fulfilled.
i. Select EOC Icon, input user ID and password for login.
ii. Click on Deposit Module. Select Transaction >> Value Transaction >> Deposit screen (RB31)
iii. Insert Account # (0071956831001326) and press F8, system show the account information.
iv. Verify the information with Cash Deposit Slip and press enter.
v. Input Transaction Type "CHPM" (CTL Cash Payment), Effective Date (press enter), Currency (PKR) and
Transaction Amount (excluding service charges) & select option "N" right side on the screen Narrative
Box will appear capture customer's credit no. then select the credit card # & press CTLR+F12 (Hot Key)
to authenticate and validate card number.
vi. Press F-10 or click save icon to save the transaction. Screen shows system alert Message. "Transaction
complete: 1 record applied and saved".
vii. Affix cash received stamp on deposit slip & deliver B copy to the customer.
viii. Forwards the instrument to Teller services supervisor after sign off on the deposit slip.
Teller services supervisor:
i. Receives posted instrument(s) Scrutinize the deposit slip and validate the input.
ii. Verify the posted transaction by using Deposits >> Enquiry >> Account Transaction History (RB75)
iii. Prepare batch entry for service charges.
iv. GL Module >> Transaction >> Batch Maintenance >> Entry (GL21)
Deposit slips forward to back office for batch verification & acceptance
Back Office Operations:
Receives deposit slip & ensure that all the requirements are completed. Accept the batch by using GL Module
>> Transaction >> Batch Maintenance >> Acceptance (GL22). Verify and sign off.

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Generate following report for validation / record purpose:
i. Deposits >> Report >> Daily Activities >> Daily Trans by branch/office (RBA11)
ii. General Ledger >> Report >> Daily Activities >> Daily Batch Listing per user (GLA90).
Forward the day's Transaction report (RBA11) with 3rd copy of Deposit Slip to Credit Card Division for their
validation/record purpose.
IT OPERATIONS:
i. At EOD, IT Operation will generate a file in the "BRNSIN" format from SYMBOLS in order to update the
daily transaction in CTL (Credit Card System) and "PCHLHO" for Card Division GLBS system (accounting
purpose).
ii. They send the CTL Transaction upload & exception report to Card Operation on daily basis.

2.10 PROCEDURE FOR CREDIT CARD PAYMENT THROUGH CHEQUE – DROP-BOX FACILITY
OVERVIEW
Card OPS ensures the placement of Drop Boxes in the designated MCB Branches.
Branches will be responsible to collect all the Material from Drop Box (of their own branch) on a daily basis
which normally contains on the following items.
Drop Box Items
i. Cheque
ii. Stubs
iii. Customer complaints / Letters
iv. Cut cards
v. Marketing material
HANDLING PROCESS
Valid cheques (with 16 digits card number or with stub)
Branch officer will prepare daily MIS of all valid cheques / Stub which will contain the following information and
send it to Card Operation (Karachi / Lahore / Rawalpindi) through email.

Karachi = [email protected] with CC to [email protected]

Lahore = [email protected] with CC to [email protected]
Rawalpindi /Islamabad = [email protected] with CC to [email protected]

i. MCB Cheques / Payment Stub:

As per branch practice all the MCB cheques (Transferred cheques) will be cleared on same day and
funds will be credited in MCB Visa Card Collection account # 0000-1951-8100-1803 maintained at MCB
Sheikh Sultan Trust Branch – Karachi -0842.

ii. Clearing Cheques:

As per Branch practice all the clearing cheques will be sent in clearing on first working day and on
second working day when funds / fact of cheques are received from NIFT, branches will credit cleared
cheques funds into MCB Visa Card Collection Account # 0000-1951-8100-1803 maintained at MCB
Sheikh Sultan Trust Branch Karachi-0842.

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 iii. Collection / Out of city cheques:
All the collection (Out of city) cheques will be sent for clearing to the respective city as funds received
branches will post credit in MCB Visa Card Collection Account # 0138-7989-4100-2986 maintained at
MCB Sheikh Sultan Trust Branch Karachi-0842.

In addition to the above Branches have to make photocopies of all individual cheques and send these
with MIS of above to Card Operation-Karachi through normal mail.

iv. Post Dated Cheques:

Branches’ officers will keep all the post dated cheques in their safe custody and will present on their
dates for clearing and thereafter, will be treated same as mentioned above and will be credited MCB
Visa Card Collection Account # 0000-1951-8100-1803 maintained at MCB Sheikh Sultan Trust Branch
Karachi-0842.

The below items must be mailed to Cards Operations Karachi / Lahore / Rawalpindi on a daily basis.

 Discrepant, Returned / dishonored cheques

 Personal Loan / other bank / Miscellaneous Cheques
 Stubs / Customer Complaints / Cut Cards
 Marketing Material

Branch officer will prepare another MIS of all above other items on excel sheet and will dispatch to Card
Operations Karachi / Lahore / Rawalpindi for the necessary action on the following addresses:

Karachi Lahore Rawalpindi

Attention: Aba Muhammad / Ishtiaq Attention: Ammad Uddin Ghauri / Syed Attention: Irfan Khaliq / Abdul Hafeez
Ahmed Abro Abdul Rehman Ali Shah MCB Bank Limited
Item Processing Unit MCB Bank Limited Credit Card Operation
st
Credit Card Operation Credit Card Operation 1 Floor al-Gillian Building
rd
3 Floor SST Building MCB Building Murree Road – Rawalpindi
nd
Beaumont Road, Karachi 2 Floor Main Market 0333-5610864 / 051-4581198
Phone # 111-800-800 Ext 207- 632 Gulberg – Lahore
Fax # 021-5651366 UAN: (042) 111800800
Direct: (042) 35763473
Fax: (042) 35762433

Note: Cheques dropped in Lahore/ Karachi/ Islamabad branches will be picked up by Designated Courier and
Branches are not required to send the same through courier.

2.11 PROCEDURE FOR CASH ADVANCE TO CREDIT CARD CUSTOMERS

OVERVIEW
This facility provides an alternate to all card holders, in addition to the ATM, for Cash Advance through Branch
Network, according to card-holder’s Cash advance entitlement under the Credit Card Scheme. Salient features
are as follows:
i. The facility is available in all branches across the country.
ii. There is a main disbursement Account for withdrawal of funds by branches under the facility, opened in
Sheikh Sultan Trust Branch (0842), Karachi, in the SYMBOLS Data base. The account type is Current
Account with the title of “MCB Cards- Cash Advance through POS”. (The account number is

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 0036154311001494).
iii. The POS terminal is available in each selected branch. These terminals are connected via phone network
to the main CTL system for on-line transaction approvals.
iv. The relevant Branch staff (Branch Operations Manager, the Teller services supervisor and one senior
Teller) is adequately trained to operate the POS and execute the transaction.
The facility is available to both MCB Card member (on-us) and other Card holders (off-us).
PROCEDURE
Customer:
i. The Cardholder (‘on-us’ and ‘off-us’) will visit the branch and approach the Teller at the Cash Counter.
Branch:
i. The designated teller will ask for the Credit Card. For ‘off-us’ card holder additional identification (CNIC
or a valid passport copy) will also be required.
ii. The Teller will swipe/dip the Card to the Terminal and input the desired Cash withdrawal amount.
iii. The on-us customer will be asked to approach the desk and input the Pin-Code (for validation).
iv. The scroll/slip validating the approval of the transaction will be printed in two copies. Each transaction
will have an approval code and a unique trace number printed on (right side of the) slip.
v. The Teller will ask the card holder to sign the slip. The signature will be matched with the signatures on
the back of the Card.
vi. The Off-us card holder will be asked to provide copy of the CNIC or valid passport for branch records.
vii. Once the approval process via POS is complete the branch will disburse Cash (as given on the slip) as per
the required denominations according to the Cash Withdrawal process on the branch counters.
viii. Before disbursal, the processing Teller will validate the transaction, confirm the amount and put his/her
initial on the slip as confirmation.
ix. Teller will disburse Cash and put the Cash Paid stamp on the back of the slip and initial. Upon receipt of
Cash, the card holder will be requested to sign the same slip on the back as receipt.
x. Teller will be required to keep a log of each transaction with approval number and the amount for End
of Day (EOD) reconciliation.
xi. At EOD the branch will print the summary of all the day’s transactions for validation against all approved
slips and reconcile the Cash paid over the counters against POS.
xii. At EOD, finally, the Branch authorized official will key-in the settlement of total cash ‘sale’ transactions
for the day as per the recommended guidelines for the handling of POS terminal.
xiii. After the settlement entry, the POS terminal will be un-hooked and securely placed in the main Vault.
xiv. Finally, the Teller will forward the details of total transactions for the day (each individual slip with the
matching summary scroll duly validated) to the Operation Manager for further processing.
xv. Branch will pass one consolidated transaction for the day for total cash withdrawal by debit to the main
Disbursement Account (0036154311001494 in SST Branch, Karachi) as per the regular Cash Withdrawal
transaction (Transaction Type: CASW) in the Deposit (EOC) in a Branch
xvi. Branches will validate each transaction against the main Summary of POS Scroll extracted at end of day.
xvii. The Branch Operations Manager will validate and initial on the Summary in confirmation. Following
reports will be reviewed and filed duly signed-off by Branch Operations Manager:
 Generate report from Symbols (EOC): RBA11 (for the CASA activity validation)
 Generate report from Symbols (EOC): GLA90 (for the GL validation -Symbols)

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Chapter 3 INWARD & OUTWARD CLEARING
Clearing of Bank Instruments includes collection and payment of cheques, Demand Draft, Payment Order and
Dividend Warrants etc. ‘Collection’ and ‘Payment’ of instruments are known as Outward and Inward Clearing
respectively.

3.1 OUTWARD CLEARING

3.1.1 Scrutiny of the Deposit Slip:
Deposit slips and the cheques/instruments should be properly scrutinized before accepting them.
 Title and Account number are mentioned.
 Amount tallies with that of cheque(s).
 The amount in words and figures are same.
 There are no unauthorized alterations.
 The amount, account number and the title of account in the customer copy are same as in the
Original /pay-in-slip.
 The pay-in-slip bears the depositors signature and contact no. (Mandatory) at the specified place.

3.1.2 Scrutiny of Cheque/Instruments:

Following points should be properly checked:
 The cheque is not post dated or undated or stale dated or invalid dated or incomplete dated.
 There is no unauthorized alteration on the cheque.
 Payee name and Drawee Signatures is Present.
 Particulars of a cheque should be written with Permanent Ink
 The amount in both words and figures is required and both should match.
 Any endorsement and special crossing are in order.
 Nothing on the cheque indicates that the depositor is not entitled to receive the amount.
 The cheque payable to a firm, company or institution should not be accepted for credit to the
account of partner, director, agent, attorney, manager or any employee.
 If the payee is a Government Department / Official or a Trust, a cheque should not be collected for
a person other than the payee.
 Cheque Crossed / Marked “Payee Account Only” must be deposited in customers account ONLY
and should not be deposited in another the Payee account
 Order cheque being deposited in other account is properly endorsed by the Payee in favor of
depositor and also signed by the depositor.
“Non-Transferable” instruments should not be collected for a person other than the payee
After the complete scrutiny of the cheque and deposit slip, affix “Clearing Date Stamp” on the deposit slip
and on the instrument(s).

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3.2 PROCEDURE FOR OUTWARD CLEARING – NIFT BRANCHES
Customer presents duly completed deposit slip along with the instrument(s) (Other than MCB instruments) to
the Clearing teller.
Clearing Processor: (Day One)
i. Receives deposit slip and instrument(s).
ii. Checks deposit slip
 Account number and Title of account
 Signature on the deposit slip along with depositors contact no. (mandatory)
 Amount in words and figures is identical.
 Instrument amount tally with amount mentioned on deposit slip.
iii. Scrutinizes Instruments:
 Validate the customer account number.
 Endorsement and special crossing (if any) are in order.
 No un-authorized alteration.
 Amount in words & figure are identical.
 The instrument is neither post dated nor undated or stale.
 Instruments pertain to within city.
 Inter-city Instruments will be sent via Inter-city clearing or Collection arrangement.
iv. Affix bank’s Clearing Stamp and sign-off deposit slip and return customer copy (B) to the Depositor.
Customer receives “B Copy” of slip and leaves the branch.
Clearing Processor: (Day One)
i. Endorse & sign off on the reverse of instruments as per the requirement.
ii. Detach Deposit Slips from the instruments.
iii. Enter details on manual register (SB-70) OR on an Ms-Excel sheet. Details include; a/c #, title of the
beneficiary, bank drawn on, branch, cheque # and amount. If Ms-Excel Sheet is maintained, it should
be printed and duly signed and preserved.
iv. Make stack of 50 instruments (50 instruments in each stack).
v. Add list the total of 50 instruments in a stack and attach the list with the stack.
vi. Makes a summary of the received instruments along with the bundle cover.
vii. Deliver the instruments to NIFT rider in the evening for realization of funds.
viii. Forward deposit slips along with the summary to Teller services supervisor/ Supervisor for safe
custody.
Note:
i. For inter-city instruments, prepare same set of documents as stated above for each city in pre-printed
city envelopes
ii. No accounting entry is passed on Day 01 i.e. on the day branch receives deposit instruments from the
customers.
NIFT (Day One)
i. NIFT receives instruments from the branch along with the covering schedule.
ii. Process them for onward delivery to the concerned banks for clearance of funds next day (i.e. Day 2)
(Day Two)
i. NIFT delivers HO 2242 Voucher along with Inward Clearing.
ii. In second half, NIFT rider delivers “Cheques Returns” to branches.
iii. NIFT rider will also deliver HO 2293 (difference amount) Voucher along with Scroll Summary showing
branch wise consolidated amount of Total Return “RECEIVED & DELIVERED” with “NUMBER OF ITEMS
Clearing Processor – (Day Two)
Outward Clearing Credit

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3.2 PROCEDURE FOR OUTWARD CLEARING – NIFT BRANCHES
i. Receives the deposit slips along with the summary from Teller services supervisor/ Supervisor.
ii. Select SYMBOLS BT >> Transactions >> Financial Transactions >> Single Transactions >>
Current/Savings Account >> Cheque Deposit – BT 3213.
 Input Account number (select from LOV) & press enter.
 Input or select from LOV the appropriate transaction type ‘CQCC”
 Input or select currency - PKR.
 Input the transaction amount.
 Input the bank, branch & issuer account number.
 Input the effective date and press enter.
 Pop-up window appears asking for the voucher number.
 Press enter on Float Days “2” and input the reference (cheque No).
 Press F10 or click ‘Save’ icon on the tool bar. Message will appear for transaction acceptance).
If transaction amount exceeds the Teller’s limit or any restraints are attached to the account, the override
screen with appropriate message will appear. Designated Officer authorizes/approves the transaction by
override either locally or remotely.
iii. Press the appropriate option of local or remote override.
iv. When Supervisor authorizes the transaction Confirmation message will appear on teller’s screen.
Clearing Returns:
i. In the late hours, NIFT Rider delivers Cheques Returns” to the branches.
ii. Cheques returned in the clearing MUST be posted (reversed from customer account) by the branches
on the same day without any fail.
Select EOC – Deposits >> Transactions >> Value Transactions >> Withdrawal-RB32: Input account number and
press F-8
i. Customer & account information will be displayed.
ii. Input the appropriate transaction type - “CQCR”.
iii. Input the effective date and press enter.
iv. Input the currency – PKR
v. Input the cheque amount.
vi. Press F10 or click ‘Save’ icon on the tool bar.
vii. Communication with Customer
viii. Note down the details of Returned Cheque in the Cheque Return register SB-15.
ix. Inform the customer about the Returned Cheque via telephone and note down the appropriate
remarks on the reverse of Return Memo.
x. On customer’s visit to the branch, Teller delivers original instrument and Return Memo to the
customer after taking the proper acknowledgment from the customer on SB-15.
xi. If customer does not come to collect the Return Cheque from the branch within 05 working days,
Teller intimate the customer by sending SF-20 along with copy of Returned Cheque and Return Memo.

GL Entries: Branch will post HO-2293 (difference amount) voucher, delivered by NIFT rider along with returned
cheques.
Daily Activity of Clearing Operations
i. Designated Officer will verify the total figure of clearing sent to NIFT on Day One with the NIFT Scroll –
“CLEARING DELIVERED BY YOU” on a daily basis.
ii. Designated Officer is also required to generate transaction report (RBA-11 & GLA-11) and forward to
supervisor with source documents for verification and sign off.
iii. After posting of returned clearing, designated officer will validate GL Clearing Control Head
(GL1150101140) of their branch. It should reflect ‘ZERO’ balance.

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3.2 PROCEDURE FOR OUTWARD CLEARING – NIFT BRANCHES
iv. Operations Manager will sign off the relevant reports and ensure that Clearing Control Head
(GL1150101140) balance is ZERO.
Float Adjustment:
i. Select EOC Deposits >> Transactions >> Non-Value Transactions >> Float Adjustment by Branch –
RB442.
ii. Change the date of those transactions where Float Days is “2”.
iii. Press F10 or click ‘Save’ icon on the tool bar.

3.3 PROCEDURE FOR OUTWARD SAME-DAY CLEARING – NIFT BRANCHES

Customer presents duly completed deposit slip along with the instrument(s) (Other than MCB instruments to
the Clearing Processor
Clearing Processor: determines whether it is a 'same day' clearing. Same is categorized as below:
i. Amount 500k and above
ii. Both Receiving and Paying Banks/Branches are members of "Same day clearing - NIFT"
iii. Cheque is received before 9:30AM
Clearing Processor:
i. Receives deposit slip and instrument(s)
ii. Checks deposit slip
 Account number and Title of account
 Mention Bank and Branch Name and Instrument No.
 Signature on the deposit slip along with depositors contact no. (mandatory)
 Amount in words and figures is identical.
 Instrument amount tally with amount mentioned on deposit slip.
iii. Scrutinizes Instruments:
 Endorsement and special crossing (if any) are in order.
 No un-authorized alteration.
 Amount in words & figure are identical.
 The instrument is neither post dated nor undated or stale.
 Instruments pertain to within city
 Affix bank’s Same-day Clearing Stamp and sign-off deposit slip and return customer copy (B) to
the Depositor.
Customer receives “B Copy” of slip and leaves the branch.
Clearing Processor:
i. Endorse & sign off on the reverse of instruments as per the requirement.
ii. Detach Deposit Slips from the instruments.
iii. Enter details on manual register (SB-70) OR on an Ms-Excel sheet. Details include; a/c #, title of the
beneficiary, bank drawn on, branch, cheque # and amount. If Ms-Excel Sheet is maintained, it should
be printed and duly signed and preserved.
iv. Make stack of 50 instruments (50 instruments in each stack)
v. ‘Add list’ the total of 50 instruments in a stack and attach the list with the stack.
vi. Place in Same-Day Clearing envelope with the summary sheet.
vii. Summary sheet has 3 carbonized copies. An acknowledgement is given by GBO to NIFT by stamping
their copy
viii. Prepare bundle cover.

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3.3 PROCEDURE FOR OUTWARD SAME-DAY CLEARING – NIFT BRANCHES
ix. Deliver the instruments to NIFT rider
NIFT Representative collect the Same-day clearing cheques before 9:30AM
NIFT Representative
Delivers HO 2242 Voucher along with Inward Clearing.
Delivers HO 2293 (difference amount) Voucher along with Scroll Summary showing branch wise consolidated
amount of Total Return “RECEIVED & DELIVERED” with “NUMBER OF ITEMS
Clearing Processor
Outward Clearing Credit
i. Receives the deposit slips along with the summary from Teller services supervisor/ Supervisor.
ii. Select SYMBOLS BT >> Transactions >> Financial Transactions >> Single Transactions >>
Current/Savings Account >> Cheque Deposit – BT 3213.
 Input Account number (select from LOV) & press enter.
 Input or select from LOV the appropriate transaction type ‘CQCC’
 Input the transaction amount.
 Input the bank, branch & issuer account number.
 Pop-up window appears asking for the voucher number.
 Press F10 or click ‘Save’ icon on the tool bar. Message will appear for transaction acceptance).
If transaction amount exceeds the Teller’s limit or any restraints are attached to the account, the override
screen with appropriate message will appear. Designated Officer authorizes/approves the transaction by
override either locally or remotely.
iii. Press the appropriate option of local or remote override.
iv. When Supervisor authorizes the transaction Confirmation message will appear on teller’s screen.

GL Entries: Branch will post HO-2242 voucher, delivered by NIFT rider

SAME-DAY Clearing Charges deduction:

Clearing Teller will debit applicable charges (as per SOBC) from customer account through EOC: Deposit 
Value transaction  Withdrawal.
Clearing Returns:
i. By 12PM, NIFT Rider delivers Cheques Returns” to the branches.
ii. Cheques returned in the clearing MUST be posted (reversed from customer account) by the branches
on the same day without any fail.
Select EOC – Deposits >> Transactions >> Value Transactions >> Withdrawal-RB32: Input account number and
press F-8
iii. Customer & account information will be displayed.
iv. Input the appropriate transaction type - “CQCR”.
v. Input the cheque amount.
vi. Press F10 or click ‘Save’ icon on the tool bar.
vii. Communication with Customer
viii. Note down the details of Returned Cheque in the Cheque Return register SB-15.
ix. Inform the customer about the Returned Cheque via telephone SAME-DAY and note down the
appropriate remarks on the reverse of Return Memo.
x. On customer’s visit to the branch, Teller delivers original instrument and Return Memo to the
customer after taking the proper acknowledgment from the customer on SB-15.
xi. If customer does not come to collect the Return Cheque from the branch within 05 working days,
Teller intimate the customer by sending SF-20 along with copy of Returned Cheque and Return Memo.

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 3.3 PROCEDURE FOR OUTWARD SAME-DAY CLEARING – NIFT BRANCHES
GL Entries: Branch will post HO-2293 (difference amount) voucher along with HO-2242, delivered by NIFT rider
along with returned cheques

3.4 INWARD CLEARING

Handling of Inward Clearing for majority of branches is centralized with ‘Centralized Operations Division –
(COD)’ and being performed from its centralized Processing Units established in all major cities across the
country. For non-centralized branches, processing of Inward Clearing is being performed by the respective
branches at their end.

3.5 PROCEDURE FOR INWARD CLEARING – NIFT BRANCHES

NIFT Representative delivers Inward Clearing instruments to the Central Processing Unit (CPU)
Designated Authorized Officer- (DAO) in CPU receives Inward Clearing instruments from NIFT Representative.
Segregate cheques and Payment Orders/ Demand Draft/ CDRs etc branch wise.
i. Check Clearing and Endorsement stamp on cheques/instruments.
ii. Proper scrutiny of cheques/instruments should be done in the same way as it is discussed in Section 3:
3.1.2 -Scrutiny of Cheque/Instruments:
iii. Forward cheques to the supervisor for Signature Verification.
Authorizer/Supervisor in CPU
Verifies customer’s signature(s) from the Deposits Module>> Enquiry >> Account Details (Screen # RB7A).
Enter account number, press F8, account information appear on the screen, in order to verify the customer’s
signature click on SG (signature) tab on the top right of the screen.
i. Sign-off the instrument.
ii. Forwards instruments to the Processor for posting.
In case of Signature untagged on EOC/Unclear operating instructions/Signature Differ: inform the relevant
branch through fax or e-mail and take necessary action as per the feedback received from the respective
branch.
CPU Processor:
i. Process the transaction on the system by using Deposits Module >> Transaction >> Value
Transactions>> Withdrawal
ii. Enter Account number in the related field, Press F8. System retrieves account information on the
screen. Prior to retrieving the information, system also displays restraints (if any) on the given account
like stopped cheque, staff account, closed account etc. User is required to read these restraints
carefully and inform the relevant branch.
iii. Input/select the Tran Type CQCD- Cheque Clearing Debit.
iv. Press enter for Effective date and Currency.
v. Input transaction amount and cheque number
(If transaction amount exceeds the Processor’s limit, screen pop-ups “Authorization Required” message.
Authorizer approves the transaction)
i. Pop-up box appears on the screen for authorizer’s ID and password
ii. Press enter/accept in order to execute the transaction
iii. Note down the transaction reference number on the back side of the instrument and sign off the same.

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3.5 PROCEDURE FOR INWARD CLEARING – NIFT BRANCHES
Affix ‘posted’ stamp on the instruments.
In case of insufficient balance: If available balance of the account is less than cheque amount inform the
respective branch on the prescribed format in order to confirm whether there is any credit in the pipeline.
In case of any Restraint Attached with the Account: e.g. “Cheque Stopped” or “Cheque Series” are not
updated with account; CPU contacts the relevant branch for confirmation.
For Pay order/ Demand Draft Payment:
i. Selects Deposit Module >> Cheque Instrument >> Transaction >> Draft/ Bank Cheque Buy (Screen # RB
18361) with transaction type- POCI- Payment Order Buy Clearing Internal or DDCI- Demand Draft Buy
Clearing Internal
ii. Input cheque details, verify details appearing on the screen with the instrument, if details and
instrument are in order, press F10 or click on Save icon in order to execute the transaction.
Branch:
i. Receive details of discrepant inward clearing instruments from CPU.
ii. Operations Manager or Designated Authorized Officer checks the status of account and provide their
feedback accordingly. (cut off time is half an hour)
CPU Processor:
i. Note down the details of return unpaid cheques.
ii. Prepares the Returns Memos as per instructions received from Branch along with the NIFT covering
schedule, branch wise, and forwards the same to the Authorizer for review and sign-off.
iii. Delivers the same to NIFT Representative.
iv. Submit a consolidated Daily Return report (branch wise) to all the branches via e-mail or fax.
v. Checks daily transaction reports (RBA 11 & 87) for the branch processed by Processor 2 (Maker-
Checker)
vi. Prepares branch copy documents including covering sheet, return sheet, all reports for processed
instruments (RBA 11, RBA 87), NIFT advice (2242), scroll along with processed instruments and
forwards the same to Authorized officer to review and sign-off the same.
vii. Saves all the daily transaction reports and branch’s correspondence in soft date for audit record
purpose.
viii. Post 2242 advices/CDR/Remit Express/Speed cash in General Ledger Module >> Transactions >> Batch
Maintenance >> Entry (Screen # GL21)
CPU Authorizer:
i. Reviews and sign-off the Return memo along with NIFT’s covering schedule.
ii. Review branch copy documentation against the covering sheet and sign off the same
iii. Forwards reports along with the instruments to Dispatch section in order to deliver the same to the
branches.
CPU Authorizer/ Supervisor
i. Accepts open relevant batches after validating the Batch details with the source document from
General Ledger Module >> Transactions >> Batch Maintenance >>Entry (Screen # GL 21).
ii. Review & sign-off GLA 11 & GL 90 with the source documents.
iii. Forwards reports along with the NIFT Advices to Dispatch section in order to deliver the same to the
branches.
Dispatch Section:
i. Affix PAID stamp on all the cheques and instruments.

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 3.5 PROCEDURE FOR INWARD CLEARING – NIFT BRANCHES
ii. Hand-over the Paid instruments /Advices along with relevant Reports to the designated courier for
onward delivery to the respective branches in a sealed envelope.

3.6 RESOLUTION OF DISCREPANCIES

While processing the Inward Clearing from a centralized location there are certain type of discrepancies where
Centralized Processing Unit is unable to take a decision and has to refer the case to the concerned branch and
obtain their authorization/approval before honoring the cheque.
Keeping in view the urgency & time constraints involved, communication with the concerned branches is done
via e-mail (along with scanned copy of the instrument, where applicable) or through fax (where e-mail facility is
not available). Branches are required to attend and respond these cases on a priority basis.
Cases referred to the branches fall in following 3 major categories:

i. Account Related Discrepancies:

 Cheque drawn against Dormant, Inactive or Deceased accounts.
 Insufficient balance in the account
 Cheque series not found/updated in the system
 Account not found
 Debit or Credit turnover limit exceeds
 Stop Payment marked against the cheque.
 Amount exceeding RF limit
 Restraint marked: officer not authorized for the transaction
 CNIC not updated, new CNIC copy required.

ii. Instrument Related Discrepancies:

 Signature Differ
 Operating instructions required
 SF-6A27 related cases
 Signature not tagged with the account
 Cheques drawn on Photo Account
 Call back confirmation required: Transaction amount of PKR 1 Million and above

iii. Other cases:

 All Call Deposit Receipts - CDRs issued by branches
 Speed Cash, Remit Express Drafts
 Foreign DDs drawn on Global Transaction Banking Branch
 Un-signed/singly signed bank drafts
 Revalidation required: stale dated bank drafts

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 3.7 INWARD CLEARING – CHEQUE DEBIT REVERSAL
Processor:
i. Select Deposits Module >> Transaction >> Value Transaction >> Reversal – RB34
ii. Enter account number, press F8 for extracting the particular transaction to be reversed.
iii. Select particular transaction which needs to be reversed and press F10.
iv. Transaction authorization message appears on the screen, supervisor authorizes the transaction.
v. Transaction type – Cheque Clearing Debit Reversal “CCD#”
Authorizer / Supervisor :
i. Once authorized by the authorizer / supervisor, the system automatically reverse the transaction

Note: For Centralized Branches, Details of cheques returned in clearing are provided by the Centralized
Processing Units to all concerned branches on a daily basis. Branches are required to recover ‘cheque return
charges’ from the account holder as per the bank’s schedule of charges.

Reports & Record keeping of Paid Instruments:

After processing of Inward Clearing Cheques, Centralized Processing Units forwards all the posted instruments
along with the NIFT daily advices (2242), NIFT scroll, covering sheet, return sheet and signed system generated
Reports (RBA-11 & GL-11) to the respective branches for their record and safekeeping

3.8 CHEQUE RETURN MEMO

i. Cheque Return Memo (SF-16) is used for informing the beneficiary of the cheque, if it is returned
unpaid. The Memo (SF-16) has the following distinctive features:
ii. It has a field available for mentioning Account and cheque Number
iii. It has space available to mention the amount of cheque.
iv. It has a field available to mention the ‘Name of the collecting Bank’ to whom branches will return the
cheque.
v. It has space to mention the “return reason” (should be as per approved return reason list by SBP )

As per the SBP directives banks are not allowed to give ambiguous reasons like “Refer to Drawer” when a
cheque is returned unpaid by them for insufficient funds or for any other reason. As a result, the beneficiary
of the cheque is not in a position to take action against the issuer of the cheque under the provisions of
relevant laws”. Hence, branches must give definite and clear reasons while returning the cheques to the
beneficiary (Whether on Cash Counter or Clearing/Collection).

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Chapter 4 INWARD / OUTWARD BILLS FOR COLLECTION

4.1 INWARD & OUTWARD LOCAL BILLS FOR COLLECTIONS

The outstation cheques received for collection are drawn on other banks. While accepting the outstation
cheques for collection, it should be ensured that customer fills-out one deposit slip for one city. In case single
account holder is depositing more than one instrument of different cities or banks, in his/her account than
different deposit slip must be used for the same. The following procedure is applicable only for those branches
where NIFT is not providing Inter City clearing facility.

4.1.1 Procedure for Local Bills for Collection

Customer presents duly completed deposit slip along with the outstation cheques to the Clearing teller.
Clearing Teller:
i. Receives deposit slip and cheque.
ii. Checks deposit slip.
 Account number and Title of account
 Signature of the depositor along with deposits contact no. (mandatory)
 Amount in words and figures is identical.
iii. Scrutinizes cheque:
 Endorsement and special crossing are in order (if there are any).
 No un-authorized alteration.
 The cheque is neither post dated nor undated
 The cheque is not stale (Value date must not be six months earlier)
 Amount in words and figures is identical.
iv. Affix bank’s Cheque Collection Stamp and sign-off deposit slip and return customer copy (B) to the
Depositor. If transaction amount exceeds the teller financial limit, Teller services supervisor approves
the transaction.
Note: It is the prime responsibility of the branch where outstation cheque is being deposited to ensure that the
beneficiary’s account status is ‘ACTIVE’. In case of Dormant / Inactive / Unclaimed, customer should be
requested to activate the account before accepting the cheque for collection. (To activate the account please
refer to Section 2: 5.4 Activation & Operation in Dormant, Inoperative & Unclaimed Deposit Accounts
Customer receives “B Copy” of slip and leaves the branch.
Designated Authorized Officer (DAO):
i. Sort out all the outstation cheques, arrange them city and bank/branch wise.
ii. Note down the Cheque Collection (CC) number, Account title, number, drawee’s bank branch name,
cheque amount and date of cheque in the Cheque Collection Register (SB-19).
iii. Note down the CC number (Serial number obtained from SB-19) at the specified place in the affixed CC
stamp on the cheque with prefix of the number of the year of Bank’s establishment.
iv. Detach instrument from the Deposit slip.
v. Prepare Collection Schedule (SF37-Revised) in duplicate and attach the original copy with the
instrument and retain the duplicate with the deposit slip in a Cheque Collection file/ folder.
vi. The amount of each collection cheque of the day will be jotted down from the cheque Collection
Register (SB-19) and prepare liabilities voucher by debiting “Bills Receivable Bills for Collection- BRBC”
and crediting “Bills for Collection Bills Receivable- BCBR” for the total amount of outstation cheques
sent for collection.

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 4.1.1 Procedure for Local Bills for Collection
vii. Duly endorse and sign-off on the reverse of the instruments. (“Payee account will be credited on
realization”)
viii. Dispatch instruments along with SF37- Revised to the local main branch of MCB of that specific city via
courier service and in places where courier service is not available, use Registered Post.
ix. Cheques drawn on other banks at a place/city/town where MCB does not have any branch, the
collection to be made preferably through the local main branch of that bank or it may be collected
directly from the concerned branch.
x. It should be ensured that proceeds are received within prescribed time i.e. 48 hours from the branches
covered by courier service from the date of deposit of cheques and within 72 hours from places not
covered by courier facility.
xi. Post the above BRBC and BCBR vouchers in General Ledger.
Collecting MCB Branch:
i. Collecting main branch on receipt of Inward Bill Collection (Out station Cheque) from MCB Branch will:
ii. Enter the Inward Bill Collection in Inward Cheque Collection Register (SB-70).
iii. Lodge Collection Cheques received in normal clearing.
iv. After realization of funds, the collecting branch will credit the cleared funds directly in to beneficiary’s
account through SYMBOLS.
v. Select Deposits Module >> Transactions > Value Transactions >Deposits (RB-31)
 Enter Account Number or select from List of Values (LOV) & press F8
 Enter Transaction Type- (THCR- Transfer Credit (HO Advice)
 Select Currency from List of Values (LOV)
 Input Amount given on the Deposit Slip.
 Press F10 or Click Save Icon.
If transaction amount exceeds the Teller’s limit or any Restraints are attached to the account, screen pop-ups
“Authorization Required” message. Teller services supervisor authorizes/approves the transaction by using
BT> Override > Remote Override (Screen# BT002020) after verifying credentials on original instrument.
i. BOM or BM will intimate the concerned branch through e-mail quoting the related C.C Reference
number that the funds against the out station cheque sent to them for collection have been cleared
and the proceeds are credited to beneficiary’s account.
ii. Bank charges and postage to be recovered by the beneficiary branch.
(This will assist the branch to settle the entry in their “Out station Check Register” (SB90), reverse the
contingent liability and deduct related charges).
Beneficiary Branch:
i. Branch receives e-mail confirmation from the collecting branch that funds have been realized and
credited to beneficiary’s account or;
ii. In case collection was processed directly through Drawee Bank then the branch receives the proceeds
through Bank Draft. (Drawee bank deducts Bank Draft issuance charges before making the Draft).
iii. Lodge the Bank Draft in local clearing for realization of proceeds. After clearance of funds, credit
proceeds into customer’s account through SYMBOLS.
iv. Designated Authorized Officer (DAO) credit customer’s account by using the Deposit Slip.
v. Select Deposits Module >> Transactions > Value Transactions >Deposits (RB-31)
 Enter Account Number or select from List of Values (LOV) & press F8
 Enter Transaction Type- (THCR- Transfer Credit (HO Advice)
 Select Currency from List of Values (LOV)
 Input Amount given on the Deposit Slip.

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 4.1.1 Procedure for Local Bills for Collection
 Press F10 or Click Save Icon.
If transaction amount exceeds the Teller’s limit or any Restraints are attached to the account, screen pop-ups
“Authorization Required” message. Teller services supervisor authorizes/approves the transaction by using BT>
Override > Remote Override (Screen# BT002020).
i. Takes out the copy of Cheque Collection Schedule (SF-37 Revised) and the Deposit Slip from the
Cheque Collection folder and note down the payment or funds realization date and
commission/postages charges in the Cheque Collection Register SB-19.
Weekly Balancing:
i. Total of the entire outstanding CC Register (SB-19) should match with the GL amount.
In case cheques sent for collection are received unpaid:
i. Designated Authorized Officer (DAO) note down the cheque return date in the Cheque Collection
Register (SB-19) and also mentions cheque returned unpaid.
ii. DAO takes out the copy of Cheque Collection Schedule (SF-37) and the Deposit Slip from the Cheque
Collection folder and file in Cheque Collection Returned unpaid file.
iii. Prepare Debit & Credit Voucher SF-9 & SF-10 for the recovery of Postages Charges from customer’s
account.
iv. Also prepare consolidated liabilities vouchers (SF-9 & 10) against the cheques realized/returned unpaid
on the day to be reversed by debiting “Bills for Collection Bills Receivable” and crediting “Bills
Receivable Bills for Collection”.
v. Note down the cheque returned details in Cheque Returned Register (SB-15) and deliver the same
along with the Bank’s returned memo to the account holder after obtaining acknowledgement.
vi. If customer does not come to collect the Return Cheque from the branch within 05 working days,
Teller intimate the customer by sending SF-20 along with copy of Returned Cheque and Return Memo.
Authorized Officer or Branch Operations Manager:
i. Reviews the Daily Transaction Report against the source documents.
ii. Sign-off the report and binding them with the daily vouchers.

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4.2 OUTWARD FOREIGN BILLS FOR COLLECTION
Bank also provides the facility of collection of foreign clean bills denominated in foreign currencies and drawn
outside Pakistan. Clean Bills such as customer’s/ Banker’s Cheques/ Money Orders/ Foreign Travelers Cheques
etc are handled and lodged under FBC.

4.2.1 Procedure for Outward Foreign Bills for Collection

Customer: Presents duly filled Deposit slip along with the Foreign Currency Instrument in order to deposit in
his/her Local or Foreign Currency account.
Clearing Teller:
i. Receives deposit slip and cheque / Instrument.
ii. Checks deposit slip
 Account number and Title of account
 Signature of the depositor along with deposits contact no. (mandatory)
 Amount in words and figures is identical.
iii. Scrutinizes cheque:
 Endorsement and crossing are in order (if there are any).
 No un-authorized alteration.
 The cheque is neither post dated nor undated.
 The cheque is not stale (Value date of the cheque must not be six months earlier)
 Amount in words and figures is identical.
In Foreign Trade Branch:
i. Affix bank’s Cheque Collection Stamp on cheque and deposit slip.
ii. Sign-off deposit slip and returns customer copy (B) to the Depositor and retains original deposit slip
with the instrument.
iii. If transaction amount exceeds the teller financial limit, Teller services supervisor approves the
transaction.
In Local Branches:
i. Affix bank’s Cheque Collection Stamp only on Deposit slip.
ii. Sign-off deposit slip, retains original and returns customer copy (B) to the Depositor.
iii. Note down cheque details in the Foreign Bills for Collection Register (SB-70).
iv. No need to affix Collection Stamp on the instrument.
v. Forwards instrument to the Designated Area’s Foreign Trade Branch along with the covering schedule
for onward collection of Foreign Bills from the Drawee Bank.
vi. Retain copy of covering schedule with the deposit slip & photocopy of instrument in a Foreign Cheque
Collection file/ folder.
Customer receives “B Copy” of slip and leaves the branch.
Clearing Teller or Designated Authorized Officer in Foreign Trade Branch performs the following functions:
i. Sort out all the Foreign Currency Cheques for collection, arrange them city and branch/bank wise.
ii. Note down the Cheque Collection (CC) number, Account title, number, drawee’s bank branch name,
cheque amount and date of cheque in the Foreign Bills for Collection Register (SB-70).
iii. Note down the CC number (Serial number obtained from SB-19) at the specified place in the affixed CC
stamp on the cheque with prefix of the number of the year of Bank’s establishment (e.g. 57/1… 57 is
the total number of years of Bank’s establishment).
iv. Detach instrument from the Deposit slip.
v. Prepare Collection Schedule (SF-37A) in triplicate, addressing to either Bank’s own local branch or

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 4.2.1 Procedure for Outward Foreign Bills for Collection
foreign correspondent along with the proper reimbursement instructions. (Kindly credit our Nostro
Account).
vi. Attach the original SF-37A with the instrument and retain duplicate with the deposit slip & photocopy
of instrument in a Foreign Cheque Collection file/ folder.
vii. The amount of each collection cheque of the day will be jotted down from the Foreign Bills For
Collection Register (SB-70) and prepare liabilities voucher by debiting “Bills Receivable Bills for
Collection- BRBC Foreign” and crediting “Bills for Collection Bills Receivable- BCBR Foreign” for the
total amount of outstation cheques sent for collection.
viii. Post the above BRBC and BCBR vouchers in General Ledger.
ix. Duly endorse and sign-off on the reverse of the instruments. (“Payees account will be credited on
realization”)
x. Inform Representative of American Express about FBC.
xi. Rider of Foreign Correspondent Bank comes to the branch and collects the cheque.
Dr: Bill Receivable for Collection- BRBC Foreign
CR: Bills for collection Bills Receivable- BCBR Foreign
Foreign Correspondent Bank:
Receives cheque and on clearance of funds, Credit Bank’s Nostro Account.
MCB SWIFT Operations:
Forwards the SWIFT Messages/ Intimation for receipt of credit in Nostro Account, to the concerned branches
after confirming the branch name and code via SWIFT system/Fax or Courier.
Branch- Remittance Incharge:
Receives SWIFT Message (s)/ Intimation for receipt of credit in Nostro Account, from SWIFT Operations.
After proper verification of SWIFT Message. Prepares Annexure XXI and after completing all the required
formalities, forwards the same to Treasury Back Office before the cut-off time for processing at their end.

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4.3 FBC - LOCAL BANK’S FCY CHEQUE DEPOSITED IN MCB FCY ACCOUNT

In case of FCY Account Holder deposits FCY Account Cheque of any other Local Bank. NIFT provides USD
Clearing facility to all the Local and Foreign Banks within Pakistan. Currently this facility is available only on
Monday & Thursday. State of the art data centers for clearing services have been established at Karachi, Lahore,
Islamabad, Peshawar, Rawalpindi, Hyderabad, Multan, Faisalabad, Quetta, D.I.Khan, Sialkot, Gujranwala, Sukkur,
Bahawalpur, Muzaffarabad, Jhelum, Abottabad, Mirpur, Sahiwal and Sargodha.

4.3.1 Procedure for Outward Foreign Bills for Collection (NIFT USD Clearing Facility)
Beneficiary’s Branch:
i. Branch receives FCY Cheque from the customer. After proper scrutiny of cheque & deposit slip affix
Clearing Stamp on the Deposit slip and returns customer copy to the customer.
ii. Forwards the instrument to the Main Branch Karachi for collection of funds.
Main Branch:
i. Main Branch lodges the cheque in NIFT - USD Clearing
ii. NIFT provides USD local Clearing facility to all the Local and Foreign Banks within Pakistan. Currently
this facility is available only on Monday & Thursday.
iii. On clearance of funds, NIFT provides Advice to the Main Branch (In USD).
iv. Send SF-179 to the respective branch and report the same to the Treasury Back Office through
Annexure XXI
v. In-case cheques are returned by NIFT, the same are returned back to beneficiary branches same day
and reported to Treasury Back Office through Annexure XX
Beneficiary’s Branch: Upon receipt of SF-179, Provide Credit to the respective customer.

4.3.2 Procedure for Inward Foreign Bills for Collection (NIFT USD Clearing Facility)
Main Branch:
i. Receives Inward USD Clearing instruments from NIFT on Mondays & Thursdays
ii. Dispatches the instruments to the concerned MCB branches through TCS Courier service the same
day
Drawee Branch:
i. Branch receives FCY Cheque from the Main Branch.
ii. Scrutinize of cheque in every aspect for completeness and accuracy.
iii. Provides the fate of the received instruments to the Main Branch via Phone/fax/e-mail
iv. If the cheque/instrument is cleared, prepares credit advice [SF-179] which is in equivalent PKR ( USD converted
into PKR , Translation Rate from the Rate Sheet is applied )
v. If the cheque is not cleared, the original cheque/instruments are returned along with the cheque return memo
(stating the reason for return).
Main Branch:
i. On clearance of funds, receives Credit Advice [SF-179] from the Drawee Branch, reports the same to
Treasury Back Office through Annexure XX
ii. Returned/ un-cleared cheques once received from branches are delivered to NIFT on very next USD
Local clearing day for onward delivery to the collecting bank and reported to Treasury through
Annexure XXI

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4.4 FBC - MCB FCY CHEQUE (OF OTHER BRANCH) DEPOSITED IN MCB PKR ACCOUNT

In case MCB PKR Account Holder deposits MCB Foreign Currency Cheque (of other Branch) in the Account:
4.4.1 Procedure - MCB FCY Cheque (Of other branch) Deposited in MCB PKR Account
Beneficiary’s Branch:
i. After scrutinizing the instrument affix Cheque Collection Stamp on the instrument and deposit slip.
ii. Note down cheque details in the Foreign Cheque Collection Register (SB-70), mention CC number on
the instrument.
Drawer’s Branch:
i. Scrutinize the cheque & Note down Cheque Details in Inward Foreign Cheque Collection Register (SB-
70).
ii. Debit customer’s Foreign Currency account.
iii. Prepare Inter Branch Credit Advice (SF-179) in PAK Rupees by applying FCY Buying Rate from the Daily
Exchange Rate Sheet of the Transaction Date.
Beneficiary’s Branch:
i. Receives Inter Branch Credit Advice, verify Authorized Officer’s signature & Test.
ii. Credit customer’s account and Debit Head Office Account.

4.5 OUTWARD FBC - LOCAL BANK’S FCY CHEQUE DEPOSITED IN MCB PKR ACCOUNT

In case MCB PKR Account Holder deposits Other Local Bank’s FCY cheque:
4.5.1 Procedure - MCB FCY Cheque (Of other branch) Deposited in MCB PKR Account
Beneficiary’s Branch:
i. After scrutinizing the instrument affix Cheque Collection Stamp on the instrument and deposit slip.
ii. Note down cheque details in the Foreign Cheque Collection Register (SB-70), mention CC number on
the instrument.
i. Prepare covering schedule and attach the same with the instrument and forwards the same to
the Drawee Bank. Moreover, clearly mention beneficiary’s name and account number in the
covering schedule.
ii. Prepare & post liability vouchers by debiting BRBC & crediting BCBR by applying day’s
Exchange Rate.
iii. On receipt of Payment Order from the Drawee Bank, prepare Transfer Credit Voucher and
lodge the instrument in Normal Clearing in order to transfer funds in the beneficiary’ account.
iv. Drawee Bank recovers its charges from the proceeds of the cheque.
v. Note down the payment date in the Foreign Bills for Collection Register.

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4.6 INWARD FOREIGN BILLS FOR COLLECTION
When MCB customer’s cheque is presented in a foreign bank, foreign bank forwards it to the relevant MCB
branch in Pakistan with instruction letter.

4.6.1 Procedure for Inward Foreign Bills for Collection

The Forex Officer of the Drawee Branch receives Foreign Currency cheque from foreign bank with letter.
Forex Officer verifies genuineness and Scrutinizes cheque:
 Endorsement and crossing are in order (if there are any).
 No un-authorized alteration.
 The cheque is neither post dated nor undated.
 The cheque is not stale
 Check sign or over-writing
Forex Officer enters account # in Branch Teller (BT) module or in EOC. Check transaction code (system
generated), enter amount and cheque #, Re-enter cheque #.
Note: If the cheque is not accepted in the system, Forex Officer mark the reasons on cheque return memo, sign
and enter it in cheque return register. Afterwards, Forex officer return the cheque with copy of instruction
letter and memo to Foreign Bank through courier.
If the transaction amount is above Forex officer limit, the cheque is handed to the Forex Manager/ BOM for
authorization.
Forex Manager/BOM check the amount, balance and verifies the customer’s signature and authorize
transaction, sign on the cheque and hand back the cheque to the Forex Officer for further processing
Forex Officer prepare SWIFT message MT-202. SWIFT Message will narrate the bank name to which funds are
to be transferred on specific date.
Forex Manager/ BOM authorize the SWIFT message on SWIFT server and convert the message in to note pad
file.
Email it to the SWIFT Ops through attachment. Whereby, SWIFT Ops forward it to the correspondent Foreign
Bank.
Forex Officer prepares credit advices (SF-139) in quadruplicate and on basis of these prepares Annexure XX
which is approved by Forex Manager and Operations Manager.
Annexure XX is then forwarded to two separate Test Key officers for application of test (Part A and B) and later
delivered to Forex Manager for transmitting through fax to Treasury Back office.

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Chapter 5 INTERNAL FUNDS TRANSFER

5.1 OVERVIEW – APPLICATION FOR INTERNAL FUND TRANSFER

Fund Transfer Application (SF-100R) is used to transfer funds from one account to another account OR to
another branch of MCB. Branches should ensure that the information on FTA is complete in every aspect; is
signed by the account holder(s)/ authorized signatory; signatures are religiously verified and that the funds are
available in the account before accepting the FTA for processing. For strengthening control, Valid Cross Cheques
of equivalent amount will be taken from the customer along with FTA.

5.2 PROCEDURE FOR INTERNAL FUNDS TRANSFER

Customer: Presents duly completed Funds Transfer Application (FTA) along with a crossed cheque to the teller
in order to credit Beneficiary’s account.
Teller:
i. Receives Funds Transfer Application from the customer along with crossed cheque
ii. Verify the details & customer’s signature given on FTA and Crossed Cheque (both) with the system as
per the assigned limit of the teller. If transaction amount exceeds the teller limit, Teller services
supervisor authorizes the transaction.
iii. The Status of the Crossed cheque with the FTA should be valid. It will be checked in the system
whether it is valid I-e not stopped/serial # activated in the system/ not cancelled etc.

Following are the process steps of the Internal Funds Transfer:

i. Login to SYMBOLS Branch Teller (BT) Module
ii. Insert User ID and Password
iii. Selects Transactions> Financial Transactions > Single Transactions > Current /Savings > Transfer (BT
Screen # 3215)
iv. System displays the Transfer Screen- Withdrawal From.
v. Enter complete account number in the Account Number field. (If complete account number is not
given, press F9 to obtain the same from List of Values- LOV)
vi. Press Enter to continue.
vii. Drawer's account balance will be displayed on the screen and will also show the Pre-defined
Transaction Type –TFRD- Transfer Debit. Press Enter, cursor will shift to "Deposits To" Section Account
number field of the beneficiary. (LOV available)
viii. Insert Account number, all customers’ information will be displayed on the screen along with the Pre-
defined Transaction Type – TFRC- Transfer Credit.
ix. Press Enter, cursor will move to the Amount Field, insert amount. (If transaction amount will exceed
the Teller's Limit, screen will pop-up "Requires Authorization" message. Teller services supervisor will
approve the transactions by using BT> Override> Remote Override - Screen # BT 002020)
x. After inserting the amount, Teller will be able to verify the Customer's signature by clicking on the "SG"
tab. Only displays Drawer's signature. (If signature matches with the signature on the FTA/ Crossed
Cheque, executes the transaction)
xi. "Debit Account details" pop-up message box will appear on the screen, Teller inserts voucher number
in the voucher # field. Click Ok.
xii. "Credit Account Details" pop-up message will appear on the screen, Teller inserts voucher number and
click Ok. (In case of Insufficient Balance, system will give message "RF Not Allowed")
xiii. Message box will appear "Please Save the Transaction" Click Ok.
xiv. For Enquiry of the said Transactions, uses Electronic Journal Option- screen # BT 56 Online. Electronic

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 5.2 PROCEDURE FOR INTERNAL FUNDS TRANSFER
Journal also gives an option of Transaction Reversal by using Alt 9.
Treatment of Cross Cheque obtained along with FTA:
 The cross cheque obtained along with the FTA will be marked as used “U” in the system by using
following path: EOC – Deposits > Cheque Control > Cheque Maintenance > Cheque Status
 The FTA pre-printed serial # will be written on the face of the cross cheque obtained.
 The cheque will be defaced/ cancelled/ stamped (Transfer)
Teller services supervisor
After verifying customer details from Original FTA/ Cheque, authorizes the same on the system (if required) by
using BT> Override > Remote Override Screen # BT002020.
Teller:
i. Affix Transfer Stamp and sign-off FTA & Crossed Cheque
ii. Forwards the instruments to the Teller services supervisor for validation & record keeping.
iii. Delivers Customer Copy to the applicant.
Customer: Collects “Customer Copy” of FTA and leaves the branch.
Teller services supervisor: Reviews and validates RBA-11 against the source document.

5.2.1 Deviation on “Obtaining Cross Cheque” with FTA:

For any particular transaction, requirement of obtaining cross cheques along with FTA for processing of Fund
Transfers can be waived by ROM or RH. BOM/ BM are authorized to take such deviation approval after
specifying valid reason(s) via e-mail or fax.

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5.3 PROCEDURE FOR CHEQUE DEPOSIT (OWN BANK)
Customer: Presents duly completed deposit slip along with the cheque to the teller.
Teller:
i. Verifies the details given on the deposit slip with the Cheque.
ii. Before processing the transaction, verify Drawer’s signature and check sufficient funds are available in
the account.
iii. Process transfer cheques (Drawn on MCB Branches) on the BT> Transactions > Financial Transactions
>Single Transactions > Current/Savings Account> Cheque Deposit.
iv. Enter or selects Transaction Type CHQD- Cheque Deposit Internal from List of Values (LOV)
v. Inputs withdrawal branch code and client account number and system display all the relevant
information on the screen.
vi. As a result a dialogue box pops-up requesting for Debit details (cheque number) and Credit details
(voucher number)
vii. If account currency is different from transaction currency, cross rate can be modified if there is a
special rate.
viii. System shows credit amount and click the save button to process the transaction.
(If transaction amount exceeds the Teller’s limit a popup invokes automatically to get authorization from Teller
services supervisor/Authorized officer).
ix. System debit drawer’s account with Transaction Type CHQW- Cheque Withdrawal Internal.
Teller Services Supervisor: After verifying credentials on original instrument, Authorizes the transaction on the
system (if required) by using BT> Override > Remote Override Screen # BT002020.
Teller:
i. Affix Transfer Stamp and initials on the reverse of Cheque.
ii. Teller and Teller services supervisor jointly sign-off the deposit slip and deliver the customer copy of
deposit slip to the customer.
iii. Forwards the instruments to the Teller services supervisor for scrutiny with the RBA-11.
Customer: Collects B copy of deposit slip and leaves the branch.
Teller services supervisor: Reviews and validates RBA-11 against the source document.

5.4 PROCEDURE FOR TRANSACTION REVERSALS

Teller:
i. Select the BT> Enquiries>Electronic Journal- BT- 56 Online.
ii. Press Alt+7, transactions details will appear on the screen.
iii. Press Alt+ 8 for extracting the particulars of the transaction. The Journal displays the relevant
transaction(s).Selects particular transaction.
iv. Select by highlighting the transaction to be reversed.
v. Press <Alt-9> for execution of the reversal (transaction type "TFD#" Transfer Debit- Reversal, TFC#
Transfer Credit- Reversal & "CQD#" Cheque Deposit - Reversal)
vi. A pop-up appears to confirm the reversal of the transaction. “Do you want to reverse the
transaction”
vii. Upon clicking "Yes" screen pop-up message for the supervisor's override.
Teller services supervisor: Once authorized by the supervisor/Teller services supervisor, the system shall then
automatically reverse the transaction.

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Chapter 6 UTILITY BILLS MANAGEMENT

6.1 COLLECTION ARRANGEMENT

The Utility Bills collection arrangement exists with PTCL and KESC/ WAPDA/SNGPL/SSGC
Branches providing utility services must make the following arrangements for the convenience of consumers, in
order to carry out the directives of State Bank of Pakistan.
i. All the branches (NO EXCEPTION) shall accept Utility Bills as per the following time schedule:
Monday to Thursday & Saturday: From 9 AM to 5 PM
Friday: From 9 AM to 5 PM (with 2 hours break from 1 PM to 3 PM for Lunch & Prayers)
ii. To display at a prominent place, the following notice both in English and Urdu. “Electric, Gas &
Telephone Bills are accepted here”.
iii. A Signboard in Urdu & English is to be displayed outside the branch premises indicating the timing of
Collection of Utility Bills (Computer Printout or Handwritten).
iv. Branch Managers ensures separate / extra counters in case of:
 Senior Citizens (Old persons) / Women depositing their bills.
 As and when the queue exceeds “15” customers.
v. A Box must be placed at prominent place for payment of utility bills through cheques.
vi. Provide space inside the premises for queues of depositors of bills. If not possible, shades must be
arranged for consumers to provide shelter from sun / heat.
vii. Arrange drinking water nearby the counter.
viii. Bath room facility may be provided, if possible.
ix. Adequate staff be posted at utility counters to avoid queues and SBP penalties.
x. Machines / computers must also remain in order. In case of power failure, bills must be collected
manually.
xi. Prompt delivery of bills, stubs and scrolls / statements to designated branches be made, as delay in
delivery or misreporting may result in arrears or disconnection of service to the consumers by the utility
company.
xii. Manager and staff of utility department must remain aware of any extension in due date for payment
announced by any of the utility companies for any reason, whatsoever.
xiii. Additional staff must be posted on utility counters on the specific “Due dates” of the bills.
xiv. All the utility bills bear the due date and amount for payment however, provision for payment of bill
after due date is also given, but with a surcharge. Utility Bills have two portions:
 First Portion of bill is meant for consumer which must be returned to the Customer with receipt duly
acknowledged with the Bank / Branch Stamp.
 Second portion meant for the Utility Company is to be retained by the Branch.
xv. In case of amendment in amount on account of the arrears, the corrected amount will be payable.
xvi. Bills with mutilated / invisible figures / particulars must be referred back to the utility company.
xvii. Bills showing credit balance will not be collected. Normally the bills having credit balance also bear the
clause “Not for Payment”

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6.2 TELLER’S LIMIT FOR COLLECTION OF UTILITY BILLS
Cashiers have been authorized to receive Cash against Utility Bills singly with a limit of PKR 5,000/- (Maximum).
For bills above PKR 5,000/-, dual control as mentioned below will be followed.

6.3 PTCL – UTILITY BILLS COLLECTION PROCESS

MCB Transaction Banking Division (TBD) formally known as (CMD) governs the PTCL Utility bills collection
arrangement. With the new arrangement in place, MCB has been given status of “Processing Bank” and hence
previous arrangements (prior to April, 2010) are discontinued and no scrolls/ stub are given to NIFT/ Citibank or
UBL. To facilitate the new process, a new system “Utility Bill Collection System” (UBCS) has been deployed at
branches which can be accessed at http://10.0.0.241:7778/forms/frmservlet?config=UBCS . Branches will collect
and post PTCL bills in the new system as per the process described below:
6.3.1 Receiving PTCL Utility Bill at Branch Counter
i. PTCL utility bills are received at Utility Bill counter of almost all MCB branches during banking hours.
ii. Bill payments can be accepted against cash or cheques. Payment via Cheque requires extra level of
caution to ensure that the funds are realized prior to the due date positively.
iii. The funds received through bill collections are retained in a separate internal PTCL Utility Bill
Collection Account. This is a non checking account that is opened in every bill collecting branch.
iv. These internal collection accounts of all designated branches are tagged with PTCL's main collection
account # 0442658401000426 (maintained at GTB Branch Karachi) for auto sweeping of funds at day
end on a daily basis.
v. Every morning, all PTCL bill collecting branches are required to check that the funds collected by them
in their internal accounts previous day have been swept to GTB Branch via the sweeping option or
not. In case they have not been swept they are supposed to inform it to TBD Karachi instantly so that
the problem can be rectified as early as possible.
6.3.2 Posting of PTCL Bill Into System
i. Utility Bills Collection System is a system application developed internally by MCB IT & is supposed to
be used for posting of the details of the bills for MIS purposes. UBCS does not pass any financials &
only captures the paid bills data.
ii. PTCL provides its billing data files to MCB IT from where they upload these files into the main data
base server. At the time of bill posting by any branch in UBCS, the already uploaded data is called &
marked as "Paid".
iii. TBD has managed to prepare several MIS reports in UBCS. These reports are provided to PTCL on a
daily basis which show the details of all bills collected on a particular day by each MCB branch.
iv. Posting of billing data in UBCS is a "must" activity required to be done by the bill collecting branch. If it
is not done, the billing data will not be marked as "paid" at PTCL's end & the consumer will get the
arrear hit in next bill.
6.3.3 Disposal of PTCL Bill Stubs
Branches are supposed to retain the bills stubs only for 1 month. After that all stubs for the whole previous
month should be sent to the local PTCL SRO Office in a single consignment. Details of concerned SRO offices
have already been provided to all MCB bill collecting branches.

