Академический Документы
Профессиональный Документы
Культура Документы
Clearing
Clearing is the process by which an individual cheque / instrument is exchanged between collecting and paying bank within the same region through Central Bank mechanism. Clearing House Function is a financial service that provides clearing and settlement for inter bank transactions.
7) Return unpaid cheques with Return reason 8) Uplift hold on fund on the 3rd business day (If cheque is successfully cleared)
5) Return unpaid cheques with Return reason 3) Sends settlement amounts 5) Debit Account
Day 3 (Tuesday)
a) The instrument is received with duly entered Pay-in-Slip or voucher. b) The instrument is checked for any apparent discrepancy and is compared with particulars noted in the Pay-in-slip and its counterfoil, i.e. scrutinizing the correctness of the instruments that are received for clearing. c) The instrument is scrutinize by using UV detector to find out any material alteration or manipulation on the paper instrument. d) The instrument is crossed specially in favor of the Branch immediately after receipt of it, i.e. affixing branch crossing seal on the face of the instrument. e) The Clearing Stamps are affixed on the instrument and on the Pay-in-slip and counterfoil, i.e. affixing branch clearing seal on the deposit slips and on the face of the instruments.
f) The instrument is suitably discharged / endorsed by making proper endorsement on the back of the instrument which are as under:
Clearing Entries
Branches Entries: Outward Clearing: Debit - TBL General A/C (SKB Branch) Credit Clients A/C Debit - Clients A/C (For return cheques) Credit - TBL General A/C (SKB Branch)
Debit
Other branch
Other branch
Credit
Other branch
SKB SKB Other branch
Amounts
8,96,497.00
11
5,40,958.00
Al-Arafah
Islam
13
20,57,080.7 0
10
If delivered cheques amount is less than received then net difference is unfavorable to us (Disfavor in BB Clearing House) and the accounting treatment will be:
**
TBL,HO,ID maintains Trust banks account with Bangladesh Bank and they settle the net difference amount with Bangladesh Bank. 11
12
Debit--Clearing Adjustment A/C CreditTBL General A/C (Respective branches) [Responding IBDA of branches] Then CCPU SKB branch delivers all returned unpaid instruments to other banks through Clearing House mechanism of Bangladesh Bank. Similarly, CCPU also receives back the instruments returned unpaid by other banks. Bank account with Bangladesh Bank (maintained by HO,ID) is similarly debited or credited for the net amount payable or receivable.
13
Bangladesh Bank, Dhaka has another clearing house named Same Day Clearing for quick clearing of large amount of instruments. This clearing house deals with instruments drawn on Branches of different Banks and for the instruments amounting Tk.5 lac and above. All BACH member branches are at present eligible to present HV cheques for clearing through BACPS system.
This Clearing House starts at 12.00 AM everyday. So instruments under the criteria deposited before 11.00 AM can be presented in the same day for clearing. Again return house for this house is at 3.00 PM.
14
Manual Clearing House vs. Bangladesh Automated Cheque Processing System (BACPS)
Manual CH 1. Physical movement of instrument for both presentment and returns 2. 3. Time Consuming Paying banks store physical instruments. BACPS 1. Image exchange instead of physical movement of instruments :Returns : only the data, not the image 2. Less Time Consuming 3. Physical instruments will be stored by the presenting bank 4. Central Archive in BB
15
4.
not
BACPS Features
New CH Instruments design with MICR code line Image exchange instead of physical movement of instruments Returns : only the data, not the image Physical instruments will be stored by the presenting bank Central Image Archive in BB BACPS Clearing Time Line : Regular clearing presentment cut-off 13:00 return cut-off 17:00 (same day) settlement 17:01 (same day) High value clearing presentment cut-off 12:00 return cut-off 15:00 (same day) settlement 15:01 (same day)
17
Standardized Cheque
Front side
19
20
21
Truncation Point
This is a point from which physical movement of an instrument is stopped, here the image and data will be captured and transmitted to the service branch. A bank may have multiple truncation points.
22
Outward Electronic Cheque Envelope (OCE) The Outward Cheque Envelope is generated by the presenting bank and encapsulates the outward clearing items for that bank that are to be distributed as Inward Clearing to the issuing banks for each item. Outward Return Electronic Cheque Envelope (ORE) The Return Cheque Envelope (RCE) is generated by the paying bank. It has the same fundamental structure and format as the OCE; however, the RCE contains only return cheque information and does not contain the image of the cheque, which are on-us cheques that the paying bank is returning as unpaid to their original presenting banks.
24
Electronic Cheque Envelope continued Inward Electronic Cheque Envelope (ICE) Inward Electronic Cheque Envelopes have the same structure and format as Outward Electronic Cheque Envelopes; however, Inward Electronic Cheque Envelopes are Bank-specific and only contain Cheque Detail Records for a single Bank, the paying Bank for those cheques.