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 6.3.4 Branch Commission for Providing PTCL Utility Bill Collection Service
i. Branches are entitled to receive a bill collection commission @ PKR 8.00 per bill collected. But these
commissions are not supposed to be deducted by branches at their end.
ii. With the help of the monthly commission reports of UBCS, TBD calculates bills commission of all
branches. TBD recovers the commission from PTCL & credit the same to all branches via GL upload
centrally from GTB Branch. This auto upload gives credit of the commission amount in relevant GL
Head of the branches.
iii. This activity of giving credit to branches is usually done by TBD in every first week of the month.
iv. Branches are not allowed at all for any deductions of this commission at their end.
6.3.5 Processing Error/ Transaction Reversal
In case of any processing error, Branch will immediately contact TBD at any of the given contacts:
Asim Malik [email protected] 042-337525080
Tariq Mehmood [email protected] 042-37525076
TBD Ops Team [email protected] 021-32270615
Raza Muhammad [email protected] 042-36041171

6.4 KESC – UTILITY BILLS COLLECTION PROCESS- SPECIFIC/INDUSTRIAL CONSUMERS ONLY

6.4.1 Receiving KESC Utility Bill at Branch Counter
i. KESC's Specific/Industrial Consumer utility bills are received at Utility Bill counter of few branches of
Karachi City during banking hours. These bills are printed on a yellow color paper. This yellow color
paper is used to distinguish the Specific/Industrial consumer bills from the normal consumer bills.
ii. Bill payments can be accepted against cash or cheques. Payment via Cheque requires extra level of
caution to ensure that the funds are realized prior to the due date positively.
iii. The funds received through bill collections are directly credited in KESC's main collection account of
Specific/Industrial consumers being maintained at GTB Branch, Karachi. Branches are not supposed to
retain funds collected under this arrangement in any of their accounts.
6.4.2 Disposal of KESC Bill Stubs
i. TBD's dedicated rider collects the bills stubs from the bill collecting branches on a daily basis & delivers
the same to TBD Karachi Office (9th Floor, MCB Tower). MIS report is prepared from these stubs by
TBD staff for KESC.
ii. The next morning, these stubs along with the print outs of MIS reports are delivered to Citibank
Karachi. Citibank Karachi is the main processing bank of KESC.
6.4.3 Branch Commission for Providing KESC Utility Bill Collection Service
Branches send monthly charges debit advice to Shaheen Branch, Karachi (0054) and Shaheen branch responds
to them. Branches are not supposed to debit the account being maintained at Shaheen Branch for commission
deduction via online mode. Branches are not allowed at all for any deductions of this commission at their end.

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6.5 UTILITY BILLS STANDARD COLLECTION PROCESS – KESC/ WAPDA/ SNGPL/ SSGC
6.5.1 Receiving & Posting of Utility Bill at Branch Counter
i. Branches are required to collect Utility Bills at designated counter.
ii. Amount received should be written manually by Collecting Cashier/ Teller under his signature in red
ink.
iii. There are two stamps one for amounts Upto PKR 5,000/- in possession of the UB Teller and the other
for amounts over PKR 5,000/- in possession of the Supervisor/ BOM. The Stamp shows, Collecting
Bank / Branch, Date of Receipt and the words “Utility Bill” and “Cash Received”.
iv. The bill will then be entered in Scroll.
v. In case the bill is above Teller threshold, it will be sent to Authorized Officer for counter signing and
affixing the Rubber Stamp.
vi. The bill (Consumer Portion) will then be delivered to the Consumer, retaining Stub / Branch copy.

Necessary equipment (hardware and software) has been provided to most of the collecting branches / centers
/ booths in big cities for obtaining scrolls and activity reports etc. Proper security arrangements have been
taken care of in this system. Computerized reports issued contain the following details:-
 Collecting branch name
 Branch code
 Date of receipt
 Amount received
 Consumer number allotted by utility company
Branches, which are not provided with Computer or Cash Register, are also required to collect utility bills and
issue necessary receipts. Amount received to be written manually by collecting cashier under his signature.
The bill is then entered in scroll and countersigned by Supervisor/ BOM (above PKR 5,000) before delivery to
customer
6.5.2 Reversal of Entries and Corrections
Generally, reversal of an entry pertaining to an individual utility bill is not permissible. However, in some
exceptional situations, the refund of amount or reversal of entry becomes inevitable and the receiving branch
has no option except to reverse the entry. In such case, the matter will be referred to the officer-in-charge of
utility bills and only on his authentication the reversal entry will be passed. The said officer will invariably
authenticate any reversal, amendment and cutting on the sheet or scroll. In branches having computer,
reversal or amendment will only be overridden or authorized by the officer-in-charge or supervising teller /
officer through his/her password. The cashier/ Teller and officer/ supervising teller both are jointly
responsible for the collection of utility bills activity.

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 6.5.3 Daily Activity Reports/ Scrolls Statements
At the end of the day’s work the branches obtain reports from the computer. These will mainly comprise of
the following:
Daily Scroll
This shows all entries of bills collected. Separate scrolls must be obtained for each category of bill. These
scrolls, in addition to date and collecting Bank’s name, also provide the particulars of bills collected, as
under :-
 Consumer No.
 Amount received in cash or through cheque, with its number.
 Name of Bank and branch
 Remarks

Daily Activity Report

This report is similar in nature and provides the same information as provided under “Daily Scroll”, except
that it also reports reversal / amended entries duly marked ‘A’, in the remarks column. This report can
only be obtained through the “Password” of the Supervisor. Branches providing these services manually,
also prepare these statements.
Following are the prescribed forms which will be used for individual statements:-
 Electricity = MF-39 & 39-A (For KESC).
MF-16 & 16A (For WAPDA).
 Gas = MF-41.
 Telephone = MF-40B Form T&T20.

Filing of Scrolls
Scrolls of a particular date must be attached with the vouchers of the UB Collection date
6.5.4 Cash balancing of Utility Bills Collected Funds
Branches/utility bills collection centers/booths physically count the entire for cash collected and balance/tally
the same from the totals appearing in scroll/statements. Number of bills must be tallied from these
statements.
6.5.5 Transfer of Collected Funds
At Collecting Branches
The amount collected at the Branches are transferred to the Utility company “Main collection account”
opened in the Designated Branches thus nullifying the Branch collection account
Designated Branches with ‘Main Collection Accounts’
i. The branches maintaining Main Collection Accounts of any of the utility companies in big cities are
termed as “Designated Branches”.
ii. At the end of the day’s work, entire amount in “Main Collection Account” (including amounts
collected by the designated branch at its own counters) will be transferred to “Main Account” of
the company maintained by designated branch itself or remitted to the Bank / Branch maintaining
Main Account of company concerned, thus reducing the collection account balance to minimum /
nil position.
iii. Consolidated statements sent immediately to utility company for updating the respective
accounts of consumers at utility company’s end.

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 6.5.6 Disposal of Stubs for KESC/ WAPDA/ SNGPL/ SSGC
 KESC: Stub will be handed over to NIFT representative (where applicable)/ revenue offices.
 WAPDA: Stubs will be dispatched to concerned Revenue Office.
 SNGPL/ SSGC: Stubs will be handed over to NIFT representative (where applicable)/ revenue offices.
6.5.7 Branch Commission
i. At the end of each month, all branches collect commission @ PKR 8/ bill from the “Designated
branches” who maintain the Main Collections Account”. The records maintained in the register
introduced at branches will help in recovering commission by multiplying the number of bills with “8”
and debiting the amount so calculated, to the concerned designated branch.
ii. Where Company’s “Main Account” is not maintained and funds are remitted to some other Bank’s
branch, recovery of commission will be made from “Main Collection Account”. Statements of “Main
Account” and “Main Collection Account”, showing recovery of commission, may be provided to each
utility company

6.6 UTILITY BILLS COLLECTION – VIA MCB BOOTHS

In order to facilitate our customers and public in general, MCB Utility Bill Booths are opened at various places.
These booths are independent and away from parent branch Premises i-e Shopping Mall, Bazaar or hospital etc
However are governed by and report to the parent branch.

These booths are to be equipped with Cash Officer(s), Security Guards, Personal Computer(s), Printers, LAN,
Cash Counting & Binding Machines, Cash Vault/ Insurance, Security Van arrangement for Cash Transportation.

The process is the same as described in Section 3: 6.5 Utility Bills Standard Collection Process – KESC/ WAPDA/
SNGPL/ SSGC with addition to the following:

1. Cash received during the day and utility bills vouchers are sent to parent branch through security van with-
in next 24 working Hours.
2. Maintain separate cash book for the receiving and balancing of cash received during the day.

6.7 AUTHORITY TO DELETE ARREARS

All the utility companies have empowered the collecting Banks to score out the amount of arrears from the total
amount of bills, If the bill is deposited within due date, provided confirmation is made by verification of the
following :-
i. Consumer produces previous “Paid Bill” in original.
ii. Previous bill has been paid at the same branch.
iii. Branch previous months record / statement shows bill having been collected before due date and
reported properly.
Supervisor after due verification will encircle the arrear amount and mark date of previous receipt under branch
seal and his signature. He will then reduce bill amount to bring it to current month’s dues, which will be
collected in the usual manner. In case arrears still appear in the next month and consumer gets worried, branch

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may provide copy of previous statement/scroll, showing payments having been received, to the consumer or
concerned utility company for correcting its record.
The relative entry appearing in duplicate statement must be encircled for prompt disposal. In case of repeated
mistakes, branch must clarify the position through a letter to the concerned department of the utility company.
Under no circumstances branch will oblige the depositor of bill or consumer if:-
i. He is not agreeable to pay late payment surcharge imposed by the company for payment after due date.
ii. Last payment is not made at the same branch in case of arrears. However, after clearance from utility
company the corrected amount on the bill can be accepted within new date mentioned on the bill

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Chapter 7 PRIZE BONDS

Overview:
Prize Bonds are as good as cash. As per the existing policy of Government of Pakistan, Prize Bonds are available
in the following six (6) denominations:

Sr. Denomination (in PKR) SYMBOLS GL CODE

01. 200 2040403020
02. 750 2040403030
03. 1500 2040403040
04. 7500 2040403050
05. 15,000 2040403060
06. 40,000 2040403070

All branches are authorized to sell and en-cash Prize Bonds and are required to keep adequate stock of Bonds
with them at all times to meet public demand. However the sale of Prize Bonds will remain suspended during
“shut period”.
Branches are required to display signboards at a conspicuous place regarding the sale and purchase of Prize
Bonds.

7.1 SALE AND ENCASHMENT TRANSACTIONS

i. Entries for sale and encashment transactions are recorded in the respective General Ledger Module
(GL). Systems do not provide the facility to automatically monitor and balance the inventory for the
Prize Bonds.
ii. At the end of the day, a consolidated amount voucher is posted in the respective GL Heads. All Prize
Bonds entries are cash related, the same should be passed through cash debit and cash credit vouchers.
All Cash Debit and Credit vouchers must be signed-off by two Designated Authorized Officers of the
branch.

7.2 MAINTENANCE OF MONTHLY PRIZE BONDS STATEMENT

i. Branches are required to maintain and submit the statement of Prize Bonds to their Regional Office, on
the last working day prior to the start of “shut period”. Branches with ‘NIL’ Prize bonds are also required
to submit a’ NIL’ statement to their region Offices as a confirmation.
ii. Circle Office after compilation of figures, furnish consolidated statement of balances of Prize Bonds held
by their offices/branches, at the close of business on the last working day prior to the start of “shut
period”, to the concerned office of the State Bank of Pakistan within five days of the commencement of
the relative “shut period”.

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7.3 REQUIREMENT DURING SHUT PERIOD
i. Branches shall suspend the sale of Prize Bonds re-purchased across the counter as well as Prize Bonds
purchased from State Bank of Pakistan held in stocks for two months before the date of the draw of the
relevant denomination of the Prize Bonds.
ii. In case of Prize Bonds of PKR 200/-, PKR 750/- and PKR 1,500/- the “shut period” will start from the close
of business on the 14th of the month preceding the applicable two months of draw related to the series.
iii. The “shut period” for PKR 7,500/-, PKR 15,000/- and PKR 40,000/- denomination Prize Bonds will start
from the close of business on the last day of the month previous to two months preceding the month of
draw related to the series.
iv. If the 14th of the month, in case of option (i), and last date of the month, in case of option (ii), fall on a
Sunday or a public holiday, then the preceding working day will be treated for the purpose of listing the
Prize Bonds which are subject to “shut period”.

7.4 MAINTENANCE OF PRIZE BONDS REGISTER

Each page of Prize Bonds Receipt and Sales Register – SB 127 consists of nine columns.
i. First three columns from left are assigned to the Prize Bonds “Purchased from Public” in which the date,
indicative numbers of Prize Bonds Purchased and the value there of are entered.
ii. Next three columns are set aside to record resale of Prize Bonds to public as to date, numbers of pieces
of Prize Bonds and value.
iii. The last three columns denote two columns balances as to number of pieces of prize bonds with value
and the third column is provided for initials of dealing cashier / chief cashier who is assigned the job and
to maintain record.
The pages of this register i.e. SB-127 shall be segregated and allotted separately for each denomination of
new prize bonds.

7.5 MAINTENANCE OF PRIZE BONDS SHUT PERIOD REGISTER- SB-107

i. Branches will maintain “Prize Bonds Shut Period Register” SB–107, and all Prize Bonds which are subject
to shut period will be recorded individually in this register with series followed by printed machine
number. After the entries have been properly checked the total number of Prize Bonds listed and the
total value will be written at the end of entries.
ii. Teller and the Operations Manager will sign the notation. It should be ensured that there should be no
over writing and all alterations in the listing should be properly authenticated by the signatories. Before
signing the entries in the register it will be ensured that the number of pieces and the total amount
involved matches with the balances shown in Prize Bonds Receipt and Sales Register and the
supplementary ledger.
iii. The register will be placed in the safe custody under dual control together with Prize Bonds listed in the
register in a sealed cover.
iv. Immediately after the draw, the bonds held by branches duly listed will be checked with reference to
the relevant draw list either published by Directorate of National Savings or obtained from State Bank of
Pakistan’s offices.
v. All prizes winning bonds will be segregated from the listed bonds.
vi. The prize winning bonds will be forwarded through a forwarding letter to the office at the State Bank of
Pakistan with a request to credit the amount of prize money payable on the bonds in question to
Government Account and its / their face value to their account maintained with State Bank of Pakistan.

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 Refer to Annexure V
vii. In case the branch is not maintaining account with State Bank of Pakistan then the qualifying bond/s will
be delivered to nearest branch of our Bank maintaining account with State Bank of Pakistan for doing
the needful under proper acknowledgement and intimation to Accounts Department, Principal Office,
Karachi.
viii. Tellers must be well informed and remain constantly aware of day-to-day instructions from State Bank
of Pakistan regarding Prize Bonds of various denominations. A chart showing dates of draws and shut
periods of Prize Bonds of all denominations must remain handy with the Tellers, Teller services
supervisors & Operations Manager. This will help them to effectively maintain and control Prize Bonds
stocks.

7.6 PROCEDURE FOR SALE OF PRIZE BONDS (CASH)

Customer: Presents equivalent amount of cash to the teller to purchase prize bonds.
Teller:
i. Checks the availability of prize bonds in vault.
ii. Receives cash from the Customer.
iii. Counts denomination wise cash and also verifies the notes that they are genuine.
iv. Note down transaction details in the Receipt & Sales Register- SB-127.
v. Prepares and sign-off Cash Credit Voucher SF-46 and forwards the same to
vi. Teller services supervisor or Operations Manager for second sign-off as per the assigned limits.
Teller services supervisor or Operations Manager checks and verifies the transaction and sign-off the Cash
Credit Voucher- SF-46 as per the assigned Cash Receipt Limits.
Teller processes the payment.
i. Counts the Prize Bonds.
ii. Deliver Prize Bonds to the Customer.
iii. Affix Cash Received Stamp on SF-46 & forwards the same to GL Maintenance Officer for posting in the
relevant GL Heads.
For detail Batch Processing, please refer to Section 7: 1.4 Transaction processing In GL Module
Customer:
i. Receives prize bond(s).
ii. Counts them.
iii. Leaves the branch.
Operations Manager accepts General Ledger Batch against SF- 46.
Teller services supervisor:
At the end of day, validates the GLA- 11 report with the cash voucher SF-46 and arranges filing of the same.

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7.7 PROCEDURE FOR SALE OF PRIZE BONDS (DEBIT TO ACCOUNT)
Customer: Presents cheque to the teller for the purchase of Prize Bonds.
Teller:
i. Checks the availability of prize bonds in vault.
ii. Receives cheque from the Customer.
iii. Scrutinizes the cheque and process the transaction on Branch Teller Module- Transactions >> Financial
Transactions >> Single Transactions >> Current/ Savings Account >> Cheque Withdrawal (BT-3212)
iv. Insert or select account number (from the List of values) and press enter.
v. Input transaction type- CQWR, input currency type, Transaction amount, effective date and enter
cheque number.
vi. Press F10 or click on save icon.
vii. Transaction acceptance message will appear on the screen.
If transaction amount exceeds the Teller’s limit, screen pop-ups “Authorization Required” message. Teller
services supervisor authorizes/approves the transaction. BT>> Override >> Remote Override (Screen #
BT002020).
Teller: Notes down the transaction details in the Receipt & Sales Register- SB-127. Prepares and sign-off Cash
Credit Voucher SF-46 and forwards the same to Teller services supervisor or Operations Manager for second
sign-off as per the assigned limit.
Teller services supervisor (TSS):
i. Remotely overrides the transaction. In case of local override, supervisor will have to enter his/her User
ID and Password on the Teller’s Terminal.
ii. Scrutinizes and verifies the transaction details and sign-off the Cash Credit Voucher- SF-46 as per the
assigned Cash Receipt Limits.
Teller
i. processes the payment;
ii. Counts Prize Bonds
iii. Delivers Prize Bonds to the Customer.
iv. Affix Transfer on cheque.
v. Prepares Cash Credit Voucher- SF-46, sign-off and forwards the same to TSS for second sign-off.
Customer: Receives prize bond(s), counts them & leaves the branch.
Teller services supervisor:
i. Scrutinizes and verifies the transaction.
ii. Sign-off the Cash Credit Voucher- SF-46 as per the defined receipt limits and forwards the same to
General Ledger Maintenance Officer for posting the accounting entries in the relevant GL Heads.
Note: If transaction amount exceeds Teller’s Limit, Operations Manager/ Teller services supervisor will sign-off
the Voucher.
General Banking Officer:
Teller uses General Ledger Module >> Transaction >> Batch Maintenance >> Batch Entry (Screen # GL-21)
Operations Manager accepts GL Batch against SF-46.
Teller services supervisor:
i. At the end of day, validates GLA- 11 & RBA-11 report with the cash voucher SF-46 and cheque.
ii. After validation, arranges filing of the same.

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7.8 PROCEDURE FOR ENCASHMENT OF PRIZE BONDS (CASH)
Customer presents the Prize Bonds to the teller for encashment.
Teller:
i. Receives Prize Bonds from the Customer.
ii. Verifies the Prize Bonds.
iii. Checks the shut period of Prize Bonds.
iv. Counts Prize Bonds denomination wise.
v. Note down transaction details in the Sales and Receipt Register- SB-127.
vi. Prepares and sign-off Cash Debit Voucher SF-23 and forwards the same to the Teller services
supervisor or Operations Manager for second sign-off as per the assigned limits.
Teller services supervisor/Operations Manager:
i. Checks and verifies the transaction and sign-off the Cash Debit Voucher- SF-23.
ii. Returns the same to teller for encashment of Prize Bonds.
Teller:
i. Processes the payment.
ii. Counts equivalent cash.
iii. Deliver cash to the Customer.
iv. Affix Cash Paid Stamp on SF-23 and forwards the same to GL Maintenance Officer for posting.
For detail Batch Processing, please refer to Section 7: 1.4 Transaction processing In GL Module
Customer: Receives and counts cash and Leaves the branch.
General Banking Officer: GL Officer uses GL Module for posting the relevant Accounting entries in the system.
Teller services supervisor:
At end of day, validates GLA-11 report with cash debit voucher- SF-23 and arrange filing of the same.

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7.9 PROCEDURE FOR ENCASHMENT OF PRIZE BONDS (CREDIT TO ACCOUNT)
Customer presents deposit slip & Prize Bonds to the teller for transfer into account.

Teller:
i. Receives Prize Bonds from the Customer along with the Deposit slip.
ii. Checks the shut period of Prize Bonds.
iii. Credit customer’s account by using Branch Teller Module >> Transactions >> Financial Transactions >>
Single Transactions>> Current/ Savings Account >> Cash Deposit.
iv. Input transaction type- CASD, input currency type, Transaction amount, and effective date.
v. Note down transaction details in the Sales and Receipt Register- SB-127.
If transaction amount exceeds the Teller’s limit, screen pop-ups “Authorization Required” message. Teller
services supervisor authorizes/approves the transaction. BT> Override > Remote Override (Screen #
BT002020.)
Teller services supervisor / Operations Manager: Verifies the transaction as per the assigned limits.
Teller: Processes the payment.
i. Affix “Cash Received Stamp” on deposit slip.
ii. Sign-off & delivers copy B of deposit slip to the customer.
iii. Prepare Cash Debit Voucher- SF-23 and forwards the same to General Ledger Maintenance Officer for
posting.
Customer: Receives Duplicate copy of Deposit slip & leaves
General Ledger Maintenance Officer: GL Officer uses GL Module for posting the relevant Accounting entries in
the system.
For detail Batch Processing, please refer to Section 7: 1.4 Transaction processing In GL Module
Teller services supervisor: At end of day, validates the relevant report with cash debit voucher- SF-23 &
deposit slip.

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SECTION 4 REMITTANCES

SECTION 4

REMITTANCES

Section Summary:
This Section covers general instructions, guidelines and processes for all kind of
Remittances I-e Pay-Orders, Demand Drafts (LCY & FCY), Telegraphic Transfer, Foreign
Wire Transfer, Rupee Traveler Cheques & Home remittances

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Chapter 1 GENERAL INSTRUCTIONS FOR PO / DD

1.1 OVERIEW - APPLICATION FORM

Funds Transfer Application (SF-100R) is used in the branches in order to facilitate the customer’s request for
remitting the funds locally or abroad. Branches should ensure that the information on FTA is complete in every
aspect; is signed by the account holder(s)/ authorized signatory; signatures are religiously verified and that the
funds are available in the account before accepting the FTA for processing. For strengthening control, Valid
Cross Cheques of equivalent amount will be taken from the customer along with FTA.

1.2 SCRUTINY OF DEMAND DRAFT & PAY ORDER

When the payee presents a draft or the collecting banker for payment presents it, following should be
checked:
i. DD is drawn on the branch in which it is being presented.
ii. PO is drawn on the city in which it is being presented.
iii. Instrument is not more than six months old.
iv. There is no alteration or overwriting.
v. The Instrument is not mutilated.
vi. A proper discharge regarding the disbursement of proceeds is given.
vii. Ensure that the name of issuing branch is printed / written or rubber-stamped.

1.3 BALANCING OF PO / DD PAYABLE ACCOUNTS

At the drawee branch DD Payable & PO Payable accounts listed below MUST be balanced on a daily basis. For
this purpose, the report of ‘Outstanding Demand Drafts & Payment Orders’ that is generated through KM is
provided to all branches by KM team on a daily basis. Branch Operations Manager is required to ensure that the
total of all outstanding DDs and POs tally with the balances appearing on the respective GL Heads of branch
General Ledger.
(For detailed process to balance the DDs & POs refer the guidelines on ‘Balancing of Pay Order / Demand Draft
Liability Heads’ circulated by Centralized Operations Division to all branches on Jan 29, 2010)

1.4 ISSUANCE OF NEW PAYMENT ORDER / DEMAND DRAFT SERIES

Central Processing Unit (CPU) is responsible for allocation of PO/DD series to all the branches in order to issue
Banker’s Cheque to the customers.
The purpose of registration of PO/DD is to streamline the process as well as keep stringent and dual controls on
the process. The following procedure will be used in the branches:

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 1.4.1 PO/DD Inventory Requisition & Allocation in Branches:
i. For new PO/DD series distribution, branches are required to send requisitions to CPD on the PO/DD
Request Form at least two days prior to the end of PO/DD inventory.
ii. Branch Operations Managers (or their designated backup) are authorized to send request via Branch e-
mail address.
E-mail address is [email protected]
Fax number 021- 32270140
iii. Upon receiving the request at CPD from branches, authorized officer updates new PO/DD series in the
respective branch’s system for the issuance of PO/DD.

1.5 BALANCING OF PAYMENT ORDER / DEMAND DRAFT LEAVES

i. The unused leaves of Banker’s Cheque Stationery in the branch should be counted by the Remittances
In-charge at the close of each business day.
ii. A proper record should be maintained in the following manner.
Date Number of Leaves Issued Balance of Unused Leaves Initials

iii. If any Banker’s Cheque leaf is damaged or spoiled, it should be cancelled and retain the same in a
separate file for future verification and audit purpose.

1.5.1 Branch Process for Inventory Allocation:

i. Branch Operations Manager (BOM) / Teller Services Supervisor (TSS) will assign the PO/DD series to the
GBO from the branch cheque registered series by using Deposit Module> Cheque Instrument>
Administration> Cheque Assignments.
ii. GBO selects the PO/DD number from the list of values by using F9 option. In case of unavailability of
PO/DD series, GBO cannot issue the Banker’s Cheque to the customer. (One GBO can re-assign the
PO/DD series to another GBO which was originally assigned to 1st GBO).

1.6 TRANSFER OF DDS & POS TO UNCLAIMED ACCOUNT

Demand Drafts and Pay Orders which remains outstanding for more than three years from the date of issuance
will be classified as ‘Unclaimed’ and will be transferred to Unclaimed - DD & PO Accounts.
(Regarding surrender of Unclaimed DDs and POs to State Bank of Pakistan refer Section 2: 5.2 Unclaimed
Deposits & Financial Instruments

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Chapter 2 PO / DD / CDR & LCY-TT PROCESSES
Payment Order is used for making payments within a city. It is neither transferable nor negotiable and as such it
is payable to the payee named therein.

2.1 PO ISSUANCE – SELL AGAINST CASH

Customer presents duly completed Fund Transfer Application (FTA) along with the cash to the teller.
Teller:
i. Receives Fund Transfer Application (FTA) along with the cash from the customer.
ii. Verifies FTA to ensure that all the relevant information has been provided.
iii. Counts cash and verify that all notes to be genuine.
iv. Affix Cash Received Stamp on FTA.
v. Delivers acknowledgement to the customer.
vi. Forward the request to GBO for further processing
vii. GBO uses Branch Teller Module, selects Cheque Instruments > Transaction > Draft/Bank Cheque sell
menu to issue a Payment Order. (Screen # BT 3291)
viii. Input Transaction type – POCS Payment Order Cash Sell, Cheque Type (PO) and other mandatory
information.
ix. While issuing the P.O full description of beneficiary must be entered in the system.
x. Executes the transaction and signs the PO & FTA.
(If transaction amount exceeds the GBO’s limit, screen pop-ups “Authorization Required” message. BOM / TSS
authorizes/approves the transaction).
BOM / TSS:
After verifying customer details from Original FTA, authorizes the same on the system (if required) by using
BT> Override > Remote Override Screen # BT002020.
System: (Branch Teller Module) - Generate the Payment Order.
BOM / TSS:
i. Checks and sign off the same. (2nd signature along with IBS)
ii. In case of error in Payment Order, returns the same to the GBO for re-issuance.
In case of error in Payment Order:
i. Select the option from EOC Menu Deposits> Cheque Instruments> Transactions > Cheque Reversal
(Non-Account) (RB- 35) - (POC#- Payment Order Cash Sale Reversal)
ii. Input the required information.
iii. To reverse the transaction click and press the save button. As a result authorization window pops-up.
iv. As soon as authorization completes by the supervisor.
v. Keep cancelled Payment Orders in a separate file.
vi. Re-issue the Payment Order (Follow the complete Payment Order issuance process, discussed earlier).
vii. Delivers the Payment Order to the customer on the counter and attached the duplicate or carbonized
copy with FTA.
viii. Obtains acknowledgement from the customer on FTA
GBO
i. Generates RBA-11 report from the system.
ii. Checks Report- RBA 11 with the source document and gets sign off from TSS / BOM.
iii. Stores the same for record.

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2.2 PO ISSUANCE – SELL AGAINST ACCOUNT
Customer: Customer presents duly completed Fund Transfer Application (FTA) along with a crossed cheque to
GBO.
GBO receives Fund Transfer Application (FTA) along with Crossed Cheque from the customer.
i. Verifies FTA and crossed cheque to ensure that all the relevant information has been provided.
ii. The Status of the Crossed cheque with the FTA should be valid. It will be checked in the system
whether it is valid I-e not stopped/serial # activated in the system/ not cancelled etc.
iii. Uses Branch Teller Module, selects Cheque Instruments > Transaction > Draft/Bank Cheque sell menu
to issue a Payment Order. (Screen # BT 3291)
iv. Input Transaction type –POTS Payment Order Transfer Sale, Cheque Type (PO) and other mandatory
information.
v. Verifies customer’s signature on FTA & Crossed Cheque
vi. While issuing the P.O full description of beneficiary must be entered in the system.
vii. After inserting the required information transaction Charges window pops-up for in order to recover
charges from the account.
viii. Input the Cheque amount, Quantity of PO issued, Start No. from LOV in the fields
ix. Executes the transaction and signs FTA & the Crossed cheque
x. Delivers acknowledgement slip to the customer.
(If transaction amount exceeds the GBO’s limit, screen pop-ups “Authorization Required” message. TSS / BOM
authorizes/approves the transaction.)
Treatment of Cross Cheque obtained along with FTA:
 The cross cheque obtained along with the FTA will be marked as used “U” in the system by using
following path: EOC – Deposits > Cheque Control > Cheque Maintenance > Cheque Status
 The FTA pre-printed serial # will be written on the face of the cross cheque obtained.
 The cheque will be defaced/ cancelled/ stamped (Transfer)
TSS / BOM:
After verifying customer details from Original FTA/ Cheque, authorizes the same on the system (if required) by
using BT> Override > Remote Override Screen # BT002020.
System: (Branch Teller Module)
i. Debit the customer’s account for the amount of Payment Order and charges.
ii. Generates the Payment Order.
GBO:
i. Checks the printed Payment Order against Fund Transfer Application (FTA)/ Crossed Cheque
ii. Sign off the same(1st signature along with IBS)
iii. Forwards the Payment Order along with FTA/Crossed Cheque to the TSS / BOM for 2nd signature.
TSS / BOM:
i. Checks and Sign off the same(2nd signature along with IBS)
ii. In case of error in Payment Order, returns the same to the teller for re-issuance.
In case of error in the Payment Order – GBO will:
i. Select Transaction > Value Transactions > Reversal. (POT#- Payment Order Transfer Sale Reversal)
ii. Input the required information. (e.g. Account No., Account Type, Client details, Date etc)
iii. To reverse the transaction click and press the save button. As a result authorization window pops-up.
iv. Keep cancelled Payment Orders in a separate file.
v. Re-issue the Payment Order (Follow the complete Payment Order issuance process, discussed earlier).
vi. Delivers the Payment Order to the customer on the counter and retain duplicate with FTA.

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 vii. Obtains acknowledgement from the customer on FTA.
GBO generates the RBA- 11 report from the system.
i. Checks the report with the source document and gets sign off from TSS / BOM.
ii. Stores the same for record.

2.2.1 Deviation on “Obtaining Cross Cheque” with FTA:

For any particular transaction, requirement of obtaining cross cheques along with FTA for Issuance of PO against
account debit can be waived by ROM or RH. BOM/ BM are authorized to take such deviation approval after
specifying valid reason(s) via e-mail or fax.

2.3 PO PURCHASE – TRANSFER INTO ACCOUNT

Customer presents duly completed deposit slip along with the Payment Order to the Teller.
GBO
i. Verifies the pay order and deposit slip to ensure that all the information given on the pay order and
deposit slip is correct and payment has not been made.
ii. GBO performs the following steps:
iii. Uses Branch Teller Module, selects Cheque Instruments > Transaction > Draft/Bank Cheque buy menu
to issue a Payment Order (Screen # BT3292)
iv. Input Transaction type – POTB Payment Order Transfer Buy, Cheque Type (PO) and other mandatory
information.
v. Executes transaction.
(If transaction amount exceeds the GBO’s limit, screen pop-ups “Authorization Required” message. TSS / BOM
approve the transaction.)
TSS / BOM: After verifying customer details from Original Instrument, authorizes the same on the system (if
required) by using BT> Override > Remote Override Screen # BT002020.
GBO:
i. Affixes Posted and Transfer stamp on the pay order and Deposit slip.
ii. Sign off the same and delivers deposit slip to the depositor.
iii. GBO generates RBA-11 report from the system & checks it with source documents and gets sign off
from TSS / BOM.
iv. Stores the same for record
In case of error in Payment Order Purchase:
i. Select Transaction > Value Transactions > Reversal. (PO##- Pay Order Transfer buy reversal)
ii. Input the required information. (e.g. Account No., Account Type, Client details, Date etc)
iii. To reverse the transaction click and press the save button. As a result authorization window pops-up
iv. Re-issue the Payment Order (Follow the complete Payment Order Purchase process, discussed earlier).

Note: Pay Orders will not be purchased against Cash and hence no cash payment will be made against a Pay
Order. It is to be credited to account ONLY.

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2.4 LCY DD ISSUANCE – SELL VIA CASH
Customer presents duly completed Fund Transfer Application (FTA) along with the cash to the teller.
Teller
i. Receives Fund Transfer Application (FTA) along with the cash from the customer.
ii. Verifies FTA to ensure that all the relevant information has been provided.
iii. Calculates Draft issuance charges.
iv. Counts cash and verify that all notes to be genuine.
v. Affix Cash Received Stamp and forwards to GBO for further processing.
vi. GBO uses Branch Teller Module > Cheque Instrument> Transaction > Draft/Bank Cheque Sell Menu to
issue a Demand Draft. (Screen # BT3291)
vii. Input Transaction type DDCS- Demand Draft Cash Sale, Cheque type (DD) and other mandatory
information.
viii. After the input of transaction details, press Tab, transaction Charges Window pops-up to recover the
charges.
ix. While issuing the DD full description of beneficiary must be entered in the system.
x. Inputs the Cheque amount, Quantity of DD issued, Start No. from LOV in the fields available in the
bottom of the screen
xi. Executes the transaction.
(If transaction amount exceeds the GBO’s limit, screen pop-ups “Authorization Required” message. TSS / BOM
authorizes/approves the transaction.)
TSS / BOM: After verifying customer details from Original FTA, authorizes the same on the system (if required)
by using BT> Override > Remote Override Screen # BT002020.
GBO:
i. Checks the printed Demand Draft against Fund Transfer Application (FTA).
ii. Sign off the same (1st Signature)
iii. Forwards the Demand Draft along with FTA to the TSS / BOM for 2nd signature
TSS / BOM:
i. Checks and sign off the same. (2nd signature)
ii. In case of error in Demand Draft, returns the same to the teller for re-issuance
In case of error in Demand Draft – GBO will:
i. Select the option from EOC Menu Deposits> Cheque Instruments> Transactions > Cheque Reversal
(Non-Account) (RB- 35) - (DDD# Demand Draft Cash Sale Reversal)
ii. Input the required information.
iii. To reverse the transaction press the save button. As a result authorization window pops-up.
iv. As soon as authorization completes the reversal transaction is automatically generated
v. Keep them in a separate file.
vi. Re-issue the Demand Draft (Follow the complete Demand Draft issuance process, discussed earlier).
vii. Delivers the Demand Draft to the customer on the counter and retain duplicate with FTA.
viii. Obtains acknowledgement from the customer on FTA
ix. GBO generates RBA-11 report from the system.
x. Checks the report with the Source document and gets sign off from TSS / BOM.
xi. Stores the same for record.

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 2.5 LCY DD ISSUANCE – SELL VIA ACCOUNT
Customer presents duly completed Fund Transfer Application (FTA) along with a crossed cheque to GBO.
GBO
i. Receives Fund Transfer Application (FTA) and Crossed cheque from the customer.
ii. Verifies FTA to ensure that all the relevant information has been provided.
iii. The Status of the Crossed cheque with the FTA should be valid. It will be checked in the system
whether it is valid I-e not stopped/serial # activated in the system/ not cancelled etc.
iv. Selects the Cheque Instruments > Transaction> Draft/ Bank Cheque Sell
xi. Verifies customer’s signature on FTA & Crossed Cheque
v. Input/Select Cheque Type (DD) and Transaction Type DDTS- Demand Draft Transfer Sale from LOV
vi. Fill in the transaction details (e.g.; Account Number, Customer no and Account type etc.)
vii. While issuing the DD full description of beneficiary must be entered in the system.
viii. Inputs the Cheque Details (e.g. Settle Ccy, Cheque Amount).
ix. After that transaction Charges Window pops-up to recover charges for the transaction
x. Executes the transaction, sign-off FTA & the Crossed cheque
Treatment of Cross Cheque obtained along with FTA:
 The cross cheque obtained along with the FTA will be marked as used “U” in the system by using
following path: EOC – Deposits > Cheque Control > Cheque Maintenance > Cheque Status
 The FTA pre-printed serial # will be written on the face of the cross cheque obtained.
 The cheque will be defaced/ cancelled/ stamped (Transfer)
TSS / BOM: After verifying customer details from Original FTA/ Cheque, authorizes the same on the system (if
required) by using BT> Override > Remote Override Screen # BT002020.
GBO: Generates the Demand Draft.
i. Checks the printed Demand Draft against Fund Transfer Application (FTA)/ Crossed Cheque
ii. Sign off the same (1st Signature)
iii. Forwards the Demand Draft along with FTA/Crossed Cheque to the TSS/ BOM for 2nd signature.
TSS / BOM:
i. Checks and sign off the same. (2nd signature)
ii. In case of error in Demand Draft, returns the same to the teller for re-issuance.
In case of error – GBO will:
i. Select Transaction > Value Transactions > Reversal. (DDS#- Demand Draft Transfer Sell Reversal)
ii. Inputs the required information (e.g. Account No., Account Type, Client details, Date etc.)
iii. To reverse the transaction press the save button. As a result authorization window pops-up.
iv. As soon as authorization completes the reversal transaction automatically generated
v. Keep them in a separate file.
vi. Re-issue the Demand Draft (Follow the complete Demand Draft issuance process, discussed earlier).
vii. Delivers the Demand Draft to customer on the counter and retain Duplicate with FTA.
viii. Obtains acknowledgement from the customer on FTA.
GBO generates RBA-11 report from the system.
i. Checks the report with the source documents and gets sign off from TSS / BOM.
ii. Stores the same for record.

2.5.1 Deviation on “Obtaining Cross Cheque” with FTA:

For any particular transaction, requirement of obtaining cross cheques along with FTA for Issuance of LCY DD
against Account Debit can be waived by ROM or RH. BOM/ BM are authorized to take such deviation approval
after specifying valid reason(s) via e-mail or fax.

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 2.6 LCY DD PURCHASE – TRANSFER INTO ACCOUNT
Customer presents duly completed deposit slip along with the Demand Draft to the GBO.
GBO
i. Verifies the Demand Draft and deposit slip to ensure that all the information given on the same are
correct and payment has not been made.
ii. GBO performs the following steps:
 Select the Cheque Instruments > Transaction> Draft/ Bank Cheque Buy (Screen # BT3292)
 Input/Select Cheque Type (DD) and Transaction Type- DDTB Demand Draft Transfer Buy from LOV
 Fill in the Transaction details (e.g.; Account No., Branch, Customer No., Account Type etc).
 Input the Cheque Details (Cheque amount, Settle Ccy etc.)
 Input the Beneficiary Contact information (Name, Address etc.)
 Executes transaction.
(If transaction amount exceeds the GBO’s limit, screen pop-ups “Authorization Required” message. TSS / BOM
authorizes/approves the transaction.)
TSS / BOM:
After verifying customer details from Original Instrument, authorizes the same on the system (if required) by
using BT> Override > Remote Override Screen # BT002020.
GBO:
i. Affix Posted and Transfer stamp on the Demand Draft and Deposit slip.
ii. Sign off the same and delivers deposit slip to the depositor.
iii. Forwards the instrument to the back office for checking and record keeping.
GBO generates RBA-11 report from the system.
i. Checks the report with source documents and gets sign off from TSS / BOM
ii. Stores the same for record
In case of error – GBO will:
i. Select Transaction > Value Transactions > Reversal. (DDT#- Domestic DD Transfer Buy Reversal)
ii. Inputs the required information (e.g. Account No., Account Type, Client details, Date etc.)
iii. To reverse the transaction press the save button. As a result authorization window pops-up.
iv. As soon as authorization completes the reversal transaction automatically generated
v. Re-Purchase the Demand Draft (Follow the complete Demand Draft Purchase process, discussed
earlier).

Note: Demand Drafts will not be purchased against Cash and hence no cash payment will be made against a
Demand Draft. It is to be credited to account ONLY.

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2.7 FCY DD ISSUANCE – SELL VIA ACCOUNT
Branch:
i. Forex Officer gives the FTA (SF-100R) to Customer who approaches branch for Foreign Demand Draft
Remittance. On the receipt of Filled FTA (SF-100R) along with Crossed Cheque, Forex Officer checks
particulars of the FTA and Crossed Cheque and ensures that the document is completely filled.
ii. In case of FCY Account Holder: Forex Officer/ TSS checks availability of funds in the applicant’s account.
Crossed Cheque along with SF-100R is received from the customer for the amount of FDD inclusive of
charges. Upon availability of funds, customer account is debited.
In case Remittance under Specific/General Permission of SBP (Form “M”) against Pak Rupee Account
i. In case of purpose of remittance is under general permission of SBP, FTA is further processed with
Form-M attached. However in case purpose of remittance is not covered under general permission,
Certified/Approved Form M from SBP is required.
ii. Forex Manager acknowledges Form-M. Forex Officer converts the amount to be remitted using the
rates given in daily Forex Rates Schedule obtained daily from Treasury Head Office and calculates
charges on remittance as per Bank SOBC
iii. Forex Officer/TSS receives Crossed Cheque along with FTA (SF-100R) and upon sufficient availability of
funds, signatures on the cheque are verified and TRANSFER stamp is affixed on Crossed Cheque & FTA.
iv. Forex Officer prepares FDD manually, enters the particulars in FDD register and is forwarded to two
authorized signatories having AS numbers for approval. After approval Forex Officer issues FDD.
v. Crossed Cheque #, FDD Instrument # & charges are written on FTA (SF-100R)
Treatment of Cross Cheque obtained along with FTA:
 The cross cheque obtained along with the FTA (SF-100R) will be marked as used “U” in the system by
using following path: EOC – Deposits > Cheque Control > Cheque Maintenance > Cheque Status
 The FTA pre-printed serial # will be written on the face of the Cross cheque obtained.
 The cheque will be defaced/ cancelled/ stamped (Transfer).
Preparation and approval of Credit advices and Annexure XX
i. On basis of remittance application, Forex Officer prepares credit advices (SF-139) in quadruplicate and
on basis of these prepares Annexure XX which is approved by Forex Manager and Operations Manager.
ii. Annexure XX is then forwarded to two separate Test Key officers for application of test (Part A and B)
and later delivered to Forex Manager for transmitting through fax to Treasury Back office.
Centralized SWIFT Division:
Forex Officer prepares and sends SWIFT Message to Forex Manager for verification and onward
submission to Centralized SWIFT Division Karachi. Officer in Centralized SWIFT Division verifies it and
forwards to related correspondents. When Centralized Swift Head Office receives SWIFT
acknowledgement from Foreign Bank it is forwarded to branch for their record.
Branch: Acknowledged copy received from Centralized SWIFT Operations Karachi is to be verified against the
source documents by the Branch Manager.

2.7.1 Deviation on “Obtaining Cross Cheque” with FTA:

For any particular transaction, requirement of obtaining cross cheques along with FTA for Issuance of FDD
against account debit can be waived by ROM or RH. BOM/ BM are authorized to take such deviation approval
after specifying valid reason(s) via e-mail or fax.

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2.8 FCY DD PURCHASE – UNDER RUPEE DRAWING ARRANGEMENT
Direct FIDD are inward remittances that are issued in PKR on MCB Branches with intimation to Global
Transaction Branch (GTB). Foreign Agent issue FDD on request of remitter who want to remit money from
abroad to Pakistan. The FIDD could be present in any MCB branch. The Branch makes payment and originates
HO advice on GTB branch, where agents’ nonresident account is maintained to settle the proceeds of FDD.
Process of FCY DD Purchase – Under Rupee Drawing Arrangement
Customer presents FDD in bank for payment.
Designated Authorized Officer receives FDD and verifies the beneficiary detail from original valid CNIC and also
takes a copy of CNIC and stamps it as “Original Seen”. And conduct KYC of customer as per banks KYC and AML
handbook.
If amount is more than RS. 100,000/- than confirmation is taken from GTB branch before payment through
email/ fax. Email will be forwarded by BOM/ Forex manager with particulars of instrument.
Designated Authorized Officer (GTB Branch) checks the FDD detail with record already provided by the foreign
agent, after satisfying from the credential or particulars of FDD reply the email and give intimation/
confirmation to branch through fax
Designated Authorized Officer checks Authorize Signature (AS) and Test on demand draft and after being
satisfied with genuineness of demand draft counter sign it
Note: If Demand Draft is more than USD $10,000/ equivalent amount, then R-Form is required, clearly stating
purpose of remittance. However, if remittance is in favor of company/ Firm than R-Form must be obtained
from each and every company/ firm regardless remittance amount. Branch obtain signed R-form from
customer, verify customer’s signature with branch stamp or if DD presented in clearing than R-Form
requirement must be checked that respective bank had sent R-Form along with DD and customer signature is
duly verified and forwarded to GTB Branch. GTB Branch submits onward to SBP on monthly basis.
DAO after being satisfied with the credential of customer prepares HO debit advice drawn on GBT Branch
(0069). Advice and supporting documents are forwarded to BOM/ TSS/ Forex manager for approval.
Originated advice must be properly signed with AS/ IBS number and proper test must be applied by Designated
Authorized Officer
For detail Batch Processing, please refer to Section 7: 1.4 Transaction processing In GL Module
BOM/ TSS/ Forex Manager authorize the transaction after being satisfied with the supporting documents.
i. Copy A of advice courier to GTB branch with copy of paid FDD
ii. Copy B of advice sent to Forex Department for their record purpose.
iii. Copy C of advice retained by Cash department as part of vouchers
Payment in Cash:
Teller takes customer’s signature on back side of advice/FDD and matches the same with the original CNIC and
copy of CNIC attached with advice/ voucher. Teller makes cash payment to customer.
Teller posts the advice in system (through batch) and affix the “Posted” stamp. And forward to TSS/ BOM for
supervision.
Gives Credit to customer account: Designated Authorized Officer gives credit to customer account via
transaction type “TFRC”
Payment through clearing: CPU/ Clearing Officer receive FDD in clearing from NIFT and forward to branch for

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FDD verification and advice preparation.
Note: If transaction amount exceeds the Designated Authorized Officer’s limit screen pop-ups “Authorization
Required” message. Designated Authorized Officer forward voucher to next supervision level for system
authorization. Financial impact only shown in GL after authorization
Day end report generation:
Designated Authorized Officer generates Day end reports and Validates the source documents/ Vouchers and
arranges filing of the same and sign off.
BOM/ TSS counter signs Designated Authorized Officer activity
BOM/ TSS/ Forex Manager reviews vouchers and reconciles with report and counter sign off.

2.9 FCY DD PURCHASE – UNDER DOLLAR DRAWING ARRANGEMENT

Direct FIDD are inward remittances that are routed through foreign agent accounts, which exist in ‘Export
Promotion Zone Branch’ (EPZ) under dollar drawing arrangements. Foreign Agent issue FDD on request of
remitter who want to remit money from abroad to Pakistan. Moreover, the FIDD could be present in any branch
whereby after cover conformation from EPZ branch the payment is made to beneficiary.
FCY DD Purchase – Under Dollar Drawing Arrangement
Forex officer (Branch) receives demand draft directly from foreign agents or beneficiary and update FIDD
register.
Forex officer (Branch) after verification of interbank signature prepares cover sheet, signs off and forwards it
to Forex manager. Forex manager/BOM sign off the cover sheet and return back it to Forex officer for onward
sending it to EPZ branch.
Forex officer (EPZ Br.) receives cover sheet from branch. Cover is checked from the agent account. Transaction
is posted in the system as per cover sheet received from branch or else is escalated according to authorization
matrix in case the financial transaction is beyond his limit.
For detail Batch Processing, please refer to Section 7: 1.4 Transaction processing In GL Module
Forex officer (EPZ Br.) prepares MT 202 and forward to Forex Manager for authorization and the same is
transmitted to SWIFT Ops.
COD Receives SWIFT messages from EPZ Branch, SWIFT Manager reviews and forwards hard copy of MT 202
and MT 950 to Fund Settlement Unit (FSU). After affixing “Cover Conformation” stamp, the MT 202 is
forwarded to concern branch for payment of fund to the beneficiary against presented FIDD
Branches on receipt of covering from FSU, Updates the FDD Register and makes payment to the beneficiary in
cash or transfer funds into the customer account. In-Case of Cash Payment, his / her proper verification is
required. Beneficiary has to submit his / her valid CNIC (original) or valid driving license (original) or passport
(original).
For detail Batch Processing, please refer to Section 7: 1.4 Transaction processing In GL Module
After payments to the customer, Forex officer prepares and sign Annexure XXI. After sign off from Forex
manager, forwards it to test key Dept. Two tests are applied (Part A&B) on Annexure XXI by two officers. The
same is forwarded to the Forex Dept for onward submission to treasury

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2.10 PO/ DD ISSUANCE – SELL AGAINST HEAD OFFICE ADVISE
BOM/ GBO: Receives Head office Approval letter/ email and HO Advice (if required)
GBO
i. Verifies Completeness and accuracy of the request. Highlights discrepancy if any
ii. Verifies Test key
iii. Verifies AS/ IBS # on HO Advice (if required)
iv. Uses Branch Teller Module, selects Cheque Instruments > Transaction > Draft/Bank Cheque sell menu
to issue a PO/ DD. (Screen # BT 3291)
v. Input Transaction type –POSI for PO and DDIS for DD, Cheque Type (PO or DD) and other mandatory
information.
vi. While issuing the P.O full description of beneficiary must be entered in the system.
vii. Executes the transaction
(If transaction amount exceeds the GBO’s limit, screen pop-ups “Authorization Required” message. TSS / BOM
authorizes/approves the transaction.
TSS / BOM After verifying details from Original Advice/ Advise, authorizes the same on the system (if required)
by using BT> Override > Remote Override Screen # BT002020.
System: (Branch Teller Module)
i. Debit the respective GL head for the amount of PO/DD
ii. Generates the PO/ DD
GBO:
i. Checks the printed PO/ DD against HO Advice/ Approval Letter
ii. Sign off the same (1st Signature)
iii. Forwards the PO/DD to the TSS / BOM for 2nd signature.
TSS / BOM:
i. Checks and sign off the same. (2nd signature)
ii. In case of error in Payment Order, returns the same to the teller for re-issuance.
In case of error in the Payment Order – GBO will:
i. Select Transaction > Value Transactions > Reversal. (POA#) or (DDS#)
ii. Input the required information. (e.g. Account No., Account Type, Client details, Date etc)
iii. To reverse the transaction click and press the save button. As a result authorization window pops-up.
iv. Keep cancelled Payment Orders in a separate file.
v. Re-issue the Payment Order (Follow the complete Payment Order issuance process, discussed earlier).
vi. Delivers the Payment Order to the beneficiary
GBO/ BOM:
GBO makes an Batch posting in the system against HO advice/advise for DD/PO issuance. For detail Batch
Processing, please refer to Section 7: 1.4 Transaction processing In GL Module
i. BOM verifies and authorizes the Batch
ii. GBO forward the advice to concerned branch (If drawn on other branch)
GBO generates the RBA- 11 report from the system. Checks the report with the source document and gets sign
off from TSS / BOM.

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2.11 REVALIDATION OF PAY ORDER / DEMAND DRAFT
Since PO/ DD is payable within six months from the date of its issue, therefore, an instrument being older than
six months requires revalidation before payment. Following procedure will be used:
i. PO / DD should be presented to the Issuing branch for revalidation.
ii.The signature on such letter should be duly verified.
iii.
Particulars of the PO / DD should be compared with those given in the Branch Teller Module.
iv.A rubber stamp reading “Revalidated on ______” should be affixed on the PO / DD under signature of
two authorized officers of the branch with IBS or AS Numbers.
v. An intimation of revalidation should be sent to the drawee branch by authorized signatory giving his
IBS/AS number.

2.12 CHANGE OF PAYEE’S NAME

i. Sometimes the purchaser of a draft approaches the Bank for the change of payee’s name. In such case it
is advisable to cancel the previous draft and issue a new PO / DD.
ii. For cancellation of a PO / DD, follow the procedure given under 2.14 Cancellation of Demand Draft and
2.15 Cancellation of Pay Order

2.13 ISSUANCE OF DUPLICATE PAY ORDER / DEMAND DRAFT

In case purchaser of a PO / DD informs that the draft has been lost or misplaced and requests for issuance of a
duplicate demand draft. The following Procedure should be followed:
i. Written Application: Such applications should be made to the issuing branch by the purchaser in writing
duly signed by him/her, explaining the circumstances of the loss.
ii. The signature of the purchaser should be verified from his signature on the original Funds Transfer
Application.
iii. If the purchaser has signed the PO / DD application form on behalf of some other person / organization,
the signature of such other person / authorized officials of Organization should also be obtained on the
letter of instruction in respect of issuance of Duplicate PO / DD.
iv. For PO, issuing branch will verify from system and ensure that the PO in question is still outstanding
unpaid and mark Stop Payment in the system from EOC >Deposit> Cheque Instruments >
Administration > stop cheque capture/maintenance
v. For DD, issuing branch will verify that the DD in question is still outstanding at Drawee Branch. Issuing
branch will send an e-mail to the Drawee branch with instrument details specially DD leaf/stationary
number (old). The Drawee branch will mark Stop Payment in the system from EOC >Deposit> Cheque
Instruments > Administration > stop cheque capture/maintenance (RB-1841) and will ensure to input
old DD leaf/stationary number in the narration field.
vi. An indemnity should then be obtained from the purchaser on CF-15 of required value. Charge Form CF-
15 duly completed in all respect will be kept in Safe Custody after recording in safe custody register.
vii. There is a feature available in SYMBOLS to re-print the same PO / DD from the system and with the
same/old number. Re-printing of a PO / DD can only be performed with supervisor’s override. On the
re-printed PO / DD a stamp should be affixed on face of the duplicate PO / DD reading “Duplicate”
issued in lieu of original number _______dated ____Reported lost.

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 viii. A note regarding issue of duplicate PO / DD is also given in the original PO / DD application form.

Note: At the time of Payment of Duplicate DD, Drawee branch to ensure that the DD which is marked as
‘Stopped’ is not purchased and only Duplicate DD is purchased.

2.13.1 Presentation of original or duplicate PO / DD

i. If original PO / DD is presented, after issue of duplicate but before payment of the duplicate, it should
be returned unpaid with the remark / reason “reported lost, payment stopped by the drawer”. This
remark should be written in “red ink” on the Instrument also.
ii. If duplicate is presented for payment, the same may be paid if otherwise in order.
iii. If original PO / DD is presented after payment of duplicate, the same may be returned with the
remarks, “Duplicate paid, original reported lost and payment stopped by the drawer”.

2.14 CANCELLATION OF DEMAND DRAFT

The issuing branch should cancel the Instrument on the written request of the purchaser as per following
procedure.
Drawer/ DD Issuing Branch:
i. Written Application: The purchaser should make the request in writing for cancellation of the Demand
Draft. His signature on the letter should be verified from the original Funds Transfer Application (SF–
100 R).
ii. If the purchaser has signed SF – 100R on behalf of some other person / organization, the signature of
such other person / authorized official of organization should also be obtained on the letter of
instructions in respect of cancellation of DD
iii. The original DD should accompany the request letter.
iv. If the DD is in favor of a company, government or semi-government body / corporation etc., consent /
clearance of the payee should be obtained in writing.
v. It should be seen that there is no endorsement on face / back of the draft as the presence of
endorsement shows the delivery and negotiation of the DD. If there is some endorsement on the DD, it
should not be cancelled.
vi. If DD is found in order according to the above points, it should be cancelled at the issuing branch.
vii. The signature of the officers on the cancelled DD should be torn and the same should be marked
“Cancelled”.
viii. The cancelled DD and customer request should be attached with the case.
Remittance Officer prepares inter branch debit advice-SF 180 and send it to drawee branch The advice
mentions that original DD is in the possession of drawer branch.. A copy of advice is sent to HO and copy is
maintained at branch for record.
Deposit slip is filled and credit is given to the customer. Cancellation charges are claimed as per Bank Schedule
of Charges and DD is torn from signatures and marked as “CANCELLED”. Batch entry on the basis of SF-180 (HO
debit advice) through EOC->General Ledger->Transaction->Batch Maintenance->Entry (GL-21)
Debit: Head Office (Payable Branch)
Credit: Funds Transfer Control Account

Entry through deposit module EOC->Deposits->Transaction->value transaction->Deposit (RB-31) thorough

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transaction type: THCR. Following auto entry will be generated
Debit: Funds Transfer Control Account
Credit: Customer account

Manual entry (Being cancellation charges debited to customer’ account)

Debit: Customer account
Credit: 3060601210-Remittance instrument Cancellation Charges
Drawee/ DD Paying Branch:
Remittance officer at drawee branch cancels the sold DD via BT> Financial Transactions> Single Transaction>
Traveler's/ Banker’s Cheque> Cheque Buy and enter DDBI-Demand draft Buy Internal (DD Cancellation after
EOD)
The system checks whether the amount of the demand draft is within his authorized limits.
The system automatically asks for an appropriate over ride to process the transaction. The officer chooses
whether to generate a remote override or a local override. After approval of cancellation by Supervisor or
Operations Manager depending on the limit, Entry will be made through DD purchase interface (EOC-Deposit-
Cheque instruments-Transaction-Cheque buy RB 1836) through transaction type: DDBI. Following auto entry
will be generated

Debit: Demand Draft Payable Account

Credit: Funds Transfer Control Account

Entry through batch acceptance, on the basis of SF-180 (HO debit advice) received from Drawer branch/ DD
issuing branch

Debit: Funds Transfer Control Account

Credit: Head Office (Drawer branch/ DD issuing branch)

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2.15 CANCELLATION OF PAY ORDER
The issuing branch should cancel the Instrument on the written request of the purchaser as per following
procedure.
Issuing Branch:
i. Written Application: The purchaser should make the request in writing for cancellation of the Pay
Order. His signature on the letter should be verified from the original Funds Transfer Application (SF–
100 R).
ii. If the purchaser has signed SF – 100R on behalf of some other person / organization, the signature of
such other person / authorized official of organization should also be obtained on the letter of
instructions in respect of cancellation of PO
iii. The original PO should accompany the request letter.
iv. If the PO is in favor of a company, government or semi-government body / corporation etc., consent /
clearance of the payee should be obtained in writing.
v. It should be seen that there is no endorsement on face / back of the draft as the presence of
endorsement shows the delivery and negotiation of the PO. If there is some endorsement on the PO, it
should not be cancelled.
vi. If PO is found in order according to the above points, it should be cancelled at the issuing branch.
vii. The signature of the officers on the cancelled PO should be torn and the same should be marked
“Cancelled”.
viii. The cancelled PO and customer request should be attached with the case.
ix. Cancellation charges will be recovered as per schedule of Bank Charges.
Remittance officer cancels the sold PO via BT> Financial Transactions> Single Transaction> Traveler's/ Banker’s
Cheque> Cheque Buy and enter POBC-Pay Order Transfer-Buy Cancel
The system checks whether the amount of the pay order is within his authorized limits.
The system automatically asks for an appropriate over ride to process the transaction. The teller chooses
whether to generate a remote override or a local override. If remote override is sought then a popup screen
opens at the relevant terminal asking for approval. The Local override requires the relevant officer to authorize
the transaction at the teller terminal by inputting his ID and Password.
After approval of cancellation by Supervisor or Operations Manager depending on the limit
Recovers the cancellation charges according to SOBC from customer account or via cash.
Pay Order and application is be marked as cancelled and PO is torn from signatures and marked as
“CANCELLED”.

2.16 PAYMENT OF CANCELLED PAY ORDER / DEMAND DRAFT (ISSUING BRANCH)

i. On execution of Reversal option system will reverse the entries i.e. it will debit PO / DD account and
credit the purchaser account.
ii. For refunding the amount to the purchaser of a draft which has been lost, a duplicate will first be issued,
on due compliance of all the requirements discussed above. The duplicate PO / DD may then be
cancelled as discussed above under ‘cancellation of PO / DD’.

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2.17 ISSUANCE OF CALL DEPOSIT RECEIPT (CDR)
Process Steps
CSO delivers CDR Issuance form, SF-253 and assists customer in order to fill application. On receipt of
application, scrutiny is done. GBO signs off the SF-253 after ensuring completeness and authenticity of
information.
TSS conducts customer’s signature verification from SS Card and affixes “Signature Verified “stamp and signs
off
GBO receives the cheque from customer for CDR amount and charges and ensures the following:

 Name of the Customer/Requestor (person/company) is mentioned correctly in the field “Received

from” on the CDR.
 Name of the Beneficiary is mentioned correctly in the field “on account of” on the CDR.
 Date & amount are in order.
 Cheque number is written on application form (SF-253).
SF- 253 along with the cheque is forwarded to TSS for final verification. On receipt of application and cheque,
TSS verifies the customer’s signatures on the cheque.
GBO posts the following entries in Deposit Module:

Entry in RB module:
Debit: Customer account
Credit: Fund Transfer Control account [1150101150]

Entry in GL module
Manual G.L Debit: Fund Transfer Control account [1150101150]
Batch Entry: Credit Call Deposit [1030101030]

Entry with CQW:

Debit: Customer account
Credit: Intra control account

Manual G.L Debit: Intra Control Account

Batch Entry: Credit Call Deposit [1030101030]

“TRANSFER” along with “POSTED” stamp is affixed on the application.

TSS will forward the manual batch to BOM for review and acceptance.
GBO prepares the CDR and forwards to BOM and BM for review and sign off.
BOM and BM reviews the CDR, mention their AS/IBS No. and sign off. CDR is handed over to customer and
acknowledgement taken.
GBO maintains record of the CDRs issued in a manual register which is weekly reviewed by the BOM

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2.18 PAYMENT OF CALL DEPOSIT RECEIPT (CDR)
Process Steps
Customer submits filled deposit slip along with CDR to GBO.
GBO matches particulars of deposit slip with CDR, signs off, affixes stamp and handover a copy of deposit slip
to the customer. GBO must affix branch cross stamp on the face of CDR in order to avoid any misuse.

Important Notes:
 Receipt is payable to beneficiary ONLY on Proper discharge through internal transfer/ clearing/
collection.
 When the claim is made by the purchaser it must be insured that the receipt is duly endorsed by the
beneficiary in favor of the purchaser.
Payment of CDR through clearing incase tender is passed:
The payment of CDR is routed through clearing incase the tender for which CDR was issued is passed.
Payment of CDR through transfer back to account incase tender was refused:
GBO receives the cancelled CDR, attaches SF-253 and makes the following entries for payment of CDR through
THCR:

Credit: Customer account

Debit: Fund transfer control account

Manual batch entry:

Debit: CDR
Credit: Fund transfer control account

TSS/ BOM reviews and accepts the manual batch.

GBO records Payment date and Payment mode (Clearing or Transfer) in CDR manual register
GBO generates CDR Statement which shows details of CDR such as payment and issue date. A GL report at day
end is also generated which states all the entries. These reports are forwarded to BOM for review.
BOM reviews the CDR statement and GL report.
GBO maintains record of the CDRs issued in a manual register which is weekly reviewed by the BOM

CDR Balancing:
GBO enters No. of CDRs issued and their total amount in MS Excel Sheet. GBO weekly/monthly matches the
figures from the MS Excel sheet maintained with him to the GL figures of CDR for balancing/reconciliation. In
case of any difference, GBO takes a printout of the CDR MS Excel sheet and CDR GL Figures and resolves the
discrepancy.

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2.19 LCY TELEGRAPHIC TRANSFER
Transfer of Funds from one branch to another branch of the same Bank or upon other Bank under special
arrangements for the payment to the Beneficiary through Telephone/ Fax is called a Telegraphic Transfer (TT).

2.19.1 Features:
i. Telegraphic Transfer is not negotiable
ii. The funds remitted by Telegraphic Transfer are not payable to bearer /order but only to the Payee.
iii. Telegraphic Transfer (TT) of funds to a branch situated within the same city should not be affected.
iv. Remittance can be made for credit of the account of the Payee/Beneficiary if maintaining account
with the drawee branch or may be paid in cash, subject to proper identification or may be collected by
the payee through his banker according to instructions. Such instructions for payment are called
“Advise and Pay”.

2.19.2 Participants of the Telegraphic Remittance:

i. Applicant: a person, firm, company, or local authority etc who wants to remit funds from one branch
to another branch of other city.
ii. Remitting or Drawing Branch: Which remits the funds on another branch
iii. Drawee Branch: On which a TT is issued.
iv. Beneficiary / Payee: The person named in the TT to whom the funds is payable.

2.19.3 General Guidelines:

i. TTs instructions regarding payment are sent to the drawee branch telegraphically in a coded language
and under confidential number known as “Test Number”. Test number is the only source
authenticating payment instructions of the TT.
ii. Non account holders can only deal with the Bank , provided that CDD / KYC is carried out and attested
copy of CNIC by branch manager is obtained from the non account holder if the amount is up to PKR
500,000. For amounts exceeding this threshold requires obtaining the duly filled Walk-in Customer
Information Form (WICIF) and must be kept with the vouchers. In the case of requests for multiple
cash remittance transactions by the same non-account holder, enquiries should be made to assess
whether there are reasons to suspect criminal activity. Any suspicions should be reported promptly as
required in CDD/KYC and AML Procedures Hand Book Revised Version 2009 - 5.5.3.

2.19.4 Custody of Test Keys:

In order to strengthen the internal controls on the financial transactions, branches are required to adhere
to the followings:
i. The Branch Operations Manager must maintain a definite segregation between custodian-ship of Test-
keys (Part 1 & 2). No one person should have custody of both tables at any given time.
ii. Also the test custodian must not be involved in preparation/origination, responding or input of inter-
branch financial transactions or remittance.
iii. Both parts should be kept separately with the designated Test Key Custodians in the Fire Proof
Cabinets.

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 2.19.5 Acceptance of Funds Transfer application For TT Issuance:
SF-100R should be duly checked. (Applicant and Beneficiary details must be Complete in all respects).
Instructions regarding mode of payment should be obtained i.e. whether the amount of TT is to be
credited to the Payee’s Account or the Beneficiary should be advised to receive the amount of TT from a
drawee branch either in cash on proper identification or through his Banker (it will be an advice and pay
instructions).
i. FTA (SF-100R) has been signed by the applicant and authorized officials/officers of the branch as per
passing and signing schedule.
ii. Before preparing a TT message for the drawee branch it should be confirmed that the cash along with
charges, where applicable, have been received, Cash Received Stamp has been affixed on the FTA (SF-
100R), which has the signatures of Authorized Officer.
iii. In case of transfer entry it should be seen that the customer’s account has been debited with the
amount of a TT /other charges and SF-100R is duly signed by the Authorized Officer.

2.19.6 Preparation of TT Outward Messages:

i. A record in Remittance Outward Register (SB-17) should be maintained for all TTs separately branch-
wise.
ii. The Serial Number in the Out-ward Remittance Register represents the Remittance Number.
“Remittance Number” for each drawee branch should start with number “One” from 1st January each
year.
iii. All TT remittances should be controlled at issuing and paying branches by the above Remittance
Number in addition to the Telegram out-ward number (TT number).

2.19.7 Maintenance of TT Register:

Besides maintaining an Outward Remittance Register, a Telegram Dispatch Register (SB-86) is also
maintained to allot the Telegram Outward Serial Number to the telegraphic remittance drawn on a
particular branch.
i. A separate folio (Page) is allotted for each drawee branch and an alphabetical index is accordingly
prepared in the beginning of the Register.
ii. A separate serial number is allotted to a Telegraphic Remittance for each drawee branch.

While making the necessary entries in the Telegram Dispatch Register (SB-86) following points should be
kept in mind:
i. The entries in the Telegram Dispatch Register should be made on the proper folio i.e. on the folio
allocated to a particular branch.
ii. A copy of the message should be written in the register.
iii. The entries in Telegram Dispatch Register are serially numbered i.e. the first message issued on a
particular branch should be given serial number “1” and the next serial number “2”. After “100”
messages have been issued, the serial number should again start with number “1”.

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 2.19.8 Preparation of a TT Message on TT Dispatch Form (SF-119):
While preparing a TT message, the folio allotted to drawee branch in Outward Remittance Register (SB-17)
& TT Dispatch Register (SB-86) should be referred to allot the “Serial Number of Telegram” and
“Remittance Number “respectively.
After making the entries in both the Registers, TT should be prepared on Telegram Dispatch Form (SF-119)
according to the particulars mentioned on FTA.

Sequence of Contents of the Message on SF-119:

i. Name of Drawee Branch with Branch code.
ii. Date
iii. Serial Number of the Telegram.
iv. Remittance Number (R).
v. The Instructions Regarding Mode of Payment. (Credit / Advise & Pay)
vi. The Amount.
vii. Name and A/c Number of Beneficiary
viii. Two authorize officers apply Test on SF-119.

Accounting Entries:
Dr: Customer’s account/ Cash
Cr: Principal Office A/C. Drawee Branch
Cr: Income A/C. Commission on TT.
Cr: Income A/C. Telephone/ Fax charges
Cr: Tax Deducted on TT etc.

For detail Batch Processing, please refer to Section 7: 1.4 Transaction processing In GL Module

2.19.9 Handling of TT AT Paying Branch:

A TT Payable Register (SB-90) should be maintained at the drawee branch.
A separate folio should be allotted for every TT issuing branch in TT Payable Register and an index should
be prepared in the beginning showing folio number allotted to branches.
The Authorized Officers/Test Keys holders check the Test Number from the Test Key, which must agree
with, the test number mentioned in the TT.
At the time of entry/posting full particulars of the remittance should be entered in this register/ System.
i. Remittance Serial Number of issuing branch.
ii. Date of entry of TT.
iii. Date of issue of TT i.e. Date of the Telegraphic Message appearing on the telegram.
iv. Telegram Number allotted by the drawer branch.
v. Name of the Beneficiary and Account Number.
vi. Amount.
vii. Initials of the authorized officer verifying/authenticating the entry.
viii. Initials of the processing officer.

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 Accounting Entries:
For the Crediting Customer’s Account:
Transfer Vouchers
Dr: Principal Office Account of issuing branch (SF-9)
Cr: TT Payable Account (SF-10)
Dr: TT Payable Account (SF-9)
Cr: Beneficiary/Customers Account (SF-10)

In case of Advise and Pay Instructions

Transfer Vouchers
Dr: Principal Office Account of Issuing Branch (SF-9)
Cr: TT Payable Account. (SF-10)

On presentation of CNIC
Dr: TT Payable Account.
Cr: Cash

For detail Batch Processing, please refer to Section 7: 1.4 Transaction processing In GL Module

2.19.10 Payment of TT at Paying Branch via Clearing:

i. Before making payment of TT in clearing it should be thoroughly scrutinized and ensured that: TT
paying receipt pertains to the payee branch. Original portion of the TT Payment Receipt (SF-6A24)
should be duly discharged by the payee on revenue stamp of adequate value and the copy should bear
signatures without revenue stamp.
ii. Collecting Bank’s endorsement is regular.
iii. The date of payment should be marked in the TT Payable Register and processing officer should sign
the slip after verifying the particulars from the TT payable register. The processing officer should
adhere to the signing and passing schedule of branch approved by the competent authority.
iv. In case of entry in TT Payable remains outstanding the payee should be reminded
v. The applicant of a telegraphic transfer may approach the issuing branch for cancellation of T.T
remitted by him. The written instructions of the applicant may be accepted provisionally, if the
amount of the TT has not been credited / paid or advised to the beneficiary.

2.19.11 Cancellation of a TT:

At Issuing Branch
i. Application in Writing
The applicant of the TT should apply in writing for its cancellation.
ii. Verification of Signatures
The signatures of the applicant on letter of instructions should be verified from the original TT
application form (SF-100R).

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 If the purchaser has signed the TT application form on behalf of some / organization, the signature
of such other person / authorized official of organization should also be obtained on the letter of
instruction in respect of cancellation of TT.
iii. Recovery of Fax Charges
The intimation to the drawee branch should be sent through a Fax. The cost of Fax should be
recovered from the applicant and be credited to Telegram / Telex Charges Recovered Account.
iv. Intimation to the Drawee Branch
The drawee branch should be communicated telegraphically to cancel the TT if not already
credited or paid to the payee or has not been advised to the beneficiary to receive amount of TT.
Such telegram should invariably be sent coded and tested.
v. Filing of Letter of Instruction
The letter of instructions from the applicant should be attached with TT application form SF-100R
of that date.

Action at Drawee Branch

i. Verification of Test Number
On receipt of TT advice from the issuing branch the drawee branch should verify the test
number, If found correct the Manager/Officer holding Test Keys should certify the TT advice
with the word “Test Correct”.
ii. Verification from TT Payable Register
The Remittances Department should refer the TT payable register to confirm whether TT is still
outstanding. In case the TT has already been paid no action will be taken and the issuing branch
should be informed accordingly. If the said TT is outstanding and the beneficiary has not been
advised to receive the amount of the TT, it should be accordingly cancelled and a note to this
effect should be made in TT payable register and other relative record.
iii. Preparation of Vouchers at Drawee Branch
 After noting the cancellation instruction in the TT payable register, TT payable account
should be debited with the amount of TT cancelled and Principal Office Account of the
issuing branch should be credited. The Voucher should be entered in the vouchers sheet
accordingly.
 An Advice on SF-179 should be prepared for crediting H.O. Account of the issuing branch
giving full details of TT quoting the authority of the issuing branch regarding cancellation.
 A set of three copies of credit advice SF-179 should be prepared. Original should be sent to
the issuing branch. 2nd copy should be used as H.O. Account credit voucher and third copy
should be used as a debit voucher of TT Payable Account.
iv. Intimation to the Issuing Branch by the Drawee Branch
The drawee branch should send intimation to the issuing branch via fax / telephone regarding
cancellation of TT as well confirmation that the beneficiary has not been advised to receive the
amount of the TT
v. Verification of Test Number
The issuing branch on receipt of TT advice from the drawee branch should verify the test
number. It should be seen that the drawee has clearly confirmed that the TT was still

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 outstanding with them and has been cancelled as the beneficiary has not been advised to
receive the amount of the TT.
vi. Payment at Issuing Branch
 On receipt of the Credit Advice in respect of TT from the drawee branch, the amount of TT
should be refunded to the applicant by crediting his account, or in cash on proper
identification or a Pay Order should be issued in favor of applicant to the debit of Principal
Office Account.
 The payment procedure in cash or transfer should be the same as in case of cancelled
Demand Draft.

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Chapter 3 FOREIGN WIRE TRANSFER
Processing of Inward & Outward Foreign Currency Wire transfers for all branches across the country (except
TSCs for trade related Outward Remittances) is centralized with ‘Centralized Operations Division – (COD)’ and
being performed from its Centralized Processing Unit (CPU) established at Karachi.

3.1 FOREIGN WIRE TRANSFER – INWARD

While processing the Inward Foreign Currency Wire transfers from a centralized location, CPU has to refer each
case to the concerned branch to obtain the required information, authentication, approval or document before
processing the remittance:
3.1.1 For following reasons CPU has to refer the case to concerned branch:
i. Beneficiary Account number given in remittance details is incomplete. Beneficiary account number
and title of account given in remittance details differ. Beneficiary’s account not traceable. Ordering
Customer details missing or incomplete. Beneficiary’s account is on ‘Dormant’ or ‘Inoperative’ status
or closed account etc. Purpose of incoming remittance (for Foreign Currency Accounts) is of
COMMERCIAL nature. Purpose of remittance differ within the incoming remittance message MT-103
(Field 70 vs. information provided in payment details) or against Form ‘R’ provided by the beneficiary.
ii. If purpose of incoming remittance for individual account is “Business Investment” following
documents are required from customer:
 Form ‘R’ showing beneficiary’s ‘NTN’ number duly verified by an authorized officer of the bank.
 A written declaration advising the bank where the funds are going to be invested and signature
verified by the branch manager will be sent to CPU. Branch on Beneficiary’s Request
3.1.2 Return of Funds
i. If the beneficiary of the remittance wishes to return the funds to the remitter, concerned branch is
required to take an application from the beneficiary authorizing the bank to return the funds. The
customer application duly approved will keep a copy of customer request for their record.
3.1.3 Information provided by CPU to branches
i. After executing the Inward Foreign Currency payments, CPU will provide the following
information/documents to branches at end of day:
ii. Credit Advice (PDF file through e-mail) for onward submission to customer.
iii. With Holding Tax Certificates (where applicable): Original WHT Certificate will be dispatched to
branches under proper acknowledgment for onward delivery to customer.
iv. Proceeds Realization Certificates (PRC) where the purpose of remittance is of ‘commercial’ nature.
PRC can also be issued against Home Remittance and Salary Remittance on branch request on case to
case basis.
v. Original PRC will be dispatched to branches under proper acknowledgment for onward delivery to
customer. In case original PRC is lost by the customer ‘duplicate’ PRC’ will not be issued without FIR of
its loss and SBP approval is submitted by the concerned branch.
3.1.4 Reporting
i. Submission of W.H.T. to Government Authorities: Concerned branches will be responsible for
submission of Withholding Tax to concerned authorities. (For this purpose, CPU provides break up of
WHT deducted and parked in respective GL of the branch on daily basis through ‘daily transaction
report’).

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 ii. Monthly Reporting to SBP: Monthly reporting to SBP will be done at branch end by 3rd of each month
as per SBP guidelines.
iii. CPU will provide all Inward Wire transfer details and related MIS on PDF file on 25th of each month and
on last working day of each month (for the remaining days) to concerned branches through e-mail. On
receipt of details branches should ensure that ITRS system is updated at their end before 3 rd of each
month.

3.2 PROCEDURE FOR FOREIGN WIRE TRANSFER – INWARD

Funds Settlement Unit
Receives SWIFT Messages/Intimation (MT 103 & 202) for the day for branches.
Scrutinize the hard copies of payment instructions and:
Sort payments by branch & by value date i.e. same day value or future value.
Mention mode of payment i.e. credit to FCY account, PKR account, Back-to-back etc.
i. Check cover confirmation for same day value payments i.e. receipt of funds in our Nostro Account
through MT 940/950.
ii. Hold future value payments until receipt of cover.
Remittance Unit
Receive payment messages for the day through e-mail with attachments (the attached files are password
protected). Receives hard copies of payments (MT103 & 202) from Funds Settlement Unit confirming the
following:
i. Receipt of funds in Nostro Account.
ii. Agent code (Remitting bank).
iii. Beneficiary branch code.
iv. Upload the soft file of payments for the day on Wire Transfer System (WTS).
v. Generate the list and cross check its correctness.
WTS system generates e-mail to concerned branches providing details of payments received with a request to
confirm:
i. Beneficiary details (complete account number and title of account.
ii. Purpose of remittance and;
iii. Special exchange rate (if payment amount exceeds USD10,000)
Re-direct the payments pertaining to TSCs, Treasury & FI through Funds Settlement Unit (FSU) with remark “No
entry is passed by CPU” for processing at their end.
Branches
i. Retrieve the CPU e-mail of the ‘daily inward wire transfer details’ and revert back to CPU confirming:
 Complete account number & title of account
 Purpose of remittance
 Other (refer to Section 3: 3.1 Foreign Wire Transfer – Inward)
ii. Reporting of FCY deposits to circle office is the responsibility of concerned branch.
Centralized Processing Unit
On receipt of confirmation from branches CPU will execute/process the Inward FCY wire transfers at their end
and will advise the branches accordingly.
(Detailed process is defined in “Inward FCY Remittance User Manual” of Centralized Processing Unit.

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3.3 FOREIGN WIRE TRANSFER – OUTWARD
All SMBOLS branches will forward customer instructions for Outward Foreign Currency Wire transfer (except
TSCs for trade related Outward Remittances) on prescribed form (FTT or SF-100R) along with copy of customer’s
CNIC, necessary documents and SBP approval to Centralized Processing Unit (CPU) latest by 12:30 P.M
(exceptions may be allowed on case to case basis)
3.3.1 Execution of Outward FCY Wire Transfer by CPU:
Centralized Processing Unit (CPU) on receipt of Outward Foreign Currency Wire transfer requests and its
subsequent confirmation from the concerned branch will execute the remittance same day (if all the
requirements are met and required approval/documents are provided).
3.3.2 Information provided to Branches by CPU:
After executing the Outward Foreign Currency Wire transfers CPU will provide the following to branches
on the next working day:
i. Debit Advice: Debit Advices (in PDF file through e-mail) for onward submission to customer.
ii. Acknowledgement of MT 103: Swift acknowledgement of the outward remittance.

3.3.3 Reporting:
i. Submission of W.H.T Tax to Government Authorities: Concerned branches will be responsible for
submission of Withholding Tax to concerned authorities (For this purpose, CPU provides break up
of WHT deducted and parked in respective GL of the branch on daily basis through ‘daily
transaction report’).
ii. Monthly Reporting to SBP: Monthly reporting to SBP will be done at branch end by 3rd of each
month as per SBP guidelines.
iii. CPU will provide all Outward Wire transfer details and related MIS on PDF file on 25th of each
month and on last working day of each month (for the remaining days) to concerned branches
through e-mail. On receipt of details branches should ensure that ITRS system is updated at their
end before 3rd of each month.
3.3.4 Handling of Queries & Beneficiary Bank Charges:
i. Beneficiary claim for non-receipt of funds: Concerned branch, upon customer's intimation, will
inform CPU regarding non-receipt of funds to the beneficiary via e-mail along with required
details. CPU will take up the case with correspondent bank and will get confirmation of payment
of funds. Upon receipt of response CPU will update the concerned branch accordingly.
ii. Return of Funds: CPU will inform the concerned branch if the funds of Outward FCY Wire transfer
are returned by the beneficiary bank. Concerned branch will get in touch with the customer and
provide customer’s written request to CPU of the course of action – either re-effect the Outward
Wire transfer or credit customer account.
iii. Additional information required by Beneficiary Bank: To comply with AML policy, Beneficiary Bank
may request for additional information of the remitter related to the Outward Wire transfer. It will
be the branch responsibility to provide the required information enabling the Beneficiary Bank to
process the payment.
iv. Beneficiary Bank Charges (Against “OUR’): On receipt of debit in our Nostro Account for
beneficiary bank’s charges related to outward wire transfer, branch will recover the same from
customer and respond the entry in Nostro Account.

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3.4 PROCEDURE FOR FOREIGN WIRE TRANSFER – OUTWARD
Customer presents duly completed Remittance Application (SF-100R) along with required documents/approval
to the Officer Remittance Department.
Branch:
Receives the application & affix the receiving stamp with date and time.
i. Verify customer signature on customer application, affix branch stamp mentioning IBS/AS number &
sign off the application:
ii. Customer signature will be verified by an Authorized delegated Officer if the equivalent of wire
transfer amount is up to USD 10,000 or less.
iii. Customer signature will be verified by Branch Manager (BOM in absence of BM) if the equivalent of
wire transfer amount is greater than USD10,000
Scrutinizes the application and performs the following tasks:
i. Ensure compliance of KYC requirements/limits (DR/CR limits). In case of breach obtain new KYC form
and get it signed by Branch Manager.
ii. Update the new limits on the system (EOC) before the stipulated cut off time.
iii. Ensure availability of funds in customer account.
iv. Ensure that customer signature (SS Card) is tagged on EOC with the account on the system.
v. In case of joint account, confirm operating instructions. In case of attorney instruction (SF-6A27) for
operating the account get a copy of authority letter from record (for submission to CPU) or tag the SSC
of the attorney in EOC
vi. Ensure following information is available on the application:
 Beneficiary bank SWIFT code.
 Bank charges on account of ‘BEN’ or ‘OUR’
 Sort code (for remittance intended for UK).
 Routing number (for remittance intended for USA).
 Transit number (for remittance intended for Canada).
 BSB number (for remittance intended for Australia).
 Invoices in case of purchase of goods.
vii. In case the wire transfer equivalent to US$ 5,000 (subject to Treasury daily rate sheet) and is being
made with SBP approval against PKR account OR Cross Currency, special rate will be obtained from
Treasury and will be notified to CPU within stipulated cut off time
viii. Recover ‘cash handling charges’ from customer as per SOBC (in case wire transfer is against cash
deposit in foreign currency account)
ix. In cases where the wire transfer request is submitted by a person other than the account holder
himself, branch is required to get ‘call back confirmation’ (CBC) from the customer. A notation to this
effect must be made on the application and signed off by Operations Manager.
x. Obtain branch manager approval on the application for execution of Outward Wire transfer.
xi. Forward Outward Foreign Currency Remittance application to Centralized Processing Unit (CPU) via e-mail with
scanned copies of related documents or through Fax latest by 12:30PM
 Remittance application (SF100R) duly signature verified and approved (as mention above).
 Form ‘M’ (in case remittance is covered under SBP prior approval category).
 SBP approval (for remittances against PKR account).

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 3.4 PROCEDURE FOR FOREIGN WIRE TRANSFER – OUTWARD
 Invoice(s) in case of purchase of goods.
 Copy of customer’s CNIC.
 Other relevant documents.
Note: Ensure that ‘original set’ of application/documents is forwarded to CPU on the same day.
Centralized processing Unit (CPU):
On receipt of branch request for Outward Foreign Currency Remittance through e-mail or Fax will:
i. Scrutinize the contents of remittance application and related documents for completeness.
ii. To mitigate the risk involved in executing the remittance based on e-mail or fax, CPU will re-confirm
the details of the remittance (Currency, Amount, Beneficiary Name & Account Number, Beneficiary
Bank Name etc.) from the concerned branch through e-mail.
iii. GM's approval is required for High Value Transaction (PKR 5 Million and above)
Branch:
Branch Manager / Operation Manager will confirm back the genuineness of the request & correctness of the
details provided to CPU through e-mail and will also ensure that the ‘originals’ are forwarded to CPU.
Centralized Processing Unit (CPU):
On receipt of confirmation from the branch will:
i. Process the request and execute the Outward Foreign Currency Wire transfer.
ii. Recover the charges from the customer as per bank’s schedule of charges.

The user is required to refer to the SBP Foreign Exchange Manual for any detailed descriptive information.

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Chapter 4 RUPEE TRAVELERS CHEQUES (RTC)

4.1 INTRODUCTION
MCB Rupee Travelers Cheques is the best and safest alternate way of carrying cash. It is useful for travelers,
businessmen and general public alike in meeting their day to day cash requirements during travel. RTC is safest
because the purchaser has the sense of security that should the cheque be lost, he would get a refund easily. It
is best because unlike other modes of transfer of Fund/Remittance which are drawn on a particular branch and
could be encashed only at that Branch, while MCB Rupee Travelers Cheques can be encashed at any of our
Branches across the country.

4.2 DENOMINATION
MCB Rupee Travelers Cheques have been issued in the following denominations:
Series Denomination in Figure Denomination in Word
B PKR 1000/- Rupees One Thousand
K PKR 5,000/- Rupees Five Thousand
W PKR 10,000/- Rupees Ten Thousand

The special security features are explained here under:

MCB Water Mark: Special paper that has been used for printing bears MCB logo watermark which is
incorporated at the time of manufacturing of paper and is next to impossible for
any adventurer with false intentions to counterfeit.
Intaglio Print: Signature of the Chairman, lower bottom border and denomination button are
embossed and can be felt by running finger on it
Extra Small Print (E.S.P): The horizontal signature, date and payee lines are printed in E.S.P. The E.S.P reads
MCB Bank Limited and could be clearly read with the help of a magnifying glass.
Hidden MCB Logo: MCB logo above the denomination button glows under the UV light.

Serial No Bleeding Ink To protect RTC from threat of tampering serial number has been printed in Bleeding
Ink. This is much more secured, as it cannot be removed without making a hole in
RTC paper. The impression of Bleeding Ink can be seen on the reverse of RTC.

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4.3 COMMISSION / TAXES
Commission:
Branches will recover commission on sale of MCB Rupee Travelers Cheque as per tariff (SOBC) approved by the
bank from time to time.
Taxes:
Branches will recover Govt. Taxes on sale from the Purchaser of the MCB Rupee Travelers Cheque if applicable
as per existing law.

4.4 RTC STOCK AND REPLENISHMENT

Branches will receive stocks of Rupee Travelers Cheques through their respective centers established at various
Circles and Regional Offices. Branches which are not affiliated with any RTC Centre would receive the required
stocks from RTC Division P.O.
The stock of RTC will be kept under joint custody/control of the authorized officer of Circle/Regional Offices and
Officer-Incharge of the Centre. The Officer-Incharge of the Centre will also perform his usual duties at
Circle/Regional Office. The concerned staff will be responsible for weekly balancing of RTC stock in hand.

4.4.1 RTC Stock and Replenishment - Branches

i. Branches will submit their RTC requirement through their concerned Regional/Circle Office to RTC
Division, Principal Office. The requirement will be scrutinized by the Division and concerned Centre
will be advised to issue approved quantity of RTC’s to Branch. The requisition for supply of stock will
be routed through Regional Office on prescribed requisition forms available at branches. Request will
be approved by GM/RM/ROM and the request will be approved by GM/RM/ROM or his/her
designated officer mentioning his/her IBS/AS number thereon.
ii. The authorized representative of the Branch preferably a senior officer will approach the Centre with
an authority letter from the Branch to collect RTC. Signature of the representative will be attested by
the Branch Manager/BOM with their IBS/AS.
iii. The Centre, after verifying the signature of Branch Manager/BOM from AS/IBS signature book, will
issue Delivery Challan for the amount of RTC approved by RTC Division. The Delivery Challan (RTC-50)
consist of 4 copies marked A, B, C & D. Copies A and B will be handed over by Centre to authorized
representative of the Branch, along with stock of RTC.
iv. Banks Authorized Officers on receipt of stock through their representative will immediately physically
count the cheques and will ensure that the stock received matches with the details given on Delivery
Challan. After being satisfied with the correctness of the stock received, Copy B of Delivery Challan
which is the acknowledgment copy will be forwarded to RTC Centre immediately through courier
service/FAX, duly signed by Branch Manager or GBO holding signing power, with copy endorsed to RTC
Division. The GBO will immediately enter the stock in Stock Register RTC 60 and BOM will counter sign
it. RTC stocks will be kept in safe in dual custody of BOM and GBO. Copy “A” will be retained for
record/Audit trail.
v. If, for any reason, the representative deputed to collect RTC does not report back to the concerned
Branch on the scheduled day and time, inquiry must be made about his whereabouts and necessary
action must be taken immediately including report to Rupee Travelers Cheque Division, if something
goes wrong.
vi. After physical receipt of stock, branch designated officer will inform RTC Division (RTC Operations
Department) immediately or very next day through email at [email protected] or

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 [email protected], or fax in the following manner:

Email / Fax Subject: RTC Stock Received on [Date]

Email Body:
Instrument Number Range: [From] - [To]
Quantity:
Denomination
Branch Name:
Branch Code:

vii. After receipt of e-mail, RTC Division will distribute the ‘RTC series’ on Symbols EOC system.
viii. RTC Division will intimate the branches after entering the series in the system through e-mail. After
completion of the said process the branches will start cheque re-assignment.
ix. The Branch Manager is authorized to allocate ‘RTC series’ in the system by accessing Deposit Menu >
Cheque Instrument > Cheque Re-assignment > and using assigned Password and following the steps as
indicated in the displayed screens. BOM can re-assign cheques to tellers/ GBOs whoever is authorized
to sell RTCs at any given point.
x. In-put the following fields for cheque re-assignment are:
Cheque Type: RTN
Currency: PKR
From Officer ID: Enter previous tellers Symbols EOC ID
To Officer ID: Enter current tellers Symbols EOC ID
Denomination: 10,000
Prefix: Press F-9 Key
Start No.: Initial RTC Number
Quantity: Total Number of RTC
End No.: Automatically appearing

xi. Liability Entries for the stock of Cheques held by the branches. The following Manual and Auto entries
are passed:

Manual Entry:
Debit: Stock of Security Customer Liability (2110101160)
Credit: Stock of Security banks (1130101220)

Auto Entry:
Debit: Cheques Distribution (Off Balance) (5010101010)
Credit: Cheques Distribution (Off Balance) (5010101020)

xii. RTC centers will ensure that sufficient stock of RTCs is always remains with them. The Hub/TC Division
will replenish the stock according to Sales/Supply position of each Centre.
xiii. ROM should also check physical stock of RTC in hand on their visits to branches.

4.4.2 RTC Stock and Replenishment - Hubs

i. For requisition/replenishment of stock from RTC Division Principle Office, the Hub will fax letter of
authority signed by General Manager himself or in his absence by the next executive deputizing for
him.
ii. After scrutiny of stocks required RTC Division will dispatch through approved courier the stocks kept in

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 a cotton bag and sealed with plastic tag bearing serial number along with delivery Challan. An
intimation of dispatch will be faxed which contains the courier receipt number, the weight of
consignment, date & time and seal number.
iii. Upon receipt of stocks consignment representative of HUB will immediately check the seal and weight
of consignment. He will also check the seal of each box containing cheques. After satisfaction, he signs
of the courier delivery slip and will immediately fax the signed copy of delivery Challan to RTC Division,
an intimation of receipt of stocks should be sent to RTC Division.
iv. On arrival of stocks at the Hub the Stock will be physically counted immediately by Incharge and
entered in Stock Register RTC 60. Stock must be checked and kept under dual control at Hub. Any
discrepancy in Stock or delay in arrival of courier must immediately be brought to the notice of RTC
Division.
v. Hubs will ensure that sufficient/adequate stock always remains with them.
vi. At the end of each day, each Hub will Fax the total supply of RTC’s among Centers/Branches to RTC
Division on RTC-60 giving denomination wise details and will also send original statement along with
copy C of Delivery Challan by Courier Service on the same day, without fail.

4.4.3 RTC Stock and Replenishment Centre

If centers feel that stocks requisition from the assigned HUB is expensive and time consuming they may
send request to RTC Division as described in (i) & (ii) above. The same procedure will be followed as
detailed in HUB Stock replenishment.
i. Centers will submit their RTC requirement to RTC Division, Principal Office on the prescribed Performa
(Sample attached at the end of the manual). The requirement will be scrutinized by the Division. The
concerned Hub will be advised to issue approved quantity of RTCs to Centre.
ii. The authorized representative of the Centre preferably a senior officer will approach the Hub with an
authority letter to collect RTC. Signature of the representative will be attested by authorized officer
with his/her AS/IBS
iii. The Hub, after verifying the signature from AS/IBS signature book, will issue Delivery Challan for the
amount of RTC Approved by RTC Division. The Delivery Challan (RTC-50) consist of 4 copies marked A,
B, C & D. Copies A and B will be handed over by Hub to Authorized representative of the Centre along
with stock of RTC. Copy C and D are retained by RTC division for stock issuance and audit trail
purposes.
iv. Centre on receipt of stock through their representative, will immediately physically count the cheques
and will ensure that the stock received matches with the details given on Delivery Challan. After being
satisfied with correctness of the stock received, Copy B of Delivery Challan which is the
acknowledgment copy will be forwarded to Hub immediately through Courier Service, duly signed by
Senior Official holding signing power, with copy endorsed to RTC Division. The Incharge will
immediately enter the stock in Stock Register RTC-60.
v. If, for any reason, the representative deputed to collect RTC does not report back to the concerned
Centre on the scheduled day and time, enquiry must be made about his whereabouts and necessary
action must be taken immediately including report to Rupee Travelers Cheque Division, if something
goes wrong.
vi. At the end of the day, each Centre will Fax the total supply of RTC’s among designated branches to
RTC Division, Karachi on RTC-60 giving denomination wise details and will also send Original Statement
along with Copy C of Delivery Challan by Courier Service on the same day, without fail.
vii. RTC Centers will ensure that sufficient/adequate stock always remains with them.
viii. Karachi Branches will be delivered Rupee Travelers Cheques direct from Rupee Travelers Cheque
Division, following the same procedure as outlined for supply of RTC to RTC Centers.
ix. ROM should also check physical stock of RTC in hand on their visits to branches.

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4.5 RTC SALE PROCEDURE
i. Customer will approach branch counter at any of our Branches Authorized in Sale and Purchase of
Rupee Travelers Cheque and inform the Incharge/General Banking Officer (GBO) about his requirement
of RTC in terms of Amount as well as denomination.
ii. The RTC Counter Incharge/GBO will get a set of Sale receipt (RTC 10) comprising 03 copies (A, B and C)
filled/signed by the purchaser.
iii. The Purchaser will write his name and address, CNIC /Account number at the upper left portion,
quantity, denomination and Amount of RTC required to be purchased at upper right side and put his
signature at the lower middle portion of each copy of Sale Receipt RTC-10, A, B and C separately.
iv. Customer facing any difficulty in filling the RTC 10 will be assisted by the staff of the Branch.
v. After filling RTC 10, the customer will hand it over to the Teller. RTC Incharge/General Banking Officer
(GBO) will check and ensure that all the relevant columns have been filled up correctly. He will fill the
remaining columns in the RTC 10 like Branch name, Branch code; Serial number of RTC’s issued. The
total amount of Travelers Cheques sold the amount of commissions, amount of Tax, if applicable, will be
computed and written in the cage provided in the Form. If purchaser is a walk in customer, KYC
documentation may also be completed. Non account holders can only deal with the Bank provided CDD
/ KYC is carried out and attested copy of CNIC by branch manager is obtained from the non account
holder if the amount is up to PKR 500,000 and marked as original seen. And for amounts exceeding this
threshold requires obtaining the filled-in Walk-in- Customer Information Form (WICIF) along with CNIC’s
attested copy marked as ‘original seen’ and must be kept with the vouchers. NTN Number may also be
obtained. For non account holder customer signature on RTC-10 must be matched with signature on
CNIC and for account holder signature verification from SS card must be done.
vi. After completion of RTC 10, Purchaser will be asked to pay the cost of RTC. In case the customer wishes
to deposit the cost in cash, RTC 10 Form duly complete, will be handed over to him to deposit cash at
cash counter. If the Customer wants to pay the cost by debit to his account, he will give a cheque for
total cost of cheque in favor of MCB.
vii. On presentation of RTC 10 at cash counter the teller will receive the cash as per his authorized limit &
record in SF-14 sheet as mentioned in the forms and will put “cash received” stamp on all the copies.
After this the teller will sign the vouchers and send the same to the TSS/ BOM for 2nd signature. After
signature of the officer, Teller will retain Copy B of RTC 10 with himself and return Copy A and C to RTC
issuance officer (RTC Incharge). Transactions beyond the authorized limit of the teller/GBO will be
signed by Branch Manager/BOM/Teller.
viii. If payment is made by debit to customer’s account, RTC 10 along with cheque or voucher raising debit to
customer account will be sent to the GBO. The GBO will get the Cheque/Voucher posted in the
respective account, if it is in order, and after posting/passing of the cheque/voucher, will put Transfer
Rubber Stamp on all copies of RTC 10 as well as on cheques/vouchers. He will Counter-sign the RTC 10 at
the specified place and will return all Copies of RTC 10/cheque/voucher to RTC Counter/Department.
Account Number will be written in RTC 10, below the column “received cash/by cheque”.
ix. GBO & BOM (Dual Custody) on receipt of the above request will draw required number of RTC as
mentioned on RTC 10 from the stock making sure that these are drawn in order of serial. The numbers
drawn/issued will be noted in Stock Register (RTC-60). The GBO mentions detail of RTC in register (RTC-
60) and counter sign in column. will check and verify that stock of RTC drawn for issuance has been
posted correctly in Sale Register (RTC-60). BOM countersign the register. The entire process of
Checking/Posting of RTC will also be supervised by Branch Operations Manager or Senior Officer
authorized by Branch Manager.
x. After recounting, re-checking the drawn stock, in respect of quantity, series, denomination and amount,
a responsible Officer/Staff of the Branch will affix Rubber Stamp supplied by Principal Office or prepared

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 by Branch itself as per design/sample/size approved by Principal Office at the Back of each RTC. It will
thereafter be signed by GBO of the Branch, just below the Rubber Stamp. AS/IBS Number will be written
below the signature to facilitate the Authentication and verification of transaction. Branches may
prepare a Rubber Stamp in the name of authorized signatory with his IBS/AS Number and affix it at the
back of Travelers Cheque so that the name of authorized signatory and his AS/IBS are clearly legible.
xi. After completion of stamping formalities, the purchaser of the cheque(s), will be asked to sign each
cheque leaf at the place marked for signature. The purchaser will sign at lower left portion of RTC. After
each cheque have been/is signed by the purchaser in presence of the Officer of the issuing Branch, the
cheque(s), will be put in an envelope and handed over to the purchaser, along with Copy C of RTC 10.
xii. The purchaser before leaving the Branch will be advised to check the Rupee Travelers Cheque(s), RTC-10
Copy C etc and satisfy himself in every respect. His attention must also be drawn to the terms and
condition of the Sale agreement printed on reverse of the RTC 10. He (customer/purchaser) may also be
advised to keep record of all Rupee Travelers Cheques used by him and keep Copy C of RTC 10 separate
from RTC’s. This Record/Copy of RTC 10 will help him in obtaining Refund of Rupee Travelers Cheques in
case of Loss/Theft.
xiii. Copy A of the RTC-10 Sales slip will be dispatched to RTC division for compliance purposes.

4.5.1 RTC Sale Procedure (Posting / Accounting):

Branch teller / GBO after getting the cheques assigned, will access the Symbols EOC using his / her user
name and password, and access the deposit module, click cheque instrument from the menu bar, select
Transaction and select TC Cheque Sell. A screen “TC Cheque Sell” will be displayed. Input the following
fields:
1. Cheque Type: RTN
2. Currency: PKR
3. Tran type: RTCS for sell in cash
RTTS for sell in transfer
RTSI for sell against lost/stolen/refund
4. Name: Enter customer name
5. ID type/No: Enter NIN | Enter CNIC number of customer
(This is mandatory information)
6. Settle Ccy: PKR
7. Cheque Amt: Enter total cheques amount
8. Denomination: Enter denomination of RTC (for example 5000, 1000, 10000 etc)
9. Prefix: Enter prefix of particular denomination or press F-9 key
10. Quantity: Enter total number of RTC to be sold for particular denomination
11. Start No: Enter starting RTC number
12. End No: Automatically appearing

4.5.2 RTC Sold against Cash Payment

GBO for the sale of RTC from system, select Deposit then ‘Cheque Instrument’ to ‘Transaction’ and select
‘TC sell’. GBO select transaction type as “RTCS” for sale in cash and enter data in relevant fields and affix
“posted stamp with date “on the application i.e. RTC-10. Following financial impact will be shown in
branch books/ GL at the time of series allocation in system/RTC sale.

RTC sell against Cash (Auto entry)

Debit: Cash in Vault (2010101010)

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 Credit: RTC Payable TC (1060101070)

Reversal of Branch Stock Liability Entry (Auto entry)

Debit: Stock of Security (Bank Liability) (1130101220)
Credit: Stock of Security (Customer Liability) (2110101160)

Reversal of Branch Off Balance Entry (Auto entry)

Debit: Stock Received Contra-Off balance (5010101020)
Credit: Stock Received Off Balance (5010101010)

Commission Entry at the time of sale against Cash (Manual entry)

Debit: Cash in Vault (2010101010)
Credit: Commission on RTC (3030401060)

GBO print vouchers from system sign off and forwarded to BOM for counter sign.

4.5.3 RTC Sold against Debit to Account

GBO check and verify Apparent feature of cheque (like: post dated cheque, antedated cheque, amount in
word and figure differ etc.), customer signature from system and funds are available in customer account
then post Cheque using transaction type “CQWI” or debit authority using transaction type “TFRD” in the
system and affix “Posted stamp with date” on the application i.e. RTC-10 and cheque. Following financial
impact will be in branch GL.
RTC sell against Debit to Account (Auto entry)
Debit: Customer account Debit (XXXXXXXXX)
Credit: Inter-branch Settlement A/c (1091101010)

Commission Entry at the time of sale against Debit to Account (Manual entry)
Debit: Customer account Debit (XXXXXXXXX)
Credit: Commission on RTC (3030401060) (Commission if any)

Note: Transaction beyond the authorized limit of GBO will be Supervised /signed by TSS / BOM / BM

4.5.4 RTC System Posting

GBO for the sale of RTC from system, select Deposit than ‘Cheque Instrument’ to ‘Transaction’ and select
‘TC sell’. GBO select transaction type as “RTTS” for sale in transfer and enter data in relevant fields.
Following financial impact will be shown in branch books/ GL at the time of series allocation in system/
RTC sale.
Following are the Auto Entries
RTC sell against Cash
Debit: Inter-branch Settlement A/c (1091101010)
Credit: RTC Payable TC (1060101070)

Reversal of Branch Stock Liability Entry

Debit: Stock of Security (Bank Liability) (1130101220)
Credit: Stock of Security (Customer Liability) (2110101160)

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 Reversal of Branch Off Balance Entry
Debit: Cheque Distribution -Off balance (5010101020)
Credit: Cheque Distribution Off Balance (5010101010)

RTC-10 copy “A “will be dispatched by branch to RTC Division for compliance purpose. RTC copy “C” hand
over to customer

4.5.5 Day-end report generation:

At day end GBO generate Pre-Consolidated report for RTC transactions. Issuance officer/user will fetch the
transaction posting report (RBA-11) from Symbol and validate the source documents/vouchers and
arranges filing of the same and sign off.
To generate the Pre-Consolidated report click on Reports>Accounting>Pre-Consolidated Generated
Entries, and use the fields to prepare the report.
i. Branch Operation Manager / TSS counter sign GBO activity
BOM/TSS review vouchers and reconcile with report and counter sign it.
ii. Reporting of Sale of 0.5 Million and Above RTCs
Branches will report without fail RTC sold amounting to PKR 500,000 and above in sequential order
in a day to one customers on the prescribed format as per previous practice to RTC Division, PO,
Karachi for operational control. The report will cover the name of customers, address, CNIC number
and sold RTC numbers.

4.6 SURRENDER OF UNCLAIMED DEPOSITS/INSTRUMENTS TO SBP

In compliance of SBP Master Circular, Section 31 of BCO-1962 and BPD circular no.07, dated 21-07-2006, and
BPRD Letter No. 37 dated December 03, 2009 branches will surrender the amount of RTCs that have remained
outstanding (un-enchased) for a period of 10 years to SBP. Branches will refer to Section 1: 5.5 Surrender of
Unclaimed Deposit to SBP in this regard.
RTC Division will provide date of unclaimed cheques to respective branches. Branches will issue a three month
months notice in writing by registered post acknowledgement due/courier to the purchaser on the address
available on RTC 10 (branch copy). A copy of notice will be sent to RTC Division for record purpose. In case of
return of the mail or no receipt of claim, the amount of unclaimed RTCs will be forwarded to RTC Division for
further processing and onward surrender to SBP through TSD.

4.7 RTC PURCHASE PROCEDURE

MCB Rupee Travelers Cheques will be purchased by any of our Branches.
The Rupee Travelers Cheques may be encashed or accepted for credit to the account of payee by the Branches,
subject to the following check list:

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 4.7.1 Scrutiny of RTC:
i. Genuineness:
 Examine that Rupee Travelers Cheques leaves presented for payment is genuine and not
counterfeit. This can be checked by comparing them with the specimen Rupee Travelers
Cheques supplied to Branch or by referring to circulars issued by the bank from time to time.
 If there is any doubt that the RTC is counterfeit/altered/misprinted or its features lack
genuineness then immediately contact RTC Division before returning the instrument to the
customer.

ii. Stamp:
 Ensure that Rubber Stamp of Issuing Branch is affixed at the back of the Rupee Travelers
Cheque.
 Check Rubber Stamp affixed on the back is of same size/design/sample as approved/supplied by
RTC Division P.O.

iii. Bank Official Signatures:

 Ensure that cheques issued have been signed by an authorized official/GBO of issuing Branch
mentioning his/her IBS/AS number, just below the Rubber Stamp at the back of the RTC.
 Check that signature of the authorized official/GBO appearing at the back of the RTC matches
with the specimen signature of the officer in Bank’s IBS/AS Signature Book.
 Signatures of RTC Owner:
 See that the Signature of the Owner exists at the lower left corner of the RTC.
 See that the counter-signature of the Owner appears in the upper left corner of RTC.
 See that both signatures match with each other.
 See that signatures are clear, not tampered with or over written.
 Stop Payment:
 Before payment of MIBBS issued RTCs (Non-symbol) check stop payment bulletin. No payment
is to be made, if related RTC numbers appear in Stop Payment list.
 Stop payment of a symbol issued RTC against which caution has been marked in the system, the
system will deny posting of such cheques. For clarification, branches will require a check status
by referring to ‘Cheque Status history Listings’. RTC Division has the exclusive discretion to
earmark caution against any RTC which is reported as lost/stolen by claimant duly
recommended by reporting branch in real time.

iv. Cash Payment:

Cash payment is made only to original purchasers of RTC on the production of RTC-10 sales slip. Please
ensure the following:
 RTC bears signature of the owner at the lower left corner of the RTC.
 The owner counter-signs the RTC at upper left corner of RTC in presence of the encashing
branch officer/GBO.
 Both the signatures match with each other and also with the signature appearing on the RTC 10.
 Proper identification of the person encashing the RTC has been obtained.
 If customer has signed at both places, please request him/her to sign the reverse of the
instrument. Please watch and compare the signature.

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  Original identification documents like CNIC and original RTC-10 slip should be examined and
Branch should not rely on photocopies. The particulars of CNIC with date, place of issue and
name of the person in whose name identification documents issued may be noted at the back of
each RTC leaf.
 Credit to Account:
 If RTC is presented for credit to customer’s account, it should be ensured that it is credited
exactly in the same account as is written on the face of the RTC.
 When an account holder desires to have the amount of Rupee Travelers Cheque credited to
his/her account, he will fill pay-in-slip and deposit it to the designated officer. The Designated
Officer will scrutinize the RTCs tendered along with pay-in-slip and satisfy himself that the RTC is
in order as per bank guidelines, sign the pay-in-slip and return the counterfoil to depositor.
 RTC should not be credited to an account other than the one whose name/title has been
mentioned in the RTC.
 Take all the usual Precautions/Safeguards as applicable to payment of other cheques/negotiable
instruments.

4.7.2 RTC Purchase / Encashment Procedure:

After each of the RTCs (Symbols and non-Symbols issued) presented for payment has been scrutinized as per
check list defined under Section 4: 4.7.1 Scrutiny of RTC: and branch official/GBO has been satisfied that the
presented cheques are in order the designated officer initiates the posting of cheques:

i. MIBBS / Manual Sold Cheques:

RTCs sold by MIBBS/Manual (before Symbolization) will be encashed/transferred to accounts as per
old procedures. Branch will continue to debit RTC Division (5440) by preparing Debit Advice SF-180.

ii. Symbols Posting – Payment:

Branch teller/GBO/RTC Officer will log on Symbols EOC using his/her password access “Deposit
Module” and click cheque instrument from the menu bar and then select “TC Cheque Buy” Input
screen will be displayed. Input the fields as required by the system:
Cheque Type: RTN
Cheque CCY: PKR

Transaction Type:
For Cash Payment: RTCB
For Transfer Payment: RTTB
For Buy in Clearing: RTCL
(Do not use other then above transaction codes for RTC buy)

ID Type: Input CNIC/DOC ID/Customer account no for buy in

cash/account Input BRN/Input DOC ID for buy in clearing
Denomination Input: 5000-10000
Prefix Input: W for 10000, K for 5000 & B for 1000
Start No: Input start number of RTCs
End No: Input end number of RTCs (Please ensure that RTCs are in series)
Quantity: Will appear automatically

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 iii. Payment of RTC: Cash
Teller makes the payment of RTC by accessing the system using his password and accessing ‘Deposit’
then ‘Cheque Instrument’ then select ‘TC Cheque buy’ and fill the respective fields in Symbol as
stated above. Select transaction code “RTCB” for buy in cash.
Encashment of RTC by issuing branch:
Following Auto entries will be generated
Cash Payment
Debit: RTC Payable. (Liability A/c) (1060101070)
Credit: Cash in vault (2010101010)

Reversal of Off Balance Stock Entry

Debit: Cheque Distribution - Off balance (5010101010)
Credit: Cheque Distribution -Off Balance (5010101020)

Encashment of RTC issued by other branch:

Issuing branch of the presented cheques will be debited automatically by the System. Following
Auto entries will be generated
Cash Payment
Debit: HO Account (issuing branch) (1110101010)
Credit: Cash in Vault (2010101010)

Reversal of Off Balance Stock Entry

Debit: Cheque Distribution - Off balance (5010101010)
Credit: Cheque Distribution Off Balance (5010101020)

Encashment entry auto generated at Issuing Branch

Debit: RTC Payable (liability A/c) (1060101070)
Credit: HO Account (Purchasing/Encashment Branch) (1110101010)

Note: Transactions beyond the authorized limit of teller will be Supervised / signed by TSS / BOM /
BM

iv. Payment of RTC: Transfer

GBO makes the payment of RTC. GBO access the system using his password and accessing ‘Deposit’
then ‘Cheque Instrument’ then select ‘TC Cheque buy’ and fill the respective fields in Symbol. Select
transaction code “RTTB” for credit in account. Following financial impact will appear in GL of branch
at the time of purchase of RTC.
Encashment of RTC by Issuing branch:
Following Auto entries will be generated:
Debit: RTC Payable. (Liability A/c) (1060101070)
Credit: Inter-branch settlement A/c (1091101010)

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 Reversal of Off Balance Stock Entry
Debit: Cheque Distribution- Off balance (5010101010)
Credit: Cheque Distribution -Off Balance (5010101020)

Entry to afford credit to customer account (by using transaction code TFRC):
Debit: Inter-branch settlement A/c (1091101010)
Credit: Customer Account (XXXXXXXXXX)

Encashment of RTC issued by other branch:

Following Auto entries will be generated
Debit: HO Account (issuing branch) (1110101010)
Credit: Inter-branch settlement A/c (1091101010)

Reversal of Off Balance Stock Entry

Debit: Cheque Distribution - Off balance (5010101010)
Credit: Cheque Distribution Off Balance (5010101020)

Encashment entry auto generated at Issuing Branch

Debit: RTC Payable (liability A/c) (1060101070)
Credit: HO Account (Purchase/encashment Branch) (1110101010)

Entry to afford credit to customer account (by using transaction code TFRC):
Debit: Inter-branch settlement A/c (1091101010)
Credit: Customer Account. (XXXXXXXXXX)

Note: Transactions beyond the authorized limit of GBO will be Supervised / signed by TSS / BOM /
BM

v. Payment of RTC: Clearing

RTC officer clear the payment of RTC in clearing. GBO will access the system using his password and
accessing ‘Deposit’ then ‘Cheque Instrument’ then select ‘TC Cheque buy’ and fill the respective
fields in Symbol. Select transaction code “RTCL” for Buy in clearing. Following financial impact will
appear in GL of branch at the time of purchase of RTC.
Encashment of RTC by Issuing branch:
Following Auto entries will be generated
Debit: RTC Payable. (liability A/c) (1060101070)
Credit: Clearing control A/c (1150101140)

Reversal of Off Balance Stock Entry

Debit: Cheque Distribution- Off balance (5010101010)
Credit: Cheque Distribution -Off Balance (5010101020)

Cleared RTC amount will be transferred to collecting bank through HO a/c maintained with SBP

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 Debit: Clearing control A/c (1150101140)
Credit: HO Account (1110101010)

Encashment of RTC issued by other branch:

Following Auto entries will be generated
Debit: HO Account (issuing branch) (1110101010)
Credit: Clearing control A/c (1150101140)

Reversal of Off Balance Stock Entry

Debit: Cheque Distribution - Off balance (5010101010)
Credit: Cheque Distribution Off Balance (5010101020)

Encashment entry auto generated at Issuing Branch

Debit: RTC Payable (liability A/c) (1060101070)
Credit: HO Account (Purchase/encashment Branch) (1110101010)

Cleared RTC amount will be transferred to collecting bank through HO a/c maintained with SBP
Debit: Clearing control A/c (1150101140)
Credit: HO Account (1110101010)

Note: Transactions beyond the authorized limit of RTC officer will be Supervised/ signed by
TSS/BOM/BM

vi. Day end report generation:

At day end teller/ GBO/ RTC officer generate Pre-Consolidated report for RTC transaction posting report
(RBA-11) from Symbol and Validates the source documents/ Vouchers and arranges filing of the same and
sign off. BOM reviews vouchers, reconciles with report and counter sign it.

vii. RTC Payable report:

Branch official will extract RTC payable report from Symbols KM and will ensure that balance as KM report
matches with balance as per General Ledger. Differences, if any, should immediately be escalated to
concerned authorities.

viii. Reversal of error/mistake occurs during processing of Encashment transaction:

 Branch official should take all precautions during input of RTC information into the
symbols system. If any mistake in encashment process is occurred, the entire batch will
be reversed with the prior permission of ROM.
 If any input error is detected before run of EOD (same day) the branch authorized
official may reverse the same using RTC Reversal Option of the system. The entire batch
will be reversed and after rectification of error batch will be re-entered into the system.
If the error detected after run of EOD the reversal will be made via HO. In both
conditions ROM approval is required.

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 ix. Dispatch of Paid Cheques
 After completion of encashment transaction, cheques will be defaced properly by affixing paid
stamp on face of the cheques.
 Cheques must be punched holes and placed in a sequential order.
 After the banking hours, branch/operation manager/RTC in charge will check the data entry;
compare it with the paid cheques. In case of reversal of entry, it should be ensured that
transaction is validated by ROM.
 Branch will retain the SYBMBOLS Paid cheques till next day (following morning) to access ''RTC
CLEARING TRANSACTION REPORT" which is generated and released by Symbols KM Team on
daily basis. The Cheques will be kept in safe custody till following morning.
 On next day branch will retrieve the stored original paid cheques as detailed in above and
dispatch the paid cheques to RTC Division along with “RTC CLEARING TRANSACTION REPORT”
containing details of cheques encashed by the branch on previous day. Branch will follow the
following procedure while dispatching paid cheques to RTC Division.
 Dispatch of Symbol Paid Cheques
 Retrieve original paid cheques placed in a sequential order relating to previous day encashment.
 Take out print of "RTC Clearing Transaction Report" received from Symbols KM Team.
 Compare all paid cheques with the REPORT and ensure that NO RTC is missing and total amount
of paid cheques tallied with the report. Sign and Stamp the Report.
 Ensure that all the Symbol paid cheques are sealed off and stitched together properly.
 Place the paid cheques along with RTC Clearing Report in an envelope and seal the same
carefully to avert pilferage/outside intervention.
 Write down the details/ information on the envelope: Branch name and code, Total Number of
Cheques being dispatched and Courier Receipt Number. Courier receipt obtained from courier
company will be kept date wise.
 The envelope prepared as above will be placed in another envelope duly addressed to RTC
Division, 1st Floor, 124-P, Block-2, Tariq Road, P.E.C.H.S Karachi.
 To avoid any complication particularly incidents of "LOST IN TRANSIT" branches have additional
responsibility to follow the steps mentioned herein above judiciously.
 There is no change in the encashment procedure of MIBBS cheques. Dispatch of MIBBS paid
RTCs will be made as and when the transaction is made without any delay.

4.8 REPORT OF LOST / STOLEN RTC

Following procedure will be observed by RTC Division for online earmarking caution against payment of lost /
stolen Rupee Travelers Cheques. BM / BOM are required to follow the following guidelines:
i. All MCB Branches are authorized to entertain "Incidents of Lost/stolen Cheques" and accept application
from an eligible reporter for onward submission to RTC Division duly supported by CNIC and FIR /
Roznamcha Report.
ii. Report on lost/stolen cheques may be submitted by purchaser of the RTC himself or the person who was
carrying the RTC as holder in due course and from whose possession the RTC has been lost.
iii. The report must be hand written or typed and should be addressed to the Manager / Operation
Manager of the Branch of reporting. The report should be specific and contained Serial Number of lost /
stolen cheques, the circumstances under which RTC’s came into his possession and thereafter lost /
stolen, proof of ownership i.e. C copy of RTC 10, status of lost / stolen cheques (unsigned, singly signed,

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 double signed, crossed, uncrossed, double signed and crossed, endorsed but unsigned, endorsed but
singly singed etc, Business/Residential Address and Telephone number of the person reporting the
incident.
iv. Report of loss will be made to the nearest Police Station simultaneously. Customer will submit the
original FIR / Roznamcha to the branch
v. As per terms and condition of Sale agreement printed on the back of Sale receipt (RTC-10) MCB will
replace or refund the face amount of any Rupee Travelers Cheques that are Reported Lost/Stolen
provided that:
 The RTC reported lost was not blank and had been signed by purchaser as the place marked for
purchaser’s signature at the time of purchase.
 The RTC has not been countersigned by the purchaser at the place specified for
countersignature.
 Purchaser has not voluntarily parted with the RTC in a manner of his own choice or in
connection with a game of chance, wager, confidence game or illegal transaction.
 RTC has not been seized or confiscated by Government action.
vi. In terms of agreement mentioned in the sales agreement, MCB Bank Ltd. is not bound to stop the
payment of any RTC, due to any reason. The loss notice received by the bank will, therefore, not
constitute an admission of liability.
vii. The Branch after receiving the application from the party will verify the contents, check supporting
documents and then forward the same to RTC Division through e-mail / fax / courier. Branch will send all
documents received from the person reporting lost/stolen RTC to RTC Division by courier. Contact
details are as under:
E-mail: [email protected]; or [email protected]
Fax: 021-34556308, 021-34387625
Phone: 021-34553602-04
Address: Principal Office: MCB Building – 1st Floor, Plot #: 124–P, Block –2, Tariq Road, P.E.C.H.S.
Karachi.

4.8.1 Online circulation of Lost/Stolen RTCs serial number:

RTC Division upon receipt of lost/stolen cheques report as above will examine the application on merit
and may ask all authorized branches to act accordingly in the following manner:
i. MIBBS (Non-Symbols) Cheques:
 If lost/stolen case of RTC is related to MIBBS / Manual RTC Division will review the case on
merit and issue a bulletin with the instruction to amend the record with the missing
cheques. Branches will update their record on MIBBS and file the bulletin in sequential
order.
 In order to safeguard the customers RTC from fraudulent encashment an email may be sent
to branches immediate after receipt of lost report.

ii. Symbols Cheques

If lost/stolen RTC is sold by Symbols, RTC Division will review the case if found consistent to
requirement caution against the lost RTC will be marked and circulated online. No bulletin will be
issued.

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 iii. Deletion of Lost/Stolen Cheques (Removal of Caution mark)
 For deletion cases of cheques that were earlier declared lost/stolen and
subsequently recovered, branches will obtain a written request from the
complainant confirming therein that the RTC(s) have been recovered. The signature
of the customer will be verified by branch official. The branch will then forward the
request letter duly signed by the claimant and signature verified by officer carrying
authority of IBS / AS to RTC Division.
 If the cheques were issued by MIBBS/Manual System RTC Division will issue a
bulletin for deleting the caution against the payment.
 For Symbols sold RTC, caution mark will be deleted by RTC Division and the
concerned branch will be notified
Note: Branches do not have any authority to mark caution or delete caution.

iv. Recovery of Lost/Refund/Deletion Charges:

The branch will recover and retain charges from the claimant against services rendered in respect of
refund or deletion of caution marked against the payment of lost/stolen cheques as per schedule of
bank charges.
Following Manual entries will be passed:
Debit: Customer A/c/Cash (xxxxxxxxx)
Credit: MISC Income/Earnings (xxxxxxxxxx)

4.9 REFUND / REPLACEMENT OF LOST / STOLEN RTC

Claimant of lost / stolen cheques may approach concerned branch to get refund against lost / stolen RTC as per
laid down procedures mentioned herein:

Branch may come across 3 situations while entertaining refund cases:

4.9.1 Situation (A):

RTC’s lost by purchaser himself.
i. In such case(s), purchaser may contact selling Branch, complete refund application form (RTC 80);
submit required documents like copy of FIR, copy of CNIC, Indemnity Bond (First Party) and original
Copy-C of RTC-10. The Branch on receipt of these documents if in order, will forward the documents
to RTC Division Principle Office.
ii. Before forwarding the Refund Applications/Documents, the Branch Manager/BOM will attest the
signature of the Purchaser on refund application form (RTC-80) after verifying signature from the
Branch copy of RTC-10. He will also add his recommendation for Refund.
iii. Replacement RTC’s will only be issued by Branch on receipt of Approval from RTC Division, Principle
Office, Karachi. The approval for replacement of RTC is accorded on case to case basis. Normally the
approval is accorded within 20 days.
iv. The approval for replacement RTC’s is accorded to branch within 20 days from the date of RTC
reported/circulated lost/stolen, if the documentations are completed in all respects.

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 4.9.2 Situation (B):
RTC’s have been lost by person other than the purchaser. For seeking refund in such cases, the party
claiming refund has 2 options:
B.1.Option 1:
i. He should contact the Original Purchaser either directly or through the person from whom the
cheques were received by him and request him to file refund claim application form with the
issuing Branch and after re-issue of the RTC hand over the same to him duly signed/counter-
singed and endorsed in his favor.
ii. In such case an indemnity (First Party) will be executed by original purchaser and claimant jointly
on stamped paper of appropriate amount. In such situation, same procedure will be followed as
prescribed for refund in Situation No.1 with the only exception that after issue of the RTC, same
will be handed over to the claimant.

B.2. Option 2:
i. The party claiming refund may approach the purchaser of the RTC and obtain a letter of
negotiation/transfer from him authorizing the Bank to issue replacement RTC to the claimant.
ii. The negotiation/transfer letter will be obtained. The negotiation/transfer letter will be signed by
the purchaser of the RTC and his signatures will be attested by issuing Branch.
iii. After obtaining letter of negotiation/transfer from the purchaser in the manner stated above, the
claimant will approach the branch where he reported the incident of lost/stolen cheques or any of
the authorized Branches of his choice along with Copy A and B of Authority Letter given by
purchaser. The Branch will take the following action:
 The Authorized Branch approached by the Claimant will first verify the signature of the official
of issuing branch on Letter of Authority from Authorized/Inter Branch Signature Book.
 If the Authority Letter is found in order, the Branch will get the RTC-80 filled in by the
Claimant, after identification.
 A Third Party indemnity on appropriate amount of stamped paper, duly witnessed and
signed/sealed by the Claimant, will be obtained.
 The copy of the FIR/Roznamcha lodged by the claimant should also be submitted along with
application/other documents.
 If the claimant is an account holder of the Branch, then the signature of the claimant would be
verified by the Manager on RTC 80, indemnity bond (Third Party) etc. from branch record.
Where party does not maintain account with our Bank, a Letter from his/her Banker
authenticating the signature of the claimant would be obtained by the party and submitted to
issuing Branch, along with other relative documents. The letter from other bankers will
contain the signature of the claimant, along with their name and addresses duly attested by
Authorized Official of the Bank. The Signature of the Bank Official on letter, authenticating the
signature of claimant, will also be got verified from the nearest Branch of that Bank.
iv. The handling Branch will scrutinize the claim documents and if satisfied and found in order, will
forward it to RTC Division for approval. Replacement RTC will only be issued by Branch in the
name of claimant authorized by the Original Purchaser on receipt of approval from RTC Division,
Principle Office.

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 4.9.3 Situation(C):
RTC’s have been lost by person other than the purchaser and original purchaser is not traceable.
i. In some cases, the party from whom RTC has been lost may be unable to trace out the original
purchaser, due to incomplete address recorded at the issuing Branch. In spite of best efforts of the
Party as well as Branch, if the purchaser is not traceable, the claimant may make a representation
to Divisional Head, Rupee Travelers Cheque Division, Principle Office, giving therein full facts and
circumstances in which the RTC’s came into their possession, how they were lost and efforts made
by them to trace out the purchaser. On receipt of such representation by RTC Division, the matter
would be examined on merit and if the Bank is satisfied about the bonafides of the claim of the
party, special approval may be accorded by the competent authority for refund to the claimant in
his own name. In such case, a letter of intention will be issued to the Claimant, asking him to
furnish the following documents:
 A third party indemnity, on stamped paper of appropriate amount, signed by the claimant,
duly witnessed and signature attested by their Banker.
 An affidavit on Stamped Paper, of appropriate amount testifying that claimant is the bonafide
owner of the cheques by virtue of negotiation of RTC to them for value received and that the
cheques were lost from their possession. The affidavit will be notarized.
 Some Proof/Evidence that subject RTC came into their possession out of bonafide commercial
deal.
 A credit worthiness report of the party from their Banker, certifying worth and reputation of
the party.
 In case the claimant is a Public Limited Company or Corporation or Organization, such other
documents to be suggested by Legal Affairs Division or legal retainer may be asked for
production.
 Name of MCB Branch from where the claimant wishes to get issued replacement RTC.
ii. Upon receipt of above documents, RTC Division will convey approval for issuing refund against
lost/stolen cheques to nominated branch. RTC Divisional Head will seek approval from competent
authority.
iii. The Nominated Branch on receipt of approval for Refund/Replacement will issue replacement
RTC’s only to the claimant as per directives contained in the approval letter.

4.10 PROCESSING OF REFUND APPLICATION / RE-ISSUE / ACCOUNTING

i. When application is made by a claimant for Refund against lost/stolen, the Branches obtain an
Application on Form RTC-80 and assist him in filling the form properly.
ii. The customer will submit proof of purchase in form of Copy-C of Form RTC-10 of Rupee Travelers
Cheque lost by him/her.
iii. Copy of FIR/Roznamcha lodged with the Police station, copy of Computerized National Identity Card and
an indemnity as prescribed in previous chapter, will also be obtained from the customer.
iv. Concerned Officer of the Branch will scrutinize all documents/application form; enquire into the matter
as to how RTC’s were lost. He will also check and verify as under:
 The name and signature of the customer on the Refund Application Form (RTC-80) will be compared
with those on RTC 10 in case Refund is claimed by the original purchaser himself.
 Where claim is submitted by another party, the signature will be checked from documents
submitted by claimant, as laid down in previous chapter of this manual.
 After the Branch is satisfied that Bank’s interests have been safeguarded, he will sign the Form RTC

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 80 in the column in token of having cross questioned the customer and also sign in the
recommendation column in support of adding his recommendation.
 Refund Application (RTC 80) will be filled in and signed by the purchaser in his own name if the
refund is requested by him or requested by him for the benefit of 2nd party to whom Rupee
Travelers cheque was transferred. The Application may also be filed and signed by the claimant (3rd
party) in his own name when refund is claimed on the basis of letter of negotiation issued by the
purchaser in his favor or specially approved by the competent authority and advised by RTC Division.
 After completion of all formalities and scrutiny, Branch Manager will forward (RTC 80) Copy
A, B and C to Divisional Head, Rupee Travelers Cheque Division. The application (RTC 80) will
be supported with the following documents:
 Copy of FIR/Roznamcha duly attested.
 Copy of CNIC duly attested.
 RTC 10 Copy-C.
 Letter of indemnity on appropriate value of stamped paper as per approved specimen. The
indemnity first party if the refund is made to original purchaser or indemnity third party if
refund is made to anyone other than the original purchaser with consent of Purchaser.
Branch will send the original indemnity to Principal Office and will retain copy of the same
for its record.
 On receipt of RTC Refund Application, complete with all necessary documents, it will
be processed by RTC Division at their end and if found in order, approval will be
advised to the concerned Branch by returning Copy A and B of RTC 80, duly signed
by the officials authorized to sign for the competent authority retaining Copy C for
their own record.
4.11 REFUND PROCEDURE OF RTCS
4.11.1 Refund Procedure for Lost/Stolen Cheques (issued through MIBBS Branches):
On receipt of approval on RTC-80, Copy A and B, the Branch will proceed as under:
i. Will check that approval is genuine and bears signature of Authorized Officials of RTC Division. In
case of doubt, matter should be reported to RTC Division.
ii. For re-issue of RTC, the claimant will be requested to visit the Branch for completion of re-issue
formalities like filling in the RTC 10, sign the duplicate RTC and sign on the RTC 80, at the place
marked for acknowledgment.
iii. Sales Receipt (Form RTC-10) will be filled in by RTC Incharge/Customer. Procedure of Sale as laid
down in Chapter-4 will be followed.
iv. Since the transaction will be for refund of lost/stolen Rupee Travelers Cheques, the word
“REFUND TRANSACTION” will be written on top of Form RTC-10 Copy A in bold letters using Red
Ink.
v. The transaction of RTC refund will be recorded in the RTC Register Form 60 by RTC Incharge. The
Incharge will write the words “TRAVELLERS CHEQUE(S) REFUND” in the Remarks column in Red
Ink against each issued cheque.
vi. The RTC Incharge will, after carrying out the recording, check and verify that the posting is
correct. He will sign in the column “Received/Issued by” opposite the entry posted. A rubber
stamp bearing the word POSTED will be affixed on Form RTC-10, Copy A. The posting will be
supervised by the Branch Manager, who will sign in the column “Checked by”.
vii. NO ACCOUNTING ENTRIES on GL will be passed as the Rupee Travelers Cheques issued are in
lieu of the lost/stolen Rupee Travelers Cheques.
viii. Only an internal liability entry will be passed to show reduction in stock held. The Sales Receipt

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 Copy A and copy A of Form 80 will be dispatched to Divisional Head, RTC Division, 1st Floor, 124-
P, Block-2, Tariq Road, PECHS Karachi.

4.11.2 RTC Refund Procedure Lost / Stolen Cheques (Issued Through SYMBOL Branches):
The branches will submit all necessary documents/papers as mentioned above and ensure completion
of formalities as explained. RTC Division will examine the cases on merit and will accord approval to
concerned branch for issuing refund to claimant within 06 working days. The concerned teller/GBO
after having received the approval from RTC Division will do the following:
i. The teller will check if the stop/lost/stolen RTC was marked as stop via a symbols screen
(RB1841)
ii. If the said RTC was marked as stop then teller will re-issue the new RTC in lieu of RTC declared as
stop/stolen/lost via a symbols screen (RB1835) with transaction type (RTSI-RTC stop/lost/stolen
re-issue)
iii. Branch will also intimate to RTC division for re-issuance of new RTC number against
stop/lost/stolen RTC.
iv. RTC division will incorporate the new issued RTC number against already stopped RTC in
narrative column of symbols screen (RB1841)
v. System will generate following Auto entries:
Debit: RTC payable (1060101070)
Credit: RTC payable (1060101070)

Debit: Stock of Security (Bank Liability) (1130101220)

Credit: Stock of Security (Customer Liability) (2110101160)

Debit: Stock Received Contra-Off balance (5010101020)

Credit: Stock Received Off Balance (5010101010)

Note: Branches are required to input old RTC number in purpose field on screen (RB1835) while
reissuing new RTCs

4.12 REPLACEMENT OF TORN / SOILED & DAMAGED RTCS

i. Soiled/Torn or Damaged Rupee Travelers Cheques presented for replacement may be paid following
usual purchase procedure as laid down in this Manual, provided the cheque is in one piece, the serial
number of Rupee Travelers Cheques, signature of purchaser of cheque at top and bottom left corner of
the RTC, is visible and the RTC appears genuine. It is the prime responsibility of the encashing branch to
exercise due care while attending such cases to avoid complication.
ii. When the soiled/torn/damaged RTC is torn into small/several pieces, washed away or cheque serial
number, signature of the owner are missing, the usual refund procedure as laid down in this Manual will
be followed for replacement.
iii. No FIR / Roznamcha would be required to be lodged for issue of replacement cheques against such
torn/mutilated or damaged RTCs that are submitted by original purchaser along with RTC 10. However,
bank may ask any documents including copy of FIR / Roznamcha Report in case of 3rd party.
iv. Serial numbers of torn/mutilated cheques would be circulated by RTC Division Principal Office among
branches, as an extra precaution to safeguard the Bank’s interests.
v. All pieces of soiled/torn/washed out RTC’s would be obtained from the claimant by Branch along with

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 refund application form. All pieces will be put into an envelope and will be sent to RTC Division, Principal
Office along with refund application/documents.

4.13 SAFE CUSTODY OF RTC

i. On receipt of stock from HO / RTC Centre / Hub, authorized representative of the Branch / Centre / Hub
will check it as to alphabetical series, block serial numbers, quantity, denomination and packets with the
details on the Delivery Challan and will sign on RTC 50, Copy C, as acknowledgment of having received
RTCs correctly.
ii. When the representative arrives at his Branch/Centre/Hub, he will deliver the packet to a responsible
Officer of the Branch/Centre/Hub, as per arrangement. The responsible Officer, after taking control of
RTC Stock, will check/count the RTC from the copy of Delivery Challan (RTC 50) and will satisfy
himself/herself that the Stocks of Rupee Travelers Cheques are in order after which the Branch
Manager/Centre/Hub Incharge will sign on Copy A and B of Delivery Challan. Copy B will, thereafter, be
mailed to RTC Division Principal Office, if the stock received from Principal Office, and to respective RTC
Centre with copy endorsed to RTC Division, if stock received from Centre. Copy A will be kept by Branch
in their file, for future reference for Stock Control.
iii. The Office-in-Charge will enter the stock of RTC received in the RTC Stock Register (RTC 60). Each
Denomination of Rupee Travelers Cheques will be entered on a separate folio. The date of stock
received, Alphabetical series, serial number of RTC, the quantity and amount will be entered in the
register. A rubber stamp with the word “posted” will be affixed on delivery Challan Copy A of the
branch. The entry will be checked / signed in the received/issued column by the authorized official of
the branch.
iv. The stock of Rupee Travelers Cheque will always be kept in safe vault under joint custody. The safe vault
will be kept in strong room. The stock will be checked/counter-checked by Centre/Hub Incharge/Branch
Manager once a week. The Centre/Hub Incharge/Branch Manager will sign Stock Register in the last
column in token of having checked the stock. In case of any shortage of stock, the same must be
reported immediately RTC Division, providing full details and circumstances under which the Stock was
found short.
v. Duplicate keys of safe vault containing RTC, will be placed in a sealed envelope and kept in branch “Safe
custody”. An entry will also be made in the Key Register, duly authenticated by Branch Manager/Officer
Incharge, with date.
vi. RTC will be delivered to Branches in Blocks of 100 leaves. The Stock will be handled with care, to ensure
that RTC’s are not soiled and remain crisp/clean and new, at all times.
vii. RTC Stock sold during the day will be noted in the Stock Register, on daily basis.

4.14 COMPLIANCE / REGULATORY / OPERATIONAL INSTRUCTIONS

i. Branch official responsible for issuance of RTC shall ensure that before handing over Rupee Travelers
Cheques to any purchaser, his/her signatures must be obtained on the RTC.
ii. Branches will report, without fail, RTC sold amounting to PKR 500,000 and above in sequential order to
one customers on the prescribed format to RTC Division, PO, Karachi. The report will cover the name of
customers, address, CNIC number and sold RTC numbers and amount for operational control.
iii. RTCs presented in clearing, transfer or for Cash Payment will be examined carefully using instant
verification techniques and tools provided to ascertain genuineness of the RTCs
iv. Soon after making payment, branches will deface paid RTCs, affix paid stamp on the face of the RTCs,

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 punch holes, arranged in sequential order and stitched together properly
v. Existing SBP instructions with regard to retention of record must be adhered to in letter and spirit
vi. Record of sold/paid RTCs should not be displayed or kept in an open place.

4.15 FLOAT INCOME DISBURSEMENT TO BRANCHES

st
Since 1 April 2010 RTC processing has been successfully migrated to Symbols. As part of the migration process
whereby the liability is booked at the issuing branch and remains intact there from instrument sale to
encashment. RTC division in collaboration with ITG and OPS stakeholders has devised this process through which
the income will now be transferred to RTC Division at the end of the month and distributed to branches as per
their share.
The breakup of the RTC income end of month process is as follows:
i. RTC Division will forward request for extraction of data file on prescribed format to Centralized
Operations Division for conversion of data into symbols GL upload format.
ii. Float income will be transferred to RTC division by Centralized Ops as of the end of the month.
iii. Commission Income Report will be provided by KM Team on the last day of the every month.
iv. RTC division will review the commission Income report, validate the commission file and forward to KM
team and Centralized Ops to process the income file on the same day to distribute compensation to
branches.
v. Centralized Ops will forward the file to ITG for processing the income file on same day.
vi. After acknowledgement from ITD, RTC division will intimate to All MCB Branches that RTC compensation
has been paid (via email).
vii. Following Auto entries will be generated:

100% Income Transferred from Branches to RTC Division

Branch End:
Debit: Markup paid to P.O. (4050101010)
Credit: Head Office A/c (1110101010)

RTC Division End

Debit: Head Office A/c (1110101010)
Credit: Markup Received from P.O. (3070101010)

Float Income/Compensation Disbursement to Branches

RTC Division End:

Debit: Compensation Paid to Branches on RTC (4060101080)
Credit: H.O Account (1110101010)

Branch End:
Debit: Head Office Account (1110101010) Transaction Code: 2246
Credit: Compensation Received on RTC (3080101060)

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Chapter 5 HOME REMITTANCE

5.1 MCB HOME REMITTANCE

Under Home Remittance branch makes payment to customer in following ways.
i. Download payment instructions from MCB Payment System (Cash Payout)
ii. Download payment instructions from MCB Payment System (Online Transfer)
iii. Through responding Demand Draft or
iv. Responding H.O advice

5.1.1 Process for MCB Home Remittance

A. Download payment instructions from MCB Payment System - (Cash Payout)
Customer will provides digit code/ Pin to DAO
Designated authorized Officer
i. Entered digit code/ Pin provided by the customer in MCB Payment System web based application and
extract detail of the message/ transaction.
ii. Match beneficiary detail with message from original CNIC and takes copy of CNIC and stamp it as
“Original Seen” and sign off.
iii. KYC is being conducted as per KYC and AML hand book
iv. Incase customer KYC is not proof genuine, then further queries will be made or the transaction will be
rejected. In case of any system issue GTB has performed supervisory function and resolve the paying
branch issue.
v. Designated authorized Officer after being satisfied with the credential of customer, confirm the
transaction on web portal and takes print of detail and prepares cash debit voucher and sign off.
vi. Voucher and supporting documents forwarded to BOM / Forex Manager for approval.
BOM/ Forex Manager
Checks and verifies the particulars of voucher with supporting documents and after being verified counter sign
off. Cash debit voucher forward to Cash department/ teller for cash payment to customer.
Note: If remittance is in favor of company/ Firm than R-Form must obtained from each and every company/ firm
regardless remittance amount. In case of huge amount of remittance in favor of individual related to other bank financial
instrument to be issued and ‘R’ form must be obtained. Paying Branch obtained signed R-form from customer, verify
customer signature with branch stamp and forwarded to GTB Branch. GTB Branch submits onward to SBP on monthly
basis.
Teller
i. Takes customer’s signature on back side of voucher and matches the same with the original CNIC and
copy of CNIC attached with voucher. Teller makes cash payment to customer.
ii. Teller posts the voucher in system through batch creation and affixed the “Posted” stamp with date.
And forward to TSS/ BOM for supervision.
TSS or BOM authorized the transaction after being satisfied with the supporting documents and counter sign
voucher.

Financial Impact:
Debit: 1060101130-REMIT EXPRESS - DD PAYABLE
Credit: 2010101010- CASH IN VAULT

Note: Branch did not require sending any intimation regarding payment to GTB Branch. GTB Branch extract at day end
report from MCB Payment System and NIL branches GL head (1060101130-REMIT EXPRESS - DD PAYABLE) through GL

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 5.1.1 Process for MCB Home Remittance
upload
B. Download payment instructions from MCB Payment System - (Online Transfer)
i. GTB Branch concern In charge, receive payment instruction file through SWIFT, email or fax.
ii. Before processing transaction in MCB Payment System test and authorized signatures are being
verified.
iii. Processor passes the necessary accounting entries in NR System and in Symbol system and process
payment instructions.
iv. In case any transaction rejected due to dormant account or due to Islamic Banking accounts demand
draft or advice being issued. If any payment related to other banks than settled through RTGS process.
C. Through responding Demand Draft
BOM / Forex Manager
i. Designated authorized Officer receives Demand Draft for customer with dully filled and signed deposit
slip stated complete 16-digit account number.
ii. If amount is more than RS. 100,000/- than confirmation is taken from GTB branch before payment
through email/ fax. Email will be forwarded by BOM/ Forex manager with particulars of instrument.
Designated authorized Officer (GTB Branch) checks the DD detail with record, after satisfying from the
credential or particulars of DD reply the email and give intimation/ confirmation to branch through fax
Designated authorized Officer (Branch)
Checks Authorize Signature (Test and signature on advice will verify by two designated officers) on demand
draft and after being satisfied with genuineness of demand draft counter sign

Note: If remittance is in favor of company/ Firm than R-Form must obtained from each and every company/ firm
regardless remittance amount. In case of huge amount of remittance in favor of individual related to other bank financial
instrument to be issued and ‘R’ form must be obtained. Paying Branch obtained signed R-form from customer, verify
customer signature with branch stamp and forwarded to GTB Branch. GTB Branch submits onward to SBP on monthly
basis.

Designated authorized Officer gives credit to customer account by using transaction type: “REDD” and prepares
transfer voucher and signs it and forward for counter sign to BOM/ Forex manager and create Batch.

Financial Impact:
Debit: 1060101130-REMIT EXPRESS - DD PAYABLE A/C
Credit: Customer’s Account

Note: If transaction amount exceeds the DAO, limit screen pop-ups “Authorization Required” message. DAO forward
voucher to next supervision level for system authorization
BOM/ Forex manager
i. BOM/ Forex manager checks and verifies particulars of advice with supporting documents and after
being satisfied with transaction authorizes in system and sign off.
ii. Designated authorized Officer apply test and sign advice with AS/ IBS #. Signed advice copy A and copy
of Demand Draft courier to GTB Branch for responding at their end

Financial Impact:
Debit: HO Account - GTB Branch (1110101010)
Credit: 1060101130-REMIT EXPRESS - DD PAYABLE A/C
If DD is presented through Clearing:
Clearing officer after proper verification of Demand Draft prepare advice sign it and forward to authorizer for
approval and counter sign off. Clearing officer create batch

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 5.1.1 Process for MCB Home Remittance
Authorizer
i. Checks and verifies particulars of advice with supporting documents and after being satisfied with
transaction authorizes in system and sign off.
ii. Designated authorized Officer apply test and sign advice with AS/ IBS #. Signed advice copy A and copy
of Demand Draft courier to GTB Branch for responding at their end
Financial Impact
Debit: HO Account - GTB Branch (1110101010)
Credit: Clearing control A/c (1150101140)
D. Responding H.O advice
GBO receives advice from GTB Branch and forwarded to Designated authorized Officer for signature/ test
verification.
Designated authorized Officer checks Authorize Signature (AS) and test on advice and after being satisfied with
genuineness of advice counter sign
Note: If remittance is in favor of company / Firm than R-Form must obtained from each and every company/ firm
regardless remittance amount. In case of huge amount of remittance in favor of individual related to other bank financial
instrument to be issued and ‘R’ form must be obtained. Paying Branch obtained signed R-form from customer, verify
customer signature with branch stamp and forwarded to GTB Branch. GTB Branch submits onward to SBP on monthly
basis.
GBO gives credit to customer account by using transaction type: “THRC” and prepares transfer voucher and
sign off and for system authorization and counter sign forward to BOM.

Financial Impact:
Debit: 1150101150-FUNDS TRANSFER CONTROL A/C
Credit: Customer’s Account

Note: If transaction amount exceeds the General Banking officer, limit screen pop-ups “Authorization Required”
message. General Banking officer forward voucher to next supervision level for system authorization. And financial
impact only showed in GL after authorization.

i. Authorizer checks and verifies particulars of advice with supporting documents and after being
satisfied with transaction authorizes in system and sign off.
ii. Designated authorized Officer apply test and sign advice with AS/ IBS #. Signed advice copy A and copy
of Demand Draft courier to GTB Branch for responding at their end

Financial Impact:
Debit: HO Account - GTB Branch (1110101010)
Credit: 1150101150-FUNDS TRANSFER CONTROL A/C

Day end report generation:

Designated authorized Officer generates Day end report and validates the source documents/ Vouchers and
arranges filing of the same and sign off.
i. BOM / TSS counter signs Designated authorized Officer activity
ii. BOM/ TSS reviews vouchers and reconciles with report and counter sign off.

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5.2 EXPRESS MONEY
Customer will provides 16 digit code/ Pin to Designated authorized Officer
Designated authorized Officer
i. Entered 16 digit code provided by the customer in Express Money web base application and extract
detail of the message/ transaction.
ii. Designated authorized Officer match the beneficiary detail with message from original CNIC / Passport
/Driving License and also take a copy of CNIC / Passport / Driving License and stamp it as “Original
Seen” and sign it. And conduct KYC of customer as per KYC and AML handbook.
iii. Incase customer KYC is not proof genuine, then further queries will be made or the transaction will be
rejected. In case of any system GTB follow the supervising function and resolving the issue of the
paying branch.
iv. Designated authorized Officer after being satisfied with the credential of customer, confirm the
transaction on web portal and take print of instructions, prepares internal voucher and forwarded to
BOM/ Forex Manager for approval.
Note: Cut of Timing: As per Circular # PO/CMD/HR/10 dated: August 11, 2009, branches will not pull out/ confirm any
transaction in the system after cut of time i.e. from Monday to Friday 9:00AM to 5:00PM and Saturday 9:00AM to 1:30PM.
BOM/ Forex Manager/ BM
i. Checks and verify the particulars of voucher with supporting documents and also verify KYC & AML
formality. After being verified counter sign the voucher. Voucher forward to teller for cash payment to
customer.
Note: If any, inward Home Remittance is of more than USD $10,000/ equivalent amount, than R-Form is required, clearly
stated purpose of remittance. However, if remittance is in favor of company/ Firm than R-Form must obtained from each
and every company/ firm regardless remittance amount. Branch obtained signed R-form from customer, verify customer
signature with branch stamp and forwarded to GTB Branch. GTB Branch submits onward to SBP on monthly basis .
Teller
i. Takes customer’s signature on back side of voucher and matches the same with the original CNIC and
copy of CNIC attached with voucher. Teller makes cash payment to customer.
ii. Teller posts the voucher in system and affixed the “Posted” stamp with date. And forward to BOM/ TSS
BOM/ TSS authorize the transaction after being satisfied with the supporting documents.

Financial Impact:
Debit: 1060101150-EXPRESS MONEY PAYABLE ACCOUNT
Credit: 2010101010- CASH IN VAULT

Day end report generation:

Teller generates Day end report and Validates the source documents/ Vouchers and arranges filing of the same
and sign off.
BOM / TSS counter signs Designated authorized Officer activity after reviewing vouchers and reconciles with
report and counter sign off.
Note: Branch did not require sending any intimation regarding payment of Express Money to GTB Branch. GTB Branch
extract at day end report from Express money website and NIL branches GL head (1060101150-EXPRESS MONEY PAYABLE
ACCOUNT) through GL upload

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5.3 MONEY GRAM
Customer will provides digit code/ Pin to Designated authorized Officer
Designated authorized Officer
i. Entered digit code provided by the customer in Money gram web based application and extract detail
of the message/ transaction.
ii. Match beneficiary detail with message from original CNIC and takes copy of CNIC and stamp it as
“Original Seen” and sign off.
iii. KYC is being conducted as per KYC and AML hand book
iv. Incase customer KYC is not proof genuine, then further queries will be made or the transaction will be
rejected. In case of any system issue GTB has performed supervisory function and resolve the paying
branch issue.
v. Designated authorized Officer after being satisfied with the credential of customer, confirm the
transaction on web portal and takes print of detail and prepares cash debit voucher and sign off.
vi. Voucher and supporting documents forwarded to BOM/ Forex Manager for approval.
BOM/ Forex Manager
Checks and verifies the particulars of voucher with supporting documents and after being verified counter sign
off. Cash debit voucher forward to Cash department/ teller for cash payment to customer.
Note: If any, inward Home Remittance is of more than USD $10,000/ equivalent amount, than R-Form is required, clearly
stated purpose of remittance. However, if remittance is in favor of company/ Firm than R-Form must obtained from each
and every company/ firm regardless remittance amount. Branch obtained signed R-form from customer, verify customer
signature with branch stamp and forwarded to GTB Branch. GTB Branch submits onward to SBP on monthly basis.
Teller
i. Takes customer’s signature on back side of voucher and matches the same with the original CNIC and
copy of CNIC attached with voucher. Teller makes cash payment to customer.
ii. Teller posts the voucher in system through batch creation and affixed the “Posted” stamp with date.
And forward to TSS/ BOM for supervision.
BOM/ TSS authorized the transaction after being satisfied with the supporting documents and counter sign off.

Financial Impact:
Debit: 1150101220-MONEYGRAM CONTROL ACCOUNT
Credit: 2010101010- CASH IN VAULT

Note: Branch did not require sending any intimation regarding payment of Money gram to GTB Branch. GTB Branch
extract at day end report from money gram utility and NIL branches GL head (1150101220-MONEYGRAM CONTROL
ACCOUNT) through GL upload
Day end report generation: Designated authorized Officer generates Day end report and validates the source
documents/ Vouchers and arranges filing of the same and sign off.
i. BOM/ TSS counter signs Designated authorized Officer activity
ii. BOM/ TSS reviews vouchers and reconciles with report and counter sign off.

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5.4 SPEED CASH NOW
Customer will provides digit code/ Pin to Designated authorized Officer
Designated authorized Officer
i. Entered digit code/ Pin provided by the customer in Samba web based application and extract detail of
the message/ transaction.
ii. Match beneficiary detail with message from original CNIC and takes copy of CNIC and stamp it as
“Original Seen” and sign off.
iii. KYC is being conducted as per KYC and AML hand book
iv. Incase customer KYC is not proof genuine, then further queries will be made or the transaction will be
rejected. In case of any system issue GTB has performed supervisory function and resolve the paying
branch issue.
v. Designated authorized Officer after being satisfied with the credential of customer, confirm the
transaction on web portal and takes print of detail and prepares cash debit voucher and sign off.
vi. Voucher and supporting documents forwarded to BOM/ Forex Manager for approval.
BOM/ Forex Manager checks and verifies the particulars of voucher with supporting documents and after
being verified counter sign off. Cash debit voucher forward to Cash department/ teller for cash payment to
customer.

Note: If any, inward Home Remittance is of more than USD $10,000/ equivalent amount, than R-Form is
required, clearly stated purpose of remittance. However, if remittance is in favor of company/ Firm than R-
Form must obtained from each and every company/ firm regardless remittance amount. Branch obtained
signed R-form from customer, verify customer signature with branch stamp and forwarded to GTB Branch. GTB
Branch submits onward to SBP on monthly basis.
i. Teller takes customer’s signature on back side of voucher and matches the same with the original CNIC
and copy of CNIC attached with voucher. Teller makes cash payment to customer.
ii. Teller posts the voucher in system through batch creation and affixed the “Posted” stamp with date.
And forward to TSS/ BOM for supervision.
BOM/ TSS authorized the transaction after being satisfied with the supporting documents and counter sign off.
Financial Impact:
Debit: 1060101120-SPEED CASH-DRAFT ISSUANCE A/C
Credit: 2010101010- CASH IN VAULT

Note: Branch did not require sending any intimation regarding payment of speed cash to GTB Branch. GTB
Branch extract at day end report from Samba utility and NIL branches GL head (1060101120-SPEED CASH-
DRAFT ISSUANCE A/C) through GL upload
Day end report generation:
Designated authorized Officer generates Day end report and validates the source documents/ Vouchers and
arranges filing of the same and sign off.
i. BOM/ TSS counter signs Designated authorized Officer activity
ii. BOM/ TSS reviews vouchers and reconciles with report and counter sign off.

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5.5 PAYMENT THROUGH RAM
Designated authorized Officer Extract report from “RAM Report” server (Information is uploaded by GTB
Branch), take print and instructions forwarded to BOM/ Forex manager for approval.
Note: In case the payment does not pertain to the branch or the account is untraceable, the funds will be
refunded to GTB branch (0069) via HO advice.
BOM / Forex Manager reviews instructions and match amount of instructions with GL Head: 1060101040-
HOME REMITTANCE PAYABLE (GTB branch had given credit to branches GL head: 1060101040-HOME
REMITTANCE PAYABLE with total amount of instructions uploaded on “RAM report” server).
After being satisfied with credential or particulars of transaction, counter sign and forward to DAO for further
processing

Note: If any, inward Home Remittance is of more than USD $10,000/ equivalent amount, than R-Form is
required, clearly stated purpose of remittance. However, if remittance is in favor of company/ Firm than R-
Form must obtained from each and every company/ firm regardless remittance amount. Branch obtained
signed R-form from customer, verify customer signature with branch stamp and forwarded to GTB Branch. GTB
Branch submits onward to SBP on monthly basis.
Designated authorized Officer gives credit to customer account through Symbol-EOC interface by using
transaction code: “HRCC”
Financial Impact:
Debit: 1060101040-HOME REMITTANCE PAYABLE
Credit: Customer’s Account

Note: If transaction amount exceeds the DAO credit limit, screen pop-ups “Authorization Required” message. DAO
forward voucher to next supervision level for system authorization. And financial impact only shown after authorization
Day end report generation:
Designated authorized Officer generates Day end report and validates the source documents/ Vouchers and
arranges filing of the same and sign off.
i. BOM/ TSS counter signs Designated authorized Officer activity
ii. BOM/ TSS reviews vouchers and reconciles with report and counter sign off.

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SECTION 5 REMOTE CHANNELS

SECTION 5

REMOTE CHANNELS

Section Summary:
This section covers Guidelines, Instructions and Processes of all Remote Banking
Products/ Channels pertaining to Branches Operations only detailing ATM Operations/
Reconciliation, Smart Card, Pre-paid Visa Card, Call Center, Virtual Banking and Mobile
Banking.

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Chapter 1 AUTO TELLER MACHINE

ATMs self-service multi-functional system not only provides convenience and flexibility to customers but also
helps the Bank to reduce the work load and cash handling cost at the branches counters.

1.1 FUNDS TRANSFER VIA ATM

This facility is provided to MCB ATM/Smart Card holders to transfer funds instantly between Accounts within a
Branch or maintained at any other Online Branch.
MCB Account holder can avail this facility on registration through MCB ATM or Internet Banking – MCB Virtual.
For registration through MCB ATM for Funds Transfer:
i. Total 4 Accounts can be registered for availing funds transfer credit facility by debiting one Account.
ii. Customer is allowed 10 transactions for total transfer up to PKR 20,000/- per day.
iii. Dormant, In-operative or Ceased Accounts shall not be linked for the Funds Transfer facility.

1.2 MNET- MCB NETWORK FOR ELECTRONIC TRANSACTIONS

MCB has established electronic platform known as MNET for enhancing network accessibility and to secure
Online financial transactions. It enables member banks customers to have instant access to Cash through largest
combined Network of ATMs located across the country.

1.3 INTER-SWITCH CONNECTIVITY

Inter-switch connectivity between MNET Switch and 1 Link Switch has been activated so customers of member
banks can share ATM facilities of each of the other member banks.

1.4 ACQUIRER TRANSACTIONS

Master Card holders visiting Pakistan and using cards with Cirrus/Maestro logo can withdraw Cash from any
MCB ATM which represents an acquirer transaction.
This transaction goes to issuer Bank after conversion of the transaction amount in US $ by applying Inter Bank
Rate via Master Card International.
Further, when Card holders of other Banks use MCB ATMs linked under M-Net or 1-Link switch, such
transactions are also called acquirer transactions.

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1.5 ISSUER TRANSACTIONS
When MCB Card holders withdraw Cash from ATMs of other banks (Locally or globally) they are considered as
issuer transaction. In case of Visa or MC transactions our settlement currency with IPM is US Dollars. During the
authorization process these transactions are routed to MCB in US $ for approval.
MCB host system converts the Dollar amount into local currency as per the exchange rate updated in the host
system. If sufficient balance is available in the Card Holder’s Account this transaction is authorized and MCB
Card holder gets the amount in the currency of the country where the ATM has been used.

1.6 DISABLED, RETAINED & CAPTURED CARDS ON ATMS

For security reasons the related programs are modified to Disable, Retain or Capture a Card on ATMs as follows:
1.6.1 Disabled Cards due to Excessive Wrong PIN Tries:
In case the card holder enters wrong PIN at the ATM thrice, then after three wrong attempts, the card will
be ‘DISABLED’ and the card holder will not be allowed to perform any activity (financial or non-financial)
anymore. To activate the card customer has to call ‘Call Center’. In such instances a message on following
lines will be displayed on the ATM for customer guidance.
SORRY YOUR CARD HAS BEEN DISABLED
PLEASE CONTACT CALL CENTER/BRANCH FOR ACTIVATION
IF YOU ARE MCB CARDHOLDER - CALL 111-000-mcb (622)
1.6.2 Retained Cards on ATM:
ATMs may retain cards on certain occasions due to technical reasons such as malfunction of ATM or jerk
on electricity failure etc or if the Card is not taken from ATM slot within time. In such instances a message
on following lines will be displayed on the ATM for customer guidance.
SORRY - YOUR CARD HAS BEEN CAPTURED.
CARD CAN BE COLLECTED FROM ATM BANK/BRANCH
(WHERE CARD WAS CAPTURED) WITHIN 2 WORKING DAYS
CARD CAN BE COLLECTED FROM CUSTOMER’S
OWN BRANCH WITHIN NEXT 8 WORKING DAYS
THEREAFTER, A REPLACEMENT CARD WILL BE ISSUED
FOR WHICH BANK MAY CHARGE.
1.6.3 Lost / Stolen / Hot Cards:
If the status of a card being used by the card holder is marked as Lost, Stolen or Hot in bank’s record it will
be captured by the ATM. In such instances a message on following lines will be displayed on the ATM for
customer guidance.
SORRY YOUR CARD HAS BEEN
CAPTURED DUE TO SECURITY REASONS
PLEASE CONTACT YOUR BRANCH/BANK FOR DETAILS
IF YOU ARE A MCB CARD HOLDER PLEASE DIAL 111-000-622 (MCB)

Note: As per SBP guidelines acquiring bank will not incur any liability for fraudulent or unauthorized transactions
initiated with a card which was returned to the cardholder following its retention at ATM, provided that

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Acquiring Bank acted in accordance with the guidelines of SBP. Acquiring Bank however, will be liable for the
losses sustained by the Issuing Bank for any fraudulent or unauthorized transactions made subsequent to card
retention, if Acquiring bank failed to comply with SBP mandated guidelines.

1.7 CARD FACILITATION CENTER (CFC)

1.7.1 CFC Set-up
To facilitate the cardholders and to respond MNET, 1-Link switch member bank’s queries pertaining to
settlement of customers’ claims and handling/exchange of captured cards at ATMs of member banks
MCB, has established “Card Facilitation Center (CFC)” at MCB Tower under Operations Group
Note: The self branch transaction claims are handled by Parent Branches.
As per SBP mandate following two staff members are designated to handle and respond queries:

Staff Name: Mr. Talha Shafi Mr. Kashif N Qureshi

Area: Manager - DRU & CFC Supervisor – CFC
021-32641435 021-3111000111
Tel Number:
021-3111000111 Ext 3514 Ext 3914
FAX Number: 021-32270126 021-32270126
E-Mail Address: [email protected] [email protected]
14th Floor 14th Floor
Postal Address: MCB Tower MCB Tower
I.I. Chundrigar Road, Karachi I.I. Chundrigar Road, Karachi

Disposition of Retained/Captured Cards:

i. Cards of ‘Other Banks’ received from MCB Branches:
 On receipt of cards from MCB branches pertaining to ‘other banks’ that were captured at MCB
ATMs will be acknowledged and logged/entered in a register on the day of receipt.
RETAINED / CAPTURED CARDS - ‘OTHER BANKS’
(Received from MCB Branches)

Sr. Date of Cards Received From Card pertains to (Name Date Delivered to CFC Custodian Initials
Card Number
No Receipt (Branch Name) of Issuing Bank) of Bank C-1 C-2

1 2 3 4 5 6 7 8

 Cards will be sorted ‘by bank’ and will be forwarded to ‘CFC’ of respective banks under a cover
letter mentioning the number and details of the cards through courier latest by next working
day.
 Update the register with delivery status of cards sent to banks.
ii. Cards of ‘MCB’ received from Other Banks:
RETAINED/CAPTURED CARDS - ‘MCB’
(Received from Other Banks)
Sr. Date of Cards Received From Card Number Card pertains to (Name Date delivered to Custodian Initials

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 No Receipt (Bank Name) of Issuing Branch) MCB Branch C-1 C-2

1 2 3 4 5 6 7 8

 On receipt of cards from CFC of Other Banks pertaining to ‘MCB Branches’ that were captured
at their ATMs will be acknowledged and logged/entered in a register on the day of receipt.
 Cards will be sorted ‘by branch’ and will be forwarded to respective branches under a cover
letter mentioning the number and details of the cards through courier latest by next working
day.
 Update the register with delivery status of cards sent to branches.
Note: All Retained/captured cards must be kept under dual custody.

1.8 ATM CUSTODIANS RESPONSIBILITIES

All ATM equipped branches are required to formally designate TWO officials of the branch as ATM Custodians to
handle Cash Replenishment, balancing of ATM Cash and Reconciliation of ATM Cash with related Cash-in-ATM
GL of the branch on a daily basis
The ATM Custodians in addition to other assigned duties (core responsibilities/functions) in the branch are
responsible for the following tasks.
i. As per Institutional and Regulatory requirements it is a MUST to perform the following functions on each
working day:
ii. Daily Balancing of ATM cash. (For detailed process refer to Section 4: 1.11 Daily Balancing of ATM Cash
iii. Daily Reconciliation of ATM Cash with ‘Cash-in-ATM GL’ of the branch. (For detailed process refer
Section 4: 1.14 Reconciliation of ATM Cash with Cash-in-ATM GL
iv. Cleanliness and up-keep of the ATM booth and manage the maintenance as per the Daily Health
Checklist (refer to Annexure XI)
v. Customer issues resolution and coordination with Customer Facilitation Center (CFC) for settlement of
claims.
vi. Maintain check on ATM consumable items (journal roll, consumer receipts and ribbons) and replace
them on timely basis.
vii. Maintain/check ATM regulatory compliance item (CCTV, Hotline, Complain box & ATM Room Door lock)
viii. Maintain ATM UP time and other networking equipments to be in order.
ix. Arrange and maintain a backup contingency in case of long disruption in the network link.
x. Maintain liaison with ATM Operations (ITD) and the Vendor.
1.8.1 Precautionary Measures/Check-list:
i. Daily Cash Replenishment process should be according to the replenishment guidelines provided by
ATM Team. (Please refer to the procedural manual on ATM Operation).
ii. Make sure that good quality currency notes are used in the ATM Cash Dispenser. (Notes with
staple/tape, punch hole, cut marks and soggy notes are not fed into the cassettes).
iii. Make sure that only good quality of ribbons and paper for scroll /receipts is used.
iv. Regularly monitor the ‘paper out’ status indicated through the sensors to ensure smooth running of the
machine (Please note that the ATM becomes inoperative when journal printer goes out of paper).
v. Each day before leaving the branch, make sure that adequate cash is fed to the ATM machine
according to the overnight requirement.
vi. Ensure that ATM is connected with GENSET & sufficient fuel is available for GENSET operation during
power outage. Special arrangement to be made for GENSET operation during off-hours/off-days
vii. Check ATM machine physically on daily basis for any unauthorized/suspicious attached devices and

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 immediately update ATM Monitoring cell
1.8.2 General:
i. Daily cleaning of ATM screen from inside and outside and regular trash-bin cleaning.
ii. Ensure that ATMs are serviced by the vendor as per the agreed time frame established in the
agreement. (as per arrangement ATM vendor to perform complete preemptive maintenance activity
once every Quarter)
iii. Maintain a complaint log register and record all repair/maintenance activities on the machine by the
vender/engineers. The movement of ATM parts either for repairs/replacement should also be entered in
the register.
iv. Make sure to keep an updated record of names and contact numbers of the related vendors and the
Centralized ATM Monitoring Cell personnel for quick reference.
v. Do not allow unauthorized personnel to perform any maintenance/ repair work on the machines. Incase
please contact the centralized ATM monitoring cell immediately

1.9 ATM CASH REPLENISHMENT

ATM Custodians are required to visit the ATM for Cash Replenishment purpose at 15:00 Hrs on a daily basis and
shift the ATM status from “Active” to “Supervisory Mode” and will:
i. Remove the remaining cash from all cassettes including Divert Cassette.
ii. Clear Cash Counter before replenishment the new cash in ATM.
iii.Physically count and load the cassettes with fresh cash.
iv. Start the ATM for next cycle.
v. While performing the Cash Replenishment, obtain the following information:
 Cassette Notes by Denomination.
 Divert Cassette Cash Position.
 Total amount Disbursed during the cycle.
 Total Cash Remaining in ATM and;
vi. Remove the Scroll along with summaries printed by the machine.
(For detailed process please refer to the IT Division procedural manual on ATM Operation).
Physically count the ‘Remaining Cash’ amount found in the ATM and post the following vouchers in GL:
Dr: Cash in Vault - (2010101010)
Cr: Cash in ATM - (2010301010)

For the fresh cash being loaded in the ATM prepare the following General Ledger Vouchers (GL) and post the
same in General Ledger Module >> Transactions >> Batch Maintenance >> Entry (Screen # GL-21).
Dr: Cash in ATM (2010301010)
Cr: Cash in Vault (2010101010)

Report of the above mentioned Batch can be retrieved from General Ledger Module >> Reports >> Daily
Activities >> Batch Listing (Screen # GLA- 11).

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1.10 CASH VAULT OPENING / CLOSING ON AN OFF-DAY / HOLIDAY
ATM Custodian pro-actively checks cash position of ATMs and identify replenishment requirements. In case of
outage, he/she gets a call from ATM Unit Karachi intimating cash outage in the branch ATM
ATM Custodian calls the branch cash vault key holder(s). As a precautionary measure, ROM should be
intimated about the same.
Before opening cash vault, the vault ‘cash position’ is verified with the cash book and ATM Cash is checked (fact
sheet).
Security code for the vault door is disarmed (if applicable). The code should only be known to the custodian(s).
The key holders must ensure that all entrances leading to the vault are secured and no unauthorized persons
are present.
Both key holders jointly open the cash vault. Take out required cash from cash vault. Vault opening time is
noted in the vault register and both custodians sign-off on the register.
Cash debit voucher (non post able) is prepared and signed by both key holders and placed in the cash vault. In
case both bins are not empty, copy of the scroll with remaining cash recording should be annexed to voucher
(non post able) and kept in cash vault.
Cash safe(s) are securely locked and checked by both custodians to that effect. The vault closing time is noted
on the vault register along with signatures of both custodians. The security code is activated (if applicable).
Cash is replenished in the ATM as per the normal ATM cash replenishment process
Cash debit voucher is posted in the system on next working day
Note:
i. Offsite ATM will not be replenished on a off-day
ii. Branch Operations Manager should ensure Branch security Protocols are strictly adhered while visiting
the Branch on a off-day/ holiday for ATM Cash replenishment

1.11 DAILY BALANCING OF ATM CASH

As per the institutional and regulatory requirement it is mandatory for the ATM custodian to physically count
and balance the ATM Cash on a daily basis. (Annexure XII)
i. Individual transactions should be identified wherein customer account has been debited without cash
disbursement. On the basis of verified transactions, branches should immediately complete process of
‘Automatic Credit’ which should not exceed the agreed timeframe. However, for exceptional
transactions such as partial retract and where primary evidence is not available, timeframe applicable
from the date of claim by the customer.
ii. Immediately after crediting customer account, the branches/Card Facilitation Centre must inform the
customer in writing accordingly.
iii. Customers whose account has been debited without cash disbursement should not be charged for
minimum balance to the extent of the undisbursed amount and time for which it remained payable.
Guidelines to prepare ‘Fact Sheet’ for balancing of ATM Cash:
To balance the ATM cash custodians are required to prepare ‘Fact Sheet’ for each working day and ensure
that the ATM cash is balanced. (Annexure XII). Fact Sheet has four sections:

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 1.11.1 Cash Status
This section contains the details of ATM Cash related data:
i. Cash added in ATM ‘previous’ day:
(Marked ‘A’ in the last column on Fact Sheet under category – Cash Status)

This is the amount of cash that was replenished in the ATM at 15:00 Hrs the previous day. Ensure
that:
 The amount of cash that was replenished previous day is in agreement with the value of cash as
per ‘ATM counters’ that were updated by the custodians at the time of cash replenishment.
Custodian should print the cash replenishment summary totals and keep it as a record.
 The amount of cash that was replenished is in agreement with the value of ‘voucher’ used for
updating the ‘Cash-in-ATM GL’ for the day. Copy of voucher should be kept with Cash
Replenishment Summary.
ii. Expected Remaining Cash:
(Marked ‘O’ in the last column on Fact Sheet under Category–I ‘Cash Status’)

This is the amount of remaining cash that is calculated by the ATM based on its counters (total cash
in the ATM – Cash dispensed). This information is provided on ATM Scroll in the form of number of
remaining notes for each category. Custodian should print the ‘cash replenishment summary totals’
at the time of cash replenishment to get this information and calculate the amount.
iii. Actual Cash Found in ATM:
(Marked ‘P’ in the last column on Fact Sheet under Category–I ‘Cash Status’)

This is the remaining cash amount found in the ATM at the time of cash replenishment and MUST
be physically counted by the custodian.
1.11.2 Suspect Transactions:
There are instances when the actual cash does not get dispensed to the customer from the ATM against
suspect/un-authorized transactions due to malfunctioning of the ATM or due to communication issue,
this situation may demand further investigation.
This section contains the details (number of transactions and related amount) of Suspect Transactions
for the day:

i. Presenter error and Cash Retracted (Error Code 66 & 67):

(Marked ‘R’ in the last column on Fact Sheet under Category-II ‘Suspect Transactions’)

These are the transactions where ATM did present the cash but the customer failed to collect the
cash within the specified time or ATM could not dispense the cash due to dispenser failure. As a
result, the cash is with held or retracted by the ATM. These transactions are shown on the scroll as
‘authorized’ with a message “PRESENTOR ERROR” whereas, on the ATM Transaction Details & Summary
Report the status of these transaction are marked as Response code 66 and under the dispensed
amount column the amount is shown as ‘zero’. (These instances will result in ‘cash excess’).
ii. Account debited against Response Code ‘99’ for MCB:
(Marked ‘S-1’ in the last column on Fact Sheet under Category-II ‘Suspect Transactions’)

The status of these transactions on ATM Transaction Details & Summary Report is shown as ‘Suspect
(Response code 99)’. There can be two scenarios as under:

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 Status of
Status On ATM Transaction Status Status Of Transaction Cash Dispense
Scenario Customer
Activity Report on GLA-29 Report on ATM Scroll Status
Account

“Transaction
1 99 A/c Debited Included on GLA-29 Dispensed
Authorized”

2 99 A/c Debited Included on GLA-29 Missing on Scroll No Dispense

For ATM Cash balancing purpose custodian is required to include only those transactions which
meet the conditions given in scenarios # 1 i.e. Transaction is authorized on the scroll.
Transactions falling under scenario # 2 will not impact ATM Cash but will create a difference in GL.
To resolve this difference please refer the ‘Guidelines to Reconcile Cash-in-ATM-GL.

Note: While checking the status of suspect transactions ATM custodian MUST print customer account
statement to evidence the DEBIT in customer account and should be kept as a record with Fact Sheet.

iii. Funds received against Response Code ‘99’ for 1-Link:

(Marked ‘S-2’ in the last column on Fact Sheet under Category-II ‘Suspect Transactions’)

Similar to category (ii) above these are the 1-Link suspect transactions for which funds are received
from the ‘switch’ and ATM has dispensed cash to the customer.

iv. Funds received against Response Code ‘99’ for MNET:

(Marked ‘S-3’ in the last column on Fact Sheet under Category-II ‘Suspect Transactions’)

Similar to category (ii) above these are the MNET suspect transactions for which funds are received
from the ‘switch’ and ATM has dispensed cash to the customer.

v. Funds received against Response Code ‘99’ for MDS:

Marked ‘S-4’ in the last column on Fact Sheet under Category-II ‘Suspect Transactions’)

Similar to category (ii) above these are the MDS suspect transactions for which funds are received
from the ‘switch’ and ATM has dispensed cash to the customer.
1.11.3 Cash Balancing Summary:
This is the section where above amounts given in Category I & II are considered for balancing the ATM
Cash:
i. Cash Fed in ATM previous day:
(Marked ‘A’ in the last column on Fact Sheet under Category–III ‘Cash Balancing Summary’)

This amount is taken from last column (marked ‘A’) under Category –I ‘Cash Status’ on Fact Sheet.
ii. Cash Dispensed to MCB Customers – (Response Code ‘00’):
(Marked ‘B’ in the last column on Fact Sheet under Category–III ‘Cash Balancing Summary’)

This is the amount of successful transactions of MCB customers for which ATM has dispensed cash
during the day. However, to make this task easier for the ATM custodians a ‘NEW’ report is
developed titled ‘ATM Transaction Detail & Summary Report’ (Annexure XIII). This new report is a
replacement of old RAMS report and is ‘Transaction Sequence Range’ based. It provides flexibility to
the user to extract & print the complete activity of an ATM from ‘Cash Replenishment Time’ of day 01 to
‘Cash Replenishment Time’ of day 02 which is the key factor for balancing the ATM cash.

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 To capture the complete activity for the day for which cash is being balanced the custodian is
required to:
 Note down the ‘1st sequence’ number immediately after first Cash Replenishment of day 01 and the
‘last sequence’ number before the last Cash Replenishment of day 02 from ATM Scroll.
 Print the new ‘ATM Transaction Detail & Summary Report’ for the range of above sequence numbers
that were noted from ATM Scroll.
Note down the total amount of cash dispensed given in the summary at the end of the report under
the column (1) “Res = 00” for MCB customers for input in this field.
Note: The old RAMS report being used for this purpose is ‘inadequate’ and should NOT be used anymore.
iii. Cash Dispensed to 1-Link Customers – (Response Code ‘00’):
(Marked ‘C’ in the last column on Fact Sheet under Category–III ‘Cash Balancing Summary’)

This is the amount of ‘successful transactions’ of 1-Link customers for which ATM has successfully
dispensed the cash during the day. (Follow the above process to get this amount from ‘ATM Transaction
Detail & Summary Report’).
iv. Cash Dispensed to MDS Customers – (Response Code ‘00’):
(Marked ‘D’ in the last column on Fact Sheet under Category–III ‘Cash Balancing Summary’)

This is the amount of ‘successful transactions’ of MDS customers for which ATM has successfully
dispensed cash during the day. (Follow the above process to get this amount from ‘ATM Transaction
Detail & Summary Report’).
v. Cash Dispensed to MNET Customers – (Response Code ‘00’):
(Marked ‘E’ in the last column on Fact Sheet under Category–III ‘Cash Balancing Summary’)

This is the amount of ‘successful transactions’ of MNET customers for which ATM has successfully
dispensed cash during the day. (Follow the above process to get this amount from ‘ATM Transaction
Detail & Summary Report’).
vi. Suspect amount debited against Error code ‘99’:
(Marked ‘S’ in the last column on Fact Sheet under Category–III ‘Cash Balancing Summary’)

Input the total of ‘Response Code ‘99’ transactions noted in last column marked ‘S’ on Fact Sheet
under the Category-II ‘Suspect Transactions’.
vii. Cash found (counted physically) from all cassettes:
(Marked ‘P’ in the last column on Fact Sheet under Category–III ‘Cash Balancing Summary’)

Input the ‘Remaining Cash’ that was found in the ATM and given in last column marked (P) on Fact
Sheet under Category-I ‘Cash Status’.
viii. Cash Fed in ATM if any, after flag time (15:00 M):
(Marked ‘Q’ in the last column on Fact Sheet under Category–III ‘Cash Balancing Summary’)

Input the amount of ‘additional’ Cash Replenishment if any made during the day from ATM Scroll
Replenishment Summary.
ix. Difference:
(Marked ‘W’ in the last column on Fact Sheet under Category–III ‘Cash Balancing Summary’)

Make totals of two the columns (Debits & Credits)

Debits: Cash fed in ATM previous day + Cash fed in ATM after flag time 15:00 PM, if any.
Credits: Total cash dispensed + Suspect amount debited against error code 99 + Remaining Cash
found in ATM).

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 Compare the Debit and Credit totals:
 If the ‘Total Debits’ agree with ‘Total Credits’ then there is no difference and ATM Cash is
balanced.
 If the ‘Total Debits’ do not agree with ‘Total Credits’ then ATM Cash has a difference. Custodian
is required to investigate this difference.
1.11.4 Itemized Details of Difference:
Difference if any, MUST be investigated to identify the transaction(s) creating that difference and it is
mandatory for the custodian to individually list the details of these transaction(s) in this section.
Resolution of Difference:
For resolution of difference it is mandatory for the ATM custodian to:
i. Check that the transaction(s) creating the difference are listed in ‘Proactive Module’.
ii. Post Cash with ATM GL balancing carried out of the same date.
iii. Check from statement of account (MCB customers) that customer account was debited.
iv. Check the status of ‘receipt of funds’ for MNET, 1-LINK & MDS related transactions from Switch
Settlement Unit.

1.12 STEPS TO FOLLOW FOR CASH BALANCING IN CASE RAMS REPORT IS NOT AVAILABLE
1.12.1 ATM Cash Balancing (From Scroll)
i. Take physical scroll of ATM & manually calculate cash dispense totals for MCB & Non MCB
transactions.
ii. MCB Cards bin # (5893887 & 5893882). Rest of the card numbers will be for other banks using
on MCB ATM.
iii. Cash withdrawal entries totals of ATM transactions for cash balancing to be considered from 1st
sequence number after last cash replenishment ( 15:00 hrs ) to last sequence number of current
date before cash replenishment at (15:00 hrs.)
iv. Combined totals for MCB & Other banks cards & consider it as cash dispensed.
v. ATM Scroll also need be checked for problem transactions e.g. response codes 99 / 66 / 28 etc
to validate cash dispense status to ensure proper cash balancing.
vi. Now compare cash replenished previously against the cash dispensed plus remaining cash as per
existing process requirement to find any difference and then identify relevant transaction
creating the differences as detailed in the process guidelines for preparing the Fact Sheet.
vii. An ATM with no problem transactions would ideally be balanced for cash.
viii. Follow steps mentioned above to carry out Cash balancing (without RAMS report support)
exercise daily till RAMS is available. Upon RAMS report availability all the workings for Cash
balancing must be reconciled by generating required RAMS reports of the said dates to ensure
error free process continuation in this regard.

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1.13 SBP MANDATED TIMELINES FOR ”AUTOMATIC CREDIT” OF SUSPENSE ATM CASH
Following is the summary of the SBP TATs mandated for Proactive resolution of failed to cash dispensed ATM
transactions by the acquiring banks.
Exec. of trx. by a card Max No. of
Procedures & Max. No. of Business Days
holder of: Days
Same Bank at Same Next Business
 Branch to re credit the customer’s account
Branch Day
Same Bank at Different  Acquiring Branch, after clarification, to issue credit
3 Business
Branch, Intra-City (Within instructions to its card issuing branch to inform its CFC.
Days
Same City).  Card issuing branch to re-credit the customer’s account
Same Bank at Different  Acquiring Branch, after clarification, to issue credit
4 Business
Branch, Inter-City instructions to its card issuing branch and inform its CFC.
Days
(Different cities)  Card issuing branch to re-credit the customer account.
 Acquiring branch, after verification, to issue credit
instructions to its CFC (within 3 Business Days)
 Acquiring bank CFC to issue credit instructions to its
Different Banks within respective switch. (Same day)
same city-member of  Respective switch-(M-NET or 1-Link) to issue credit 6 Business
same switch (M-NET or 1- instructions to its issuing bank CFC. (Within 1 Business day) Days
Link).  Issuing bank CFC to issue credit instructions to its card
issuing branch. (Within 1 Business day)
 Card issuing branch to re credit the customer’s account.
(Within 1 Business day)
 Acquiring branch, after verification, to issue credit
instructions to its CFC. (within 3 Business Days)
 Acquiring bank CFC to issue credit instructions to its
respective switch-(M-NET or 1-Link). (Same day)
Different Banks in
 Respective switch-(M-NET or 1-Link) to issue credit
different cities-member of 6 Business
instructions to its issuing branch. (Within 1 Business day)
same switch (M-NET or 1- Days
 Issuing bank CFC to issue credit instructions to its card
Link).
issuing branch. (Within 1 Business day)
 Card issuing branch to re credit the customer’s account.
(Within 1 Business day)

 Acquiring branch, after verification, to issue credit

instructions to its CFC. (within 3 Business Days)
 Acquiring bank CFC to issue credit instructions to its
respective switch-(M-NET or 1-Link). (Same day)
 Respective switch-(M-NET or 1-Link) to issue credit
Different Banks within
instructions to the other switch-(M-NET or 1-Link or Vice
same city-member of 7 Business
Versa). (Within 1 Business day)
different switch (M-NET & Days
 Other switch to issue credit instructions to its issuing bank
1-Link)
CFC-(M-NET to 1-Link or Vice Verse). (Within 1 Business day)
 Issuing bank CFC to issue credit instructions to its card
issuing branch. (Within 1 Business day)
 Card issuing branch to re credit the customer’s account.
(Within 1 Business day)

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  Acquiring branch, after verification, to issue credit
instructions to its CFC. (within 3 Business Days)
 Acquiring bank CFC to issue credit instructions to its
respective switch-(M-NET or 1-Link). (Same day)
 Respective switch-(M-NET or 1-Link) to issue credit
Different Banks in
instructions to the other switch-(M-NET or 1-Link or Vice
different cities-member of 7 Business
Versa). (Within 1 Business day)
different Switch (M-NET & Day
 Other switch to issue credit instructions to its issuing bank
1-Link).
CFC-(M-NET to 1-Link or Vice Verse). (Within 1 Business day)
 Issuing bank CFC to issue credit instructions to its card
issuing branch. (Within 1 Business day)
 Card issuing branch to re credit the customer’s account.
(Within 1 Business day)
Serial No. 1-3 is relevant where an account holder executes a transaction at an ATM installed at branch of card
issuing bank.
Serial No. 4-5 is relevant where an account holder executes a transaction at an ATM installed at branch other
than the card issuing bank’s branch. However, both banks i.e. card issuing and ATM on which transaction was
executed, are member / connected with the same switch; either M-NET or 1-Link. Timelines given in this
annexure are also applicable on off-site ATM’s with 2 additional business days in each scenario
2 business days are added for tier-2 cities i.e. remote cities which are other than Karachi, Lahore, Islamabad
and Rawalpindi and will be applicable on both same city and different cities cases
Note
i. TAT starts from next business day of transaction date
ii. For Off-Site ATM’s 2 additional business days are provided
iii. 2 More Business days are added for Tier 2 cities (i.e. Cities other than Karachi, Lahore, Islamabad, &
Rawalpindi) for both same city and different cities cases.
Terminology used in above table:
i. Issuer: Card Issuing Bank
ii. Acquirer: ATM branch of the bank
iii. CFC: Card Facilitation Centre
iv. DRU: Dispute Resolution Unit

1.14 RECONCILIATION OF ATM CASH WITH CASH-IN-ATM GL

As per the institutional and regulatory requirement it is mandatory for the ATM custodian to Reconcile ATM
Cash with “Cash-in-ATM GL” of the branch on a daily basis (Annexure XIV). Difference if any, must be
investigated to find out the transaction(s) creating the difference and corrective entries should be passed the
same day.
1.14.1 Guidelines to Reconcile ATM Cash with Cash-in-ATM GL:
The branch GL for Cash-in-ATM reports the status of ATM Cash as of end-of-day (00:00 Hrs) when
SYMBOLS end of day is executed. To reconcile the physical cash in the ATM with the corresponding
balance on the GL it is required to get to know the ATM Cash position at the end of day at 00:00 Hrs.

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 SECTION “A”: ATM Cash Position at the end of previous day (24:00 Hrs)
To find out the cash position at the end-of-previous day ATM custodians are required to perform the
following steps:
i. Remaining Cash in the ATM:
Count the physical ‘remaining cash’ found in the ATM at the time of cash replenishment at 15:00 Hrs
(it should be the same amount that is used for balancing ATM cash for the day).
ii. Additional Cash Replenished, If any
Any additional cash replenishments during the day except to standard time of 15:00 to be subtracted
iii. Cash dispensed after end-of-previous day till Cash Replenishment time:
Calculate the cash that was dispensed after ‘end-of-day’ (00:00 Hrs) until Cash Replenishment time
(15:00 Hrs). This is the amount of cash that was available in the ATM at end-of-day (00:00 Hrs) and
was dispensed after end-of-day until cash replenishment time (15:00 Hrs) and as such, should be
considered as ‘physical cash’ on hand for GL reconciliation purpose.
To get this amount follow the step given below:
Note down the 1st transaction sequence after Symbols EOD (00:00 Hrs) for previous day and the last
transaction sequence number before the cash replenishment for the day from ATM Scroll. Then print
the “ATM Transaction Details & Summary Report” for the noted sequence range. (For this purpose,
week-ends & holidays should be treated as one Business day).
This amount can also be calculated manually from ATM Scroll by adding up the total successful cash
withdrawals for the given transaction sequence numbers.
iv. Cash dispensed on previous Business day for MNET, 1Link, MDS transactions:
This is the amount of cash that was dispensed for ‘Others’ (MNET, 1Link & MDS) customers on
previous day but not posted/updated on the GL for the day due to system limitations and as such,
should be considered as cash on hand for GL reconciliation purpose.
To get this amount follow the step given below:
Note down the 1st transaction sequence number after midnight of day before previous day and
the last transaction sequence number before the midnight of previous day.
Print the 'activity report' from new RAMS report for the noted transaction sequence range.
v. Total Cash in ATM at the end-of-day (00:00 Hrs):
Calculate the amount of physical cash that was available in the ATM at the end of previous day (00:00
Hrs) by adding up the amount of point Nos. 1, 2 and 3 above.

SECTION “B”: GL Balance of Cash-in-ATM for the day:

Note down the GL balance for Cash-in-ATM of the branch for the day from GLA-91 report of the branch.

SECTION “C”: Difference between ATM Cash vs. Cash-in-ATM GL:

Compare the ‘total cash in ATM’ given under point # 4 above which should agree with Cash-in-ATM GL
balance given under point # 5. The difference, if any must be investigated and corrective entries must be
passed the same day. However for differences related to response code 99 and 66 must be validated
through ‘Proactive module’ and marked for required action taken.
Possible scenarios of difference:
i. Ensure that MNET/1LINK/MDS/MIBS offline entries of the day before previous day are

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 posted/updated on the GL. For all response code 99 transactions of MNET & 1Link funds are
exchanged by the switch & credit for the same amount is due in Cash with ATM GL of the
branch.
ii. Cash dispensed but NO accounting entry is passed by the system (i.e. Debit customer & Credit
cash). In this scenario GL will be more than the physical cash. For such instances custodian
should:
Dr= Customer Account
Cr= Cash in ATM GL

iii. Cash retract instances where ‘cash excess’ was highlighted during balancing of ‘ATM Cash’. In
these instances physical cash will be more than the GL. For such instances custodian should:

Dr= Cash in ATM GL

Cr= Customer Account

iv. Suspect transactions (code=99) where customer account is debited, cash is NOT dispensed but
the transaction is included in “Cash in ATM Accounting Entries Report” for GL update. In these
instances though the physical cash on Fact Sheet will be balanced but will create difference
while reconciling the GL (Physical cash will be more). For such instances custodian should:
Dr= Cash in ATM GL
Cr= Customer Account

Note: Do not reverse the transaction using manual entry through vouchers EXCEPT for ‘Partial Dispense’
instances

SECTION “D”: Itemized Details of Difference:

Difference if any, MUST be investigated to identify the transaction(s) creating that difference and it is
mandatory for the custodian to individually list the details of these transaction(s) in this section.

1.15 STEPS TO FOLLOW FOR GL BALANCING IN CASE RAMS REPORT IS NOT AVAILABLE
1.15.1 ATM GL Balancing (From Scroll)
i. Take remaining physical cash position till 15:00 hrs.
ii. Any additional cash replenishments during the day except to standard time of 15:00 to be subtracted.
iii. Take physical scroll of ATM & manually calculate cash dispense totals for MCB & Non MCB
transactions from 1st sequence number after 00:00 hrs till 15:00 hrs last sequence # before cash
replenishment of the current day.
iv. MCB Cards bin # (5893887 & 5893882). Rest of the card numbers will be for other banks using MCB
ATM.
v. Take other banks transactions (MNET / 1Link / MDS) from physical scroll of night before previous
sequence # between 00:00 to 00:00 hrs last night for e.g. if today is August 04, 2010 then sequence #
to be considered for this step would be of following timing August 03, 2010, 1st sequence of this date
after 00:00 hrs till last sequence # 00:00 hrs of the same date. (August 03, 2010 24hrs).
vi. Add all above three figures to work out cash in ATM at 00:00 hrs last night.
vii. Take Cash with ATM GL balance from the GLA 91.
viii. Compare both figures to work out the difference if any.

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 ix. In case of differences, it need be resolved and said differences noted in section – D, however due to
any unforeseen situation if difference could not be resolved the same day and its impact need be
accounted for and carried forward to next day balancing exercise to have proper GL balancing be done
onward & keep the required process continuity.
x. Follow steps mentioned above to carry out GL balancing (without RAMS report support) exercise daily
till RAMS is available. Upon RAMS report availability all the workings for GL balancing must be
reconciled by generating required RAMS reports of the said dates to ensure error free process
continuation in this regard.

1.16 MCB ATM / SMART CARD PROACTIVE TRANSACTION SETTLEMENT

MCB ATM/Smart Card Proactive Transaction settlement Module is an intranet-based module that runs in all
MCB branches & Dispute Resolution Unit (DRU). Branches can view all the suspect transactions of last working
day pertaining to their ATM/s. The list of suspect transaction is uploaded in the system on daily basis. These
suspect transactions are of Response Code ‘99’ and ‘66’ only.
1.16.1 Suspect Transaction Categories:
The suspect Transactions are divided in three main categories:
i. Self Branch Suspect – (Where Card and ATM machine pertains to same MCB Branch)
ii. Cross Branch Suspect – (Where Card and ATM machine pertains to different MCB Branches)
iii. M-Net & 1 Link Suspect – (Where M-Net & 1 Link MCB ATM/Smart Cards are used on MCB ATM
machine)
1.16.2 Main Features:
i. User can view suspect transactions, which are grouped according to their respective Branch ATM ID’s.
ii. Search option is available. User can look for the suspect transactions on the basis of Date or Sequence
number.
iii. It provides reports to the branches for record keeping.
iv. TAT can be monitored through these reports
1.16.3 Process to view and mark suspect transactions:
The input user needs to follow the following steps in order to mark Cash Position, ‘Scroll Status’ and
‘Account Debited or Not’ against Suspect Transactions in the ATM Proactive Transaction Settlement
System.
i. Authorized User (By Manager) has to Login by using User ID & Password.
ii. Click View Suspects Tab on the top menu bar on Main Screen. The self-branch suspect transaction
list will be displayed on the screen. For viewing Cross Branch or M-Net & 1 Link suspects, click the
respective link at the top of the page.
iii. Click the STAN No link to view the complete details of each suspect transaction.
iv. Screen will show the details such as: Sequence No, ATM ID, Response Code, Customer Name, card,
account number etc. User will check the Account Debited (For MCB customer transactions) or Funds
Received field (For MNET/ 1 Link transactions). Select appropriate Radio Button “Yes” or “No”.
v. Select the appropriate Status on scroll (list of which is given below: Table Scroll Status) from the
Dropdown list by comparing the transaction details against the ATM scroll.
NOTE: It is mandatory to mark the Cash Position (list of which is given below: Table Scroll Status) against Suspect
Transaction in the said module on daily basis in order to enable the system to auto reconcile the transactions.
Failure to do so will increase the number of suspect transactions in the system.

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Response Code Definition: Code by which transaction status is verified for completion or rejection.

Table: Scroll Status

Code Status
TA Transaction Authorized
PE Transaction Authorized Cash Retracted
PE Presenter Error
NA Transaction Not Authorized
EM Missing from Scroll
Select appropriate Cash position from the drop down list.

Table: Cash Position

Status Description
CB Cash Dispensed to Customer Pls. Delete
NP Does not pertain to suspect
CE Cash not dispensed Pls. Credit Customer Account
DE Account Credited by branch Pls. delete
DL Claim Settled by Branch Pls. delete

vi. If the suspect transaction pertain to ‘Self Branch’ (Local ATM, Local A/C), then home branch is
required to settle the claim and mark cash position in the ATM Proactive Claim Transaction
Settlement Module as DL.
vii. If the suspect transaction pertain Cross Branch (Local ATM, Other branch A/C) or MNET/1Link
(MNET Member Bank /1 Link Card) then the transaction on ATM branch is required to mark
appropriate cash position status & submit.
viii. Input remarks, if any and click submit button
ix. Cross Branch & MNET & 1 Link Claims will be settled by DRU based as per SBP given timeframe for
transaction settlement timelines.

1.17 ATM CLAIM MANUAL SETTLEMENTS

1.17.1 ATM Transaction Dispute Form- SF-259R has the following features:
i. Bank’s Acknowledgment/ Customer’s Copy portion attached.
ii. Carbonized copy attached with the SF-259R for branch record.
iii. There is option available for Reference or Serial number in order to monitor the resolution and
Turnaround Time of the dispute.
iv. ATM Transaction Dispute Form can also be submitted to transaction originating branch in case of
other MCB’s Branch customer.
1.17.2 Branches are required to follow the below mentioned process for Handling ATM
Transaction Dispute Forms:
i. Branches are required to maintain a separate folder for the ATM Transaction Dispute Forms
(Carbonized Copy), clearly mention Claim Received Date in the columns “For Bank Use Only &
Customer’s Copy”.

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 ii. It is mandatory for the branches to maintain a log for all the ATM Claims received in a day from MCB
customers and Branches by allocating Reference/Serial Number on the form for easy retrieval of
information and accurate track of the claims submitted by the customers.
iii. Arrange the application Date wise & segregate the folder into two parts “Resolved” and “Unresolved”
cases.
iv. Acknowledgement portion given in the form must be duly filled and signed by the Designated
Authorized Officer (DAO) and same will be delivered to the customer for his/her record and necessary
follow-up.
1.17.3 In case customer has performed ATM Cash Withdrawal transaction from other MCB
branches:
i. In this scenario transaction originating branch is encouraged to facilitate the customers in providing
and accepting the ATM Transaction Dispute Form. After reviewing the ATM Scroll, Designated
Authorized Officer (DAO) will mark Cash Position on Proactive Claim Settlement Module as per the
status given in ATM Scroll.
ii. If the said module is not installed in the branch, DAO will highlight the transaction details in the Scroll,
select or note down the appropriate remarks & attach the copy of Scroll with SF-259 and forward the
same to Dispute Resolution Unit for further action.
Transaction sequence number is the base for identifying the status of ATM suspect transactions. Therefore
among SYMBOLS Branches, Sequence number can be obtained for the suspect transaction by viewing customer
Account Statement through system (EOC or MCB Report).
Note: The self branch transaction claims are handled by Parent Branches.

1.18 DISPUTE RESOLUTION UNIT

To facilitate the branches and customers for resolution of their ‘ON-US’ ATM failed transactions and claims in
timely manner, bank has established a “Dispute Resolution Unit (DRU) at MCB Tower under Operations Group.
DRU also coordinate with Dispute Resolution Unit of MNET to resolve/settle Issuer and Acquirer ATM failed
transactions and claims that are performed through MNET Switch.
Note: The self branch transaction claims are handled by Parent Branches.
Contact details of Dispute Resolution Unit:
Tel # : 021 – 2641514
E-Mail : [email protected]
Address : MCB Towers
14th Floor
I. I. Chundrigar Road
Karachi

1.19 ESCALATION MATRIX – ATM CASH & GL BALANCING

In addition to daily ATM cash and GL balancing, following matrix will be applied to highlight and resolve the
remaining difference with proper follow up to ensure continuation of the process in its true spirit and avoid
penalties levied by regulator due to non compliance of the required mandate by the ATM branches.

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 1.19.1 Escalation Matrix for CBBG
Information being escalated Escalation by Escalation to
Daily ATM Balancing Report All Branch Operation Managers All Regional ATM Coordinators - CBBG
All Regional ATM Coordinators
Summary of daily ATM Balancing Report All Regional Operation Managers
Coordinator - CBBG
Transactions > 7days with aging on a daily
All Regional Managers General Manager / Area Operations Head
basis
Operations Head /All Business Heads
Summary of key issues identified All General Managers
Group Head

1.19.2 Escalation Matrix for WBG

Information being escalated Escalation by Escalation to

Daily ATM Balancing Report All Branch Operations Managers All Branch Managers
Summary of daily ATM Balancing Report All Branch Managers All Regional Operations Managers
Transactions > 7days with aging on a daily basis All Regional Operations Managers Unit Head, Internal Control
Transactions > 7days with aging on a daily basis Unit Head, Internal Control Division Head
Summary of key issues identified Division Head Group Head Ops

1.19.3 Escalation Matrix for IBG

Information being escalated Escalation by Escalation to

Daily ATM Balancing Report All Branch Operations Managers All Regional ATM Coordinators
All Regional ATM Coordinators
Summary of daily ATM Balancing Report All Regional Operations Managers
Coordinator IBG
Transactions > 7days with aging on a daily
All Regional Operations Managers Head IBG Operations
basis
Summary of key issues identified Head – IBG Operations Group Head

1.19.4 Escalation Matrix for CBG – Privilege Banking

Information being escalated Escalation by Escalation to

Daily ATM Balancing Report All Branch Operation Managers CBG All Regional ATM Coordinators CBG
All Regional ATM Coordinators
Summary of daily ATM Balancing Report CBG- Privilege Banking All Regional Operation Managers CBG
Coordinator CBG-Privilege Banking
Transactions > 7days with aging on a daily
All Regional Operation Managers CBG Business Head CBG
basis
Summary of key issues identified Business Head CBG - Privilege Banking only Group Head CBG

1.19.5 Definition of Acronyms Used:

Issuer: Card Holder bank / branch
Acquirer: ATM branch of the bank / branch
Mnet Member Bank: Bank affiliated with M-Net Switch
1-Link Member Bank: Bank affiliated with 1-Link Switch
PSD: Payment System Department (SBP)
Fact Sheet: Prescribed Format being used for ATM Cash balancing
GL Sheet: Prescribed Format being used for Cash with ATM GL balancing
‘00:00’: 24 hour’s cycle of a particular calendar date (from start of a day till end of the day)
Self branch: where MCB Cards and MCB ATM branch to be the same
Cross Branch: where MCB Cards and MCB ATM branch are different

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Chapter 2 SMART CARD
Smart Card is a secure and convenient deposit access instrument for payments. It allows customer 24 hour
access for bill payments, cash withdrawals, fund transfers and account enquires through MCB remote banking
channels.

2.1 SMART CARD – LIFE CYCLE

TAT Steps
Card Request Order Taking

2 Business days i. From Branch

ii. From Call Center
iii. Issuance of Supplementary Card
Production & Delivery
i. Card & PIN Production and Delivery
4 Business days ii. Custody of Card & PIN
iii. Handover of Card & PIN
iv. Daily Balancing of Card & PIN
v. Handling of un-delivered Card & PIN
Real time Activation
Real time Blocking (Lost/Stolen – Hot)
1 Business day Deletion

2.2 SMART CARD REQUEST ORDER TAKING

2.2.1 From Branch:
Customer: duly fills out the ATM Application (SF-1C for “Classic Card” and SF-1(H) for “Gold Card”) along with
page two, copy of CNIC and submits the same to Customer Services Officer (CSO).
CSO: Reviews the form and forwards the same to the Designated authorized officer for signature verification.
Designated authorized officer:
i. Verifies the details of the customer and signature from the Branch Teller Module by using BT>
Transactions > Non-Financial Transactions > Customer Signatory (Screen # BT44).
ii. Checks that sufficient funds are available in the customer’s account.
iii. Verifies signature and account balance.
Customer: leaves the branch after the signature verification.
Designated authorized officer: Performs the following tasks
i. Click on Smart Card Registration Icon.
ii. Smart Card Registration screen access requires Login ID and Password.
iii. Inserts Login ID and Password.

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 2.2.1 From Branch:
iv. Screen displays four (4) different options.
 Add Application
 View Application
 Change Password
 Logout
v. Clicks on ‘Add Application’ option, enters customer’s account number and clicks on submit button
given.
vi. Screen displays customer account details retrieved from Symbols.
vii. Clicks on “Proceed” button and manually inputs the following details:
viii. Card Embossing Name, Card Member Name, Card Holder CNIC #, Card Holder Cell #, Product Group,
Language & Nature of the card:
 Original
 Re-Issuance
 Supplementary
 Replacement
ix. After inputting the above-mentioned information, clicks on the “Submit” button.
The request is automatically forwarded to the designated approver’s SCGM ID for request validation and
approval.
Designated Authorized Officer (Approver):
Reviews the application received and approves if the information inputted is in accordance with customer’s
application form submitted.
Note: After approving the applications, system automatically generates a unique Reference ID for every
application.
Notes down the Reference ID on the application and files it for reference.

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 2.2.2 From Call Center:
Call Center Agent: Call Center makes an outbound call to the customer to take request for debit card issuance.
(All conversation with the customer will be done over a recorded line).
OR
Customer’s call is received at the call center requesting for debit card issuance. (All conversation with the
customer will be done over a recorded line).
Call Center Agent: Customer is verified on the basis of information in the call center CRM. Information used for
verification is (4 Static + 1 Dynamic):
S=Static
i. CNIC number.
ii. Account Number.
iii. Mother’s Maiden Name.
iv. Date of Birth.
v. Address / Contact No. (Alternate question to be asked in case any of incorrect response to the above).
D=Dynamic
i. Approximate account balance.
(In case of negative verification, agent will not proceed further and would request customer to visit parent
branch for data correction in symbols and its updation at the call center).
Agent logs the card issuance request via a E-form in the CRM by filling up the following fields based on
customer’s request:
i. Card embossing name.
ii. Card holder’s mobile number.
iii. Card Category.
iv. Card Nature
(New/Replacement /Re-Issuance). E-form is automatically forwarded to the Call Center Internal Control unit.
Call Center Internal Control:
i. E-form is validated to be in accordance with the call recording. To avoid multiple card issuances, it is
also ensured from the Smart Card Generation Module (SCGM) that no active debit card request for the
same customer is in process.
ii. (CCIC will not process the request if it is not in accordance with customer’s request recorded. On
approval, E-form is automatically routed to Card Operations bucket)
iii. All E-forms launched by the call center will be processed by card operations on the next day. TAT of
request processing at card operations (receiving of call center request till dispatch of produced card)
will be 2 working days.
Card Operations (Inputer): Card issuance request is initiated from SCGM on basis of the E-form logged by the
call center. Card Operations Initiating Officer initiate this request in SCGM.
The initiated request is forwarded to the SCGM approver’s bucket.
Card Operations (Approver): Card Operations approving Officer review the initiated request on SCGM and
verify the contents against E-Form raised by the call center. Approve the request upon satisfaction & close the
E-Form. (Card issuance request is logged)

2.2.3 Supplementary Cards:

Bank allows issuance of Supplementary cards. Copy of CNICs of the primary card holder & applicant of the
supplementary card holder should be attached against a supplementary card request.

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2.3 SMART CARD & PIN PRODUCTION & DELIVERY
i. Card Issuance request can be initiated by branches (via SCGM) or Call Center (via e-Form) and
subsequently smart card plastics and their PINs are produced.
ii. Smart cards and PINs are packaged branch wise in sealed envelopes and dispatched at the respective
branch address.
iii. Card PIN mailers are dispatched on the following day via separate courier to ensure security.

2.4 CUSTODY OF SMART CARD & PIN

i. All Smart Cards received are logged in the physical card log register. The card receiving date and card
number is also updated on the ATM issuance Application submitted by customer. Same process for
logging is followed by the PIN custodian.
ii. Cards and PINs are maintained with separate custodians.

2.5 HANDOVER OF SMART CARD & PIN

i. Custodian of smart card after viewing customer’s original CNIC hands over card to customer and takes
receipt on the log register. Signatures of the customer should be verified from SSC. Same process is
followed for delivery of PIN by its respective custodian.
ii. After handing over card to customer, branch using SCGM submits smart card activation request which is
automatically routed to the call center. Customer is asked to contact call center for activation.
Note: Smart Card & PIN is to be delivered/ handed-over personally to the account holder and not to any
representative or attorney

2.6 DAILY BALANCING OF SMART CARDS & PIN MAILERS

At day end, Operations Manager validates the total number of Smart Cards in custody of the authorized officer
against the PIN Mailers in the custody of the respective authorized officer.

2.7 HANDLING OF UNDELIVERED SMART CARDS

If the Customer does not collect Smart Card within 90 days, the same is destroyed by the branch by punching
holes on the card’s magnetic strip along with its PIN Code.
Intimation of the same is sent to CPDU through e-mail at [email protected] with a copy to Smart Card Support
Group at [email protected]. The following format is used:

Customer Name Account Number Card Number

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2.8 SMART CARD ACTIVATION
Customer contacts call center and requests activation. Call center agent checks in SCGM if the activation request
has been forwarded by branch. If the request has been received, agent verifies customer in accordance with call
center verification standards. On positive customer’s smart card is activated.

2.9 SMART CARD BLOCKING (LOST/ STOLEN)

Customer is required to contact call center to request blocking of card. Call center agent after verifying customer
in accordance with call center verification standards will block card by marking it as ‘HOT’ in the system and will
provide confirmation of the same. Card once marked ‘HOT’ cannot be re-activated.

2.10 SMART CARD DELETION

Customer is required to submit written request for card deletion at the respective branch. Branch on basis of the
request received will forward request for deletion via email at [email protected] with the following details:
Customer Name Account Number Card Number

Authorized officer at CPDU will mark the card as ‘Deleted’ in the system and provide confirmation on email.

2.11 SMART CARD PIN CHANGE

PIN change option is available at all MCB ATMs using which customer can change his/her smart card PIN. The
PIN is not re-issuable and therefore if a customer has forgotten smart card PIN, he/she should be advised to get
the card replaced.

2.12 ACTIVATION OF WARM (DISABLED) SMART CARD

Smart Card should disable if a card holder makes three attempts with invalid PIN. As per MCB practice, MCB
Smart Card also marked Warm (disabled) after end of day cycle due to excessive wrong PIN attempts. Please
note that PIN got exhausted upon 3rd wrong PIN attempt and refresh after end of day cycle.
For activation of ATM/Smart Card which is marked Warm (Disabled) due to excessive wrong PIN tries following
process should be followed:
i. Customer will contact his/her parent branch and request for his/her card activation.
ii. Branch after validating the customer will send a card activation request to Call Center through e-mail at
[email protected] immediately. The card activation request (e-mail) will be initiated by the BM
or BOM. The e-mail must have the following information:

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 Customer Name CNIC No. Card No. Account No. Date of Request

iii. At the same time the BM or BOM will intimate the customer to contact MCB Call Center @ 111-000-
622(MCB) after end of day cycle to reactivate his/her card.
iv. On receipt of call from customer, Call Center will validate customer and check if his/her card re-
activation request has been received from the branch. The card will be re-activated once both the
requirements are met i.e. customer validation at Call Center and re-activation request from the branch.
In case of negative validation, customer will be requested to visit the parent branch to update his/her
demographic(s) and then contact Call Center again.

IMPORTANT NOTE: Call Center will not re-activate the card if:
i. Any of the mandatory details mentioned above in table is not provided by the branch in its re-activation
request.
ii. Customer does not contact the Call Center for re-activation or call same day of card disabled before
00:00AM.

2.13 ISSUANCE OF SMART CARDS TO NON-RESIDENT RUPEE ACCOUNT HOLDERS

Bank can issue Smart Cards as well as supplementary cards to the individual non-resident rupee account
holders. However, withdrawals through Smart cards should only be allowed in Pakistan.

2.14 HANDLING OF RETAINED/ CAPTURED CARDS ON ATMS

ATMs may retain cards on certain occasions due to technical reasons such as malfunction of ATM or jerk on
electricity failure etc or if the Card is not taken from ATM slot within time.

2.15 COLLECTION & RECORD KEEPING OF RETAINED/CAPTURED CARDS

i. ATM custodians on a daily basis at the time of Cash Replenishment will also collect the
retained/captured cards from the ATM.
ii. Reset the Card Capture ‘counters’ on the ATM back to zero.
iii. Check the number of retained/captured cards collected from the ATM against ATM Scroll and ensures
that the number of physical cards tallies with the number of cards retained/captured reported on ATM
Scroll.
iv. Retained/captured cards must be kept under dual custody of the two custodians.
v. Log the all retained/captured card collected from ATM for the day in ‘Retained/Captured Cards Register’
on the same day in below mentioned format.

Issuing Custodians Card delivered Date Custodian

Sr. Date of Card Reason of Initials Customer Initials
Bank to Customer / delivered /
No. Capture No. Capture Signature
Name C-1 C-2 Branch/CFC returned C-1 C-2
1 2 3 4 5 6 7 8 9 10 11 12

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 vi. Branches/ATM Custodians must maintain proper record/audit trail of retained, returned, cut and re-
enabled cards for at least six months for the purpose of investigation of crimes related to cards.
vii. ATM custodians on a daily basis must report to its CFC:
 Details of number of cards retained, number of cards returned to cardholders and number of cards
returned to Issuing Bank/Branch on daily basis.
 Details of claims settled, outstanding claims and balance in suspense accounts.

2.16 DISPOSITION OF RETAINED / CAPTURED CARDS

i. ATM custodians on the request of customer may return a ‘Retained Card’ to the customer after proper
identity check through the presentation of original CNIC. Signatures of the customer should be verified
from SSC
ii. For return of ‘Retained Cards’ to customers, custodians MUST retain photocopy of CNIC for its record
and obtain customer’s signature on the Retained/Captured Cards Register as an acknowledgment for
receipt of card
iii. In case of doubt or as advised by the Issuing bank/branch, the custodians may decline the return of the
card to customer and forward the card to CFC of Issuing Bank through CFC of MCB along with the
reasons of refusal of return to the customer.
iv. Cards captured at the request of Issuing Bank must be returned to Issuing Bank on the following working
day of card capture.
v. Any retained card that appears “Suspicious” (for example, plain white plastic card, cardboard card or
any other card that is unusual in nature) should be preserved. (These cards may be handed over to Law
Enforcement Agency when demanded, in consultation with its legal department/Fraud Management
Unit and with proper documentation).
Note: Retained/ Captured Smart Card is to be delivered/ handed-over personally to the account holder and not
to any representative or attorney

2.16.1 Time frame for disposition of Retained Cards:

Pertain to Required Action by Custodians of Required Action by Custodians of “Card
customers of: “Acquiring Branch / ATM” Issuing Branch”
i. Hold the card at branch end under dual
custody for customer’s collection.
ii. If not collected by the customer within
10 Business days from the date of
MCB
capture then the ATM custodians must -
Self Branch
destroy the card by cutting it into half
vertically through the magnetic stripe.
iii. Maintain proper audit trail of the cards
that are destroyed for record purpose.
Hold the cards under dual custody for 02 i.
Hold the cards under joint custody for
Business days for customer’s collection. next 08 Business days for customer’s
MCB
collection.
Cross Branch
If not collected by the customer within 02 ii. If not collected by the customer within
Business days, send the cards to ‘Issuing next 08 Business days then the custodians

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 Branch’ through courier and maintain must destroy the card by cutting it into
proper audit trail of cards delivery. half vertically through the magnetic stripe.
iii. Maintain proper audit trail of the cards
that are cut/destroyed for record purpose.
i.
Hold the retained cards under joint
custody for 02 Business days from date
Other Banks of capture for customer’s collection.
(MNET, 1Link & ii. If not collected by the customer within -
MDS) 02 Business days send the card to CFC
(of MCB) & maintain proper audit trail
of cards delivery.

2.16.2 Cards of ‘Other Banks’ received from MCB Branches:

i. On receipt of cards from MCB branches pertaining to ‘other banks’ that were captured at MCB ATMs will
be acknowledged and logged/entered in a register on the day of receipt.
ii. Cards will be sorted ‘by bank’ and will be forwarded to ‘CFC’ of respective banks under a cover letter
mentioning the number and details of the cards through courier latest by next Business day.
iii. Update the register with delivery status of cards sent to banks.
RETAINED/CAPTURED CARDS - ‘OTHER BANKS’
(Received from MCB Branches)
Card Pertains to Custodian
Date of Cards Received Card Date Delivered
Sr. No. (Name of Issuing Initials
Receipt From (Br Name) Number to CFC of Bank
Bank) C-1 C-2
1 2 3 4 5 6 7 8

2.16.3 Cards of ‘MCB’ received from Other Banks:

i. On receipt of cards from CFC of Other Banks pertaining to ‘MCB Branches’ that were captured at their
ATMs will be acknowledged and logged/entered in a register on the day of receipt.
ii. Cards will be sorted ‘by branch’ and will be forwarded to respective branches under a cover letter
mentioning the number and details of the cards through courier latest by next Business day.
iii. Update the register with delivery status of cards sent to branches.
RETAINED/CAPTURED CARDS - ‘MCB’
(Received from Other Banks)
Card Pertains to Custodian
Sr. Date of Cards Received Card Date Delivered to
(Name of Issuing Initials
No. Receipt from (Bank Name) Number MCB Branch
Branch) C-1 C-2
1 2 3 4 5 6 7 8
Note: All Retained/captured cards must be kept under dual custody.

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Chapter 3 PREPAID VISA CARD

Plastic money is a well accepted mode of payment by virtue of aggressive credit card and debit card marketing
in Pakistan. According to our focus group findings, people have deposit account relationship with mostly local
banks. Moreover, a bank account penetration is at a household level but not at individual level. Individuals
especially the housewives prefer a separate card for themselves rather than a supplementary card from
husband and are moving towards an individualistic outlook generally where they can plan and control.

Also, due to declining credit availability, it has become difficult to surpass the criterion made to be eligible for
credit cards. This further initiates the requirement for a different solution. In addition to the above, the basic
generator of revenue through prepaid is on its point-of-sale usage and in Pakistan the growth in acquiring
network has increased from 20,000 in 2006 to 55,000 in 2009, identifying Prepaid as an opportunity to earn in
the credit crunch persistent right now.

MCB Visa Prepaid Card is pre-funded reload-able card that is easy to use and is safer than cash. The prepaid
card provides a means to penetrate at an individual level by reaching new consumer and commercial segments
that currently rely on cash and cheques for payment. Operating in a similar fashion to debit card accounts, but
with greater flexibility and lesser risk for both the issuer and the cardholder, prepaid cards may be issued in
many cases where the applicant would not qualify for a credit or debit card. Visa prepaid cards can be used to
access previously deposited funds in a Prepaid account. The funds in the account may be spent by the
cardholder through purchase transactions or cash withdrawals or reduced by the issuer applying fees.

Initially, this card will be launched with 5 design variants against three Prepaid packages which are subsequently
differentiated with respect to the limit on maximum deposit, ATM withdrawal, POS usage and internet
transaction.

3.1 BRANCH RESPONSIBILITIES

The Commercial Branch Banking Group will entertain the internal and external customers through its branches
for card issuance and payment collection for load/reload. In addition to that will maintain the Inventory
dispatched to the Branches for issuance. The detailed processes are given as under:
i. Customer Service Officer: The CSO will be responsible for customer creation on AMS.
ii. Inventory Officer: The inventory officer will be responsible for maintaining the inventory registers,
monitoring the sales of cards from the branch and initiating card requisitions to Card Production and
Dispatch Unit.
iii. Tellers: The teller is responsible for crediting funds into the customer account into AMS and symbols in
MCB Visa Prepaid Collection account.
iv. Branch Manager/ Branch Operation Manager: The BM/ BOM will be jointly responsible for ensuring
compliance to processes and will serve as an approving authority

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3.2 PREPAID VISA – CARD ISSUANCE PROCESS
The Branch process below is only for non-personalized cards only. For personalized cards the customer needs
to have a non-personalized card relationship.
The customer will visit the branch for the prepaid card and will be briefed out by the Branch Personnel about
the product and product features. The personnel will guide the customer to perform the following task for the
issuance of Card.
Customer Service Officer:
i. CSO will request the customer for the Copy of CNIC and input the same on the AMS System to ensure
that the customer is new to bank and is not already availing facility of Prepaid Card and also will ask for
the Original CNIC of the customer and will mark “Original Seen” on the CNIC with initial.
ii. In case of MCB Account holder, CSO will fill up the “VERIFICATION OF CNIC” form and will get it verified
from BOM/BM and will not perform NADRA for the CNIC as the customer will already be verified at the
time of MCB account opening.
iii. After confirmation Back-end operational personnel/CSO will perform NADRA Verification on VeriSys for
the new customer and the CSO will request the customer to fill up the application form after positive
verification. In case the CNIC does not get verified on VeriSys, the staff will politely refuse the
customer.
iv. CSO will request the Customer to fill up the application form, read the terms and conditions and select
the Card design and also sign the Application form and terms and conditions.
v. CSO will ensure the completion of application form and will match the signatures on application form
and on terms and conditions with the copy of CNIC provided by the Customer and will also fill up the
information “For Official Use Section” and attach the NADRA verification details with the application
form.
vi. CSO will confirm the Card number from the Card inventory officer for registration on AMS System.
vii. CSO will input the CNIC on AMS System and input the following mandatory fields on the AMS and mark
the check box provided for enrolment of value added services if opted by the Customer.
 First Name/ Last Name
 CNIC/B-Form No
 Date of Birth
 Mother’s Maiden Name
 Place of Birth/ Gender
 Marital Status
 Contact Address Home or Office
 City
 Contact Number: Residential or Office & Mobile
 Type of Package
 Card Number
 Monthly Income
viii. CSO will save the information on AMS System and will select the Package requested by the customer as
per Application Form and then will link the Card number provided by the Inventory Officer duly
mentioned on the Application Form.
Note: In case of any data entry mistake realized by the CSO after saving the information on AMS rectification
can be done on the same day by the Branch for which BOM/BM authentication will be required for rectification
if the customer did not get his activated by contacting at call center.
CSO will provide the deposit slip to the customer mentioning the Card Number to deposit the issuance fee in

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‘Visa Prepaid Collection Account.
Teller Service Officer:
Teller will collect the Fee and FED amount from the customer and credit on the AMS System (Prepaid
Application Management system) and also deposit in the Collection Account using Symbols system (Core
Banking System) simultaneously.

3.3 PREPAID VISA – CARD & PIN ISSUANCE PROCESS

The CSO will brief the card activation process to the customer and request the customer to collect the card and
Pin Mailer from the Inventory Officer. Inventory Officers upon receipt of the deposit slip will issue the Card and
Pin Mailer to the Customer and will ensure the following.
Mandatory requirement for Card/PIN Mailer receiving from Inventory Officers
 Customer Name
 Card and PIN issued to the Customer.
 Receiving Date
 CNIC
 Customer’s Signature
 Deposit Slip Number
 Issuing officer ID/Name
 Issuing officer Signature
At day end the Branch Operations Manager or the Branch Manager will ensure to compile all of the below
mentioned documents and dispatch them to the Card Operations department so that the remaining fields of
the application form can be updated on the CTL system and archiving of customer information can be made at
back office.
i. Application form dully filled in and signed by the Customer.
ii. Copy of CNIC attached with the application form.
iii. Copy of Deposit slip is attached with the application form.

3.4 PREPAID VISA – LOAD / RE-LOAD PROCESS

Customer will inquire the Teller or the CSO about the maximum/minimum amount that can be loaded/re-
loaded on the Card.
Teller Service Officer / Customer Service Officer:
i. Teller/CSO will confirm that the load/reload amount on the AMS System should not exceed the card
limit. The Staff/ CSO will communicate the exact reload/load amount that can be loaded on the card to
the customer.
ii. Customer will fill up the Deposit slip and mention the Prepaid Card Number and contact number on the
deposit slip and submit it to the teller.
iii. Branch teller will confirm the load/reload amount on the AMS System again and ensure that the
amount should not exceed the card limit
iv. In case of deposit amount exceeding the card limit teller will advise the customer to fill up the new
deposit slip with loadable amount on the Card.
v. Branch teller after ensuring that the deposit amount does not exceed the card limit, deposit the funds
in the Prepaid Collection Account.
 Cash Payment: Teller will process the credit on AMS System so that the customer’s prepaid Card

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 account is credited on CTL and thereafter the teller will deposit it in Visa Prepaid Collection
Account in the symbols system (Core Banking System)
 MCB Cheque Payment: Teller will confirm the available balance in the symbols system (Core
Banking System) prior to process the credit into AMS System and after confirmation will process
the credit on AMS System so that the customer’s prepaid Card account is credited on CTL.
vi. At the time of processing the payment, AMS System will request for reconfirmation of the amount that
is being input by the teller. After teller confirmation, the funds will be credited in Prepaid Card Account
on real time on CTL.
vii. The teller will send the deposit slip copy to the CSO; the CSO will confirm the amount that was credited
on the AMS System and sign the deposit slip after verification. In case, any mistake or incorrect amount
is identified to have been credited on the AMS System, the CSO will inform the BOM/BM and the
following will be scenarios and remedial action.
Note: Payment greater than equal to PKR 10,000 require BOM authentication to post the credit into AMS.
In case, Excess/ Less Amount Credited on AMS (CTL)
i. In case, excess or less amount is being credited on the AMS System, the transaction will immediately
be reversed by selecting the card and the associated transaction in the reversal module.
ii. The reversal module for every reversal will require the operations manager to enter the User ID and
Password.
iii. After the acceptance of the User ID and Password, the entry will be reversed.

Branch will take responsibility for correctness of deposit amount transactions into the customers’ prepaid card
account and the collection account for Prepaid Card Product. In case there is any discrepancy, the concerned
branch will make effort to timely identify and correct the same and any related financial loss (if occurred) will
be borne by that branch. However the following efforts will be put in to recover the loss and if recovered will be
refunded to the branch.

In case, the Customer Avails the Excess Credit:

i. In case the customer avails the excess funds that were credited in his account due to
negligence of any department, the card will be blocked immediately after identification of the
same, in daily reconciliation of Collection Account vs. CTL GL.
ii. This case will be forwarded to Collection and Recovery Unit for recovery of the extra credit.
iii. Collection and Recovery Unit will check if the Customer is an MCB account Holder as his MCB
account can be debited as per terms and conditions.
iv. Collection and Recovery unit can cater to the debiting of the MCB account through seeking
information from CTL
v. If the customer is MCB Account holder then the excess credit will be recovered from the MCB
Account. In case, insufficient balance card will be blocked and case will be forwarded to
Collection and Recovery Unit for recovery of extra credit.
vi. The ‘operations copy’ of the deposit slips will be dispatched to the Card Operation division at
day end by the branch.

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3.5 PREPAID VISA – BALANCE ENQUIRY
i. Customer may visit the Branch for the balance inquiry.
ii. The CSO will verify the customer through the physical presence of the card before providing the
customer with the information for balance inquiry
iii. The Branch staff will input the card number on AMS System and will confirm the available balance or
last payment made on the card.

3.6 PREPAID VISA – STATEMENT REQUEST

i. The Customer can request for the statement of account related to his prepaid account.
ii. The CSO will verify the customer through the physical presence of the card
iii. The customer will be provided with the statement that is generated on the system. However, the
customer will be able to inquire about the current balance from the call centre as well as the branch.
iv. The CSO will inform the customer about the statement charges and request the customer to confirm
the period for which the statement is required. The statement will reflect transactions on month to
month basis and real time transaction can be inquired about at the call centre
v. After confirmation, the CSO will take the statement print outs for the specified month from AMS
System.
vi. Customer will deposit the statement fee through the deposit slip at Teller’s counter
vii. The teller will deposit the statement fee in the SYMBOLS Visa Prepaid Collection Account only and no
entry will be passed in AMS module and sign the deposit slip.
viii. The teller will provide the customer with the signed deposit slip.
ix. The CSO upon receipt of signed deposit slip will furnished the print outs of the statement to the
Customer.

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3.7 PREPAID VISA – INVENTORY MANAGEMENT
Branch will receive prepaid design (Bangle, Scenery etc) Cards and Pin Mailers from Card Production Unit and
will manage the physical inventory of cards and Pin Mailers in the fire proof vault.
The issuance will be on FIFO method and the inventory officers will record the receipt and issuance of Card and
Pin Mailers in their inventory register. The registers will be maintained on the following fields which will be
filled up by the custodians.
3.7.1 Record Keeping  Card and PIN Inventory Register:
i. Card/PIN Bulk Receiving Date,
ii. Number of Cards/PINs Received
iii. Number of Cards/PINs issued to the customer
iv. Cards/PINs Recalled
v. Custodian’s Signature.
vi. Custodian’s ID/Name
vii. Custodian’s officer Signature

3.7.2 Inventory Ordering Process  Ordering Criteria will be design based

i.Branch will calculate per day consumption by dividing the cards sold in 1 month by the number of days
in the month
ii. Branch will calculate the re-order point by multiplying the Cards sold per Day figure with 10
iii. The branch will maintain the resultant figure as the re-order point and as the cards stock level reaches
that point, branch will place order for the month
iv. For special cases – whereby more inventory is required by the branch due to the sales trend, the same
will be provided to them
*The figures may change as the learning curve may reach maturity.

The inventory Officer of the Card will analyze the daily consumption of the Cards as per above standard, initiate
the requisition for the required quantity of each design to the operations manager and the branch manager.
REQUISITION SLIP FOR BLANK PLASTIC OF PREPAID CARD
Branch ________
DATE :___________
Please dispatch the following quantity of cards along with PINs
S. No Description Quantity
1 MCDONALD
2 BANGLE
3 FLOWER
4 SCENERY
5 AEROPLANE
______________ ________________
Branch Manager Operation's Manager

3.7.3 Approval Process:

i. The Operation Manager and the Branch Manager, keeping in view the daily consumption and expected
issuance in a month will approve the inventory request which will be forwarded to Card Production
Unit by the CSO and the hard copy of the requisition request will be couriered to Card Production unit
ii. After the inventory manager has gotten approval The CSO will initiate requisition request which will be
duly approved by the Operation/Branch Manager and then log the same on to AMS system.
iii. Card Production Unit will review the branch request received on AMS System as per the ordering

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 criteria on daily basis and produce the Card as per the branch request as mentioned above in card
issuance process within 4-5 Business days

3.7.4 Inventory Recall Process:

In case of less issuance from the Branch the Consumer Operation can recall the inventory from the
branch and will forward to the branch where it is required.
i. The Card Production Unit will inform the specific branch through courier regarding the recall request.
ii. The card production unit will send transmittal report (refer “Transmittal Report for Recalling of
Inventory ” attached below) which will contain the Card number and PINs that are to be dispatched
back
iii. The Transmittal report format, will serve as receiving proof from the courier company and will be
signed by branch manager, operations manager, CDPU officer, Courier official
iv. Inventory Officer will dispatch the Card and PINs together to the Card Production Unit.
v. Card Production Unit will follow the process of re-distributing inventory to the other branch
Transmittal Report for Recalling of Inventory
Dispatch Date from CPDU
Dispatch Date from Branch
S# Branch Name and Branch Code Card and PIN # CITY
1
2
3
______________ ______________ ______________
CPDU – Officer Branch Manager Courier official
______________ ______________ ______________
CPDU – Supervisor Branch Operations Manager Courier official

3.8 PREPAID VISA – PROCESS FOR CAPTURED CARDS IN ATM

i. MCB CFC will receive captured/retained cards from MCB Branches and other Bank’s CFC
ii. As per SBP directives (reference SBP PSD Circular No. 1 dated April 06, 2006) Acquiring branch can keep
Captured/ retained card for 2 Business days so that customer my collect it from them after proper
identification. After 2 Business, if the card is not collected by the customer Acquiring Branch has to
forward the captured/retained card to MCB CFC
iii. The branch personnel will identify the customer by verifying the customer through AMS system
module.
iv. The following field(s) will be used to identify the customer
 Citing of CNIC – as linked on card
 First Name
 Last Name
v. If customer’s Personal Identification is not confirmed or if acquiring branch finds any doubt while
handing over the captured / retained card, the card is then forwarded to Card Operations: Card
Production and Dispatch Unit
vi. All Card received at CFC gets logged in to CFC Captured Card Database on daily basis & MIS is
maintained to have it submitted to management at the end of month.
vii. MCB CFC forwards the captured/retained cards to Card Production and Dispatch Unit on the same day
it is received to CFC after logging the details into MCB CFC database.

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Chapter 4 VIRTUAL BANKING
4.1 VB REGISTRATION PROCESS FOR INDIVIDUAL CUSTOMERS
i. Customer clicks on the register link on the MCB Virtual banking page (www.mcb.com.pk) & completes
the application form.
ii. Customer visits any MCB ATM, selects the option “Service Requests” and on the next screen selects
“Internet Banking Registration” waits a while for the registration to complete and the appropriate
message displays on the screen.
iii. Reminder email is sent to the customer on the next day if he/she fails to visit ATM for ATM ACTIVATION.
iv. Email notification is sent to the customer’s registered email address containing the Customer number &
Password.
v. Customer calls the MCB Call Centre on (021) 111-000-622 to obtain their User ID. After verification User
ID is disclosed to the customer.
vi. After receiving the User ID, customer enjoys 24 hrs Virtual banking facilities.

4.2 VB REGISTRATION PROCESS FOR CUSTOMERS ABROAD

For users living abroad MCB Virtual Banking Registration is a three step process.
i. Customer must fill out the registration form at MCB website.
ii. Send in the duly signed AUTHORITY LETTER (available on the MCB website) at the following address:
MCB Virtual Banking Department
9th Floor, Sheikh Sultan Trust Building,
Beamount Road, Karachi-75530,
Pakistan.
iii. After receiving the authority letter the application will be processed by VB Ops. This will be done once
they send the letter to the branch for signature verification. Upon positive signature verification the
application will be processed. Once processed an email containing the password and customer number
will be sent to the customer.
iv. Customer must then call the MCB Call Centre at 111 000 622 (MCB) to get user-id after which he will be
able to login to Virtual Banking.

4.3 VB REGISTRATION PROCESS FOR CORPORATE CUSTOMERS

i. All corporate customers can register for Virtual Banking
ii. Customer fills out VB corporate customer form from his home branch.
iii. Branch duly verified customer’s relation and signature.
iv. After branch verification, branch send request to mention below address.
MCB Virtual Banking Department
9th Floor, Sheikh Sultan Trust Building,
Beamount Road, Karachi-75530,
Pakistan.
v. Corporate customers can either have view only access of request for designated when submitting the
form for Virtual Banking registration.
vi. VB Ops receives application and send VB link and user id & password to VB corporate customer.

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Chapter 5 CALL CENTER

MCB Bank Ltd officially introduced Call Center in the month of August 2006. MCB Call Center is 24/7 unit which
deals in suite of transaction to the customers. MCB Call Center has 24/7 operation and have setup in Karachi &
Lahore. Both the Centers are connected with state of the art connectivity between both the units. Call Center is
performing a vital role for consumer and commercial banking and providing the efficient services to the valuable
customers.

5.1 CALL CENTER REGISTRATION PROCESS FOR NTB CUSTOMERS

Customer just needs to fill in account opening form and it includes the customer consent to register him to the
MCB Call Center.

5.2 CALL CENTER REGISTRATION PROCESS FOR OLD CUSTOMERS (PRIOR 01-JAN-09)
i. Customer Fills Call Center Registration form at any MCB Branch
ii. CSO/ Officer Checks the application for completeness and accuracy, Affixes the sign and bank stamp on
it.
iii. BOM Verifies Customer information (Customer signature & Account validation) Affix the sign and bank’s
stamp on application.
iv. CSO will maintain an MIS bearing A/c #, Form # and Customer contact info.
v. Branch Couriers the application to COD for further processing

5.3 CONTROL GUIDELINES

All the customers are verified through three different ways of verification:
i. ATM PIN Validation
ii. TPIN Verification
iii. Manual Verification (Through Static and Dynamic Questions)

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Chapter 6 MOBILE BANKING

6.1 REGISTRATION PROCESS

i. Visit: Any MCB ATM & select “Services Request” option from Main Menu
ii. Register: Choose “MCB Mobile Registration” from the menu & enter your mobile phone number
iii. Activate: Call MCB Call Centre for activation
OR
Simply call 111-000-(622) MCB if you are already registered at the Call Center (All new account holders who
are issued new smart cards are preregistered at the call center and can register for MCB mobile when they
make a call in to the call center to activate their smart cards)
i. Visit any MCB ATM
ii. Select Service Request
iii. GO to Mobile Banking tab
iv. Select MCB Mobile Registration
v. Enter Mobile Number
vi. Re-Enter Mobile Number
vii. Call 111-000-622 for activation
viii. Customer should be registered at the call center

6.1.1 Call Center Registration Process:

i. Customer can also register by calling the call center at 111-000-622
ii. Call center executive will verify customer details
iii. Customer will be requested Mobile Number from mobile registration
iv. E-form will be logged with PAN and Mobile number
v. Customer will receive registration and activation SMS within 48 working hours
vi. Customer should be registered at the call center

6.1.2 Change Mobile Number:

i. If customer wants to update/change his/her mobile number registered with MCB Mobile, it can be
done by calling Call Center at 111-000-622
ii. Call center executive will verify customer details and request for new mobile number
iii. Call center executive will log e-form with PAN, existing mobile number and new mobile number
iv. Customer will receive a Mobile PIN on the new mobile number in 48 working hrs
v. Customer will also receive an SMS on old number stating that service is disable on that number

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 6.1.3 Smart card update:
i. If customer wants to update/change his/her Smart Card that is registered with MCB Mobile, it can be
done by calling Call Center at 111-000-622
ii. Call center executive will verify customer details and request confirm new ATM card number from
customer
iii. Call center executive will log e-form with existing PAN, Mobile number and new PAN number
iv. Customer will receive a registration message followed by Mobile PIN on the his mobile in 48 working
hrs
v. Please note that MCB Mobile will be charged separately for updated ATM

Customer can de-activate the service by calling the call center at 111-000-622

6.2 MCB MOBILE REGISTRATIONS POS TERMINAL MANAGEMENT

6.2.1 Receiving:
i. Once the POS is received at the branch receiving form (sent along with the terminal) is to be filled /
signed by Ops manager and mailed back to MCB Mobile Team on the address mentioned below.
MCB Mobile Team
2nd Floor MCB Building, Khyaban-e-Iqbal, Schon circle
Clifton Block 5, Karachi.
111-000-456 Ext 132
ii. POS whose receiving forms will not be received to product team in 3 Business days will be called back.

6.2.2 Installation:
POS machines have to be installed at the CSO desk inside the branch. Installation of POS requires a fixed
line in the branch which has to be dedicated to the POS machine. In the absence of fixed line POS will not
be delivered to the branch.

6.2.3 POS operation manual:

i. Insert adapter in the power port to switch the POS on.
ii. Insert a fixed line free of distortion in the port, mentioned on the back of the POS (this is not valid for
GPRS POS machines)
iii. Check ‘Main Menu’ on the initial POS screen (first option)
iv. Check transaction ‘(TRAN)’ once inside the main menu (first option)
v. Check ‘ENROLL’ once inside the transaction menu (last option)
vi. Swipe smart card holding the card upside down and the magnetic strip facing towards the POS.
vii. Once card number displayed on the POS screen check ‘Yes’
viii. Enter ‘ATM PIN’
ix. Enter ‘Mobile Number’
x. Wait for the registration slip
xi. Registration through POS is complete

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 6.2.4 POS recall procedure:
i. MCB Mobile product team has the rights to call the POS machines back from the branch at their own
discretion.
ii. As soon as the branch is intimated by the product team for POS recall the branch has to return the
POS machine back within 48 hours of notification. The POS has to be returned on the following
address:
MCB Mobile Team
2nd Floor MCB Building, Khyaban-e-Iqbal, Schon circle
Clifton Block 5, Karachi.
111-000-456 Ext 132

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SECTION 6 CENTRALIZATION & AUTOMATED OPERATIONS

SECTION 6

CENTRALIZED & AUTOMATED OPS

Section Summary:
This Section entails all processes which have been centralized under “Centralized
Operations Division/ Special project & Reconciliation” which are part of the
Operations Group of the Bank. Though these processes are centralized however there
are a few activities/ functions which are to be performed by various stakeholders
including Branches as well. The Section also spells out roles & responsibilities of the
concerned stakeholders.

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Chapter 1 CENTRALIZATION & AUTOMATION OF BRANCH BACK-END
PROCESS

To relieve the branches of the burden of manual work various back-end processes that were being performed
manually by the branches across the country have been automated and centralized
Centralization & automation of these processes in addition to the productivity gains will minimize the
operational errors and ensure compliance of institutional & regulatory requirements within the mandated time
frame.
i. Collection of Federal Excise Duty – (FED) from branches and its onward payment to the government.
ii. Collection of Withholding Tax – (WHT) from branches and its onward payment to government.
iii. Recovery of ‘Service Charges’ from Customer Accounts where the balance in the account is less than
the established amount of Service Charge defined in schedule of bank charges.
iv. Recovery of applicable charges from customers maintaining Basic Banking Accounts (BBA) with the
bank.
v. Recovery of ‘IT Account Section’ relates expenditure from Branches.
vi. Compilation and Settlement of ‘HO Pool Mark-up’ between Branches and H.O.
vii. Bulk Salary Processing
viii. Settlement of Treasury (TROPS) Advices.
ix. Allocation of semi-annual statement rendition expenses (Stationery, Postage & Processing Cost) of
SP&R to branches for rendering customers account statements.
x. Allocation of COD expenses (Postage) to branches related to Centralized Clearing and Account Opening.
xi. Allocation of NIFT expenses to branches for processing of Clearing and Cheque Books.
xii. Allocation of ‘Cash-in-Transit’ & ‘Cash House’ Charges to Branches directly dealing with Cash House.
xiii. Centralization of ‘Cash-in-Transit (CIT)’ Charges at Cash Feeding Branches
xiv. Allocation of ‘Swift Processing Charges’ to Branches.
xv. Allocation of Stationery Charges of MCB Employees Foundation to branches.
xvi. Processing and allocation of HRMG cost (salaries) of Contractual Staff to Branches/Units.
xvii. Processing of ‘Account Sweep’ Instructions for Utility Companies and TPD Corporate Customers.
xviii. Extraction and submission of data to circles for ‘un-claimed deposits/ instruments’ with an option to
generate ‘Three Months Notice Period Letter’ from system for onward mailing to Customers.
xix. Rendition of Semi-Annual Accounts

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1.1 ROLE & RESPONSIBILITIES OF STAKEHOLDERS
Though the above processes have been automated and centralized mainly at Centralized Operations (COD)/
Special Projects & Reconciliation (SP&R) under Operations Group but still require some involvement of other
stakeholders (IT-Ops, CAD, TROPs, Branches) as the process owners who are required to ensure execution and
accuracy of the process and retain the output/end results of the processes performed as branch record in the
form of hard copies. The broad responsibilities are spelled out in the form of process steps.

1.2 COLLECTION OF FED FROM BRANCHES & ONWARD PAYMENT TO GOVERNMENT

Frequency: Monthly
COD on 1st or 2nd Business day of each month retrieve outstanding balances under FED GL code 1090802370
and transfer the file to IT Ops through FTP utility for upload.

IT Ops execute the upload process and confirm back to COD of successful execution of the upload.
COD validates the results of upload and extracts the data from Symbols for onward intimation to respective
Branches along with Summary of FBR Payments up to previous cycle for their record and issuance of Tax
Certificate purpose
Branches on receipt of data from COD, validates the impact on GL & retains the MIS with day’s voucher for
record. (In case of difference or mismatch refer to COD for corrective action).
COD also forwards the data to CAD to take the impact in HO books & Recon Utility System.

CAD takes the impact on HO books to park the FED liability of all branches.

CAD prepares Pay Order in favor of Government Treasury for the total sum of FED liability and deposit the Pay
Order at SBP / NBP. Intimate COD via email.

COD retains all chain of email along with upload files for audit trail and record purpose.

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1.3 COLLECTION OF WHT FROM BRANCHES & ITS ONWARD PAYMENT TO THE GOVERNMENT
Frequency: Weekly
COD as per FBR given frequency, retrieves the outstanding balances under following liability GL Heads from KM
module:
i. 1090601070 – WHT on Cash Withdrawal section 231 A
ii. 1090601020 – WHT on Markup Paid Section 151
iii. 1090601060 – With-Holding Income tax deduct
iv. 1090601080 – WHT under instruments U/S-231-AA
COD transfer the data in defined folder to IT Ops through FTP utility and request IT Ops for execution of the
process.
IT Ops executes the upload process through interface utility & confirm back to COD.
COD on receipt of confirmation validates the results and extracts the uploaded data from symbols for onward
intimation to branches.
Branches upon receipt of information from COD validates the impacted entries from COD provided MIS and
keep the same with the day’s voucher for records & compliance purpose. (In case of any mismatch or
difference refers the matter to COD for its corrective action).
COD forwards the final summary under each section (151, 231-A & 231-AA) to Main Civic Center Branch (0613)
Islamabad for issuance of Pay Order category-wise.
Main Civic Center Branch (0613) obtains the CPR (Computerized Payment Receipt) Number through FBR
provided website. Prepares the Pay Order as per the information provided by COD and deposits it to SBP/NBP
along with Challan copies.
Main Civic Center Branch (0613) intimate to COD & Fin Con through email regarding completion of the process
and submission of Pay Order along with complete details (FBR provided CPR number & copy of Pay Order).
COD retains the confirmation and copy of PO with other work papers as audit trail and record purpose.
Note: The above centralized process of collection & surrendering of tax liabilities DO NOT include the following
GL Heads and will continue to be handled as per the old process till further instructions:
i. 1090601030 – Withholding Tax on Supplies/Services.
ii. 1090601050 – Withholding Tax on Export Proceeds.
iii. Any Other Tax Liability GL except listed above under point # 1 are exempted from the Centralized
Process
iv. FATA /PATA/Azad Kashmir/Gilgit Baltistan Region is exempted from the mentioned centralized
process. Separate instructions are issued for these regions

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1.4 PAYMENT OF WHT TO THE GOVT BY BRANCHES UNDER JURISDICTION OF AZAD JAMMU
KASHMIR
Branches are require to maintain a Collection account as a “TAX SETTLEMENT A/C.” to transfer the outstanding
tax liability amount into collection account
Surrender the WHT tax as per existing frequency.
Perform the credit transaction with outstanding amount lying in following tax liability heads separately with
below mentioned transaction types:
i. TX01 - WHT on Profit/Interest (1090601020)
ii. TX02 - WHT on Cash Withdrawal (1090601070)
System will debit the said liabilities heads and credit the funds into collection account automatically.
WHT which recover manually, require to be parked in GL head 1090601060 (withholding income tax collected),
as this code as post able, therefore branches are require to debit the head manually and surrender the same
into Govt. Treasury as per existing practice.

1.5 RECOVERY OF SERVICE CHARGES FROM CUSTOMERS

Frequency: Semi Annually
COD before execution of half-yearly profit cycle retrieves the list of accounts that meet the criteria for recovery
of ‘Service Charges’ but have the restraint on account that prohibits financial posting in the account. The list is
sent to concerned branches.
Branches review the status of restraints and correct/update the system wherever required before the half-
yearly profit cycle.
COD after the disbursement of half-yearly profit retrieve the information of those accounts where the
outstanding balance in customer account is less than the established amount of service charge given in the
schedule of bank charges.
COD execute the a utility on Symbols whereby the system first calculates the applicable FED amount on the
outstanding balance in the account and then debit the account with the outstanding balance in the account
and credit Service Charges & FED Accounts accordingly.
COD after execution of the utility extract the data of these accounts from Symbols with pertinent details and
forward it to concerned branches via e-mail for their record.
Branches print the details of these accounts and keep it along with days voucher as record.

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1.6 RECOVERY OF APPLICABLE CHARGES FROM CUSTOMERS MAINTAINING BBA ACCOUNT
Frequency: Monthly
COD on 1st Business day of each month retrieve the information of accounts which meets the defined criteria
for deduction of BBA Service Charges from customer accounts for previous month.
COD executes the process for debiting customer accounts through Symbols interface utility.
COD informs the concerned branches about successful & rejected transactions for further action at their end.
Branches are required to review the rejections and ensure recovery of applicable Service Charges from
customers, if required.
Branches keep the Service Charges recovery details/reports along with the day’s vouchers for record.

1.7 COMPILATION & SETTLEMENT OF HO. POOL MARK-UP BETWEEN BRANCHES & HO
Frequency: Monthly
COD on last Business day of each month retrieves the required information of HO balances for the month from
KM as per the defined criteria.
COD transfers these files to IT Ops in the defined folder through FTP utility for upload.
COD request IT Ops to execute the GL upload process.
IT Ops execute the GL upload process through symbols interface utility.
IT Ops intimate COD of the successful completion of the upload process.
COD validate the results and compile MIS for onward submission to branches.
COD forward the calculation of mark-up based on ‘HO account balance product’ to branches for their review
and confirmation.
Branches validate the accounting entries and impact on their GL against COD provided details.
Branches keep the reports of mark-up calculation along with the day’s vouchers for record.

1.8 BULK SALARY PROCESSING

Frequency: Monthly
i. COD receive request from employer for disbursement of salary to its staff in the form of ‘soft file’ as
per prescribed format and authority letter to debit its account with the bank.
ii. COD request parent branch to verify the Customer’s signatures.
iii. COD execute the RB-upload process through symbols interface utility.
iv. COD after execution of the upload process forward the results along-with rejections to employer and
parent branch for validation/ rectification.
v. Parent branch will responsible for rectification of rejected transactions on same day
vi. Customer validates the output. In case of any exceptions customer confirms to COD through e-mail.
vii. COD keeps the employer’s request (debit authority & Credit MIS) as record.

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1.9 SETTLEMENT OF TREASURY (TROPS) ADVICES
Frequency: Monthly
Treasury Operations (TROPS) transfer the upload files for the following in defined folder through Treasury
System and request IT Ops to execute the upload process via auto email keeping COD into loop.
i. Cash reserve requirement cost
ii. Exchange Diff on FCY deposit
iii. FC Deposit equalization Fees
iv. FX Income Sharing
v. Compensation on Foreign Bill Purchase
IT Ops execute the upload process and confirms the successful completion of the process to COD through e-
mail.
COD extract the details of upload from symbols and prepare MIS for onward submission to branches.
COD extract the details of upload from symbols after all executions and prepare MIS for onward submission to
branches
Branches validate the accounting entries and impact on their GL against COD provided MIS.
Branches keep the record of trail for audit/compliance.

1.10 ALLOCATION OF COD POSTAGE EXPENSES TO BRANCHES RELATED TO CENTRALIZED

CLEARING & ACCOUNT OPENING
Frequency: Monthly
Central Processing Unit, Karachi (CPU) forwards the invoice copy to CAD for issuing PO to vendor.
CAD validates the invoices and forward the request to COD for allocation of Postages Charges to branches
COD request IT Ops to execute the GL upload process.

IT Ops confirm COD of successful execution of the upload process through e-mail.

COD after confirmation from IT Ops extract the uploaded data from Symbols for onward intimation to
branches and CPUK for validation.
Branches validate the accounting entries and impact on their GL against COD provided details.
In case of any exceptions CPUK informs to COD for corrective action
COD after getting confirmation keep the complete trail of the process and output for record.
Simultaneously, COD forward the request to CAD for making of Pay Orders in favor of courier companies by
debiting respective branches.
COD also provides the data file to CAD through e-mail to take the impact in HO books and Recon Utility System
CAD takes the impact in HO books by crediting Pay Order issuance head.
CAD up load the file in Recon Utility System to incorporate the HO entries for auto reconciliation.
CAD issues the Pay Order in favor of Courier Company and delivers to COD.
CPUK deliver the same to Courier Company and take the acknowledgement for records.
COD keep the complete trail of upload process cycle.

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1.11 ALLOCATION OF NIFT EXPENSES TO BRANCHES FOR PROCESSING OF CLEARING & CHEQUE
BOOKS
Frequency: Monthly
COD receives invoice along with complete branch wise MIS from Apex Printer and NIFT against Cheque book
and Clearing respectively.
COD forward the invoice and detail to CAD
COD create the data as per Symbols GL upload format and transfer the same to IT Ops in defined folder
through FTP utility and request to execute the GL upload process.
IT Ops confirm COD of successful execution of the upload process through e-mail.
COD after confirmation from IT Ops extract the uploaded data from Symbols for onward submission to
branches along with APEX/ NIFT provided invoices for validation.
Branches validate the accounting entries and impact on their GL against COD provided details & APEX/ NIFT
invoice.
COD simultaneously forward the request to CAD for making of Pay Order in favor of APEX/ NIFT by debiting
respective branches.
COD also provides the data file to CAD through e-mail to take the impact in HO books and Recon Utility System.
CAD takes the impact in ho books by crediting PO issuance head.
CAD up load the file in Recon Utility System to incorporate the HO entries for auto reconciliation.
CAD Scrutinize the authenticity of invoices and ensure deduction of applicable taxes /advance loan
CAD issues the Pay Order in favor of printer and delivers to COD.
COD deliver the same to APEX printer/ NIFT and take the acknowledgement for records.
COD keep the complete trail of the upload process cycle.

1.12 ALLOCATION OF CASH–IN–TRANSIT & CASH HOUSE CHARGES TO BRANCHES DIRECTLY

DEALING WITH CASH HOUSE
Frequency: Monthly
Cash House request COD through email to allocate ‘cash-in-transit’ charges & cash house charges amongst
branches as per details provided.
COD arrange to convert the soft data as per Symbols GL upload format and transfer the same into defined
folder through FTP utility.
COD request I.T-Ops to execute the GL upload process.

IT-Ops confirm COD of successful execution of the upload process through e-mail.
COD after confirmation from I.T-Ops, extract the uploaded data from Symbols for onward submission to
branches and Cash Houses for validation. Simultaneously forward debit advices to respective Cash Houses for
onward forwarding to Islamic branches for taking the impact of allocations at their end.
Branches validate the accounting entries and impact on their GL against COD provided details.
COD keep the complete trail of the upload process cycle.

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1.13 CENTRALIZATION OF CASH IN TRANSIT CHARGES AT CASH FEEDING BRANCHES
Frequency: Monthly
Service Provider: The Security companies providing cash in transit services at Cash Feeding Branches shall
provide invoices, for the previous month, by 15th of following month.
Cash Feeding Branch
i. Periodically maintain the branch wise MIS as per prescribed Annexure-XV
ii. On receipt carefully examine the accuracy and authenticity of the invoice by cross checking the same with
their retained records (as specified in Annexure-XV);
iii. In case of any discrepancy, immediately contact the respective service provider for correction of invoice;
iv. After ensuring accuracy, forward the original invoice along with Annexure-XVI to respective regional office
(copy of invoice should be retained with branch for their record purpose).
Regional Office: Regional Operations Managers/Regional Heads, upon receipt of all original invoices along with
Annexure-XVI should conduct due verification of received information i.e. tally Annexure-XVI against original
invoices and forward the same to respective BH Office in consolidated format (Please use Annexure-XVI by
marking respective regional office head);
Business Head Office: Respective BH office will ensure the same control measures as specified above and
forward the documents to Group Head’s office (Please use Annexure-XVI by marking respective business head
office head);
i. GH-office will consolidate, prepare and provide the branch wise expenses in the specified COD upload
format maximum by 20th of the month along with the following breakup to Centralized Operations Division:
ii. Invoice amount to be booked as expense with corresponding credit to security companies maintained
account or pay order/demand draft released upon instructions of Central Accounts Division (please clearly
specify beneficiary details);
iii. Branch wise breakup of amounts to be debited in lieu of cash in transit services as per attached Annexure
XVII.
iv. GH-office will consolidate and forward all approved bill/invoice for payments to CAD on monthly basis.
v. GH-Office should maintain separate record of Islamic Banking branches related allocation for onward
submission to CAD.
Centralized Operations Division On receipt of the request on specified format i.e. Annexure XVII Centralized
Operations Division shall perform the following functions:
i. Upload the entries in respective branches general ledger by 23rd of the month;
ii. After successful execution will intimate respective branches/stake holders.
Centralized Accounts Division On receipt of the approved bill/invoice, CAD shall perform the following
functions if data is provided in specified time (maximum by 20th of the month)
i. Scrutinize the authenticity of approved bills and ensure deduction of applicable taxes;
ii. Subsequently on same day/next day pass on necessary instructions to relevant branch to release
payments in securities companies maintained account or issue pay order/demand draft;
iii. Islamic Banking branches related expense allocation debit advices should be originated manually.
General Notes:
Branches are also advised to ensure following general notes at their end:
i. No pool cost/remittance charges shall be recovered from branches by Cash Feeding Branches on cash
transfers in line with the instructions given earlier;

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 ii. Few branches have engaged independent sorters (foundation/outsourced) to perform cash sorting
function; such branches shall use the following General Ledger Codes (these account heads should always
contain petty amounts, therefore incase of abnormal rise may be called for justification):
4040122040 - Cash Sorting Charges Paid to Foundation
4040122020 - Cash sorting charges paid to independent sorters
(ROM’s shall be responsible to confirm the accuracy and completeness of aforementioned expenses)
iii. Notional income/expense transfers should immediately be discontinued at concerned branches as
expense would be centrally debited to the respective branches;
iv. In case, cash handling services are rendered at any non cash feeding branch, the duly verified invoice by
the respective branch shall be routed through nearest cash feeding branch. (Guidelines remain the same,
please use specified annexure by clearly marking as “Non Cash Feeding Branch” for separate disclosure)
v. The same specified guideline/procedure shall be followed for foreign currency transfers and no entry for
recording of cash handling charges shall be recorded on transfer of foreign currencies. The CIT related
expenses incurred shall be processed centrally through the mechanism specified above.
Soft copies of the annexure should also reach respective stakeholders within the time specified

1.14 ALLOCATION OF SWIFT PROCESSING CHARGES TO BRANCHES

Frequency: Monthly
Swift Operations request COD through e-mail for recovery of “swift processing charges” from branches as per
detail provided.
COD create the soft data as per Symbols GL upload format and transfer the same into defined folder through
FTP utility.
COD request IT Ops to execute the GL upload process.
IT Ops confirm COD of successful execution of the upload process through e-mail.
COD after confirmation from IT Ops extract the uploaded data from Symbols for onward submission to
branches and Swift Operations for validation.
Branches validate the accounting entries and impact on their GL against COD provided details.

Swift Operations validates the uploaded data and in case of any exception informs COD.
COD simultaneously also provides the data file to CAD through e-mail to take the impact in HO books and
Recon Utility System.
CAD takes the impact in HO books by crediting payable liability head.
CAD load the file in Recon Utility System to incorporate the HO entries for auto reconciliation.
COD after getting confirmation from Swift Operations, keep the complete trail of the upload process cycle.

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1.15 ALLOCATION OF STATIONERY CHARGES OF MCBEF TO BRANCHES
Frequency: Fortnightly
MCBEF forward the invoices to CAD for issuing PO.
CAD validates the invoices and forward the request to COD for allocation of Stationary Charges to branches
COD arrange to convert the soft data as per Symbols GL upload format and transfer the same into defined
folder through FTP utility.
COD request IT Ops to execute the GL upload process.
COD simultaneously also provides the data file to CAD through e-mail to take the impact in HO books and
Recon Utility System
IT Ops confirm COD of successful execution of the upload process through e-mail.
COD after confirmation from IT Ops extract the uploaded data from Symbols for onward submission to
branches and departments for validation.
Branches validate the amount of invoice of MCBEF with COD provided details.
COD keep the complete trail of the upload process cycle

1.16 PROCESSING & ALLOCATION OF HRMG COST (SALARIES) OF CONTRACTUAL STAFF TO

BRANCHES
Frequency: Monthly
HRMG forward the invoices to CAD for Crediting the cost of contractual staff to Third party Contractual
Companies
CAD validates the invoices and originates the credit advices in favor of respective party’s and forward to HRMG
for onward submission to respective branches where accounts are maintained.
CAD also intimate to COD through email for allocation of expense related to “Contractual Staff” assigned at
branches as per details provided by the vendor."
CAD generates and forwards the credit advices to vendor’s account maintaining branches for crediting the
vendors account."
COD arranges to convert the soft data as per Symbols GL upload format and transfers it into defined folder
through FTP utility.
COD requests IT Ops to execute the GL upload process.
IT Ops confirm COD of successful execution of the upload process through e-mail.

COD after confirmation from IT Ops extract the uploaded data from Symbols for onward intimation to
branches and HRMG for validation.
Branches validate the accounting entries and impact on their GL against COD provided details.
COD keep the complete trail of the upload process cycle.

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1.17 PROCESSING OF ACCOUNT SWEEP INSTRUCTIONS FOR UTILITY COMPANIES & TPD
CUSTOMERS
Frequency: On-Demand
i. COD receives Account Sweep request from business via e-mail.
ii. COD apply the sweep facility on accounts provided by business.
iii. COD validate the results in once.
iv. COD after completing the process forwards confirmation to the business.
v. COD keep the complete trail of the sweep tagging process

1.18 SUBMISSION OF DATA TO CIRCLES FOR UNCLAIMED DEPOSITS/ INSTRUMENTS FOR

GENERATION OF NOTICE PERIOD LETTERS
Frequency: Annually
FCG (KM) forward data of un-claimed accounts / instruments to SBP Reporting Unit which qualify under un-
claimed category as at process cycle year end.
SBP Reporting Unit send excel based information to respective circle offices.
Circle Office forwards this data to the respective branches in their region.
Branches validate the information and add the data which is available on ‘manual register’, if any.
Branches after validation forward the soft data to respective circle office.
Circle Office consolidates the data and forwards it to SBP Reporting Unit for onward reporting to central bank.

SBP Reporting Unit compile the data of all Circles / Business and forward to KM for issuing notice letter on soft
copy and for further intimation to branches via email.
Based on provided data FCG (KM) generates Notice letter on soft copy and forward the same to respective
branches / business via email, also intimate to dispatch it to customer after proper validation at their end.
Branches dispatch to customers after proper validation

1.19 ALLOCATION OF SEMI-ANNUAL STATEMENT RENDITION CHARGES TO BRANCHES

Frequency: Semi-Annually
Special Projects & Reconciliation Division (SP&R) request CAD for payment to Venders. Details are provided in
a covering schedule.
SP&R request COD through e-mail to allocate “statement rendition expenses” (Postage, Stationery &
Processing Charges) incurred for rendering semi-annual rendition of customers account statements amongst
branches as per details provided along with copy of senior management approval.
COD arranges to convert the soft data as per Symbols GL upload format and transfers it into defined folder
through FTP utility
IT Ops confirm COD of successful execution of upload process through e-mail.
COD after confirmation from IT Ops extract the uploaded data from symbols for onward intimation to branches
and SP&R for validation.
Branches validate the accounting entries and impact on their GL against COD provided details.

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SP&R validate the uploaded data and confirm to COD.
COD simultaneously provides the data file to CAD through e-mail to take the impact in HO books and Recon
Utility System.
CAD takes the impact in HO books by crediting payable liability head.
CAD up load the file in recon utility system to incorporate the HO entries which originated on CAD - HO for
auto reconciliation.

COD keep the complete trail of the process and output for record.

1.20 RENDITION OF SEMI-ANNUAL ACCOUNT STATEMENT

To improve the quality of service we provide to our customers, reduce turn-a-round time with added controls
and to comply with regulatory requirement of dispatching customers’ account statements within the SBP
mandated time frame the process of printing, packaging and mailing of customers’ semi-annual account
statements for ALL branches across the country that was being handled by the business at Circle level has been
centralized at SP&R Division under Operations Group.
1.20.1 Printing and Dispatch Process (Centralized):
After completion of SYMBOLS ‘end-of-month’ cycle of June & December each year statement print data
for all branches across the country is extracted by IT and handed over to the Project Manager of
statement rendition team (SP&R Division) latest by 3rd of July & January for onward delivery to vendor –
(Currently TCS)
The entire process of printing & packaging at vendor’s print shops is performed under the direct
supervision of bank’s representative from statement rendition team.
The Project Manager of statement rendition team ensures that the process is being performed in
controlled environment. The daily production is as per plan and made ready in the form of ‘sealed
envelopes’ for onward delivery to the courier company. The Project Manager keeps a track of daily
production and keeps close coordination with the vendor to ensure that the task is completed within the
mandated time frame.
1.20.2 Handling / Processing of Return Mail
Centralized Statement Rendition Team:
i. Get the return mail sorted by branch / circle
ii. Prepare annexure (SF-Return Mail 01) for each branch listing down the account numbers of the
statements which are returned undelivered
iii. Forward the physical statements of accounts under a cover memo along with annexure ‘SF-Return
Mail 01’ to each circle for the branches under their jurisdiction for taking necessary action
iv. Keep proper record of the return mail forwarded to circles along with related acknowledgments
submitted by the courier company for delivery of same to the circles
Circle / Branch: Mark restraint ‘Whereabouts Unknown’ on the system for all accounts that are returned
undelivered and listed in annexure “SF-Return Mail-01”.
After marking the restraint take appropriate corrective action as follows:
i. Refer account opening documentation or contact the customer on the contact numbers provided at the
time of account opening.

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ii. Obtain ‘current mailing address’ of the customer (customer request for any change in the address must be
in writing).
iii. Perform required maintenance on the system to update current mailing address of the customer.
iv. Prepare a new envelope with current mailing address and mail the account statement to the customer.
v. Circles are required to ensure that the branches take corrective action on return mails and confirm the
same to SP&R through email.
Update the annexure “SF-Return Mail-01” of the corrective action taken against each account. Retain the
updated annexure in file as a record for review by inspection team during annual audit of branch by SBP.
"SF-Return Mail 01"
Returned Mail - Customer Account Statement
Statement Cycle (------------)
Br Code:_____ Branch Name:________________
Br Records/Systems Updated with Statement
S No Account Number Remarks
Current Mailing Address as: Mailed on

Circle / Branch: Remove the restraint ‘Whereabouts Unknown’ from customer’s account only for those cases
where the branch has obtained the current mailing addresses of the customers, account statement is mailed
and the system is updated with current mailing address

1.20.3 Procedure of Marking of Restraint for Whereabouts Unknown:

At Branches, Following steps are required to be performed to mark “Whereabouts Unknown” restraint:
i. Go to Enterprise Operation Center – (EOC)
ii. Select Deposits Module - Transactions >>>> Account Facility >>>> Restraint Setup.
iii. System will display >> Screen # RB 51.
iv. Insert complete A/c number (15/16 digits) of the customer & press F8.
v. Account details will be displayed on the screen.
vi. Go to the field ‘Restraint Type’ & Press F9 to display LOV (list of values).
vii. Pop-up Box will appear on the screen showing LOV (list of values). Select WAU - IN- Whereabouts
Unknown. System will ask for:
Start Date: Input today’s date OR default
End Date: Do not input any date. Just default. System will take Jan 01, 2999 as end date).
viii. Press F10 or click the ‘Save’ icon to save the information.

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SECTION 7 GENERAL BANKING OPERATIONS/ MISCELLANEOUS

SECTION 7

GENERAL BANKING OPERATIONS

Section Summary:
This Section encompasses processes, instructions and guidelines for General Ledger
functions, Branch Reports, Branch IT security Guidelines, Start & End of Day Processes,
Locker Management, Inter-branch Reconciliation Application CORONA, Government
Securities, Branch’ related Operational Risks & Control, Investment services, SBP
Guidelines for Sub-Branches and very importantly Branch Transactional Authorities &
Threshold Limits.

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Chapter 1 GENERAL LEDGER

1.1 OVERVIEW

In Symbols there are transactions that are not completely catered by any single relevant module. The General
Ledger Module (GL) translates banking transactions into accounting journal entries, posts them into the
respective accounts and constructs an accounting database serving as a source of various Enquiries and Reports.
GL Module records two types of transactions
i. Transactions that originate in Deposits or Branch Teller Module where settlement of control
account will be done in General Ledger Module.
ii. Completely General Ledger related Transactions. (No involvement of other Symbols
Modules)
There are certain types of transactions that takes place in a branch; processing of which is executed through GL
Module of Symbols. These processes have adequately been explained in relevant sections of the manual.
Procedural and system related instructions for such processes are explained in detail under Section 7: 1.4
Transaction processing In GL Module

1.2 GENERAL LEDGER CONTROL ACCOUNTS

Listed as follows are important and critical control accounts in the General Ledger Module. They are used to
facilitate the transactions processed between Retail Banking (RB)/Branch Teller (BT) module to General Ledger
(GL), and RB to RB. At end of day, the balances of these accounts should be equal to zero. All debits and credits
transactions in the following control accounts should have the reversal/corresponding entries in order to keep
the balances nil or have a verifiable balance that the Operation Manager should monitor and signoff on daily
basis until the outstanding amount /balance in Nil. A format of self assessment check list for both local currency
and foreign currency control heads is attached. Operation Manager should fill and signoff the checklist on daily
basis in a separate file for review and validation.

1.2.1 Local Currency Critical Control Heads

Sr. No GL Code Description

1 1091101010 Intra-branch Settlement Account
2 1150101110 Express Money Control Account
3 1150101120 Utility Bills Control Account
4 1150101130 Salary / Bonus Control Account
5 1150101150 Fund Transfer Control Account
6 1150101140 Clearing Control Account

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 1.2.2 Foreign Currency Critical Control Heads
Sr. No GL Code Description
1 1090801250 Foreign currency in transit
2 2010201030 Foreign currency cash in transit
3 2010201040 Foreign currency in transit
4 2010201050 FCY in Transit – US$
5 2010201060 FCY in Transit – GBP
6 2010201070 FCY in Transit – EUR

Annexure XVIII & Annexure XIX are required to be signed off daily after end of day by Branch Operations
Manager to ensure that proper monitoring of these heads is being done on daily basis. These checklists should
be kept separately for review and validation

1.3 CENTRALIZED POSTING IN GENERAL LEDGER

In order to eliminate redundancy, reduce the turnaround time, create process efficiency and control
environment, with the consent of higher management, certain processes and postings into related General
Ledger heads have been centralized by Centralized Operations Division, Operations Group.
Section 6: CENTRALIZATION & AUTOMATED OPERATIONS explains the key processes that have been centralized.
Branches are strictly advised to monitor these GL heads on timely basis as per their run frequency and reconcile
the impact of these transactions with the source information for record/audit trail.
Currently, following GL heads have been centralized and transactions can be posted through centralized location
following an approved mechanism/process.

S No PROCESS Frequency DESCRIPTION GL CODES GL-DESCRIPTION

1 FED COLLECTION Monthly FEDERAL EXCISE 1090802370 Federal excise duty payable
PROCESS DUTY PAYABLE
2 WHT COLLECTION Weekly DEDUCTION ON 1090601070 WHT on cash withdrawal
PROCESS ACCOUNT OF 1090601020 WHT on profit/interest
INCOME TAX 1090601080 WHT on instruments u/s-231aa
1090601060 With-holding income tax deduct
3 MCBEF Fortnightly MCB EMPLOYEES 4040115040 ATM stationary-foundation
STATIONERY FOUNDATION 4040115050 Computer stat. Exp-foundation
PROCESS STATIONARY
4040115060 Security stat. Exp-foundation
EXPENSES
4040115070 General stat. Exp-foundation
4040115150 Printed stationary-foundation
4 CLEARING CHGS Monthly CHEQUE PROCESS 4040121010 Clearing house exp paid to NIFT
PAID TO NIFT EXPENSES
5 CHEQUE BOOK Monthly STATIONERY 4040121020 Cheque process exp paid to NIFT
PRINTING
CHARGES
6 PDHS POSTAGES Monthly MISC EXPENSES 4040111160 Centralized clearing & postages
CHARGES charges
7 SWIFT CHARGES Monthly FOR.EXCHANGE 4040111060 Swift charges
SWIFT CHARGES

8 STATEMENT Half Yearly STATEMENT 4040111170 Postages statement rendition

RENDITION RENDITION 4040115100 Stationery statement rendition

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 CHARGES 4040115090 Proc.cost statement rendition
9 TREASURY Monthly FOR.REMM 4060101090 Rebate on cash reserve paid
SETTLEMENT INWARD OUTWARD 3080101080 Compensation received on fbp
/ CASH RESERVE 3050101440 Exchange account foreign (fx
REQ / FOR.CCY sharing income)
TRANSACTION 4060101120 FC equalization fee paid
3050101090 GL currency revaluation gain
4040124250 GL currency revaluation loss
10 OUTSOURCE Monthly / Outsourced staff 4010401050 Collection commission -
CONTRACTUAL Fortnightly salaries/ consumer
STAFF EXPENSES commissions and 4010401060 Sales commission - consumer
other miscellaneous products
expenses 4040124680 OSE - others
4040124700 OSE - tea services
4040124710 OSE - cash operations service
4040124720 OSE -customer facilitations s
4040124730 OSE -data proc & off support ser
4040124740 OSE -consumer banking service
4040124910 OSE -sale services, DSCs/PBAs
11 HO POOL MARKUP Monthly Interest On 3070101010 Mark-up received from PO
Branches Account 4050101010 Mark-up paid to PO
12 CASH HOUSE Monthly CIT & CASH HOUSE 3080101270 Central cash house chgs recov.
CHARGES CHARGES 4040124150 Cit serv chgs to security com
4060101290 Central cash house charge paid
13 CONTRACTED Monthly CONTRACTUAL 4040124240 Contracted security guard
SECURITY GUARDS SECURITY GUARDS services
14 FIXED ASSETS Monthly DEPRECIATION 4040117050 Computer & its accessories
COST ALLOCATION EXPENSE 4040117010 Furniture fittings - offices
4040117040 Premises
4040117030 Vehicles
4040117120 Dep exp-office & othr equipment
4040117090 ATMs
4040117170 Depr expense-lease hold asset
INSURANCE 4040108170 Insurance charges-bankers policy
EXPENSE 4040108190 Insurance charges - computer
policy
4040108210 Insurance charges - property
4040108080 Insurance charges - others
4040108100 Insurance charges – ATM
4040108090 Insurance charges - vehicles
4040108180 Insurance charges-lockers policy
4040108200 Insurance charges – furniture
&fixture
POOL COST 4060101410 Pool cost on property paid
ALLOCATION
15 REBATE ON Quarterly REBATE ON WHEAT 3080101360 Rebate rec. Ho-wheat pro. Fin.
WHEAT PROCUREMENT 4060101380 Rebate paid br-wheat pro. Fin.
PROCUREMENT
16 BRANCH PROFIT & Yearly P & L TRANSFER 1010301010 Un-appropriated profit
LOSS TRANSFER
17 RTC FLOAT Monthly RTC FLOAT INCOME 4050101010 Mark-up paid to PO
INCOME & & COMPENSATION 3070101010 Mark-up received from PO
COMPENSATION 4060101080 Compensation paid to br on RTC
PAID TO 3080101060 Compensation received on RTC
BRANCHES

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1.4 TRANSACTION PROCESSING IN GL MODULE

Posting of transactions in GL is categorized into three categories,

i. A normal transaction (related to recording of transaction in same branch),
ii. An originating entry (through which a branch originates an entry to contra branch) and send
advice
iii. Responding entry where contra branch accepts the batches on basis of advices received.
In case of ii and iii above, inter branch account (Head Office Debit or Credit) is used, reconciliation process of
head office account of branches is explained in detail in Section 7: Chapter 6 Inter-branch Reconciliation
Application CORONA

1.4.1 Transaction originates in Deposits or BT Module and settled through control accounts
in GL Module.
Some general ledger control accounts that are used by branches in case of local currency transactions while
transacting between two modules is listed as follows
 Intra-branch Settlement Account
 Express Money Control Account
 Utility Bills Control Account
 Salary / Bonus Control Account
 Fund Transfer Control Account
 Clearing Control Account

i. Processor selects General Ledger Module >> Transaction >> Batch Maintenance >> Entry (Screen # GL
21).
ii. Input number of items, input Batch Date, input Value Date, input or Select appropriate Transaction
Nature.
 Normal Transaction
 Originating Transaction
 Responding Entry
iii. Input or select Contra Branch Code in case of Original or Responding Entries
iv. Select appropriate Transaction codes like “0400” for Telegraphic Transfer.
v. Input Hash Total (Total of Debit and Credit Vouchers)
vi. Input Original Entry date in case of responding entry.
vii. System will automatically put the transaction in lower portion of screen in case of PO transaction.

Other parts of the batch can be entered in lower part of screen

i. Input or select appropriate Currency e.g. “PKR” Pakistani Rupee.

ii. Input or select 10 Digit appropriate GL Code.
iii. Input Debit or Credit Amount.
iv. Input Narration.
v. Input Reference Number (Advice Control Number)
vi. Press F10 or click on save icon in order to save the transaction.

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 Batch Editing:
Processor selects General Ledger Module >> Transaction >> Batch Maintenance >> Entry (Screen # GL 21),
press F7, enter Batch number and press F8.

Batch Authorization by BOM:

Operations Manager accepts the batch after validating the details from advice by using General Ledger.
Select the option Transaction >> Batch Maintenance >> Acceptance (GL-22)

EXAMPLE of Accounting Entry Mechanism in SYMBOLS where both RB and GL modules are used

i. Issuance Of Payment Order Against Advice:

Accounting entry in Deposit Module:
Branch will book the Pay order liability using transaction type POSI in RB module. Pay order liability will
be booked resulting in a balance outstanding in fund transfer control account
Debit Fund Transfer Control Account
Credit Payment Order Issued

Accounting entry in GL module:

Branch will settle the Fund Transfer Control Account (debited above) by creating a GL batch in GL
module on the advice issuing branch/unit.
Following entry will be made in GL module.
Debit Head Office Account
Credit Fund Transfer Control Account

ii. Purchase of Prize Bond By Debit To Account:

Accounting entry in Deposit Module:
In RB module, branch will debit the customer account by using transaction type CASD and following
entry will be made.
Debit Customer Account
Credit Intra Branch Settlement Account

Accounting entry in GL module:

The head “Prize Bond” will manually be debited with a credit in Intra Branch Settlement Account. This
entry will be made in GL module.
Debit Intra Branch Settlement Account
Credit Prize Bonds

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 1.4.2 Transactions where both account heads are posted in GL module directly in Symbols:
There are certain transactions (such as recording of expense related to branch, transfer/receipt of cash
from cash house or cash feeding branches, sale or purchase of prize bonds) where posting is done at
branch end. In case of such heads, both entries are made in GL module of symbols.

1.4.3 General Ledger Batches among SYMBOLS Branches:

General Ledger (GL) Batches amongst SYMBOLS branches should not be created for the Inter branch
transactions. (e.g. Utility funds transfer, Express Money Account, Individual &/ or Company account
funds transfer against cash/ cheque/ advice etc).The above transactions should be performed via Branch
Teller Module (BT) in order to avoid the creation of GL batches on the system amongst Symbolized
branches.
i. Processor selects Transactions> Financial Transactions > Single Transactions > Current /Savings >
Transfer (BT Screen # 3215)
ii. Branches selects customer’s branch & account number on BT and inter branch transaction will
be generated automatically.

1.4.4 Creation & Acceptance of General Ledger Batches among SYMBOLS Branches:
For the settlement of Inter branch Transactions, Originating branch draws GL Batch on the Responding
Branch and simultaneously prepares and forwards Original Advice (Debit- SF180 or Credit- SF179) to the
responding branch in order to authenticate the batch details.

i. Process of Batch Creation (Originating Branch)

 After the above entry in the Deposits Module, General Ledger Maintenance Officer prepares
Debit Advice SF-180.
 On the basis of Debit Advice- SF-180, GL Officer creates the following GL Batch through GL
Module >> Transaction >> Batch Maintenance >> Entry by inputting the following details:
1st Section of GL 21 2nd Section of GL 21
i. Number of Items i. Currency
ii. Batch & Value Date ii. GL Code
iii. Transaction Nature (0800, 0860 & 1000) iii. Debit & Credit Amount
iv. Contra Branch Code iv. Reference Number (Control Number)
v. Hash Total v. Press F10 or click on save icon. System
generates a new Batch Number.

Note down Batch Number on all the respective vouchers and Advices.

Batch Authorization by BOM:

Operations Manager accepts the batch after validating the details from advice by using General Ledger
>> Transaction >> Batch Maintenance >> Batch Acceptance- GL.

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 Other Instructions:
After accepting GL batch, GL Maintenance Officer jointly signs-off the Advice with the Operations
Manager.

Dispatch original Advice to the Responding Branch on the same day and retain one copy for record.
Please ensure that the advice is dispatched on daily basis.

ii. Process of Batch Acceptance – (Responding Branch):

 On receipt of Original Advice (Debit- SF180 or Credit- SF179), Responding Branch validates the
Advice (Check Control Number, Transaction Code, Amount & Date) and accept the Batch on the
system.
 Original Advices will be used as the source document of the transaction (inter-branch Batches can
be referred to as ‘End of Day Batches’).
 End of Day Batches will not be accepted without the scrutiny of original Advices. If details available
in the Advices do not match with the End of Day Batches, Operations Manager will immediately
inform the Batch Originating branch and will hold the batch in a pending file for daily follow-up for
rectification. Such open batches should be resolved on priority basis.
 If there is any unaccepted EOD batch appearing in branch GL for more than 01 Business day, Branch
Operations Manager should instantly contact the batch originating branch and take the necessary
action in order to reconcile the entry.
 After batch acceptance, GL Maintenance Officer prepares Debit Voucher and creates batch for
offsetting the Fund Transfer Control Account and booking the relevant expense account

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Chapter 2 BRANCH REPORTS

Reports are provided to the Branches for better management of their branch affairs. Source of which is KM/
EOC/ RAM & MCB Reports. There are ‘Financial Reports’ which show any financial transaction of the Branch and
there are ‘Non-Financial Reports’ which show the Non-monetary transactions performed by the user. (e.g.
Account open/Close Listings, Stop Cheque Listing etc).

Reports are classified into two sections:

 Mandatory Reports
 Miscellaneous Reports

2.1 MANDATORY BRANCH REPORTS

Reports classified as ‘Mandatory Reports’ are all essential branch reports which are required for multiple
functions/processes e.g. monitoring transactions, balancing & reconciliation. Following are the ‘mandatory
branch reports’ which are to be extracted/ received & reviewed by the branch officer as per the frequency/
responsibility defined as under:

Sr. Retrieve
Report ID Report Title Responsibility Frequency Description
# from
GLA 91 EMAIL To monitor daily working on GL with
1 KM_RAM_0001 KM BOM / BM Daily
FORM opening & closing balance.
GLA11 - BATCH To track status of all batches originated,
2 KM_RAM_0006 KM REPORT EMAIL BOM Daily responded & normal entries recorded by
FORM branch end user.
To monitor the Running Finance accounts
3 KM_CRC_0001 KM Running Finance BM / RM Assets Daily and their current status on utilization of
overdraft.
Shows list of accounts where credit or
High Value
4 KM_KM_0007 KM BM Daily debit transactions of PKR 1Mn or over have
Transaction
taken place.
Shows all financial transactions under
various GL heads and the channel used for
5 KM_MCB_0018 KM Day Journals BOM / TSS Daily this purpose. Also provides a deposit
product wise summary showing movement
of funds.
Shows the branch deposit position with
Branch Deposit
6 KM_MCB_0001 KM BM Daily currency wise breakup as per the RB -
Summary
Deposit Module.
Stop Cheque Shows the list of those accounts marked
7 KM_MCB_0011 KM BOM / TSS Daily
Listing with stop cheque.
Cheque Book Shows the list of those accounts where
8 KM_MCB_0023 KM BOM / TSS Daily
Issuance cheque book was issued.
To monitor outstanding pay orders of the
PO Outstanding GBO-Remittances
9 KM_KM_0143 KM Daily branch and to eliminate any differences in
Report / BOM
subsidiary and ledger records.
To monitor outstanding demand drafts of
DD Outstanding GBO-Remittances
10 KM_KM_0139 KM Daily the branch and to eliminate any differences
Report / BOM
in subsidiary and ledger records.
To monitor unclaimed pay orders of the
PO Unclaimed GBO-Remittances
11 KM_KM_0145 KM Daily branch and to eliminate any differences in
Report / BOM
subsidiary and ledger records.

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Sr. Retrieve
Report ID Report Title Responsibility Frequency Description
# from
To monitor unclaimed demand drafts of
DD Unclaimed GBO-Remittances
12 KM_KM_0140 KM Daily the branch and to eliminate any differences
Report / BOM
in subsidiary and ledger records.
Change in Account Shows all those accounts whose account
13 KM_KM_0099 KM BOM Daily
Status Report status has changed.
Client Status - RBA Shows the client profile of newly opened
14 KM_RAM_0008 KM PBA / BM Daily
14 accounts.
Shows all outstanding Rupee Travelers
15 KM_RTC_0009 KM RTC Outstanding BOM Daily Cheques and any differences in their
subsidiary and ledger records.
16 RBA-11 EOC User wise printing TSO / TSS / BOM Daily
User wise batch
17 GL-90 EOC TSO / TSS / BOM Daily
listing
MCB
18 N/A GL Balances TSO / TSS / BOM Daily
Reports
MCB Cash/Clearing
19 N/A TSO / TSS / BOM Daily
Reports Summary
ATM Custodian /
20 N/A RAMs ATM RAMS report Daily
BOM
Incharge Shows list of inter branch reconciliation
21 KM_MCB_0060 KM HO STATEMENT Fortnightly
Reconciliation transactions of branch.
GLA 91 Before Half Yearly / To monitor yearly working on GL with
22 RAM_0001_EOY KM BM / BOM
Closing Yearly before closing balance.
GLA 91 After Half Yearly / To monitor yearly working on GL with after
23 RAM_0001_EOY KM BM / BOM
Closing Yearly closing balance.
Salary Exception
24 RBA-145 EOC BM Monthly
Turn Over
Statement of
Shows GL codes wise list of income and
25 KM_KM_0012 KM Income Expense/ BM / BOM Monthly
expenses of branch.
Monthly Affair
Shows list of accounts on monthly actual
Debit (Dr) and Credit (Cr) turnover is
Turnover
26 KM_KM_0146 KM BM Monthly exceed from expected turn over provided
Exception Report
by the accountholder at the time of
account opening in Symbols.
Closed Accounts Monthly / Shows list of closed accounts in certain
27 KM_RAM_0005 KM BM / BOM
List Yearly duration in branch.
Shows list of accounts having negative
Negative Balance
28 BR_Issue_0025 KM BM / RM Assets Weekly balances in saving accounts and those
Report
current accounts with no overdraft facility.
To monitor administrative expenses
Administrative
29 KM_FCD_0058 KM BM Weekly accounts on standard benchmarked
Expense Report
periods
Complete extracts of Branch’s General Ledger i.e. Statement of Affairs with break-up of Sundry Debtors/Creditors,
30 Monthly Affairs
Margin, Bank’s Liabilities, Statistical figures of Remittances and head-wise details of Income / Expenses.

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2.2 MANDATORY REPORTS – BRANCH RESPONSIBILITIES
2.2.1 User Responsibility:
User retrieves the report and attaches the source documents such as Vouchers/ Batches/ Customer requests/
application forms) with his/her Daily Transaction (Financial & Non-Financial).
2.2.2 Supervisor Responsibility:
Supervisor must ensure that entire source documents are duly scrutinized and attached with the respective
User’s reports. It is mandatory that Supervisor and Operations Manager sign-off all the Reports. In case of any
discrepancy, transactions will be thoroughly reviewed by the Supervisor and/or Operations Manager and
appropriate corrective action will be taken to rectify the error(s).
2.2.3 Branch Operations Manager’s Responsibility:
Operations Managers have to ensure before closing the branch that the entire source documents are duly
scrutinized, signed-off & attached with the respective reports before final binding. All the ‘Mandatory Reports’
must be maintained date wise in separate folders. All Operations Managers are advised to review and sign-off
the reports jointly with the respective supervisors.

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2.3 MISCELLANEOUS BRANCH REPORTS
Reports classified as ‘Miscellaneous’ are all essential branch reports helping them comply with various bank
level circulars, financial principles, KYC matters, reconciliations and performance management. These reports
bear importance with respect to operational compliance expected from the branches. The following can be
retrieved from KM.
Sr. Distribution
KM-ID Report Title Report Description Reports Devised on request of
# Frequency
Shows all the online transactions carried
Cr/Dr Online Transactions
1 KM_KM_0035 Daily out by the customers of home branch at Compliance
External Customer
other branches.
Shows all the online transactions carried
Cr/Dr Online Transactions
2 KM_KM_0036 Daily out by customers of other branches at the Compliance
Internal Customer
home branch.
Shows all closed account and their status
Account Closure Charges
3 KM_MCB_0054 Daily of recovery of accounts closure charges as CMIS / FCG
Report
per Schedule of Bank Charges.

Identifies Suspense Account (GL Code:

4 KM_KM_0061 Suspense Account Report Daily CMIS / FCG
2140101010) appearing to be non-zero.
Reflects control accounts appearing with
5 KM_KM_0062 GL Control Account Report Daily balances which needs to be nullified every CMIS / FCG
day.
Identifies Un-appropriated Profit (GL
6 KM_KM_0060 Unappropriated Profit Daily Code: 1010301010) appearing to be non- CMIS / FCG
zero.
Contra Liability and Asset Reflects imbalances in Contra Liability and
7 KM_KM_0106 Daily CMIS / FCG
Imbalance Summary Assets.
Accounts incorrectly Shows all accounts that are incorrectly
8 KM_MCB_0058 Daily CMIS / FCG
marked as STF marked as Staff
MCB EMPLOYEES NOT Shows MCB Employee accounts not
9 KM_MCB_0057 Daily CMIS / FCG
MARKED AS STF Marked as Staff.
Shows list of those account which are
10 KM_FCD_0049 Incorrect Service Charges Daily tagged with wrong service charges or CMIS / FCG
where service charges are found missing.
To monitor GL wise deposit performance
Summary of Deposit &
11 KM_FCD_0006 Daily at standardized benchmarks of last year, CMIS / FCG
Variances
last month, last week and previous day.
To monitor GL wise advances
Summary of Advances & performance at standardized benchmarks
12 KM_FCD_0004 Daily CMIS / FCG
Variances of last year, last month, last week and
previous day.
Cash in ATM Accounting Shows list of ATM reconciliation
13 KM_KM_0149 Daily ATM Reconciliation
Entries transactions of branch.
To monitor product wise deposit accounts
Summary of No. of open / close activity with respect to
14 KM_FCD_0001 Daily CMIS / FCG
Accounts Report standardized benchmarks of last year, last
month, last week and previous day.
RTC Clearing Transaction
15 KM_RTC_0011 Daily Shows RTC Clearing Transactions. CBG
Report
Shows all zero balance accounts which
16 KM_KM_175 Zero Balance Report Daily CMIS / FCG
should be closed
Shows list of accounts where clearing
17 KM_KM_0204 Clearing Control Report Daily CMIS / FCG
control account (1150101140) not zero
Shows GL balance of TT Discounted (GL
18 KM_TRY_0002 TT Discounted Report Daily Treasury & Capital Market Ops
Code: 1090801010)
Remittance in Transit Shows GL balance of Remittance in
19 KM_TRY_0003 Daily Treasury & Capital Market Ops
Report Transits (GL Code: 2010201010)
Shows Balances of Interest Payable GL
20 KM_TRY_0001 GL Data Report Daily Treasury & Capital Market Ops
codes and Interest Receivable GL codes.

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Sr. Distribution
KM-ID Report Title Report Description Reports Devised on request of
# Frequency
Shows branches where sum of base
Base Control Account
21 KM_KM_0108 Daily / Weekly control accounts is not equal to sum of CMIS / FCG
Balance Summary
position control accounts
Base and Position Control Shows branches where position control
22 KM_KM_0109 Daily / Weekly CMIS / FCG
Imbalance account balances appear in “PKR
Position Control Account Shows branches where position control
23 KM_KM_0108 Daily / Weekly CMIS / FCG
Balance Summary account balances appear in “PKR
Tolerance Value Marked Shows list of those accounts on Tolerance
24 KM_KM_0172 Daily / Weekly CMIS / FCG
to Accounts Value check marked.
Clearing Control Accounts Shows list of branches where clearing
25 KM_KM_0024 Daily / Weekly CMIS / FCG
Not Zero (1150101140) control account (1150101140) not zero
Shows GL codes wise list of income &
Statement of Affairs in
26 KM_KM_0010 Monthly expenses and assets & liabilities of Compliance
Base PKR
branch.
Open A/C List (Salary Dr / Monthly/ Shows list of accounts opened in certain
27 KM_RAM_0007 Compliance
Cr Turnover) Yearly period with salary Dr & Cr turnover.
Monthly/ Shows list of new accounts opened in
28 KM_RAM_0003 New A/C Open List Compliance
Yearly certain period.
VALID / INVALID SBP CODE Shows accounts are tagged with correct
29 KM_KM_0126 Weekly CMIS / FCG
REPORT or incorrect SBP Classified codes
30 KM_KM_0009 Invalid ID Detail Weekly Shows list of accounts having invalid IDs. CMIS / FCG
Shows list of accounts on CSW check in
31 KM_MCB_0016 Missing CSW Detail Weekly CMIS / FCG
not marked.
Missing Account Signature Shows list of accounts on signature cards
32 KM_MCB_0031 Weekly CMIS / FCG
Detail of customers not attached.
Shows list of branches having accounts
33 KM_KM_0042 Invalid ID Summary Weekly CMIS / FCG
with invalid IDs.
Shows list of branches having accounts on
34 KM_KM_0043 Missing CSW Summary Weekly CMIS / FCG
CSW check is not marked.
Shows list of BBA accounts on which
BBA Accounts with Service
35 BR_Issue_0013 Weekly service charge check has been applied in CMIS / FCG
Charges
violation to Branch Operations Manual
Shows branch wise list of Local Currency
FCY Accounts Opened with
36 KM_KM_0173 Weekly Accounts that have been opened in CMIS / FCG
incorrect currency
incorrect currencies.
Shows branch wise list of Foreign
LCY Accounts Opened with
37 KM_KM_0174 Weekly Currency Accounts that have been CMIS / FCG
incorrect currency
opened in incorrect currencies.
Shows list of branches having accounts
Missing Account Signature
38 KM_MCB_0042 Weekly with signature cards of customers not CMIS / FCG
Summary
attached.
Identifies Un-appropriated Profit (GL
UN-APPROPRIATED
Code: 1010301010) appearing to be non-
39 KM_KM_0064 PROFIT SUMMARY Weekly CMIS / FCG
zero for Symbol Branches in a particular
REPORT
region.
Identifies Suspense Account (GL Code:
SUSPENSE ACCOUNT 2140101010) appearing to be non-zero
40 KM_KM_0065 Weekly CMIS / FCG
SUMMARY for Symbol Branches in a particular
region.
Identifies region wise no of branches,
CONTROL ACCOUNT those are not complying with the
41 KM_KM_0066 Weekly CMIS / FCG
SUMMARY instructions laid down in circulars related
to Control Accounts.
INVALID GL CODE Identifies those invalid codes most
42 KM_KM_0073 Weekly CMIS / FCG
SUMMARY frequently used by the branches.
Contra Liability and Asset Reflects imbalances in Contra Liability and
43 KM_KM_0106 Weekly CMIS / FCG
Imbalance Summary Assets.
Shows list of CSW exempted accounts
44 KM_KM_0158 CSW & EWT Marked Weekly Compliance
having check of CSW with EWT restraint

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 Sr. Distribution
KM-ID Report Title Report Description Reports Devised on request of
# Frequency
simultaneously in branches.

Shows accounts where Whereabouts

45 KM_KM_0114 Where About Unknown Weekly Compliance
Unknown Restraint has been marked.
To monitor fee-based income accounts on
46 KM_FCD_0057 Fee Based Income Report Weekly CMIS / FCG
standard benchmarked periods
Shows status of product ( availed or not
Customer's Channel
47 KM_FCD_0046 Weekly availed) by customers with account CMIS / FCG
Report
numbers and addresses.
To monitor mark-up expense accounts on
48 KM_FCD_0062 Markup Expense Report Weekly CMIS / FCG
standard benchmarked periods
To monitor mark-up income accounts on
49 KM_FCD_0061 Markup Income Report Weekly CMIS / FCG
standard benchmarked periods
Shows category wise position of fixed
assets with date of placement,
50 KM_FCD_0063 Position for Fixed Assets Weekly CMIS / FCG
depreciation and net book value to
update the fixed assets position
Correct Marking of Client Shows list of those accounts on which
51 KM_MCB_0066 Weekly CMIS / FCG
Type client type is incorrectly
MCB Employees not Shows MCB Employee accounts not
52 KM_MCB_0063 Weekly CMIS / FCG
marked as STF Marked as Staff.
Accounts incorrectly Shows all accounts that are incorrectly
53 KM_MCB_0064 Weekly CMIS / FCG
marked as STF marked as Staff
Shows list of branches where DD
DD Outstanding Vs GL
54 KM_ICD_0010 Weekly Outstanding balances are not yet CMIS / FCG
(1060101010)
balanced with GL.
Shows list of branches where PO
PO Outstanding Vs GL
55 KM_ICD_0009 Weekly Outstanding balances are not yet CMIS / FCG
(1060101050)
balanced with GL.
Shows list of branches where DD
DD Unclaimed Vs GL
56 KM_KM_0125 Weekly Unclaimed balances are not yet balanced CMIS / FCG
(1090802620)
with GL.
Shows list of branches where PO
PO Unclaimed Vs GL
57 KM_KM_0124 Weekly Unclaimed balances are not yet balanced CMIS / FCG
(1090801230)
with GL.
Shows list of branches where RTC
RTC Outstanding Vs GL
58 KM_RTC_0012 Weekly Outstanding balances are not yet RTC / CBG
(1060101070)
balanced with GL.
Shows list of those accounts on which
Zakat Deduction
59 KM_MCB_0025 Yearly Zakat deducted on 1st of every Ramadan CMIS / FCG
Transaction report
with Zakat amount.
Amendment in Customer Shows the change in various attributes of
60 KM_AUD-01 On-Request Audit
Account customer account

2.4 MISCELLANEOUS REPORTS – BRANCH RESPONSIBILITIES

User retrieves the report and performs the needed action in the light of subject circulars / instructions
mentioned within the report. This action can be augmented either by keeping a track through electronic files or
hard copies. Frequency of review may vary as per discretion of Area Head Operations. However, user’s will have
access to reports as per given distribution frequency.

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Chapter 3 IT SECURITY GUIDELINES
IT Security is everyone’s responsibility. Following basic guidelines must be adhered by end users to ensure
minimum level of security in the day to day IT operations.

3.1 PASSWORD PROTECTION

Protecting your computer with a password is a common method of ensuring that only authorized users (those
with Permission) can access it. However, passwords are effective only as long as they are selected and used
appropriately. Following are some guidelines based on MCB password policy that must be ensured:
i. Password sharing is prohibited. Users must not share their passwords. If done will be considered as
serious violation
ii. System users must configure their password as per MCB password policy as described below;
iii. Minimum password length should be 8 character
iv. Password must be alphanumeric and must contain at least one special character e.g.!,@,#,$, %,^,&,*,(,)
etc.
v. All user-level passwords (e.g., application user, email, web, desktop computer, etc.) must be changed at
once every 30 days and minimum password age should not be zero
vi. Passwords must be checked to ensure that they are not identical to any of the previous 12 passwords
for the same account
vii. Passwords must not be written down, stored on any information system or storage device
viii. It is recommended not to type passwords when someone is viewing users hands, keyboard (Shoulder
Surfing)
ix. Passwords must not be revealed in conversations, inserted into email messages or other forms of
electronic communication
Transactions that require override by a next level of authority, each individual/user should him/herself insert
the password in the system. Under no circumstances should the user disclose the password to other users.

3.2 EMAIL USAGE

i. Personal or non-business use of the email systems must be avoided
ii. MCB information resources should not be used to transmit or receive statements that contain any
material that is offensive, defamatory, or threatening to others
iii. The Systems should not be used to communicate statements, messages, or images consisting of
pornographic material, ethnic slurs, racial epithets, or anything that may be construed as harassing,
offensive, or insulting to others based on race, religion, national origin, color, marital status, citizenship
status, age, disability, or physical appearance
iv. To maintain the security of MCB E-Mail system, it is important to control access to the system. Users
should not provide other unauthorized persons with their E-Mail ID and personal password
v. Users must not publish or distribute internal mailing lists to non-staff members.
vi. Attachments from unknown or un-trusted sources must not be opened. All E-Mail attachments,
regardless of the source or content, must be scanned for viruses and other destructive programs before
being opened or stored on any MCB computer system. Personnel must perform a virus scan on all
material that is transmitted to other users via E-Mail prior to sending it.

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3.3 REMOVABLE STORAGE PROTECTION
i. Unauthorized use of removable storage i.e. USB storage, portable hard disk is prohibited
ii. Removable storage must be scanned for viruses before authorized usage

3.4 VIRUS AND MALICIOUS PROGRAMS PROTECTION

i. Users should run a complete system virus scan weekly
ii. Antivirus should be updated and users should inform IT coordinators about outdated virus scan
definitions.
iii. If users feel virus attack at their system, they must inform the helpdesk

3.5 SYSTEM ACCEPTABLE USE

i. Remote desktop, telnet and other remote management utilities are prohibited
ii. System must be used for MCB business purpose only
iii. Games are not permitted and must be removed from all systems
iv. It is strongly recommended that users should lock the system on leaving seat
v. Unauthorized software and freeware must not be installed at systems

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Chapter 4 START & END OF DAY

Overview:
In SYMBOLS Start of Day is use to run the Branch’s Start of Day. An authorizer officer who has an authorize
password to perform Start of Day will only be able to perform this function on System. Failure to do so, the users
will not be able to login to perform the financial as well as non-financial transactions.

4.1 START OF DAY

i. Switch on the server and login through Administrator (User Id & Password)
ii. Click JTP Icon available on Desktop
iii. System shows the status of JTP as follows:
[JTP MAIN] Wait for connection on port 1510
In case system shows any other message while running JTP, follow below mentioned procedure to check
network availability.
i. Press start button available on windows desktop
ii. Click on Run button.
iii. Pop-up message will be appeared on screen.
iv. Insert necessary command in the pop-up box.
v. Click Ok
In case system shows message “Request Time Out” then log a complaint with Call Center.
i. Click the Branch Teller Icon available on Desktop
ii. Login to BT and insert USER ID and Password, pop-up message will be appeared

4.2 END OF DAY

In SYMBOLS End of Day is use to run the department’s end of day process. This process is a pre-requisite for the
branch end of day process, which in turn is a pre-requisite for the Bank’s end of day process.

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Chapter 5 LOCKER MANAGEMENT

Overview:
Branches all over the country offer Safe Deposit Lockers facility to their customers. The lockers are invariably to
be installed in the Strong Room of the Branch to ensure maximum security against burglary, theft and riots. Each
locker irrespective of its size has a separate number and is fitted with a double key lock which cannot be opened
except with the two keys, one being Master Key under the custody of Manager/Authorized Officer and the other
possessed by the customer. The relationship subsisting between Bank and Person to whom locker is rented
out will be that of a Licensee and a Licensor and not that of a customer and banker.

5.1 RIGHTS & OBLIGATIONS OF LICENSEE

The ownership in the locker will vest in the Bank and the licensee will have only the right to use, subject to the
fulfillment of the terms and conditions described hereinafter. The licensee will not be entitled to assign or sublet
the locker or any part thereof. The License will terminate on death or insolvency of the Licensee.

5.2 ISSUE OF LICENSE

Before issuing a License for the use of locker, make it sure that the licensee maintains an account in any branch
of our Bank in the same City preferably in the branch where locker facility is available.
A License for this purpose can be issued in single or joint names. The following process is to be followed:

Procedure for Issuance of Locker

Customer Request for a Locker facility
General Banking Officer or Designated Locker Custodian:
Makes sure that the customer maintains an account in any online Branch within the city preferably the same
branch.

In case the customer maintains account in other branch, a confirmation is obtained from parent branch about
the account being active, KYC is complete and the risk level assigned to the account holder. Either the
customer maintains account in same branch or other branch, KYC needs to be updated.

If the customer is assigned high risk, a fresh KYC needs to be conducted and approval needs to be obtained
from Senior Management ,before assigning locker facility in compliance with Prudential Regulation IX to
conduct enhanced due diligence for high risk customers.
GBO: Completes the following forms / formalities from the customer:

i. Locker Application Form MF – 19R

ii. Specimen Signature Card MF - 19AR
iii. A Valid copy of CNIC

The locker can be opened singly or jointly and the authority to operate can be singly, jointly or either or
survivor.

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 If locker is opened in name of joint account holders, particulars of all are filled in the locker application form,
Specimen Signature Card is filled by only those authorized to operate the locker facility.
GBO checks the original CNIC and collects the copy of CNIC from the customer and affixes the stamp of
“Original Seen” and signs the copy. The copy is then attached with the Locker application form.
GBO checks the accuracy and completeness of the application form and specimen signature card. The
documents are then forwarded to Branch Operation Manager (BOM).
BOM receives the documents from GBO and after further verification and scrutiny, signs off the Locker
Application form. NADRA VeriSys is also conducted. The documents are then forwarded back to GBO.
GBO enters the following information of customer in EOC-Symbols Safety Deposit Box Assignment:
i. Client ID
ii. Locker No.
iii. Key No.
iv. Branch Size Start Date
v. End Date (Expected when the locker facility is expected to end)
vi. Key Deposit
GBO marks the status A-Active and clicks Debit Account from Tools Bar for deduction of Key Deposit and
Locker Rent. GBO deducts charges as mentioned in Schedule of Bank Charges.
GBO allots the locker number and hands over the key and takes acknowledgement on the Locker Application
form having thoroughly read and understood the terms and conditions.

5.3 TERMINATION OF LICENSE

The agreement of License may be terminated by either party giving “7” days notice in writing and licensee will
deliver key and vacant possession of the locker to the Bank during office hours.

5.4 RIGHTS OF THE BANK (LICENSOR) IN CASE OF NON-PAYMENT OF RENT

In the event of the rent of the locker falling in arrears, the Bank reserves the following rights:-
i. To refuse access to the locker.
ii. To exercise a general lien over the property deposited or about to be deposited in the locker until such
time as the dues / arrears are paid by the licensee.
iii. To sell the property described in Para (b) above or part thereof in satisfaction of Bank's dues with the
permission of the Court.
A Declaratory Suit against licensee of the inoperative / above said locker shall be filed with the Court of
Competent Jurisdiction to “Break Open” the said locker in presence of “Nazir of the Court”. However,
permission for filing of any such suit and clearance of draft plaint should invariably be obtained from Legal
Affairs Div. The articles so recovered from the said locker shall be kept with the permission of the Court with the
Bank in safe custody. A list of the said articles prepared by the Court Nazir shall be kept on Bank’s as well Court’s
record. Moreover, any banned article / item if recovered from the said locker, the Bank shall not be responsible
for the same, which shall be handed-over to the “Nazir” for taking appropriate legal action against the licensee
as per law.

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5.5 LIABILITIES OF THE BANK (LICENSOR)
The Bank’s liability or responsibility in the event of partial or complete loss or destruction of or damage to any
article, documents, securities valuables in the locker due to any reason whatsoever, including theft, fire,
accident etc, is up to the insurance ceiling of the locker ONLY.
Branches should properly convey the terms & conditions (including size, rent per annum, insurance ceiling etc)
to the existing locker holders/new locker holders. Further, consent of all existing/new locker holders shall be
obtained for the applicable insurance ceiling. (SBP BPRD Circular No 5 dated Jun 05, 2007).

5.6 USE OF LOCKER

The locker will not be used or permitted to be used for any purpose other than the deposit of documents,
jewelry or other valuables etc. No property of an explosive or harmful nature and any contraband items etc. will
be deposited therein.

5.7 RENEWAL / EXPIRY

In the absence of any notice of termination of the agreement of License by either party in writing before the
expiry of the License, the License will be considered renewed for a further period of one year on due date
without prejudice to the rights of the Bank to recover the accrued rental in the meantime at the stipulated rates
as explained under Section 7: 5.4 Rights of the Bank (Licensor) in case of Non-Payment of Rent

5.8 KEY DEPOSIT

Apart from rent/License fee presently in force, a 'Certain' amount as per schedule of Bank Charges will be
payable as key deposit. This amount will be refunded to the licensee on the surrender of locker and key and
clearance of dues, if any

5.9 PAYMENT OF RENT

The rent / License fee as per schedule of Bank Charges will be payable in advance on yearly basis and will not be
refundable in the event of the locker being surrendered earlier than the expiry of the term of the License.

5.10 RECOVERY OF RENT IN CASE OF DEFAULT

Before one month of the due date of the License fee / rent Bank should issue notice to the licensee on MF-19D
pointing out the date of expiry. In case of default the periodical reminders at his registered address will continue
to be sent through registered mail.
The Bank may postpone the recovery of the overdue License fee / rent of the locker to a maximum period of “2”
years. If even after expiry of the said period the licensee fails to deposit the rent of the locker, the Bank may at
its discretion exercise anyone or all its rights as a licensor described herein above in Section 7: 5.4 Rights of the
Bank (Licensor) in case of Non-Payment of Rent for the recovery of the overdue rent.

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5.11 BREAK OPENING OF LOCKERS
Under the terms and conditions governing the use of Lockers, the Bank is entitled to revoke the License and
“Break Open” the same with the permission of the Court, in the event of default in payment of License Fee.
Whenever default is committed in payment of License Fee and in spite of all efforts made by the Branch, it is
continued for a period of two years, the License be revoked and on fulfillment of the terms and conditions, as
per procedure laid-down hereunder, the Locker(s) be broken-open with the permission of the Court and the
articles, if any lying, be retained and subsequently disposed of to recover the amount of the License Fee, as well
as cost of breaking-open as prescribed in schedule of Bank Charges, cost of making inventory, its repairs and
cost of legal / court expenses etc., with the permission of the Court. The procedure to be adopted is as follows:-
i. A notice, as per draft marked Annexure VI, should be sent by Registered A/D Post to the Licensee at his /
her address on record of the Bank revoking the License and giving him / her Seven Days time to pay the
dues and remove the contents/articles, if any, lying in the Locker.
ii. If the notice is delivered but no response is received from the Licensee or the same could not be
delivered for what so ever reason, the Bank will send another notice marked as “Final Notice” as per
Annexure VII under Registered A/D post. Even if thereafter, there is no response then the Bank may
adopt the procedure for breaking open the said locker with the permission of the court as per procedure
laid down here under.
iii. In case the Final Notice is returned undelivered by the Postal Authority or there is any doubt as to the
delivery thereof, such notice or notices, as an abundant precaution, may be published in the newspaper
and thereafter the Bank may precede with the action of breaking-open the Locker(s) with the
permission of the Court.
iv. After the locker is broken-open with the permission of the court, an inventory shall be prepared by the
“Nazir” of the Court of the articles, if any, found in the locker. A copy of said inventory shall be kept in
Bank’s record and another on the record of the Court with the said “Nazir”. The said articles so
recovered shall be kept in Bank’s custody with the permission of the court. However, if any banned item
is found in the said locker, the same shall be handed-over to the “Nazir” of the Court against proper
receipt for disposal of the said banned item as per law.
v. If any articles are found in the Locker, a notice should be sent by Registered A/D Post to the Licensee as
per draft marked Annexure VIII, requiring the Licensee to collect the items / articles to be disclosed /
specified at the place provided therefore; on payment of the amount due and payable to the Bank. On
expiry of the period given in the said notice, the Bank should sell the contents / articles found in the
Locker, with the permission of the Court and appropriate the net proceeds thereof towards the cost of
making inventory, breaking-open the Locker, its repairs, payment of arrears of License Fee and Cost of
Legal / Court Expenses. If the proceeds fall short, demand be made upon the Licensee for payment of
such amount, as per draft marked Annexure IX
vi. Upon breaking-open the Locker, with the permission of the Court if the same is found empty, a demand
notice, as per draft marked Annexure X, should be sent to the Licensee(s) calling upon him / her to pay
the amount representing the arrears of License Fee, cost of making inventory, the cost of breaking-open
the Locker, its repair and Cost of Legal / Court Expenses.
If the License Fee of Locker is found in arrears for a period of two years or more in any branch, the Branch
Manager will render himself liable for disciplinary action.

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5.12 GENERAL INSTRUCTIONS FOR THE LICENSEE/ LICENSOR
i. The licensee will keep the key in a place of security and not to divulge the number of his/her locker and
his / her secret password. The key will not be delivered by the licensee to any person other than his/her
duly authorized agent.
ii. In the event of the key of the locker being lost, the licensee will notify the Bank in writing immediately.
All charges incurred in connection with the reopening of the locker and replacement of lock and key will
be borne by the licensee. All such repairs and replacements will be carried out by a workman appointed
by the Bank.
iii. The opening / closing hours of Safe Deposit Vault are subject to office hours in force except gazetted
holidays and will be changed without individual notice to the licensees.
iv. Normally the operation of a locker by the licensee is restricted to twice a day, however, this condition
may be relaxed by the Licensor in very rare / special cases.
v. In the event of mechanical failure or for any other unavoidable reasons, the Bank reserve the right to
close the safe deposit vault for such time as it may in its discretion consider expedient.
vi. In the event of breach of any of the conditions by the licensee, the Bank reserves the right to take action
on the lines set out under Section 7: 5.4 Rights of the Bank (Licensor) in case of Non-Payment of Rent
vii. Any notice or communication sent by post at the registered address of the licensee shall be deemed to
have been duly served on the address in due course.
viii. Any change of address of the licensee should be immediately brought to the notice of Bank.
ix. The rules, regulations and procedures are subject to amendment from time to time without any notice
to the Licensee and the licensee is legally bound to comply with them.

5.13 LOCKER INSURANCE POLICY

As per the SBP guidelines on the Lockers Security Standards, it is mandatory that all the existing and new locker
holders are aware of the deposit box/locker insurance policy and the salient features including the amount of
coverage and the limit from time to time.
Branches are required to display the precise Locker Insurance Policy in the Locker Room at a conspicuous place
in order to make the customers know the said policy of the Bank

5.14 CONTROL GUIDELINES

In order to avoid any unpleasant incident, all BMs/ BOMs are instructed to check the following on regular
intervals:
i. Check that locker application forms and specimen signature cards are complete and intact
ii. Check that Master key and Master Chart indicating Key Nos. and Locker Nos. is handled carefully and
remains with the authorized person only
iii. Check that the keys of Un-leased Lockers are kept in sealed envelopes and in safe custody under the
charge of an authorized person
iv. Check that proper request in writing (in case the key is lost by Licensee) is obtained and all formalities
are observed before getting the locker broken-open. In case of deceased locker holders, proper and laid-
down procedure and legal formalities are observed in respect of delivery of contents to the legal heirs

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Chapter 6 INTER-BRANCH RECONCILIATION APPLICATION CORONA

In line with the Bank’s strategic objective of enhancing controls, a key initiative has been taken up for
implementation of a new state of the art application for Inter branch reconciliation, ‘CORONA’. CORONA is live
with effect from June 1st, 2010 and the legacy system is discontinued from the same date. This would help in
bringing better control on data completeness, place emphasis on transactions not being timely responded
through identification of number of days outstanding and also providing branches/units more time to respond /
to resolve transactions, which are outstanding at their end. This chapter narrates the new process of delivery to
the branches / units and elaborates layout of the new Inter branch transaction summary along with the
underlying transactions.
Inter branch reconciliation will be performed on a weekly basis in CORONA and reports will be sent to the
respective Branch Managers (BM) /Branch Operations Managers (BOM) and respective units’ representatives
through Bank’s current email set up. In addition the format of the report has been completely revamped with
respect to its layout and provision of information. Following are the key changes:
i. The new format provides aging at summary and transaction level based on transaction date. The aging
buckets are as follows :
 up to 7 days
 from 8 to 15 days
 from 16 to 30 days
 Total up to 30 days
 More than 30 days
ii. The new format categorizes the transactions under different currencies being used currently in
transaction processing.
iii. The new format provides currency wise Head Office General Ledger Account movement (HO GL).
iv. The new format provides information on transactions to be responded by other branches.
v. The new layout will be referred as “Inter-branch Transaction Reconciliation Summary”. Summary will
be supported by underlying transactions report. The report would be branch wise and defining the
period for which data has been processed for matching.

Inter branch transaction reconciliation summary is mainly divided in Five (5) sections:

6.1 OUTSTANDING TRANSACTIONS AT BRANCH END AGING ANALYSIS

These are transactions, which the branch needs to resolve/respond.
The sum of section (1) is represented as “Total Outstanding / Unresolved transactions at Branch end”
i. Transactions not responded as yet (Formerly REK 235): In this sub-section outstanding debit and
credit transactions are reflected, which are still to be responded by the branch (receiving this
transaction report).
ii. Responded but with error (outstanding) (Formerly REK 236): In this sub-section outstanding debit &
credit transactions are reflected, which have already been responded by the branch but due to some
error the transactions are still not resolved / unmatched.

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6.2 OUTSTANDING /UNRESOLVED AMOUNT AT BRANCH END
This section narrates the outstanding amount in respective currencies for the transactions (debit & credit)
mentioned in section 1 Part (a&b).

6.3 TRANSACTIONS TO BE RESPONDED BY OTHER BRANCHES

This section narrates the outstanding debit & credit transactions, which are originated by the branch
receiving this Transaction Summary but are not responded by other branches. This is only for information
purposes and will help branches to coordinate with each other in resolution of all unresolved /
outstanding transactions.

6.4 TRANSACTIONS AMOUNT (VALUE) TO BE RESPONDED BY OTHER BRANCHES

This section narrates the outstanding amount in respective currencies for the transactions (debit & credit)
mentioned in section 3.

6.5 HEAD OFFICE GENERAL LEDGER ACCOUNT MOVEMENT

This section defines currency wise HO GL account movement for the particular branch for the period
mentioned on the schedule. It is important to notify that the movement is the period, whereas,
outstanding transactions status is as of date i.e. it reflect all the transactions, which have not been
resolved / responded as of date.

Definition of the fields in this section is as follows:

i. Opening balance defines the date and opening balance as of date for branch HO GL
ii. Debit row reflects the debit movement in branch HO GL for the recon cycle period
iii. Credit row reflects the credit movement in the branch HO GL for the recon cycle period
iv. Missing statement data will reflect amount where any transaction is not loaded in Corona for the
period
v. Closing balance defines the date and closing balance in amount as of date for branch HO GL It is
important to notify that normally there should not be any missing statement. In case there is any
amount populated in this field, the branch should immediately contact and coordinate with the
Reconciliation Department for identification and resolution of such missing information.

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6.6 SUMMARY SCHEDULE
It will be accompanied by underlying transactions which will be used by branches to resolve all
outstanding/ unmatched transactions. Detailed Transaction Schedule comprises following areas:
i. Part (1) Transactions not responded as yet (Formerly REK-235) represents transactions, which are not
responded by the branch e.g. (receiving the schedule) and in this portion branch column represents
the codes of the originating branches.
ii. Part (2) Transactions responded but with error (Formerly REK-236) represents transactions which
have been responded by the branch but due to some error the transactions are still not resolved /
unmatched. In this part contra branch column represents branch codes who have originated the
transaction.
iii. Part (3) Transactions to be responded by other branches represents transactions which are
originated by branch (receiving the schedule) and contra branch column represents branch codes that
have not responded these transactions. This is only for information purposes and will help branches to
coordinate with each other in resolution of all unresolved / outstanding transactions.

Note: The ‘Remarks’ column given in the detailed transaction report is for branch /units own usage and is not
intended to be sent to the Reconciliation department. Only those transactions, which needs to be resolved at
the Reconciliation department level needs to be communicated through email.

For any clarification on this chapter please contact the following staff members:
Asma Hanif, e-mail ID: [email protected]
Saira Javed, e-mail ID: [email protected] Contact no. 042-36041245
Faisal Waheed-mail ID: [email protected] Contact no.042-36041241

Note: Any addition / change in the process and contents would be circularized / communicated accordingly.

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Chapter 7 INVESTMENT SERVICES - MUTUAL FUNDS

7.1 SALES OF MUTUAL FUNDS

i. Sales staff will assess the customer's risk profile through Risk Profile Questionnaire and customer signs
on the same to ensure that they were informed of the products most suited for their category. (Not
required for Institutions)
ii. If the customer agrees to invest in a particular fund, the sales staff requests the customer to
comprehend and fill out the Fund Term Sheet to relieve the Bank and AMC of performance liability and
secure its reputational risk.
iii. Staff explain Front end Fees and Processing Charges that will be charged on the Investment, so that the
customer is aware of the deduction.
iv. Customers are requested to first open an MCB Bank Account.
v. Minimum amount of transaction is PKR 5,000/- for MCB Asset Management Company Limited and PKR
10,000/- for JS Investments Limited.
vi. The following documents are filled / attached by the customer:
 Printout of filled Risk Profile Questionnaire – signed by Applicant – stamped and signed by IS
Relationship Associate
 Fund Term Sheet – signed by Applicant – stamped and signed by IS Relationship Associate
 Asset Management Company’s Registration Form (for first-time investors only)
vii. Customer to mention his existing MCB Account Number, so that at the time of redemption, the funds
are credited directly into their accounts.
viii. Asset Management Company’s Unit Purchase Form (if Customer is already investing in AMC, they should
mention their AMC Account Number on the Form).
ix. In case of a new to Bank customer, the Branch staff first opens the customer’s MCB Bank Account and
waits until the funds have cleared into the new account.
x. In case of Individuals copy of Valid CNIC– signed and stamped “Original Seen” by an Authorized Branch
Officer- Branches to check that CNIC / Passport are not expired
xi. In case CNIC is expired, copy of NADRA Token will be accepted, provided copy of CNIC is submitted as
soon as it is issued.
xii. Copy of Zakat Declaration Form (if applicable) – signed and stamped “Original Seen” by an Authorized
Branch Officer
xiii. Internal Fund Transfer Form (SF-100R) – signed, signature verified by an Authorized Branch Officer

In case of Institutions:
i. Copies of Valid CNIC / Passport of all authorized signatories– signed and stamped “Original Seen” by
an Authorized Branch Officer
ii. List and sample signatures of all authorized signatories– signed and stamped “Original Seen” by an
Authorized Branch Officer
iii. Trust Deed– signed and stamped by Company Secretary
iv. Articles of Association– signed and stamped by Company Secretary
v. Board Resolution permitting the specified investment – signed and stamped by Company Secretary
vi. Internal Fund Transfer Form – signed, signature verified by an Authorized Branch Officer

Note: Risk Profile not required in case of Institutional clients

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Once the customer documentation (detailed above) is complete, the forms are approved by the Branch
manager/ Investment Relationship Associate. Branch Manager/Authorized Officer should also affix their stamp
under their sign.
Branch Operations to verify Customer’s signature on Fund Transfer Request Form (SF-100R)
Branch Operations Staff debit the Customer’s account and Credit the relevant Trustee Collection Account
through Inter-Branch Transfer on SYMBOLS:
Br. Investment Processing Fee
Fund: A/C to Credit:
Code Trans. Type Trans. Type
CDC Trustee MCB Dynamic Cash Fund 1578 TFRD / TFRC TFRD / TFRC 0407468881000077
CDC Trustee MCB Dynamic Stock Fund 1578 TFRD / TFRC TFRD / TFRC 0407469811000078
CDC Trustee MCB Dynamic Allocation Fund 1578 TFRD / TFRC TFRD / TFRC 0407469381000076
MCFSL Trustee JS Income Fund 1578 TFRD / TFRC TFRD / TFRC 0415355941000119
CDC Trustee Unit Trust of Pakistan 1578 TFRD / TFRC TFRD / TFRC 0390116971000121

The Internal Fund Transfer is made through 3 Accounting entries:

Amount being invested in the Fund
i. Narration to be passed:
“Investment In [Fund Name] – [Customer Name]–[Customer Account No.]– *Branch+”
Example: Investment In MCB DAF–Shakir Khwaja–12345678-0020
Non-Refundable Processing Charges of PKR 150/-.

ii. Narration to be passed:

“Processing Fees on Investment In [Fund Name]–[Customer Name]–*Account No.+”
Example: Processing fees on Investment In MCB DAF – Shakir Khwaja -12345678
Federal Excise Duty on Processing Charges PKR 15/-:

iii. Narration to be passed:

“FED processing on investment *Fund Name+ – [Customer Name] – *Account No.+”
Example: FED processing on investment MCB DAF – Shakir Khwaja -12345678

i. Branch Operations to confirm transfer of amount into Trustee Collection Account the same day
ii. Branch Operations to provide Investments Associate with a photocopy of the Fund Transfer Request
Form.
iii. Investment RA checks and attaches the Sales Checklist to the documentation pack and signs and stamps
the same. All forms are sent to:
Haris Naeem – IS Operations, 2nd floor, World Business Center

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 DHA Phase 1, Main National Highway
KARACHI

iv. Documents Mailed:

 Original Investment Checklist
 Original Risk Profile Questionnaire
 All Original AMC Forms
 Fund Term Sheet
 Supporting Documents (CNIC, Zakat, Trust Deed for Institutional investors etc.)
 Copy of Internal Fund Transfer Form

v. For all upcountry transactions the documents need to be scanned and sent by email or fax (in case of
faxed documents the Branch Manager / Authorized Officer to sign on the application forms) The original
set of documents should be dispatched the same day via courier so that they reach latest by next
Business day. All forms are sent to:
Haris Naeem – IS Operations Officer
[email protected]
FAX: 021-531 7168

vi. Big-ticket transactions of PKR 25 Million and above will be confirmed over e-mail by the respective
branches to the Product Manager / respective Sales Head to bring it to their notice.
vii. AMC will issue Units directly in the name of the customer, in accordance with the original application
forms received from branches and cleared funds received from Investment Operations.
viii. AMC will send a Statement of account to the customers within 6 Business days to confirm the purchase
of units, and assign a folio number for all first time sales. MCB Sales staff to ensure that on subsequent
sales the customer mentions this folio number on the purchase / redemption forms to enable the AMC
to maintain a consistent/complete record of the customer.
ix. All AMCs issue Electronic units and no certificates will be issued; only a statement of account will be
provided. However, a certificate can be issued on request with a nominal payment (generally PKR 50 per
certificate – the denomination of the certificate is at the discretion of the investor) and filling in a
request for physical certificates form.
x. Investment Services will e-mail a daily Sales Summary MIS to all branches for their knowledge.

7.2 DISCREPANCIES AND REVERSALS

i. Once a customer’s account has been debited for the investment amount, the transaction cannot be
reversed. Only upon written request of the Customer and the approval of the relevant Group Head, will
the transaction be reversed and the funds returned to the Customer.
ii. If, after receipt of the application by Investment Operations, the application is found to be incomplete
or incorrect in any manner, Investment Operations will advise the Branch staff and Investments RA to
remove the discrepancy within 2 business days. In the event the discrepancy is not removed in that
time, the relative IS Relationship Associate will be held accountable, and the sale will not reflect in either
their targets or the branch targets.
iii. However, in the event Units have been issued and a discrepancy is discovered after that, the AMC will
advise the applicant in writing to remove the discrepancy within fifteen days. If the investor fails to
remove the discrepancy, the Units shall be redeemed at the Redemption Price on the date as decided by
the AMC. The Unit Holder shall not be entitled to any payment beyond the redemption value. The same
will be highlighted to the relevant Group Head for their knowledge.

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7.3 AFTER-SALES SERVICES
7.3.1 Redemption Requests:
i. In the event that the customer wishes to redeem their investment, they may request for a
Redemption of Units, which can be partial or in full.
ii. In case the Fund has a Back-end Load attached to it, staff to explain to customer that redemption
will incur a penalty on the investment and will result in a loss for the customer.
iii. Customer to fill out the AMC redemption form clearly mentioning the folio number assigned by the
AMC.
iv. The customer needs to either provide a copy of their Statement of Account as evidence of his
holding (Optional) or a physical certificate (as the case maybe), along with the redemption
application.
v. Investments RA to verify the customer’s details and ensure that all redemption transactions are
reported to Investment Operations AND MCB Asset Management Company latest by 4:30pm so that
Investment Operations will report these transactions to AMC on the same day by 6:30pm.
Upcountry branches to scan & send the complete set by 4:30pm and originals should be dispatched
by overnight courier, so that they are received next Business day.
vi. AMC will directly credit the amount to the customer’s MCB account mentioned on the redemption
form and inform Investment Operations.
vii. Customer's funds will be credited within 6 Business days by AMC along with a statement of account.

7.3.2 Conversion of Units Requests:

i. In the event that the customer wishes to convert their investment to another Fund managed by the
same AMC, they may wish to request for Conversion of Units.
ii. In case the Fund has a Front-end Load or a Back-end Load attached to it, staff to explain to customer
that transfer will incur a charge on the investment and will result in a loss for the customer.
iii. Customer to fill out the Term Sheet for the New Fund & the AMC Conversion of Units form clearly
mentioning the folio number assigned by the AMC.
iv. The customer needs to either provide a copy of their Statement of Account as evidence of his holding
(Optional) or a physical certificate (as the case maybe), along with the transfer application.
v. Investments RA to verify the customer’s details and ensure that all redemption transactions are
reported to Investment Operations AND MCB Asset Management Company latest by 4:30pm so that
Investment Operations will report these transactions to AMC on the same day by 6:30pm. Upcountry
branches to scan & send the complete set by 4:30pm and originals should be dispatched by overnight
courier, so that they are received next Business day.
vi. AMC will execute the transfer request and confirm the same to Investment Operations.
vii. Customer will receive a revised statement of account.

7.3.3 Account Statement Requests:

In case the customer is not receiving their statement, branches to fill out a Change of Address Form,
signed by the customer and scan and fax the same to Investment Operations and the AMC. Similarly, the
IS RA will courier the originals to IS Ops and AMC respectively.

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 7.3.4 Investment Value Enquiries:
In case the customer wants to enquire the current value of their investment, branches to note down
their CNIC and AMC Account No. and forward the same to Investment Operations and the Business
Team. Alternatively, the Customer may directly contact the AMC Toll-free number.

7.3.5 Submission of Zakat Exemption Certificate:

Under the Zakat and Ushr Ordinance of 1980, units held by resident Pakistanis who are declared
Muslims are liable to pay 2.5% of the value of their investment as Zakat. Zakat is deducted on Mutual
Funds, unless the customer provides an Exemption Certificate (CZ-50) at least one month before the 1st
of Ramadan.
It is the responsibility of the Investment RAs as well as the Branch staff to follow up with customers and
ensure that their investment has a valid Exemption Certificate attached to it so that Zakat is not
deducted from their investment.
i. For Joint Account Holders, Zakat Exemption is necessary for both account holders.
ii. For Non-Muslims, Branch to receive instructions in writing from the customer that since they
are not eligible for Zakat, they may be exempted from the same.
iii. Change of Account Information Requests:
iv. In the event that the customer wishes to change any particulars of their Account Information
(address, nominee details, Bank Account Number etc.), they may do so by submitting the AMC
Special Request Form clearly mentioning the folio number assigned by the AMC.
v. The customer needs to provide a copy of their Statement of Account as evidence of his holding
vi. Investments RA to verify the customer’s details and ensure that all redemption transactions are
reported to Investment Operations AND MCB Asset Management Company latest by 4:30pm so
that Investment Operations will report these transactions to AMC on the same day by 6:30pm.
Upcountry branches to scan & send the complete set by 4:30pm and originals should be
dispatched by overnight courier, so that they are received next Business day.
vii. Upcountry branches to scan & send the complete set by 4:30pm and originals should be
dispatched by overnight courier, so that they are received by Investment Operations by next
Business day.
viii. AMC will execute the changes and issue a notification to the customer.

7.3.6 General Enquiries:

All General Enquires must be forwarded to either the Investments RAs, the Unit Head Sales – Investment
Services or the Investments Business Team. They will ensure that these queries are responded to within
24 hours.

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Chapter 8 GOVERNMENT SECURITIES (DSC/ SSC)

8.1 ABOUT DEFENCE SAVING CERTIFICATES (DSC)

The Government of Pakistan introduced Defence Savings Certificate scheme in the year 1966. The scheme has
specifically been designed to meet the future requirements of the depositors. This is 10 years' maturity scheme
with built in feature of automatic reinvestment after the maturity. These certificates are available in the
denominations of PKR 500, PKR 1000, PKR 5,000, PKR 10,000, PKR 50,000, PKR 100,000, PKR 500,000 and PKR
1,000,000/=.

8.1.1 Eligibility

These certificates can be purchased by a single adult, a minor, two adults in their joint names with the
options of payable to the holders jointly (Joint-A ) or payable to either (Joint-B). An adult can also purchase
these certificates on behalf of a single minor, two minors jointly or himself/herself and a minor jointly. In
addition to above individual investors, the following institutions are also allowed to invest in the scheme,
subject to their registration under the relevant law for the time being in force:

 Registered Charities (Non-profit bodies).

 Public Sector Enterprises excluding Banks.
 Private Educational & Health Institutions.
 Employees Old Age Benefit Institutions (EOBIs).
 Private Corporate Sector registered with the SECP excluding Banks.
 Non-Bank Financial Institutions (NBFIs) excluding Insurance Companies.

8.1.2 General Guidelines

The customer must have a local currency account, as these certificates cannot be issued from a foreign
currency account. These certificates are encashable at par any time after the date of purchase. However,
no profit is payable if encashment is made before completion of one year. The DSCs are registered
certificates; the name of the person is mentioned on the certificates and only that person can encash the
certificates. But the holder can nominate an individual as nominee of the certificates and these nominees
can operate the certificates on holder’s death (subject to the prevailing laws applicable in Pakistan at the
time of encashment). Therefore it is prudent to obtain Legal Opinion in such circumstances before
processing the transaction.

Guidelines are subject to change in Defence Saving Certificates rules 1996 and any other relevant rules
and regulations issued by the Government of Pakistan from time to time.
DSCs can only be encashed from the bank where these certificates were issued. The DSCs are issued to
account holders only, walk –in customers are to be avoided. However, DSCs can be issued against cash to
the account holders or against remittance received from abroad only if it is specified to issue DSCs against
that remittance. Bank’s approved KYC & AML policy should be strictly complied for walk-in customers; in
addition, verification of computerized CNIC should be done through NADRA VERYSIS.
DSC has no profit coupons and is a single certificate. On the reverse, the profit schedule is printed which
denotes the value of the certificate after completion of each year. In case of premature encashment profit
is entitled only for completed year for example, if a customer wants to encash the certificate between

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 eighteen months after the date of issuance, he will receive the profit of the first year only and no profit
would be given to him for the remaining eight months. Stamp of latest approved rates should be affixed on
reverse of the DSC.
At the time of encashment, 2.50% (of Zakat) to be collected at source as per rules. However, non –Muslim
and followers of different sects as described by the Zakat and Ushr Ordinance 1980 are exempted from
Zakat, but followers of certain sects e.g. Shias, Quadians etc. have to submit an indemnity on a Bond paper
attested by the Oath Commissioner for such exemptions.
The minimum amount of DSCs that a customer is to be issued is PKR. 500 and there is no maximum limit for
its issuance.

8.2 ISSUANCE OF DSC

8.2.1 Procedure for Issuance of DSC by Main Branch:

Printed forms are available from the government securities desk if a person wants to buy DSCs. These forms
are issued and approved by the State Bank of Pakistan.

The customer fills out the form giving the following details.
 Full name
 Address
 Computerized NIC number (photocopy attached)
 Account number (if being issued against his account)
 Required denomination.
 Total Amount
 Signature
 Nominee (if any)
 Zakat declaration stating if Zakat is to be deducted or not except the Non-Muslim customer.

If there are joint applicants, the other person also has to provide the same information as mentioned above.

The government securities officer takes out the required denomination and types the name, bank’s stamp,
and date of issue and registration number. In case the amount of issuance of DSC is more than Rupees one
million per application, then the certificates has to be signed by the Branch Manager of the Main Branch as
one of the two signatories.

The DSCs serial numbers are logged in the DSC issuing register along with the beneficiary’s name and date of
issuance.

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 In case of joint applicants there is a section on the DSCs mentioning whether the DSCs are to be operated
singly or jointly i.e. if singly, any of the two applicants can sign & operate the DSCs but if joint, both the
applicants have to sign the DSCs.

The DSCs are delivered to the customer who has to sign on the application as an acknowledgement of
receipt.
Original Zakat declaration shall be returned to the customer after retaining copy of the same and recording
with relevant register should be done.

8.2.2 Procedure for Issuance of DSC by Cross Branch:

If the customer comes to any other SYMBOLS branch for issuance of DSC then the receiving branch will
follow following procedure:

i. Customer will fill out printed application form for issuance of DSC/SSC along with a crossed cheque
of “Payees Account Only” in favor of MCB Bank Ltd duly attached with application form.
ii. The authorized branch person will verify customer’s account signature and forward the request
along with cross cheque to its respective Main Branch with branch covering letter.
iii. Upon receipt of application received from branch, the authorized officer will scrutinize application
form and will complete all formalities as mentioned above.
iv. It is important to follow banks approved KYC & AML policy for walk in customer before issuance of
DSC/SSC.

Transaction posting in SYMBOLS:

DSC can be issued in following three ways:

a) By Cash
b) Direct Debit (for self branch and other branch customer)
c) Clearing

a) By Cash:

If a walk-in customer (non account holder) comes for issuance of DSC via cash, then all prerequisite
formalities will be completed at branch end and customer will deposit the cash at counter. It is
important to comply with bank’s approved KYC & AML policy related with walk-in customers before
issuance of DSC. Following entries will be passed in SYMBOLS:

Go to EOC>>General Ledger>>Transaction>>Batch Maintenance. Pass following manual entry in GL:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 2010101010 CASH IN VAULT XXXX

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 PKR 1090801160 DSC SALE PAYABLE TO SBP XXXX

b) Direct Debit (for self branch or other branch customer)

 Go to EOC>>Deposit>>Transaction>>Value Transaction>>Withdrawal.
 Insert customer’s complete account number and press F8 to execute query.
 Debit customer’s account using transaction code DSDR with required amount and cheque
number and press F10.

System will pass following entry in GL:

CCY GL CODE NARRATION DEBIT CREDIT
PKR CUSTOMER’S ACCOUNT XXXX
PKR 1090801160 DSC SALE PAYABLE TO SBP XXXX

Note: No manual inter branch advice will be entertained to/from branches.

c) By Clearing

If a walk-in customer or self branch customer has given cheque of a bank other then MCB, then the
cheque will lodged in clearing and DSC will be issued after proceeds of the cheque have been realized. It
is important to comply with bank’s approved KYC & AML policy for walk in customers.

Go to EOC>>General Ledger>>Transaction>>Batch Maintenance. Following entry will be passed in GL:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 1150101140 CLEARING CONTROL ACCOUNT XXXX
PKR 1090801160 DSC SALE PAYABLE TO SBP XXXX

Note: Details of DSC sold against negotiable instruments should be clearly mentioned in daily MIS
prepared by branch.

8.2.3 Daily MIS for Sale of DSC:

Statement of Sale is prepared by the government securities desk for submission to the State Bank of
Pakistan at the end of each day and the same is to be jointly signed by the preparing officer and the officer
in charge.

Note: Total amount of sale shown in the Claim Statement must be equal to the Credit Balance appearing
in the DSC Sale Payable to SBP Account (1090801160) which also includes amount of cheques sent for
collection.

Main Branch will maintain and submit MIS of daily sale of DSC to State Bank of Pakistan for recovery of claim
against sale of DSC. The MIS for the day must always be submitted on the next working day. Following
information will be available on the MIS:

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 S.NO DATE NAME OF APPLICANT CERTIFICATE NO. REGISTRATION NO. DENOMINATION QTY TOTAL SALE

The daily MIS for sale of DSC will be concluded with following summary:

S.NO DENOMINATION QUANTITY VALUE CERTIFICATE NO.

Main branch will inform MCB Treasury for issuance of SBP cheque against total sale amount. The cheque will
be deposited in SBP along with Statement of Sale of DSC sale. Upon confirmation from SBP, following entry
will be passed in the books of Main Branch

Go to EOC>>General Ledger>>Transaction>>Batch Maintenance

CCY GL CODE NARRATION DEBIT CREDIT

PKR 1090801160 DSC SALE PAYABLE TO SBP XXXX
PKR 1110101010 HEAD OFFICE ACCOUNT XXXX

8.3 ENCASHMENT OF DSC

8.3.1 Procedure for Encashment of DSC by Main Branch:

i. The customer brings in the matured DSCs for encashment.

ii. The person at the government securities desk verifies that the Bank issues the DSCs. As per the SBP
the DSCs are encashed from the same Bank & branch from which Bank the DSCs are purchased.
iii. The beneficiary customer has to sign on the back of the DSCs in front of the person encashing the
same.
iv. If joint applicants, authorized signature as per mandate of application must be taken on the reverse.
v. The signatures are verified by the government securities desk after pulling-out the original
application form the record.
vi. The government securities desk provides the customer with the encashment form, which the
customer has to fill out or give application for encashment of the certificates.
vii. The certificates are marked “PAID”. “PAID” stamp must always be kept under dual control of BOM
and officer in charge of the desk.
viii. Zakat (if applicable) is to be collected at source as per rules
ix. It is upon customer’s discretion if he wants to take cash or wants his account (LCY) to be credited.
x. If the customer requests for cash payment against the certificates, the government securities desk
prepares a cash withdrawal slip. But this should always be avoided and credit to the account should
be encouraged at all times.
xi. The calculated amount is to be checked by an officer in charge of securities desk and the slip is to be
signed off by both i.e. the person who has prepared the slip and the officer who has verified it.
xii. The particulars of DSC should be verified from with “DSC Issuance Register” at the time of
encashment. The register should be updated for all encashment in order to avoid duplicate
payment.

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 Payment Options and transactions postings in SYMBOLS:

There are two payment options available for encashment of DSC:

a) Via Cash
b) Direct Credit to customer’s account (self or other branch customer)

a) Via Cash

Where cash is being paid out, a withdrawal slip is handed-over to the customer who presents the slip to
the cash counter where the teller should obtain a signature of the customer on the reverse and must
also ensure that two signatures (i.e. the processor’s and the officer) are made there in. After the cash
payment to customer, “CASH PAID” stamp will be affixed on cash withdrawal slip (cash payment
voucher) by authorized teller and following entry will be passed in GL:

Go to EOC>>General Ledger>>Transaction>>Batch Maintenance>>Batch Entry and pass following

manual entry:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 2090701020 DSC ENCASHMENT ACCOUNT XXXX
PKR 2010101010 CASH IN VAULT XXXX

b) Direct credit to customer’s account (self or cross branch)

If the proceeds of encashment of DSC are being made directly to customers’ account (self or cross) then
following option in SYMBOLS will be used for encashment of DSC:

 Go to EOC>>Deposit>>Transaction>>Value Transaction>>Deposit.
 Insert complete account number of beneficiary and press F8 to execute the query.
 Credit customer’s account using transaction code DSCR by inserting encashment amount and
date. If the transaction is greater than user limit then system will ask for supervisor’s override
after which transaction will be completed successfully.

Following auto accounting entries will be generated:

For self branch customer

CCY GL CODE NARRATION DEBIT CREDIT
PKR 2090701020 DSC ENCASHMENT ACCOUNT XXXX
PKR CUSTOMER’S ACCOUNT XXXX

For cross branch customer

CCY GL CODE NARRATION DEBIT CREDIT
PKR 2090701020 DSC ENCASHMENT ACCOUNT XXXX
PKR 1110101010 HEAD OFFICE ACCOUNT (respective branch) XXXX

CCY GL CODE NARRATION DEBIT CREDIT

PKR 1110101010 HEAD OFFICE ACCOUNT (respective main branch) XXXX
PKR CUSTOMER’S ACCOUNT XXXX

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 8.3.2 Procedure for encashment of DSC at cross branch:

 Receive application for encashment of DSC from customer and make sure that all required
information and documents are enclosed.
 Customer’s application will be sent to respective Main Branch with a covering letter by branch
mentioning details of customer (Name, valid CNIC etc.)
 Main branch upon receiving of application from branch will complete all formalities as mentioned
above.

8.3.3 Deduction of withholding tax:

Normally the rate applicable is mentioned on the back of the securities and the amount payable is
calculated. This rate is subject to change by State Bank without notice therefore it is prudent to keep an
update rate list issued by SBP at all times for ready reference and the same should be referred at the time of
encashment of certificates.

At present, the profit earned is exempt from withholding tax, if the total investment in the scheme by the
investor(s) does not exceed PKR 150,000/-. However, withholding tax @ 10% is deductible at source on
the profit(s) earned if the total investment exceeds PKR 150,000/- by the investor(s) at the time of
encashment of certificates. The Zakat is collected at source as per rules.

If the encashment of DSC is made via cash then tax will be recovered manually from customer and proceeds
will be recorded in the books of branch via manual GL batch. Incase if the encashment is done via direct
credit to customer’s account then following steps will be followed:

 Profit amount will be credited to customer’s account along with principal amount via transaction
code DSCR which will directly hit DSC Encashment Account (2090701020).
 10% withholding tax will be deducted from customer’s account using transaction code WHDS
(Withholding Tax on Encashment of DSC). Following auto entry will be passed:

CCY GL CODE NARRATION DEBIT CREDIT

PKR CUSTOMER’S ACCOUNT/Cash in vault XXXX
PKR 1090601030 WITHHOLDING TAX ON SUPPLIES & SERVICES XXXX

8.3.4 Daily MIS for encashment of DSC:

A statement of encashment is prepared by the government securities desk for submission to the State Bank
of Pakistan at the end of each day and the same is to be jointly signed by the preparing officer and the
officer in charge. Note: Total amount of encashment shown in the Claim Statement must be equal to the
Debit Balance appearing in the DSC Encashment Account (2090701020).

This statement provides following information:

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  Serial Number
 Register Number
 Name of Applicant
 Certificate Number
 Denomination
 Total certificates (quantity)
 Face Value of certificate
 Interest Amount
 Total Amount paid
 Commission (recoverable from SBP)
 Zakat deduction (if applicable)
 Date of issue (certificate)
 Date of payment (certificate)
 Withholding tax deducted

Main branch is required to submit this MIS on daily basis to SBP to recover the claim against encashment of
DSC. Upon confirmation from SBP, following entry will be passed in the books of Main Branch:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 1110101010 HEAD OFFICE ACCOUNT XXXX
PKR 2090701020 DSC ENCASHMENT ACCOUNT XXXX

8.3.5 Recording of Commission on issuance and encashment of DSC:

Main branch recovers commission from SBP against sale of DSC. The commission is charged on rates
prescribed by the government from time to time. The branch is responsible to submit claims preferably at
the end of each month to SBP and keep track of all sale for the recoverable commission for transactions
where claims have been submitted but not realized and where claims are yet to be submitted.

Following entry will be passed in the books of branch:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 1110101010 HEAD OFFICE ACCOUNT XXXX
PKR 3030401590 COMMISSION ON SSC/DSC XXXX

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8.4 ABOUT SPECIAL SAVING CERTIFICATES (SSC)

Keeping in view the periodic needs of depositors, this three years' maturity scheme was introduced in February,
1990. These certificates are available in the denomination of PKR 500, PKR 1000, PKR 5,000, PKR 10,000, PKR
50,000, PKR 100,000, PKR 500,000 and PKR 1,000,000/=. Profit is paid on the completion of each period of six
months.

8.4.1 Eligibility:

These certificates can be purchased by a single adult, a minor, two adults in their joint names with the
options of payable to the holders jointly (Joint-A ) or payable to either (Joint-B). An adult can also purchase
these certificates on behalf of a single minor, two minors jointly or himself/herself and a minor jointly. In
addition to the above individual investors, the following institutions can also invest in the scheme, subject
to their registration under the relevant law for the time being in force:

 Registered Charities (Non-profit bodies)

 Public Sector Enterprises excluding Banks
 Private Educational & Health Institutions
 Employees Old Age Benefit Institutions (EOBIs)
 Private Corporate Sector registered with the SECP excluding Banks
 Non-Bank Financial Institutions (NBFIs) excluding Insurance Companies

8.4.2 Mode of deposit

These certificates can be purchased by depositing cash at the issuing office or by presenting a cheque. The
certificate shall immediately be issued on receipt of cash. However, in case of deposit through cheque the
certificates shall be issued from the date of realization of the cheque after receipt of the clearance advice.

8.4.3 The investment limit

The minimum investment limit is PKR 500/-, however, there is no maximum limit of investment in the
scheme.

8.4.4 Encashment/ Redemption

These certificates are encashable at par any time after the date of purchase. However, no profit is payable if
the encashment is made before completion of six months.

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8.5 ISSUANCE OF SSC

8.5.1 Procedure for issuance of Special Saving Certificate (SSC)

i. Printed forms are available from the Government securities desk if a person wants to buy SSCs. These
forms are issued and approved by the State Bank of Pakistan.
ii. The customer fills out the form giving the following details:
 Full name
 Address
 National I.D card number (photocopy attached)
 Account number (if being issued against his account)
 Required denomination.
 Total Amount
 Signatures.
 Nominees (if any)
 Zakat declaration stating if Zakat is to be deducted or not except the Non Muslim customers.
 If there are joint applicants the other person also has to provide the same information as mentioned
above.

iii. Government securities desk checks the data provided by the applicant and passes entry in the system.
iv. The government securities desk takes out the required denomination and types the name, bank’s
stamp, date of issue and the registration number.
v. The SSCs serial numbers are logged in the SSCs issuing register along with the beneficiary’s name and
date of issuance.
vi. In case of joint applicants there is a section on the SSCs mentioning whether the SSCs are to be operated
JOINT “A” or JOINT “B”.
vii. If JOINT “B”, any of the two applicants can sign & operate the SSCs but in case of JOINT “A” both the
application have to sign the SSCS.
viii. The SSCs are delivered to the customer who has to sign on the application as an acknowledgement of
receipt.

8.5.2 Procedure for issuance of SSC in cross branch

If the customer comes to any other SYMBOLS branch for issuance of SSC then the receiving branch will
follow following procedure:

i. Customer will fill out printed application form for issuance of DSC/SSC along with a crossed cheque of
“Payees Account Only” in favor of MCB Bank Ltd duly attached with application form.
ii. The authorized branch person will verify customer’s account signature and forward the request along
with cross cheque to Main Branch with covering letter.
iii. Upon receipt of application received from branch, the authorized officer will scrutinize application form
and will complete all formalities as mentioned above.
iv. It is important to follow banks approved KYC & AML policy for walk in customer before issuance of
DSC/SSC.

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 8.5.3 Transaction postings in SYMBOLS

SSC can be issued in following three ways:

a) By cash
b) Direct debit (for self branch or cross branch customer)
c) By clearing

a) By Cash

If a walk-in customer comes for issuance of SSC via cash, then all prerequisite formalities will be completed
at branch end and customer will deposit the cash at counter. Following entries will be passed in SYMBOSL:

Go to EOC>>General Ledger>>Transaction>>Batch Maintenance. Pass following manual entry in GL:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 2010101010 CASH IN VAULT XXXX
PKR 1090801170 SSC SALE PAYABLE TO SBP XXXX

b) Direct Debit (for self branch or other branch customer)

Go to EOC>>Deposit>>Transaction>>Value Transaction>>Withdrawal. Insert customer’s complete account

number and press F8 to execute query. Debit customer’s account using transaction code SSDR with required
amount, cheque number and press F10. System will pass following entry in GL:

CCY GL CODE NARRATION DEBIT CREDIT

PKR CUSTOMER’S ACCOUNT XXXX
PKR 1090801170 SSC SALE PAYABLE TO SBP XXXX

c) By Clearing

If a walking customer or self branch customer has given cheque of a bank other then MCB, then the cheque
will lodged in clearing and SSC will be issued after proceeds of the cheque have been realized.

Go to EOC>>General Ledger>>Transaction>>Batch Maintenance>>Batch Entry. Following entry will be

passed in GL:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 1150101140 CLEARING CONTROL ACCOUNT XXXX
PKR 1090801170 SSC SALE PAYABLE TO SBP XXXX

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 8.5.4 Daily MIS preparation (Statement of Sale of SSC)

A statement of sale is prepared by the government securities desk for submission to State Bank of Pakistan
(SBP) at the end of each day and same is to be jointly signed by the preparing officer and the officer in
charge. Note: Total amount of sale shown in the SSC Sale Statement must be equal to the credit balance
appearing in the SSC Sale Payable to SBP Account (1090801170).

Following information will be available in the MIS submitted to SBP:

 Serial number
 Date
 Name of applicant
 Certificate number
 Denomination
 Quantity
 Total Amount
 Cheque Book Number
 Register Number

Main branch is required to submit the statement of sale of SSC on daily basis to SBP to submit the proceeds
against sale of SSC. Upon confirmation from SBP, following entry will be passed in the books of Main Branch:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 1090801170 SSC SALE PAYABLE TO SBP XXXX
PKR 1110101010 HEAD OFFICE ACCOUNT XXXX

8.6 ENCASHMENT OF SSC

8.6.1 Procedure for encashment of Special Saving Certificates (SSC)

i. Customer comes to the government securities desk and fills out an encashment form. The customer can
also present a detailed letter legibly stating his full name, certificate numbers, date of issue, certificates
amount, signature of authorized person’s and indicating what is being encashed.

ii. The government securities desk then checks the certificates, the customer’s signature is verified, and
the identity of the customer is also verified by reviewing the issuing documents including the customer’s
NIC photocopy filed by the Bank at the time of issuance.

iii. The front of the certificates is stamped “PAID”. “PAID” stamp is always kept under dual control of BOM
and officer in charge of the securities desk.

iv. The government securities desk calculates the certificate amount. The amount of encashment can be
given to the customer in cash or to be credited in customer’s account.

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 v. At present, the profit earned is exempt from withholding tax, if the total investment in the scheme by
the investor(s) does not exceed PKR 150,000/-. However, withholding tax @ 10% is deductible at source
on the profit(s) earned if the total investment exceeds PKR 150,000/- by the investor(s). Zakat is
collected at source as per rules.

vi. If Zakat is applicable on customer, then amount of Zakat should be deducted before making encashment
of SSC to customer and the liability should be recorded in proper Zakat Collection head in GL.

vii. If the customer requires cash then a withdrawal slip is prepared. The cash withdrawal slip is checked
with the encashment form/certificates and authorized by the government securities unit head.

viii. The customer presents the withdrawals slip to the cash teller for withdrawal of cash.

ix. The encashed amount can also be credited into the customer’s account on the customer’s request.

x. The government securities desk checks the date provided by the applicant and passes entry in the
system.

The particulars of SSC should be verified from “SSC Issuance Register” at the time of encashment. The
register should be updated for all encashment in order to avoid duplicate payment. In case of SSC under
lien, then the designated officer/ Incharge should verify that lien marking is properly discharged as per SOP.

8.6.2 Procedure for encashment of SSC in cross branch

It is always prudent that the customer should take the certificates himself/herself to the main branch counter
for encashment purpose. But if the customer has visited or requested for encashment of SSC from other MCB
branch in which he/she is maintaining his/her account, then the branch facing client will perform following
tasks on the risk and responsibility of the customer:

a) Receive application for encashment of SSC from customer and make sure that all required information
and documents are enclosed herewith.
b) Verify original book and serial number of the coupon(s).
c) Customer’s application will be sent to Main Branch with a covering letter by branch mentioning details
of customers.
d) Main branch upon receiving of application from branch will complete all formalities as mentioned
above.

8.6.3 Payment Options and transactions postings in SYMBOLS

There are two payment options available for encashment of SSC:

a) Via Cash
b) Direct Credit to customer’s account (self or other branch customer)

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 a) Via Cash

Where cash is being paid out, a withdrawal slip is handed-over to the customer who presents the slip to the
cash counter where the teller should obtain a signature of the customer on the reverse and must also
ensure that two signatures (i.e. the processor’s and processor and the officer) are there before passing the
following entry in the system and giving cash to the customer

Go to EOC>>General Ledger>>Transaction>>Batch Maintenance>>Batch Entry and pass following manual

entry:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 2090701030 SSC ENCASHMENT ACCOUNT XXXX
PKR 2010101010 CASH IN VAULT XXXX

b) Direct credit to customer’s account (self or cross branch)

If the proceeds of encashment of SSC are being made directly to customers’ account (self or cross) then
following option in SYMBOLS will be used for encashment of SSC:

 Go to EOC>>Deposit>>Transaction>>Value Transaction>>Deposit.
 Insert complete account number of beneficiary and press F8 to execute the query.
 Credit customer’s account using transaction code SSCR by inserting encashment amount and date.
 If the transaction is greater than user limit then system will ask for supervisor’s override after which
transaction will be completed successfully.

Following auto accounting entries will be generated:

For self branch customer

CCY GL CODE NARRATION DEBIT CREDIT
PKR 2090701030 SSC ENCASHMENT ACCOUNT XXXX
PKR CUSTOMER’S ACCOUNT XXXX

For cross branch customer

CCY GL CODE NARRATION DEBIT CREDIT
PKR 2090701030 SSC ENCASHMENT ACCOUNT XXXX
PKR 1110101010 HEAD OFFICE ACCOUNT XXXX

CCY GL CODE NARRATION DEBIT CREDIT

PKR 1110101010 HEAD OFFICE ACCOUNT XXXX
PKR CUSTOMER’S ACCOUNT XXXX

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 8.6.4 Deduction of withholding tax

Normally the rate applicable is mentioned on the back of the securities and the amount payable is
calculated. This rate is subject to change by State Bank without notice therefore it is prudent to keep an
update rate list issued by SBP at all times for ready reference and the same should be referred at the time of
encashment of certificates.

At present, 10% withholding tax is applicable if the face value of SSC exceeds PKR 150,000/- which will be
recovered from customer at the time of encashment of SSC.

If the encashment of SSC is made via cash then tax will be recovered manually from customer and proceeds
will be recorded in the books of branch via manual GL batch. Incase if the encashment is done via direct
credit to customer’s account then following steps will be followed:

 Profit amount will be credited to customer’s account along with principal amount via transaction code
SSCR which will directly hit SSC Encashment Account (2090701030) in GL.
 10% withholding tax will be deducted from customer’s account using transaction code WHSC
(Withholding Tax on Encashment of SSC).

Following entry will be auto generated:

CCY GL CODE NARRATION DEBIT CREDIT

PKR CUSTOMER’S ACCOUNT XXXX
PKR 1090601030 WITHHOLDING TAX ON SUPPLIES & SERVICES XXXX

8.6.5 Daily MIS preparation (Statement of SSC Encashment)

Main branch is required to submit the statement of encashment of SSC to State Bank of Pakistan (SBP)
only daily basis. The statement will be signed by preparing officer and counter signed by officer in charge.
Statement of encashment of SSC will cover following information:

 Register Number
 Name of applicant
 Certificate number
 Denomination
 Quantity
 Date of issue
 Date of payment
 Total amount paid
 Commission recovered
 Zakat registration number

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 This statement is to be submitted to SBP for recovery of claim from SBP against encashment of SSC. Upon
confirmation, branch will pass following entry in GL:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 1110101010 HEAD OFFICE ACCOUNT XXXX
PKR 2090701030 SSC ENCASHMENT ACCOUNT XXXX

8.6.6 Recording Commission on issuance and encashment of SSC

Main branch recovers commission from SBP against sale and encashment of SSC. The commission is charged
on following rates at every quarter end:

 0.5% on issuance of SSC (on face value)

 0.25% on encashment of SSC (on face value)

Following entry is passed in the books of branch:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 1110101010 HEAD OFFICE ACCOUNT XXXX
PKR 3030401590 COMMISSION ON SSC/DSC XXXX

8.7 ENCASHMENT OF SSC COUPONS

Profit paid on coupons

Profit on SSCs are payable every six months. After the completion of six months from the date of issuance the
first coupon attached to the certificate is due for payment. E.g. if a customer plans to encash a certificate eight
months after the date of issue, he can receive the profit for only six months and nothing for the next two
months.

Interest Rate

Interest rates are subject to change by the State Bank of Pakistan. Normally the rate applicable is mentioned on
the coupons and the amount payable is calculated. This rate is subject to change by State Bank without notice
therefore it is prudent to keep an update rate list issued by SBP at all times for ready reference and the same
should be referred at the time of encashment of certificates. Add the clause of re-investment if encashment is
not done.

8.7.1 Procedure for encashment of SSC coupon

Encashment of SSC coupon involves following:

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 i. Customer comes to the government securities desk for profit coupons to be encashed.
ii. The government securities desk has to verify that these SSCs were issued from the Bank.
iii. The government securities desk hands over an encashment form to the customer.
iv. The customer fills the form.
v. Government securities desk checks the details provided by the customer and the profit coupons are
verified from original application form, which was filled out by the customer at the time of issuance. The
customer’s signatures are also verified from the same form.
vi. Government securities desk then prepares a withdrawal slip in case the customer requires cash. In case
the profit amount needs to be credited to the account then this is not required.
vii. The withdrawal slip is to be signed jointly by two authorized officers in charge, after verifying all the
necessary calculations.
viii. The withdrawal slip is handed over to the cash counter and the teller passes the encashment entry in
system.
ix. The government securities desk credits the customer’s if the customer instructs to credit to his account
against the profit coupons.
x. The person who handles government securities desk, which is verified by an officer, prepares
statements of encashment of profit coupons.
xi. The profit coupons are pasted on butter paper and are marked “PAID” along with the signature of an
officer.

8.7.2 Procedure for encashment of SSC coupons in cross branch

If the customer has visited or requested for encashment of SSC coupons from other MCB branch in which
he/she is maintaining his/her account, then the branch facing client will only perform following tasks:

i. Receive application for encashment of SSC from customer and make sure that all required information
and documents are enclosed herewith.
ii. Customer’s application will be sent to Main Branch with a covering letter by branch mentioning details
of customers via registered mail/currier service.
iii. Incase documents are lost in transit then branch (sending documents) should inform Main branch
immediately to mark instruments (SSC coupons) lost in their record (registers) and inform the customer
accordingly.
iv. Main branch upon receiving of application from branch will complete all formalities as mentioned
above.

8.7.3 SSC Coupon Payment Options and transactions postings in SYMBOLS

There are two payment options available for encashment of SSC coupons:

a) Via Cash
b) Direct Credit to customer’s account (self or other branch customer)

a) Via Cash

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 Where cash is being paid out, a withdrawal slip is handed-over to the customer who presents the slip to the
cash counter where the teller should obtain a signature of the customer on the reverse and must also
ensure that cash withdrawal slip is signed by two authorized officers before passing the following entry in
the system and giving cash to the customer

Go to EOC>>General Ledger>>Transaction>>Batch Maintenance>>Batch Entry and pass following manual

entry:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 2090701080 SSC COUPON ENCASHMENT A/C XXXX
PKR 2010101010 CASH IN VAULT XXXX

b) Direct credit to customer’s account (self or cross branch)

If the proceeds of encashment of SSC coupon are being made directly to customers’ account (self or cross)
then following option in SYMBOLS will be used for encashment of SSC coupon:

i. Go to EOC>>Deposit>>Transaction>>Value Transaction>>Deposit.
ii. Insert complete account number of beneficiary and press F8 to execute the query.
iii. Credit customer’s account using transaction code SECR by inserting encashment amount and date.
iv. If the transaction is greater than user limit then system will ask for supervisor’s override after which
transaction will be completed successfully.

Following auto accounting entries will be generated:

For self branch customer

CCY GL CODE NARRATION DEBIT CREDIT
PKR 2090701080 SSC COUPON ENCASHMENT A/C XXXX
PKR CUSTOMER’S ACCOUNT XXXX

For cross branch customer

CCY GL CODE NARRATION DEBIT CREDIT
PKR 2090701080 SSC COUPON ENCASHMENT A/C XXXX
PKR 1110101010 HEAD OFFICE ACCOUNT XXXX

CCY GL CODE NARRATION DEBIT CREDIT

PKR 1110101010 HEAD OFFICE ACCOUNT XXXX
PKR CUSTOMER’S ACCOUNT XXXX

8.7.4 Deduction of withholding tax

Normally the rate applicable is mentioned on the back of the securities and the amount payable is
calculated. This rate is subject to change by State Bank without notice therefore it is prudent to keep an
update rate list issued by SBP at all times for ready reference and the same should be referred at the time of
encashment of certificates.

At present, 10% withholding tax is applicable if the face value of SSC exceeds PKR 150,000/- which will be
recovered from customer at the time of encashment of SSC coupon.

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 If the encashment of SSC coupons is made via cash then tax will be recovered manually from customer and
proceeds will be recorded in the books of branch via manual GL batch. Incase if the encashment is done via
direct credit to customer’s account then following steps will be followed:

 Profit amount will be credited to customer’s account along with principal amount via transaction code
SSCR which will directly hit SSC Encashment Account (2090701030).
 10% withholding tax will be deducted from customer’s account using transaction code WHSC
(Withholding Tax on Encashment of SSC).

Following auto entry will be generated:

CCY GL CODE NARRATION DEBIT CREDIT
PKR CUSTOMER’S ACCOUNT XXXX
PKR 1090601030 WITHHOLDING TAX ON SUPPLIES & SERVICES XXXX

8.7.5 Daily MIS Preparation

Main branch will prepare statement of encashment of SSC coupon which will be submitted to State Bank of
Pakistan for claim against coupon encashment. This statement (MIS) will be jointly singed by preparing
officer and officer in charge. The MIS will provide following information:

 Name of applicant (certificate holder)

 Cheque number
 Serial Number of certificate
 Denomination
 Certificate number
 Number of coupons
 Total value of certificate
 Date of issue
 Date of encashment
 Rate of interest
 Profit amount
 Total profit paid
 Withholding tax deducted
 Register number

After the claim from SBP is reimbursed, following entry will be passed in the books of Main Branch:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 1110101010 HEAD OFFICE ACCOUNT XXXX
PKR 2090701080 SSC COUPON ENCASHMENT A/C XXXX

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8.8 DSC & SSC STOCK RECEIVING PROCEDURE

All stock will be ordered by authorized Main Branches only. They will follow up with SBP/NSC for issuance of
stock and will remain record keeping related to stock under dual control.
The following procedure is carried out by Main Branch:
i. Letter has to be made, addressed to the National Saving Centre Islamabad, requesting them for a new
stock with complete unused stock and sale statement for the last three months.
ii. The National Saving Centre verifies the stock and the sale statement.
iii. If the National Saving Centre verifies the stock & sale statement correct they write a letter to SBP as a
confirmation and the authority to issue a new stock.
iv. State bank of Pakistan then informs the ordering bank the date the Bank can obtain a fresh stock from
the SBP. After clearance of stock letter the SBP then stamps on the letter with the approval of issuance
of securities.
v. The bank collects the securities from SBP and hands it over to bank’s approved security providing
vendor. (The shipment from & to Phoenix remains the same.)
vi. After stock has been received from NSC by Main branch, the same will be placed in safe locker under
custody of two authorized officers and entry of stock receiving will be made in SSC Stock Register.

8.9 PROCEDURE FOR RE-ISSUANCE OF LOST SECURITIES

If any certificate is misplaced by the customers the general guidelines that the bank should follow are as follows:

i. Customer must inform the issuing Bank about the missing securities.
ii. Customer has to write a letter to the bank giving details of the type of security missing, the date of
issuance, amount, value and the serial number.
iii. The bank has to mark stop payment on the missing numbers and value of the certificate/coupons that
was issued by the bank of the dealer.
iv. The issuing bank or dealer has to immediately inform the State Bank of Pakistan for stop payment on the
missing securities with the customer letter.
v. Customer has to give a written indemnity on a bond paper attested from the notary public officer. For
the customer’s facility, the bank can fill out the same.
vi. The customer gives the indemnity bond paper to the issuing authority with the complete details along
with his letter of stop payment.
vii. The bank or dealer from which these securities were issued has to surrender the documents and the
letter to the State Bank of Pakistan.
viii. After submission of indemnity and letter of stop payment, State Bank of Pakistan then allows the bank
to reissue the lost securities to the customer.
ix. If the missing securities have been found by the customer after being issued new ones, the customer
must inform the issuing authority (branch) immediately. Main branch will surrender the found securities
to State Bank of Pakistan through a covering letter.
x. State Bank of Pakistan then cancels the missing securities by marking them CANCELLED

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8.10 PROCEDURE FOR MAIN BRANCHES NOT DEALING IN HO A/C FOR DSC/SSC CLAIM
SETTLEMENT

There are some main branches of MCB who are not dealing in HO account for settlement of claims related to
DSC/SSC. They are using following two GL heads in their books for the same:

a) Current Account With SBP – LCY (2020101010)

b) Current Account with NBP – LCY (2020101020)

Current Account with NBP – LCY (2020101020) is used where no branch of SBP is available and NBP is
functioning on behalf of SBP.

Branches who are maintaining above mentioned GL heads in their books use State Bank Cheques for their
transaction with SBP. This cheque book is issued by SBP for that particular Main Branch and is kept under dual
control of Branch Operations Manager and an authorized officer who will be authorized to sign these cheques.

As far as transactions postings are concerned all entries related to sale and encashment of DSC/SSC will remain
the same as mentioned above. However following accounting entries will be used submission of encashment
claims and sale liability:

Entries for transfer of DSC sale amount to SBP

The concerned branch will issue SBP cheque and same will be submitted to SBP along with MIS of daily sale of
DSC. This cheque will be signed by two authorized officers. Following entry will be passed in the books of
branch:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 1090801160 DSC SALE PAYABLE TO SBP XXXX
CURRENT A/C WITH SBP - LCY / CURRENT ACCOUNT
PKR 2020101010 / 2020201010 XXXX
WITH NBP - LCY

Entries for encashment claim of DSC from SBP

CCY GL CODE NARRATION DEBIT CREDIT

CURRENT A/C WITH SBP - LCY / CURRENT ACCOUNT
PKR 2020101010 / 2020201010 XXXX
WITH NBP - LCY
PKR 2090701020 DSC ENCASHMENT ACCOUNT XXXX

Entries for transfer of SSC sale amount to SBP

The concerned branch will issue SBP cheque and the same will be submitted to SBP along with MIS of daily sale
of SSC. This cheque will be signed by two authorized officers. Following entry will be passed in the books of
branch:

CCY GL CODE NARRATION DEBIT CREDIT

PKR 1090801170 SSC SALE PAYABLE TO SBP XXXX
CURRENT A/C WITH SBP - LCY / CURRENT ACCOUNT
PKR 2020101010 / 2020201010 XXXX
WITH NBP - LCY

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Entries for encashment of SSC claim from SBP

CCY GL CODE NARRATION DEBIT CREDIT

CURRENT A/C WITH SBP - LCY / CURRENT ACCOUNT
PKR 2020101010 / 2020201010 XXXX
WITH NBP - LCY
PKR 2090701030 SSC ENCASHMENT ACCOUNT XXXX

Entries for encashment of SSC coupons claim from SBP

CCY GL CODE NARRATION DEBIT CREDIT

CURRENT A/C WITH SBP - LCY / CURRENT ACCOUNT
PKR 2020101010 / 2020201010 XXXX
WITH NBP - LCY
PKR 2090701080 SSC COUPON ENCASHMENT ACCOUNT XXXX

8.11 GENERAL CONTROLS

a) Stock of DSC/SSC should be under dual control at all times. Stock register for issuance /receipt should
be maintained. Checking of physical stock should be done on monthly basis, in addition to this, ROM
during his/her visit to branch should also check the stock physically and the comments for same should
be mentioned in branch Visitor’s Book.

b) A reconciliation statement of net balance receivable/payable to/from SBP as per bank and as per SBP
should be prepared on monthly basis both for SSC and DSC separately.

c) Claim received from SBP should be marked in DSC/SSC issuance register.

d) Branches authorized for issuance of SSC/DSC should refer SBP circular number F.E No. 20 dated
16.12.2002 for issuance of DSC/SSC against home remittance.

8.12 MIS PREPARATION AT BRANCH END

Following statements shall be prepared by branch on daily basis for onward submission to SBP as well as for
their record:
a) Statement of Sale of Defence Saving Certificate –DSC
b) Statement of Sale of Special Saving Certificate – SSC
c) Statement of Encashment of Defence Saving Certificate
d) Statement of Encashment of Special Saving Certificate
e) Statement of Encashment of Special Saving Certificate Coupons

Following statements will only be prepared for branch internal use and not be submitted to SBP:
a) Statement of DSC encashment claim from SBP
b) Statement of SSC encashment claim from SBP

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Chapter 9 OPERATIONAL RISK AND CONTROLS
Sr. Activity Potential Risk Control
1. Cash Transfer from  Transit Risk of Cash Vulnerability.  Adequate transit coverage (Insurance) and strict monitoring of cash carrying limits.
Cash House to Branch  Misappropriation of Cash.  Maintain Cash Book to record Physical Cash in Hand of the branch.
& Vice Versa  Cash counting errors.  Daily Balancing of Cash in Hand with Cash in Vault (GL Head)
 Verify IBS/AS number and Test on Credit/ Debit Advice.
 Dual control on Cash Vault
 Review Cash in Vault system generated report.
1a Cash Deposit  Incorrect transaction capture, execution and  Dual control on transaction execution process by defining users limits.
settlement.  Restraint setup option available to mark customer’s instructions
 Incorrect Credit in the customer’s account,  Daily Balancing of Cash in Hand with Cash in Vault (GL Head)
Accounting and Taxation errors.  Review daily system generated Transaction Alert, High Value Transactions and Over the
 Inadequate record keeping & review of Counter Cash Transaction Reports
books.  Restricting incorrect use of options (LOV available).
 Unavailability of Vault Keys.  Use of Standard Forms and applications
 Violation of Customer’s instructions.  Review System generated Reports (RB11) with Source Documents.
 Maintenance of Key Register
 Sign-off the instruments as per the assigned limits.
1b Cash Withdrawal  Incorrect transaction capture, execution and  Dual control over limit assigned to teller by the system.
settlement  Restraint setup option available to mark customer’s instructions
 Incorrect Debit in the customer’s account,  Cheque inventory is monitored by the system restricting use of fake instruments.
Accounting and Taxation errors  Auto recovery of Tax Deduction on Cash Withdrawals above PKR 25000.
 Inadequate record keeping  Review System generated Reports (RB11) with Source Documents.
 Outstanding balances in Control Accounts  Review daily system generated Transaction Alert, High Value Transactions and Over the
 Unavailability of Vault Keys Counter Cash Transaction Reports
 Violation of Customer’s instructions  Restricting incorrect use of options (LOV available).
 Sign-off the paid instruments as per the assigned limits.
1c Clearing  Payment against unclear funds.  Float marking on unclear funds.
 Payment of Fake cheque/ instrument  Cheque inventory is monitored by the system restricting use of fake instruments.
 Inadequate record.  IBS/AS number on PO/DD
 Outstanding balances in Clearing Control  System generated PO/DD and control numbers.
Account.  Centralized processing of inward clearing providing segregation of processing.
 Review system generated reports (RB11 & Clearing Control) with the source document.

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 Sr. Activity Potential Risk Control
2. Funds Transfer  Unauthorized Transfer of Funds  Dual control on Test Key
 Insufficient record keeping  Auto Commission and postal charges recovery
 Selection of incorrect transaction type  Customer Signature verification on Cheque/Application.
 Lack of training/ information  Sign-off applications as per assigned limits.
 Money Laundering  Review system generated EOD Reports with Source Documents.
 Unauthorized issuance of PO/DD  Dual control on security stationery.
 Misappropriation of funds by transfer.  Daily Balancing and monitoring of Fund Transfer Control Account.
 Review Cheque Deals Report (RB87)
 Maintain proper record of the applications/vouchers.
 List of Values available in system (with description) for correct selection of transaction
type.
 Inter Branch and Authorized Signatory numbers
 Centralized issuance of PO/DD series.
 KYC Implementation, obtain CNIC.
 Customer’s acknowledgement.
3. Cheque books  Misuse of Customer’s Cheque books  Unused/Blank cheque books store in a secure/locked area under Dual Control
Maintenance  Unauthorized Withdrawal  Review and discard six months old cheque books and maintain proper record of the
same.
 Signature Verification
 Delivered Cheque book series are attached with the account.
 Proper record should be maintained (Delivered and uncollected)
 Auto recovery of cheque book issuance charges and Excise Duty (If any)
 Customer/Authorized person’s acknowledgement
4. ATM Maintenance  Fraudulent transactions via ATM  Discard 03 months uncollected MCB ATM/Smart Cards and PIN Mailers
 Loss of Client assets  Two independent officers handle ATM and PIN mailers separately.
 Delivery of MCB ATM/Smart Card to the  Proper record should be maintained (Delivered and uncollected)
unauthorized individual  Auto recovery of ATM issuance charges.
 Signature verification
 Captured Cards record keeping and delivery/dispatch to concerned branches/ banks.
 Customer’s acknowledgement.
5. Issuance of Bank  Unauthorized access to customer’s  Verify signature on applications for duplicate account statement.
Statement information  Hold mail facility available.
 Mark restraint for undelivered statements or for holding mail.

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 Sr. Activity Potential Risk Control
 Attach correct Contact Type with multiple accounts
 Use of pre-printed format with restricted access in the branch.
6. Issuance of RTCs and  Misuse of the instruments  Dual Control on instruments
Prize Bonds  Physical balancing of instruments with the GL balance.
7. Term Deposit  Money Laundering and fictitious  KYC implementation/ TDR facility is only for the existing account holders.
transactions  System defined parameters restricting incorrect input.
 Incorrect booking with wrong tenor or rate.  Use of Standard Forms
 Auto profit accruals & profit capitalization.
 Signature verification
8. Account  Money Laundering and fictitious  Centralized backend processing & monitoring of input by branch.
Maintenance transactions  Implementation of KYC.
 Fictitious account opening  Obtain required documents.
 Inadequate information/documents  Clear Operational Instructions on Specimen Signature Card.
 Lack of information  Cross check applications with inserted information.
 Incorrect data input  Maintain record of system generated account information.
 Timely circulation of regulator’s instructions.
 Review Account Open List (RBA 11, 12,)13 & 14)
 Marking of service charges restraint.
 Cross checking of system generated account opening details list with Account opening
application.
9. Job Description and  Inadequate segregation of Duties:  Job descriptions are clearly delineated and system access is provided to the users as per
responsibilities their JD’s and Responsibilities.
 No single person initiate approve, record, reconcile balances, & review reports.
10. Maintenance of  Fraud in Collection Accounts  Balance should be zero at each end of day.
Collection Accounts  Daily independent monitoring & review.
11. Locker Maintenance  Unauthorized access to the lockers  Signature verification
 Record keeping  Customer account relationship mandatory prior to lockers facility.
 Recovery of Charges/Rent on due dates.
 Binding of locker applications.
 Keep SS Cards in an organized way with clear Operational instructions.
12. ATM Cash  Misuse of excess cash in ATM (Not  Preparation of ATM Fact on daily basis.
Verification and dispensed to customer)  Verification of GLA 29 with ATM Scroll.
Balancing  Verification of Physical Cash with ATM Cash Controller Report

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 Sr. Activity Potential Risk Control
 Daily marking of Cash Position in Proactive Claim Settlement Module in order to settle
suspect transactions.
13. Off line Transactions  Incorrect transaction capture, execution and  Cash withdrawal restricted to a maximum of PKR 50,000.
on BT settlement.  Pop-up message appear for restraint.
 Review Offline cheque exception report. (RBA84)
14. Hardware and  Power Failure  Adequate supply of UPS
Software  Communication failure  Back-up communication system
Maintenance  System Break down  Stand-by generators
 Computer hacking or virus  Disaster Recovery Plan Document.
 Unavailability of data
15. Branch Contingency  Continuity of Business Impairment. Contact number of Emergency services
Arrangement Evacuation plan
Branch Map
Review Daily Security Checklist
Review monthly “Fire Prevention Checklist”
C.C.T.V is installed in the branch & it is functional.
Keep Branch Call Tree
15. Offsite location &  Inadequate Record Keeping Keep all security stationery and safe custody items in fire proof cabinets under dual
Back up control
 Proper binding of the vouchers.
 Proper and update filing

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Chapter 10 HIGH PRIORITY DOCUMENTS & RETENTION PERIOD
Location/ Floor/
Sr. Items Description Priority Risk Retention Period Coverage/ Backup
Room/ Cabinet
ACCOUNT OPENING
Loss of Customer's information - Contact Strong Room/ Fire
1 Account Opening Forms High Permanent Archiving/ Scanning of Forms
details Proof Cabinets
SBP Penalties/ Fines/ Strong Room/ Fire
2 Client Profile form (KYC) High Permanent Archiving/ Scanning of Forms
Compliance failure Proof Cabinets
Customer Specimen Strong Room/ Fire System
3 High Loss of Customer's signature Permanent
Signature Cards Proof Cabinets (BT & EOC)
Loss of Customer's signature Customer Signature Specimen
4 Scanned Signature Backup High Fire Proof Cabinets Permanent
Hardware/ Software failure Cards
 Incorrect/ Untimely execution of
standing instructions of the customer System
5 Standing Instructions High Fire Proof Cabinets Permanent
 Non execution of instructions (BT & EOC)
 Breach of mandate
System Report available on
6 Account Closed File Medium Fire Proof Cabinets 5 years after Closure
EOC for Closed Accounts
2 Years after maturity /
7 Term Deposit Application Medium Inadequate record maintenance Fire Proof Cabinets Archiving/ Scanning of Forms
Premature encashment
Encashment of deposit to unauthorized
8 Term Deposit Receipt Medium person. Attempt of fraudulent Fire Proof Cabinets 15 Years System (BT/EOC)
transaction

Location/ Floor/
Sr. Items Description Priority Risk Retention Period Coverage/ Backup
Room/ Cabinet
CHEQUE BOOK MAINTENANCE
1.MICR encoding
Vault/ Fire Proof 2.Cheque series is inserted in
Initiation of Fraudulent Transaction
1 Checkbooks High Cabinets in Strong 06 months system
Unauthorized Withdrawal
Room 3.Discard undelivered cheque
books over 06 months
Bind with Daily
Cheque book Requisition  Misuse of undelivered Cheque-books
2 Medium Voucher & keep them 10 Years
Slip  Issuance to unauthorized person in Fire Proof Cabinets
3 Cheque book Issuance Medium To loss the record of Customer's Fire Proof Cabinets 03 Years Cheque book Registration

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 Reports (Retrieve from CBR Acknowledgment System
System)

Location/ Floor/
Sr. Items Description Priority Risk Retention Period Coverage/ Backup
Room/ Cabinet
ATM MAINTENANCE
Card and PIN Mailers should be
 Fraudulent transactions via ATM
1 SMART CARDS High Vault (In Dual Control) 3 months equal in number and must be
 Issuance to unauthorized person in dual control
 Initiation of Fraudulent Transaction Card Activation is mandatory
2 ATM PIN MAILERS High Vault (In Dual Control) 3 months
 Unauthorized Withdrawal requirement
ATM Issuance Report ATM Registration System &
To lose the record of Customer's
3 (Retrieve from ATM Medium Fire Proof Cabinets 1 Year Centralized Card Production
Acknowledgment
System) Unit
ATM Registration System &
Loss of Customer's request for ATM /
4 ATM Issuance Form High Fire Proof Cabinets 8 Years Centralized Card Production
Debit Card
Unit
 Hindrance in settlement of ATM Claims
5 ATM Scroll Registers High & Cash balancing process Fire Proof Cabinets 10 Years ITD- ATM Department
 Loss of customer transaction details
6 ATM Claim Forms High Delay in settlement of ATM Claims Fire Proof Cabinets 5 Years N/A
7 ATM Fact Sheet High unbalancing of Cash in Vault & ATM 10 Years N/A
Insufficient record of Captured Cards
received and delivered/dispatched to
8 ATM Capture Cards Register Medium Fire Proof Cabinets 3 years N/A
customers &/or concerned Banks/
branches

Location/ Floor/
Sr. Items Description Priority Risk Retention Period Coverage/ Backup
Room/ Cabinet
CASH MANAGEMENT
 Insurance coverage available
Cash, Foreign Currency,  Transit Risk of Cash Vulnerability
1 High VAULT -  Transfer excess cash to Cash
Prize Bonds  Misappropriation of Cash
House
Vault / Fire Proof
2 Prize Bonds Register High  Inadequate record keeping Cabinets in Strong 10 Years N/A
Room

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 Vault / Fire Proof
Prize Bonds Shut Period Inadequate record keeping & Execution
3 High Cabinets in Strong 08 Years N/A
Register of transactions during Shut Period
Room
 Misappropriation of Cash Vault / Fire Proof
System/ Relevant Credit
4 Daily Cash Book High  Inappropriate recording of Cash in the Cabinets in Strong 05 Years
Advices/ Deposit slips
bank books Room

Location/ Floor/
Sr. Items Description Priority Risk Retention Period Coverage/ Backup
Room/ Cabinet
FUNDS TRANSFER
 Insufficient record of financial
System has all the record of the
1 Funds Transfer Application High transactions Fire Proof Cabinets 10 Years
transactions
 Misappropriation of funds by transfer.
Uncollected PO/DD from
2 High Initiation of fraudulent transaction Vault 10 years Funds Transfer Application
Branch by the customers
 Pre printed Stationery
Control number
Vault/ Fire Proof
3
Blank Stationery of Pay
High Initiation of Fraudulent Transaction Cabinets in Strong -  Cheque inventory is
Orders & Demand Drafts monitored by the system
Room
restricting use of fake
instruments
Vault/ Fire Proof
4 Inter Branch Test Key High Unauthorized execution of transactions Cabinets in Strong Permanent Dual control on Test Key
Room
Telegraphic Transfer
5 High Misuse of Blank Stationery Fire Proof Cabinets N/A
Advices/Stationery
Telegraphic Issuance  Insufficient record of financial
6 Register (Outward TT Medium transactions Fire Proof Cabinets 10 Years
Register)  Misappropriation of funds
TT Payable Register (Inward Insufficient record of financial
7 Medium Fire Proof Cabinets 10 Years
TT Register) transactions
 Incorrect/insufficient record
Collection Register (Inward
8
& Outward)
Medium  Delay in transfer of Funds to customer's Fire Proof Cabinets 10 Years
account

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 Location/ Floor/
Sr. Items Description Priority Risk Retention Period Coverage/ Backup
Room/ Cabinet
LOCKER MAINTENANCE
Loss of customer's information/ contact
1 Locker Application High Fire Proof Cabinets Permanent
details
Vault/ Fire Proof
Signature Specimen Cards
2 High Loss of customer's signature Cabinets in Strong Permanent
of customers
Room
3 Locker Issuance Register High Customer Data Loss Fire Proof Cabinets Permanent
Safe Deposits Lockers -
4 High Unauthorized usage/ access to lockers Fire Proof Cabinets Permanent
Customer Visit Register

Location/ Floor/
Sr. Items Description Priority Risk Retention Period Coverage/ Backup
Room/ Cabinet
MISCELLANEOUS DOCUMENTS
1 Stop Payment File Medium 05 Years
2 Key Register Medium Non-identification of Responsibility Permanent
 Loss of data (Counter Activities)
3 Video Cassettes Medium  Failure to cope up with emergency Vault 30 Days Centralized Location
situations
SBP Website or Centralized
4 SBP Circulars File Low Loss of procedural Instructions Cabinets Permanent
Location
Insufficient/ Incomplete procedural
5 POK Circulars File Low Cabinets Permanent Intranet/ Centralized Location
instructions
6 Procedural Manuals Low Cabinets Permanent
7 Power of Attorney Low Misuse of powers Fire Proof Cabinets Permanent
Security Documents, Vault/ Fire Proof
 Loss of Client's Assets documents
8 Collaterals, Charge forms, High Cabinets in Strong Permanent
Client's Credit Limit file  Loss legal rights Room
Unused Standard/
9 Miscellaneous Forms/ Low Misuse of Blank forms/ stationery Fire Proof Cabinets
Standard Books

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Chapter 11 BRANCH MANDATORY NOTICES/ WALLBOARDS/ MATERIAL
S. No Category Item
1 License Branch License/ Temporary Permission
2 License Forex license [AD Letter]. (if applicable)
Details of unclaimed deposits of PKR 5000/- and above on notice board for the year. Along
3 Notice with instructions "complete list of unclaimed deposit available with the officer of the
branch"
4 Notice Latest list of Prize Bonds Draw
5 Notice Daily FCY rate sheet (if applicable)
6 Notice Lending/ Deposit rates
7 Notice The list of accounts closed on the basis of Zero Balance
8 Notice List of Gazetted Holiday
Information regarding lodgment of Complaints directly to State Bank concerning payment
9 Notice
of utility bills at branch
10 Notice Schedule of Charges
11 Notice/ Wall Board "All currency notes are acceptable"
12 Notice/ Wall Board "Electric, Gas & Telephone Bills are accepted here"
Timing of Collection of Utility Bills (Urdu & English)to be displayed outside the branch
13 Notice/ Wall Board
premises
14 Notice/ Wall Board Emergency contact numbers
15 Notice/ Wall Board "Sale/Purchase of Prize Bonds is done here"
"Lockers are available here". Also mention Insurance Limits of different locker sizes. (if
16 Notice/ Wall Board
applicable)
17 Notice/ Wall Board "BBA accounts are opened here"
18 Notice/ Wall Board "Foreign currency accounts are opened here" (if applicable)
"Soiled & Defective notes are acceptable here".
19 Notice/ Wall Board
Also disclose contact number of CM SBP BSC
20 Notice/ Wall Board "Use of Mobile phones and Arms are prohibited"
"Agriculture Loans are available here" to be written in respective area local language
21 Notice/ Wall Board
(where applicable)
22 Wall Board Bank timings outside the branch premises
23 Wallboard New Currency Notes Features board
24 Material Complaint Box at a prominent location
25 Material Utility Bills Drop Box at a prominent location
26 Material Smoke detectors (activated) in the Branch/ ATM kiosk
27 Material Fire Extinguisher along with expiry date
Leaflet (both in English and Urdu) indicating the procedure for the lodgment/resolution of
28 Material
complaints
29 Material Complaint Forms
30 Material Whistle-blower/enforcement wing Form
31 Material Banking Mohtasib complaint lodgment procedure board
32 Material Availability of Drinking Water

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Chapter 12 SBP GUIDELINES FOR SUB-BRANCHES

Following is an extract of SBP circular # 15 of 2007 on Branch Licensing Policy dated 12-Oct-2007 spelling out
guidelines for Sub-Branches:

Banks can open sub-branches, which will allow them another option for enhancing their outreach to
underserved areas and population. The sub-branches will be a conduit of a branch to which it is affiliated. Banks
will be required to apply to SBP for opening of sub-branches approved under ABEP on the prescribed format
(Annexure- II & II- A). Banks will not be allowed to convert any of their existing branches into sub branches.
However, they can convert a booth into a sub-branch & a sub-branch into a full-fledged branch only after
approval under their ABEP and in terms of BLP.

Banks will be allowed to open sub-branches subject to criteria mentioned at section-2.2 above, centralization of
processing of all the transactions at sub-branches to a base branch, existence of appropriate systems & controls
and adequate security arrangements. Further, all relevant record shall be maintained by the controlling branch.
It would be preferable if banks resort to technology based solutions in sub-branches including on-line/real time
links, kiosks, ATMs, Point of Sales etc as also use drop box facilities. The bank will ensure compliance with all the
laws, rules regulations and SBP instructions issued from time to time, which may affect the existence/
operations of the sub-branch.

The sub branches can perform one or both of the following functions:-
Limited general banking functions viz cash receipt and payment, issuance and encashment of DD, TT, MT, pay
order, traveler cheques etc. However, account opening & issuance of account number and other formalities
including Know Your Customer (KYC) and Customer Due Diligence (CDD) shall be performed by the controlling
branch (not by sub-branch). The general banking functions may also include the functions performed at
permanent booths as stated in section ‘2.6.1’.

Disbursement & recovery of agri/rural financing, group based lending, lodgment & settlement of insurance
claims of agri/rural loans and to create awareness amongst the rural consumer about agri/rural finance products
& services.

A signboard stating the name of the bank at sub-branch should also state under the bank’s name in clear bold
words that “This is a sub-branch/limited function branch of……..Bank” in English as well as in Urdu.

Section ‘2.6.1’
(i) Receiving utility bills, Government dues/revenue/cash, collection of fees/dues of educational
institutions, collection and disbursements of loans to farmers, receiving cash from patients of
hospitals, visa application/visa fee or other related cash receipt functions on the recommendations
of the concerned Government Departments, other institutions and for providing limited banking
facilities (i.e. cash payment and receipt of cash and cheques/demand draft/pay order only) in the
premises of Embassies, Consulates, Foreign Missions and International Financial Institutions in
Pakistan, on their specific request.
(ii) For exchange of foreign currency subject to normal exchange control regulations at the port of entry
in Pakistan.
(iii) National Bank of Pakistan will be allowed to open booths for receiving railway cash and other
Government dues on the recommendations of the Department concerned.

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Chapter 13 BRANCH TRANSACTIONAL AUTHORITIES & THRESHOLD LIMITS

OVERVIEW:
The Branch Transactional Authorities and Threshold Limits are devised after detailed analysis of branch transactional needs/ threshold limits that complement
our guiding principles which are to promote prudent control environment/ minimize operational risk and enhance customer service. All Branches are required to
follow the same without Fail. Deviation to the same will be considered as serious violation and can result into Audit Issues.

DEVIATION:
In some branches, according to the business/ operations needs, deviations to the pre-established Branch Transactional Authorities and Threshold Limits can be
given. Concerned ROM will prepare a proposal clearly mentioning valid reason(s) for Change and Proposed Limits for the specific Branch(s) and forward to the
Area Head Operations and Head of Operations for their Recommendations and Sign-off. Once signed by both, Head of Operations will furnish the same for final
Approval from Group Head Operations.

Teller Teller General Personal Customer

Sr. Transactions/ Branch Operations Branch Credit Credit
Services Services Banking Banking Service
# Activities Manager Manager Manager Officer
Officer Supervisor Officer Advisor Officer

Upto PKR 1M (applicable

for authorization above
Cash Withdrawals - Upto PKR Upto PKR Not Unlimited for Not Not Not Not
1 PKR 1M in absence of
Contractual Teller 25K 200K applicable Authorization applicable applicable applicable applicable
BM). Regularization
must be done by BM

Upto PKR 1M (applicable

Upto PKR Upto PKR
for Authorization above
Cash Withdrawals - 25K 200K Not Unlimited for Not Not Not Not
2 PKR 1M in absence of
Permanent Teller (equivalent (equivalent Applicable Authorization Applicable Applicable Applicable Applicable
BM). Regularization
FCY) FCY)
must be done by BM

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 Teller Teller General Personal Customer
Sr. Transactions/ Branch Operations Branch Credit Credit
Services Services Banking Banking Service
# Activities Manager Manager Manager Officer
Officer Supervisor Officer Advisor Officer

Upto PKR 1M (applicable

for Authorization above
Cash Deposits - Upto PKR Upto PKR Not Unlimited for Not Not Not Not
3 PKR 1M in absence of
Contractual Teller 50K 500K Applicable Authorization Applicable Applicable Applicable Applicable
BM). Regularization
must be done by BM

Upto PKR 1M (applicable

Upto PKR Upto PKR
for Authorization above
Cash Deposits - 100K 500K Not Unlimited for Not Not Not Not
4 PKR 1M in absence of
Permanent Teller (equivalent (equivalent Applicable Authorization Applicable Applicable Applicable Applicable
BM). Regularization
FCY) FCY)
must be done by BM

Upto PKR 1M (applicable

for Authorization above
Upto PKR Not Unlimited for Not Not Not Not
5 Utility Bills Receipts Upto PKR 50K PKR 1M in absence of
5K Applicable Authorization Applicable Applicable Applicable Applicable
BM). Regularization
must be done by BM

Applicable
Upto PKR 1M (applicable
(for
for Authorization above
accepting Upto PKR Unlimited for Not Not Not Not
6 Outward Clearing Upto PKR 50K PKR 1M in absence of
instrument 250K Authorization Applicable Applicable Applicable Applicable
BM). Regularization
over the
must be done by BM
counter)

Applicable
Upto PKR 1M (applicable
(for
for Authorization above
Outward Collection accepting Upto PKR Unlimited for Not Not Not Not
7 Upto PKR 50K PKR 1M in absence of
(LCY) instrument 250K Authorization Applicable Applicable Applicable Applicable
BM). Regularization
over the
must be done by BM
counter)

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 Teller Teller General Personal Customer
Sr. Transactions/ Branch Operations Branch Credit Credit
Services Services Banking Banking Service
# Activities Manager Manager Manager Officer
Officer Supervisor Officer Advisor Officer

Applicable
Upto PKR 1M (applicable
(for Upto PKR
Upto PKR 50K for Authorization above
Outward Collection accepting 250K Unlimited for Not Not Not Not
8 (equivalent PKR 1M in absence of
(FCY) instrument (equivalent Authorization Applicable Applicable Applicable Applicable
FCY) BM). Regularization
over the FCY)
must be done by BM
counter)

Upto PKR 1M (applicable

for Authorization above
Upto PKR Upto PKR Unlimited for Not Not Not Not
9 Pay Order Issuance Upto PKR 50K PKR 1M in absence of
25K 250K Authorization Applicable Applicable Applicable Applicable
BM). Regularization
must be done by BM

Upto PKR 1M (applicable

for Authorization above
Demand Draft Upto PKR Upto PKR Unlimited for Not Not Not Not
10 Upto PKR 50K PKR 1M in absence of
Issuance (LCY) 25K 250K Authorization Applicable Applicable Applicable Applicable
BM). Regularization
must be done by BM

Upto PKR 1M (applicable

Upto PKR
Upto PKR 50K for Authorization above
Demand Draft Not 250K Unlimited for Not Not Not Not
11 (equivalent PKR 1M in absence of
Issuance (FCY) Applicable (equivalent Authorization Applicable Applicable Applicable Applicable
FCY) BM). Regularization
FCY)
must be done by BM

Upto PKR 1M (applicable

for Authorization above
Rupee Travelers Not Upto PKR Unlimited for Not Not Not Not
12 Upto PKR 50K PKR 1M in absence of
Cheques Issuance Applicable 250K Authorization Applicable Applicable Applicable Applicable
BM). Regularization
must be done by BM

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 Teller Teller General Personal Customer
Sr. Transactions/ Branch Operations Branch Credit Credit
Services Services Banking Banking Service
# Activities Manager Manager Manager Officer
Officer Supervisor Officer Advisor Officer

Upto PKR 1M (applicable

Rupee Travelers for Authorization above
Not Upto PKR Unlimited for Not Not Not Not
13 Cheques Upto PKR 50K PKR 1M in absence of
Applicable 250K Authorization Applicable Applicable Applicable Applicable
Encashment BM). Regularization
must be done by BM
Applicable
above PKR 1M
(Equivalent
Applicable Applicable Upto PKR 1M FCY) for
(for accepting (Equivalent FCY) for checking and
FCY Travelers Not Not Travelers checking and signing off signing off on Not Not Not Not
14
Cheques Deposit Applicable Applicable Cheques in on TCs Collection form TCs Collection Applicable Applicable Applicable Applicable
collection and authorization upon form and
only ) realization of funds authorization
upon
realization of
funds
Upto PKR 1M (applicable
Online Funds for Authorization above
Upto PKR Upto PKR Unlimited for Not Not Not Not
15 Transfer / Internal Upto PKR 50K PKR 1M in absence of
50K 250K Authorization Applicable Applicable Applicable Applicable
Transfers BM). Regularization
must be done by BM
FCY/ LCY Cheque
Purchase / No No No No No
16 No Authority No Authority No Authority No Authority
Payment against Authority Authority Authority Authority Authority
un-cleared effects

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 Teller Teller General Personal Customer
Sr. Transactions/ Branch Operations Branch Credit Credit
Services Services Banking Banking Service
# Activities Manager Manager Manager Officer
Officer Supervisor Officer Advisor Officer

Applicable
(for input Applicable (as
only and as per the
Applicable for approval
per the approved
Debit to Expense Not Not (as per the approved Not Not Not Not
17 approved schedule of
Account Applicable Applicable schedule of Revenue & Applicable Applicable Applicable Applicable
schedule of Revenue &
Expenditure from CAD)
Revenue & Expenditure
Expenditure from CAD)
from CAD)

Applicable for
Applicable Applicable Applicable
Batch
Debit to GL/ with Batch with Batch with Batch Applicable for Batch
Acceptance Not Not Not Not
18 Suspense Account Acceptance Acceptance Acceptance Acceptance except
including Applicable Applicable Applicable Applicable
on EOC from BOM from BOM or from BOM or deletion of EOD batches
deletion of EOD
or BM BM BM
Batches

Upto PKR 1M (applicable

for Authorization above
Bulk Salary Postings Upto PKR Upto PKR Unlimited for Not Not Not Not
19 Upto PKR 50K PKR 1M in absence of
(Non-Centralized) 50K 100K Authorization Applicable Applicable Applicable Applicable
BM). Regularization
must be done by BM

Upto PKR 1M (applicable

for Authorization above
Not Upto PKR Unlimited for Not Not Not Not
20 Issuance of CDRs Upto PKR 50K PKR 1M in absence of
Applicable 250K Authorization Applicable Applicable Applicable Applicable
BM). Regularization
must be done by BM

Applicable (only
Applicable (only after
Funds disbursal on Not Not Not after receipt of Not Not Not Not
21 receipt of Approval from
deceased accounts Applicable Applicable Applicable Approval from Applicable Applicable Applicable Applicable
GM)
GM)

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 Teller Teller General Personal Customer
Sr. Transactions/ Branch Operations Branch Credit Credit
Services Services Banking Banking Service
# Activities Manager Manager Manager Officer
Officer Supervisor Officer Advisor Officer
Upto PKR 5M
with joint
‘Cash Requisition’ Upto PKR 5M with joint approval of
to Cash Feeding Not Not Not approval of BM (Above BOM (Above Not Not Not Not
22
Branch/ Cash Applicable Applicable Applicable PKR 5M will require PKR 5M will Applicable Applicable Applicable Applicable
House approval from ROM/RH) require
approval from
ROM / RH)
Upto PKR 10M
with joint
Transfer of ‘Excess Upto PKR 10M with joint approval of
Cash’ to Cash Not Not Not approval of BM (Above BOM (Above Not Not Not Not
23
Feeding Branch/ Applicable Applicable Applicable PKR 10M will require PKR 10M will Applicable Applicable Applicable Applicable
Cash House approval from ROM/RH) require
approval from
ROM / RH)
Upto PKR 1M (applicable
for Authorization above
Credit Card Upto PKR Upto PKR Not Unlimited for Not Not Not Not
24 PKR 1M in absence of
Payments in Cash 50K 500K Applicable Authorization Applicable Applicable Applicable Applicable
BM). Regularization
must be done by BM

Upto PKR 1M (applicable

for Authorization above
Cash Advance Upto PKR Upto PKR Not Unlimited for Not Not Not Not
25 PKR 1M in absence of
through POS 25K 200K Applicable Authorization Applicable Applicable Applicable Applicable
BM). Regularization
must be done by BM

Cheque Withdrawal Not Not Not Not Not Not

26 Applicable Applicable Applicable
Reversals Applicable Applicable Applicable Applicable Applicable Applicable

Inward Clearing -
Not Not Not Not Not Not
27 Cheque Debit Applicable Applicable Applicable
Applicable Applicable Applicable Applicable Applicable Applicable
Reversals

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 Teller Teller General Personal Customer
Sr. Transactions/ Branch Operations Branch Credit Credit
Services Services Banking Banking Service
# Activities Manager Manager Manager Officer
Officer Supervisor Officer Advisor Officer
Internal Fund Not Not Not Not Not Not
28 Applicable Applicable Applicable
Transfer - Reversals Applicable Applicable Applicable Applicable Applicable Applicable

Upto PKR 1M (applicable

for Authorization above
Prize bond Sale Upto PKR Upto PKR Not Unlimited for Not Not Not Not
29 PKR 1M in absence of
(Cash/Account) 50K 500K Applicable Authorization Applicable Applicable Applicable Applicable
BM. Regularization must
be done by BM

Upto PKR 1M (applicable

Prize bond for Authorization above
Upto PKR Upto PKR Not Unlimited for Not Not Not Not
30 Encashment PKR 1M in absence of
50K 500K Applicable Authorization Applicable Applicable Applicable Applicable
(Cash/Account) BM. Regularization must
be done by BM
Applicable
Applicable (signature
Applicable (scrutiny & Applicable (signature verification
Outward Wire Not Not Not Not Not
31 (signature recovery of verification & checking above USD 10K
Transfer (FCY) Applicable Applicable Applicable Applicable Applicable
verifications) handling of KYC / Turn over info) & checking of
charges) KYC / Turn over
info)

Off-line Financial Not Not Not Not Not Not Not

32 Applicable Applicable
Transactions Applicable Applicable Applicable Applicable Applicable Applicable Applicable

Applicable Applicable
ATM Cash Not Applicable jointly with Applicable Not Not Not Not
33 jointly with jointly with
Replenishment Applicable TSO jointly with TSO Applicable Applicable Applicable Applicable
TSS / BOM TSO

Pre-paid Visa Cash Less than PKR 10k and Not Not Not Not Not
34 PKR 10k and above 10k and above
load/ re-load PKR 10k above Applicable Applicable Applicable Applicable Applicable

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ANNEXURES

Annexure

ANNEXURE

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ANNEXURE I
FORM A-7
FOREIGN EXCHANGE REGULATION ACT, 1947
Application to Transfer Pakistan Rupees From/To a Private Non-Resident Account held in Pakistan.
N.B. (1) This form should be used only when payment is made in Pakistan Rupees to or from an account in the
name of a person or firm other than a bank resident outside Pakistan.
(2) This form should be completed in duplicate when the transfer is from one non-resident account to
another.

I/We the undersigned apply for permission to transfer/pay Rs. __________ say ___________________________
(In figures) (In words)

From / to the account of _______________________________________________________________________

___________________________________________________________________________________________
(Name and address of transferor/transferee or full title of account debited / credited stating the country of
residence and name of bank with whom account is kept.)
To/from ___________________________________________________________________________________
___________________________________________________________________________________________
(Name and address of transferee/transferor or full title of account credited / debited stating the country of
residence and name of bank with whom account is kept.)
For the purpose stated below: -
___________________________________________________________________________________________
__________________________________________________________________________________________
I/We declare that the statements on this form are true, that the transfer is solely for the purpose specified
above and that this purpose in no way contravenes the provisions of the Foreign Exchange Regulation Act, 1947.
Name of Applicant ____________________________ ______________________________
Nationality ___________________________ Stamp & signature(s) of Applicant
Address _______________________________________________ Date _______________________
We hereby certify that the statements overleaf are to the best of our knowledge correct and that we have seen
documentary evidence in support thereof and allowed transfer in terms of Chapter VIII of the Foreign
Exchange Manual/apply for permission of the State Bank to affect the transfer.

Date ________________________________ Authorized Dealer

___________________________________________________________________________________________
Space for use by the State Bank of Pakistan

State Bank of Pakistan,

Exchange Policy Department,

Date ______________________ Jr. Joint Director/Assistant Director

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 364

ANNEXURE II

FORM Q.A. 22
Form of undertaking to be furnished by foreign nationals resident in Pakistan and companies and firms whose
head offices are outside Pakistan for maintaining Bank account

To
The Manager/Agent,
MCB Bank Ltd

Dear Sir,
I/We hereby certify that the credits paid into my/our account with your bank relate normally to my/our trading
business in Pakistan only and consist of the following: -
(Here state the principle sources from which rupee payments into the account are derived, e.g., payments
received for goods sold, stating general nature of goods).
In consideration of the State Bank of Pakistan agreeing to dispense with my/our completing Form A-7 in
respect of every credit to my/our account, other than from non-resident account, I/We undertake that
I/We will not make available to any persons or firms in Pakistan any foreign currency which may be at my/our
disposal, against reimbursement in rupees, without first having obtained the permission of the State Bank of
Pakistan, (through an Authorized Dealer) by completing Form A-7 in respect of the rupee payment to my/our
account. I/We further agree to complete Form A-7 in respect of any payments into the account which may not
be directly connected with my/our trading activities in Pakistan, or which represent remittances received from
overseas.

Yours faithfully,
(Signature of applicant)
Date ____________
Full Name of applicant __________________________________________________________________
Nationality ______________ Passport No ______________ dated __________ issued by _______________
Occupation __________________________________________________________________________
Address _____________________________________________________________________________
Date of arrival in Pakistan ________________________________________________________________
We certify that to the best of our knowledge and belief the information given above is correct.

Date: ______________ Stamp and Signature of Authorized Dealer Date

Note:-"This form should he completed in duplicate and submitted to the A.D. with whom the account is desired
to he opened.

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ANNEXURE III
Revised Annexure “C”
CERTIFICATE FOR REFUND OF UNCLAIMED ACCOUNT
IN RESPECT OF____________________________
(Name of Customer / Claimant)

This is to certify that we have received request from the above named customer / client, for refund of unclaimed
account, which was reported in Form-XI for the year ended________________ as prescribed under Rule 17 of
Banking Companies Rules, 1963 and since transferred to the State Bank of Pakistan in terms of provision
contained in Section 31 of Banking Companies Ordinance, 1962. It is further certified and confirmed that
signatures of the customer/client have been verified and all the necessary documents have alto been obtained
and verified from our record. Further, we fully understand that the proper identification of the claimant is sole
responsibility of MCB Bank Ltd.

1. Name of the Customer__________________________________________________________

2. Name of the Claimant__________________________________________________________

3. CNIC Number__________________________________________________________________

4. Residential Address, Telephone/ Mobile No, e-mail, (if any) of the Customer/ Claimant

___________________________________________________________________________________

___________________________________________________________________________________

5. Account Number__________________________________________________________________

6. Amount Claimed________________________________________________________________

Signature of the Branch Manager_________________________________________

(Stamp with Name & Designation)

Signature of Head of Internal Control (Audit) ______________________________

(Stamp with Name & Designation)

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 366

ANNEXURE IV

MCB BANK LTD.

DAILY CASH POSITION AS ON ______________ BRANCH CODE: ______________
Re-Issuable Soiled Defective Unsorted Net Position
Denomination
No. No. No. No. No.
Amount Amount Amount Amount Amount
(Pieces) (Pieces) (Pieces) (Pieces) (Pieces)
PKR 5000 Notes
PKR 1000 Notes
PKR 500 Notes
PKR 100 Notes
PKR 50 Notes
PKR 20 Notes
PKR 10 Notes
PKR 5 Notes
PKR 5 Coins
PKR 2 Coins
PKR 1 Coins
TOTAL

Prepared BY Checked By

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 367

ANNEXURE V

The Chief Manager

State Bank of Pakistan
___________________

Dear Sir,
We forward herewith the under noted prize bonds which have qualified for prize money in the Draw No.
________________ held on ________________ for the amount mentioned against each:

Denomination Of Series & No of Bond Date of Issue Place of Issue

Bond

We shall be glad if you please credit the amount of prize money payable on the above bond/s into Government
Account and its/their face value amounting to Rs. ______________ to our Account maintained by us with you.

Please acknowledge receipt.

Yours faithfully,

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 368

ANNEXURE VI

Mr./Mrs./Miss

.
Registered A/D

Dear Sir / Madam,

LOCKER No:
You are our Licensee in respect of the above Locker on the terms and conditions duly accepted by you.

You have failed/neglected to pay the License Fee for the use of the above said Locker since ___
. Consequently an amount of Rs ___ _ (Rupees
) is outstanding against you on account of License Fee for the period ending on .

Under the terms and conditions governing the said Locker and even otherwise, we are entitled to revoke the
License and break-open the said Locker.

We have, therefore, decided to revoke and do hereby revoke the said License and call upon you to remove your
articles, if any, deposited / kept in the said Locker within Seven Days from the receipt hereof, of course, against
payment of the amount shown hereinabove and handover possession of the Locker along with the Key, to us.

Please note that in the event of your failure to pay the aforesaid outstanding amount and to surrender the said
Locker with its Key to us, within Seven Days from the date hereof, otherwise with the permission of the Court,
we shall break-open the said Locker and retain possession of the contents / articles if any found, at your risk as
to costs and consequences. Further note that the Bank is entitled to dispose-off the said articles / contents or
part thereof also with the permission of the Court to recover the outstanding amount against above said locker,
which shall include but not limited to cost of breaking-open the said locker, cost of legal / court expenses and
repairing cost of the said locker from the net sale proceeds, without being bound to give you any further notice
or information.

Yours faithfully,

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ANNEXURE VII

Mr./Mrs./Miss

“FINAL NOTICE”
________________
Registered A/D

Dear Sir / Madam,

LOCKER No._________________ DEMAND NOTICE FOR RECOVERY OF RS. / NOTICE FOR
FILING OF SUIT:

Reference may please be made to our earlier Notice (No. _____________) Dated _______________ sent to you
through courier / registered A/D at your address on our record, whereby you were requested to pay us an
amount of Rs .______________ outstanding against your above said locker as License fee etc. for the
period___________ to __________ and surrender the said locker with key to which you have failed to do so till
date.

You are therefore, hereby called upon to pay the aforesaid amount immediately but not later than seven days
from the date of this notice, failing which we shall file a declaratory suit for breaking open the said locker / Suit
for recovery of our dues against you in the Court of Competent jurisdiction at your sole risk as to costs &
consequences which may please be noted.

Regards,

Yours truly,

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ANNEXURE VIII

Mr./Mrs./Miss
_______________________________
Registered A/D

Dear Sir / Madam,

LOCKER No:

In spite of the Notice dated sent to you by Registered A/D Post at your address on our record /
published in Daily “ ______ “ dated ______ , you failed/neglected to pay us the outstanding amount
of License Fee and surrender the said Locker with Key to us.
Consequently, with the permission of the Court, we had broken-open the said locker and found the following
articles which have been kept in our custody also with the permission of the Court.

An amount of Rs: (Rupees _____________)

is due to us by you as follows:

1) License Fee for the period from _______ to______ Rs.

2) Cost of breaking-open & repairing the Locker Rs. __
3) Cost of making Inventory Rs. __
4) Cost of Legal / Court Expenses Rs. _________

We have decided to sell the aforesaid articles or so much thereof, as may necessary with the permission of the
Court, to recover the aforesaid amount and shall do so unless you pay us the aforesaid sum within Seven Days
from the receipt hereof. The sale should be entirely at your risk as to costs and consequences, which please
note.
Yours faithfully
Note:
The name of the newspaper and its date will be inserted in case the notice is published otherwise reference of
newspaper be deleted and after the word “record” appearing in second line, full stop (.) be inserted.

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ANNEXURE IX

Mr./Mrs./Miss

Registered A/D

Dear Sir / Madam,

LOCKER No:
DEMAND NOTICE FOR RECOVERY OF RS.

Further to our letter / notice dated __________ sent by Registered A/D Post, advising the
contents found in the said Locker, this is to advise you that the articles found therein and listed in our letter /
notice, referred to above, have been sold out with the permission of the Court and the net sale proceed has
been appropriated for payment of the amount due and payable by you. After appropriating the net sale
proceeds, a sum of Rs: _________ is still due and payable by you.

You are, therefore, required to please pay the said sum of Rs. ______________ (Rupees
) within Seven Days from the receipt hereof failing which we shall have no option but to initiate
necessary legal proceedings for recovery of the said sum, at your risk as to costs and consequences, which
please note

Yours faithfully,

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ANNEXURE X

Mr./Mrs./Miss

Registered A/D

Dear Sir / Madam,

LOCKER No:
DEMAND NOTICE FOR RECOVERY OF RS:

In spite of our Notice dated ________ sent to you by Registered A/D Post at your address on our record /
published in Daily “____________” dated __________, you failed and neglected to pay us the outstanding
amount of License Fee and surrender the Locker with Key to us.

Consequently we had the said Locker broken-open with the permission of the Court and found the said Locker
empty.

You are, therefore, called upon to pay the aforesaid sum of Rs._______________ (Rupees
____________________) within Seven Days from the receipt hereof, failing which we shall file suit for recovery
of the said sum at your risk as to costs & consequences, which please note.

Yours faithfully,

Note:
The name of the newspaper and its date will be inserted in case the notice is published. Otherwise reference of
newspaper be deleted and after the word “record” appearing in second line, full stop (.) be inserted.

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 373

ANNEXURE XI

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 374

ANNEXURE XII

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 375

ANNEXURE XIII

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 376

ANNEXURE XIV

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ANNEXURE XV
Attac hment to CIRCULAR NO.PO/FC-North/GEN/251 dated Oc tober 20, 2010

MCB Bank Limited ANNEXURE-A

Daily branch MIS report

For the month of: __________ Code: Cash Feeding Branch Name:

Date: ____________ Date: ____________ Date: ____________ Grand Total

Br. Code Br. Name Security Company Name: Security Company Name: Security Company Name: Security Company Name:
No. of Seals No. of Trips No. of Seals No. of Trips No. of Seals No. of Trips No. of Seals No. of Trips
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
- -
Grand Total - - - - - - - -
Note: Overtime charges (with # of hours utilized), Over Night vaulting charges (with # of Days), Toll Tax/Parking Charges (if any), Off Days/Holidays
Utilization (with # of Days), Special CIT Service, Surcharge Amount, Distance Charges or any other related charges should be separately maintained at branch
end and crossed checked with original invoice.
* Incase where CIT services are obtained from more then one service provider then separate Annexure-A should be maintained accordingly.

Chief Cashier Branch Operations Manager Branch Manager

Signature with rubber stamp Signature with rubber stamp Signature with rubber stamp

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 378

ANNEXURE XVI
Attachment to CIRCULAR NO.PO/FC-North/GEN/251 dated October 20, 2010

MCB Bank Limited ANNEXURE-B

Expense Allocation Summary

For the month of: __________ Code: __________ Cash Feeding Branch/Region/BH Name:_____________

Security Company Name: (2) Security Company Name: (2) Grand Total
Br. Code Br. Name
CIT Expense (1) CIT Expense (1) CIT Expense
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Grand Total - - -
Note: In addition to trips and seal charges grand total amount should always contain Overtime charges, Over Night vaulting charges, Toll Tax/Parking Charges, Off
Days/Holidays Utilization, Special CIT Service, Surcharge Amount, Distance Charges or any other related charges identically to specific branch where services are rendered
and should be duly crossed checked with original invoice. Further security company wise grand totals should be tallied with billed amount against each cash feeding
branch.
(1)
Branches where dedicated vehicle services are applied should distribute the expense on agreed formula i.e. per trip/carried amount basis
(2)
Incase where CIT services are obtained from more then one service provider then separate column information should be maintained accordingly.

Branch Operations Manager / Branch Manager ROM / Regional Head / Business Head
Signature with rubber stamp Signature with rubber stamp

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ANNEXURE XVII
Attachment to CIRCULAR NO.PO/FC-North/GEN/251 dated October 20, 2010

MCB Bank Limited ANNEXURE-C

Central Upload Format - GH office use only Month:

S# BR CON_BR GL_CODE(dr) GL_CODE(cr) CCY AMOUNT CONTROL_NO TRAN_CODE NARRATION TYPE

1 0000 4040124150 1110101010 PKR 800001 2255 03
2 0000 4040124150 1110101010 PKR 800002 2255 03
3 0000 4040124150 1110101010 PKR 800003 2255 03
4 0000 4040124150 1110101010 PKR 800004 2255 03
5 0000 4040124150 1110101010 PKR 800005 2255 03
6 0000 4040124150 1110101010 PKR 800006 2255 03
7 0000 4040124150 1110101010 PKR 800007 2255 03
8 0000 4040124150 1110101010 PKR 800008 2255 03
9 0000 4040124150 1110101010 PKR 800009 2255 03
10 0000 4040124150 1110101010 PKR 800010 2255 03
11 0000 4040124150 1110101010 PKR 800011 2255 03
12 0000 4040124150 1110101010 PKR 800012 2255 03
13 0000 4040124150 1110101010 PKR 800013 2255 03
14 0000 4040124150 1110101010 PKR 800014 2255 03
15 0000 4040124150 1110101010 PKR 800015 2255 03
16 0000 4040124150 1110101010 PKR 800016 2255 03
17 0000 4040124150 1110101010 PKR 800017 2255 03
18 0000 4040124150 1110101010 PKR 800018 2255 03
19 0000 4040124150 1110101010 PKR 800019 2255 03
20 0000 4040124150 1110101010 PKR 800020 2255 03

Note: Only shaded area column needs to be filled in by respective office remaining columns should be repeated as mentioned above against each entry.

MIS /Consolidation Officer Business Financial Controller

Signature with rubber stamp Signature with rubber stamp

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 380

ANNEXURE XVIII
Local Currency Self Assessment Control Function Checklist
SELF ASSESSMENT CONTROL FUNCTION CHECKLIST
LCY Critical Control Accounts Balance Verification Function
Ensure all following GL Heads have either NIL or justifiable balance at EOD Br: __________
1 1091101010 Intra-branch Settlement Account
2 1150101110 Express Money Control Account Code: ________
3 1150101120 Utility Bills Control Account
4 1150101130 Salary / Bonus Control Account For the month of:
5 1150101150 Fund Transfer Control Account
6 1150101140 Clearing Control Account ____________
Frequency: Daily Responsibility: Branch Operations Manager
Date Initials Notes
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Branch Operations Manager is required to initial the relevant check-box upon confirmation of verification. If the
relevant Head is not NIL, the balance to be justified with supporting documents with explanatory notes
documented here-in
IMP Note: If a pending entry in any control head is cleared later-on on any subsequent day (other than same day),
proper reference (date/voucher/ supporting documents) to the same should be made in the current day
status/notes.

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 381

ANNEXURE XIX
Foreign Currency Self Assessment Control Function Checklist
SELF ASSESSMENT CONTROL FUNCTION CHECKLIST
FCY Critical Control Accounts Balance Verification Function
Ensure all following GL Heads have either NIL or justifiable balance at EOD Br: ________
1 1090801250 Foreign Currency in Transit
2 2010201030 Foreign Currency Cash in Transit Code: _______
3 2010201040 Foreign Currency in Transit
4 2010201050 FCY in Transit – US$
For the month of:
5 2010201060 FCY in Transit – GBP
____________
6 2010201070 FCY in Transit – EUR
Frequency: Daily Responsibility: Branch Operations Manager
Date Initials Notes
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Branch Operations Manager is required to initial the relevant check-box upon confirmation of verification. If the
relevant Head is not NIL, the balance to be justified with supporting documents with explanatory notes
documented here-in
IMP Note: If a pending entry in any control head is cleared later-on on any subsequent day (other than same day),
proper reference (date/voucher/ supporting documents) to the same should be made in the current day
status/notes.

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 382

ANNEXURE XX

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 383

ANNEXURE XXI

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 384

ANNEXURE XXII

DIFFERENCE IN SIGNATURE FROM CNIC

Date: _______________

The Manager,
MCB Bank Limited,
________________ Branch,
________________.

Dear Sir

Re: Difference in Specimen of Signature

I intend to open an account in your branch and would like to inform you that my current signature differs with
the one’s appearing on my CNIC.

I would appreciate if you could please accept my current signatures on all account opening documents.

I have authenticated my current signatures with my signatures on CNIC.

Name: __________________________

Specimen of my current signature ________________________________

Specimen of my signature as per Latest CNIC ________________________________

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 385

ANNEXURE XXIII
“CTR FORM”

Information of Person Conducting the Cash Transaction

Exceeding CTR Limit of PKR 2.5M
Transacting Branch Name: _________________ Br. Code: _________ Transaction Date: ___________________

Account No: _________________________ Title of Account: _________________________________________

Name of the Person Conducting the Transaction: _________________________ DOB: ____________________

Permanent Address: _________________________________________________________________________

Present Address: ____________________________________________________________________________

Phone No Res/ Off: _____________________________ Mobile No: ____________________________

CNIC No: _____________________________________ Nationality: ___________________________

CNIC Verified through NADRA VeriSys: Yes No

Currency of the Transaction: ______________ Amount of the Transactions: ___________________________

Transaction Type: Negotiable Instrument(s) Sold Negotiable Instrument(s) Purchased

Currency Exchange(s) Cash Deposit/Withdrawal

Relationship with MCB: Account Holder Agent

Employee Walk-in Customer
Other (please Specify) ________________________________

Relationship with Customer / Account Holder: _____________________________________________________

Purpose of Transaction: _______________________________________________________________________

__________________________________________________________________________________________
__________________________________________________________________________________________

We are satisfied with the conduct of the transaction; it is in line with customer’s business/ personal needs and is
in line with customer profile.

Notes (if any): _______________________________________________________________________________

Authorized Signature Authorized Signature

BM Name: ____________________ BOM/ TSS Name: _____________________

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 386

PROCESS DEVIATION
The content contained in this Manual is mandatory and apply to, and must be observed by, all relevant

businesses and functions within the Bank, however, in case of any “Process Deviation”, relevant business will be

required to present a “Process Deviation Request” along with rationale and alternate business process

mitigating the associated risks. All Process Deviation Requests will be approved by Group Head Operations.

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 387

GLOSSARY
Abbreviation Full Form
A/c Account
A/D Acceptance against Delivery
AAS Account Activity Seize
ABEP Annual Branch Expansion Plan
AMC Asset Management Company
AML Anti Money Laundering
AOF Account Opening Form
AS Authorized Signatory
ASM Area Sales Manager
AT&C Application along with the Terms and Conditions
ATM Automated Teller Machine
BA Business Account
BBA Basic Banking Account
BCBR Bills for Collection Bills Receivable
BCO Banking Company Ordinance
BH Business Head
BLP Branch Licensing Policy
BM Branch Manager
BOD Board of Directors
BOE Bank of England
BOM Branch Operation Manager
BPD Banking Policy Department
BPRD Banking Policy and Regulations Department
BRBC Bills Receivable Bills for Collection
BRPD Banking Regulations and Policy Department
BT Branch Teller
BUS Business Account
CA Current Account
CAD Central Accounts Division
CASA Current Account Saving Account
CBBG Commercial Branch Banking Group
CBC Call Back Confirmation
CBG Consumer Banking Group
CBR Cheque Book Registration
CBS Core Banking System
CC Cheque Collection
CCA Customer’s Collection Account
CCH Central Cash House
CCIC Call Center Internal Control
CCTV Closed Circuit Television
CD Call Deposit
CDD Customer Due Diligence

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 388

CFC Card Facilitation Center
CFT Combating Financing of terrorism
CIH Cash-in-Hand
CIT Cash in Transit
CIU Centralized Insurance Unit
CMD Cash Management Division
CMIS Central Management Information System
CNIC Computerized National Identity Card
COD Centralized Operations Division
CPDU Card Production and Delivery Unit
CPR Computerized Receipt Number
CPU Central Processing Unit
CPUK Centralized Processing Unit Karachi
Cr Credit
CRC Credit Risk Control
CSO Customer Service Officer
CUR Current Account
DAO Designated Authorized Officer
DD Demand Draft
DDCI Demand Draft Buy Clearing Internal
DDCS Demand Draft Cash Sale
DDTS Demand Draft Transfer Sale
DHA Defense Housing Authority
Dr Debit
DRU Dispute Resolution Unit
DSC Direct Sale Consultant
DSF Direct Sales Force
E.S.P Extra Small Print
E2E End 2 End
EBM Electronic Banding Machines
EDD Enhanced Due Diligence
E-filing Electronic filing
E-Form Electronic Form
EOC Enterprise Operation Center
EOD End of Day
EPZ Export Promotion Zone
EU European Union
EUN Exempted Unclaimed Accounts
EWT Exempted Withholding Tax
FBC Foreign Bills for Collection
FBR Federal Board of Revenue
FCG Financial Control Group
FCY Foreign Currency
FDA Flexi Deposit Account
FDD Foreign Demand Draft
FED Federal Excise Duty
FIA Federal Investigation Agency
FIDD Foreign Inward Demand Draft

Branch Operations Manual – Version 2.0 - December 2010 P a g e | 389

FIR First Information Report
FOH Funds on hold
FSU Fund Settlement Unit
FTA Funds Transfer Application
FTP File Transfer Protocol
FX Foreign Exchange
GBO General Banking Officer
GH Group Head
GL General Ledger
GM General Manager
GTB Global Transaction Banking
H.O Head Office
HESCO Hyderabad Electric Supply Company
HRMG Human Resource Management Group
IBCA Inter Branch Credit Advice
IBS Inter branch Signatory
IBG Islamic Banking Group
ID Identification
IDP Internally Displaced Person
IESCO Islamabad Electric Supply Company
IPM Integrated Payment Mechanism
IS Investment Service
ITD Information Technology Division
ITG Information Technology Group
ITO Income Tax Officer
IT Ops Information Technology Operations
KBA Khushali Bachat Account
KESC Karachi Electric Supply Company
KM Kernel Module
KYC Know your Customer
LAD Legal Affairs Division
LCY Local Currency
LIBOR London Inter Bank Offer Rate
LOT Letter of Thanks
LOV List of Values
LZC Local Zakat Committee
LZF Local Zakat Fund
MC Master Card
MCBEF MCB Employee Foundation
MDS Master Debit Switch
MICR Magnetic Ink Character Recognition
MPA Mahana Profit Account
N/A Not Applicable
NAB National Accountability Bureau
NADRA National Database and Registration Authority
NARA National Aliens Registration Authority
NBP National Bank of Pakistan
NCR No Carbon Required

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NICOP National Identity Card for Overseas Pakistani
NIFT National Institutional Facilitation Technologies
NRP Non-Resident Pakistanis
NTB New to Bank
NTN National Tax Number
OBC Outward Bill for Collection
OD Overdraft
OFAC Office of Foreign Assets Control
OGL Oracle General Ledger
OM Operations Manager
PAN Personal Access Number
PBA Personal Banking Advisor
PEP Politically Exposed Person
PIN Personal Identification Number
PKR Pakistani Rupee
PLS Profit & Loss Sharing
PO Pay Order
POC Pakistan Origin Card
POCI Payment Order Buy Clearing Internal
POCS Payment Order Cash Sell
POR Proof of Registration
POS Point of sale
POTB Payment Order Transfer Buy
POTS Payment Order Transfer Sale
PPG Product Program Guide
PR Prudential Regulations
PRC Proceeds Realization Certificates
PTCL Pakistan Telecommunication Company Limited
PZA Provincial Zakat Administrator
RA Relationship Associate
RAMS Report Archival Management System
RB Retail Banking
RCO Regional Compliance Officer
RM Relationship Manager
ROMs Regional Operations Manager
RTC Rupee Travelers Cheque
SBP State Bank of Pakistan
SCGM Smart Card Generation Module
SECP Securities and Exchange Commission of Pakistan
SF Standard Form
SFTD Smart Foreign Currency Term Deposits
SLA Service Level Agreement
SMA Savings Maximizer Account
SMCs School Management Committees
SND Special Notice Deposit
SNGPL Sui Northern Gas Pipeline Limited
SOBC Schedule of Bank Charges
SOD Start of Day

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SP&R Special Projects & Reconciliation Division
SQA Service Quality assurance
SRTD Special Rupee Term Deposit
SS Card Specimen Signature Card
SSA Smart Savings Account
SSGC Sui Southern Gas Company
SST Sheikh Sultan Trust
STDR Special Term Deposits Receipt
STDR Special Term Deposit Receipt
SWIFT Society for Worldwide Interbank Financial Telecommunication
T&C Terms & Conditions
TAT Turnaround Time
TBD Transaction Banking Division
TD Term Deposit
TDA Term Deposit Application
TDR Term Deposit Receipt
TPIN Telephone Personal Identification Number
Tr codes Transaction codes
TROPS Treasury Operations
TSD Trade Services Division
TSO Teller services Officer
TSS Teller Services Supervisor
TT Telegraphic Transfer
TTDR Term Deposits Receipts
UN United Nations
UPS Uninterrupted Power Supply
UVL Ultra Violet light
VB Virtual Banking
VERISYS Verification System
WAU Whereabouts Unknown
WBG Wholesale Banking Group
WHT Withholding Tax
WICIF Walk-in- Customer Information Form

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Branch Operations Manual – Version 2.0 - December 2010 P a g e | 392