Inward Return Electronic Cheque Envelope (IRE) Inward Return Electronic Cheque Envelopes have the same structure and format as the Outward Return Electronic Cheque Envelopes; however, Inward Return Electronic Cheque Envelopes are presenting Bank-specific and only contain return data records for cheques they presented and are now being returned. No Image is returned.
25
26
27
28
Inward Clearing Process Purpose of this process is to process all the inward files (ICE) which are uploaded into PBM by central bank and downloaded into the DMSImago and process the entire Inward batches at relevant branches and mark Outward return if there are any. If there are any Outward Returns, user could generate outward return files (ORE) and upload into PBM. ICE files downloading from PBM and Outward Return (ORE) Uploading into PBM take place at CCPU.
Steps:@ Branch Level:
1. Delegate Inward Batches All the Inward batches generated and release to branch would available here. Branch authorized officer is required to delegate these batches to clearing user in the branch. If required, Officer could re-assign batches. 2. Scrutinize/ Repair inward Batches Once the delegation completes user could start processing the batches assign to them. Once user login to function he would get all the batches assign to him. He could process one by one. When selecting the batches user required giving priority to high value batches. A batch could contain more than one inward cheque. Once each cheque appear on the screen user required to verify the Cheque image, verify the Cheque MICR line details with MICR line data appear on the screen. If the Cheque Image and the data acceptable to bank/branch user could accept the cheque otherwise it required to be returned. If cheque/s marks as return cheque, then user is required to enter the return reason. This return reason should be one of the 27 return reasons available in the system. Once the batch being completed, user could start processing another batch. 3. Batch Authorization All the Processed completed batches would appear on the authorized officers batch list for confirmation. User would authorize a batch and start confirmation one by one. User could verify all the details and either confirm or reject. If a cheque is rejected by the user then the User is required to enter the reject reason, for user to refer. When cheque get rejected at this level the reject cheque may again returns to processing level, for original processing user to rectify error. 4. Release Batches to CCD All the batch/s being completed by the branch should be released to CCD. If there is any returns involve CCD could generate the Outward Return file (ORE) to PBM. Once the batch/s being released to CCD branch does not have any control over it and cannot be able to recall batches to branch again.
29
By presenting an approved BACPS-Eligible item to BACH for payment, the presenting bank: a.) certifies that the front and back images of the BACPS-Eligible item is a copy of the original negotiable instrument ; b.) it shall be the duty of the presenting bank to verify the prima facie genuineness of the cheque that can be verified with due diligence and ordinary care. c.) the presenting bank shall be responsible for detecting genuineness of the cheque leaf, material alteration of payee name, amount or date.
In such cases where genuineness can not be verified or material alteration is detected, the presenting bank should not submit such cheques to the BACPS.
d.) agrees within seven calendar days to make the original negotiable instrument available for inspection during normal business hours, if requested by the Paying Bank. e.) upon realization of the proceeds the presenting bank shall pass the same to their customer account on the date of settlement subject to completion of the return session or internal rules of the bank.
30
A Paying Bank, by accepting an item from Bangladesh Bank: a.) agrees to process the item in accordance with BACPS rules. b.) Paying banks will examine the pertinent images and information, and send back to the BACPS for return items (further examination if any inconsistency like fund insufficiency or mismatch of signature etc.) c.) A Paying Bank may return an approved item in accordance with the BACPS approved return reasons and by the deadline (cut-off time) set forth in the BACPS processing schedule. The Bangladesh Bank processes a returned approved item it receives from a Paying Bank and sends it back to the presenting bank as per BACPS rules governing the processing of items. d.) If the Paying Bank disputes the processing Banks claim in accordance with BACPS rules, the Bangladesh Bank will reverse the provisional settlement for the disputed return.
Records:
Each Participating Bank must keep original paper items for (6) years to permit it to resolve questions that arise concerning the handling of items. Government items are excluded from this provision. 31
BACPS brings elegance to the entire activity of cheque processing and clearing. Cheque frauds can be greatly reduced with introduction of minimum security features, such as MICR-codes, encrypted codes, logos, watermarks, holograms, etc., for early interception of altered / forged instruments. Obviating the need to move the physical cheques is extremely beneficial in terms of cost and time savings.
The benefits from BACPS could be summarized as follows Shorter clearing cycle Superior verification and reconciliation process No geographical restrictions as to jurisdiction Operational efficiency for banks and customers alike Reduction in operational risk and risks associated with paper clearing
32
Service charge on BACH & EFTN Transactions Bangladesh Bank has imposed transaction charge on High Value and Regular Value cheques effective from March 01, 2013 per Bangladesh Bank PSD Circular No 1/2013 dated February 28, 2013. Circular excerpt follows:
33
Accounting procedure for realizing the Service Charges in case of HV & RV Outward Clearing Cheque s: Branch Posting 1 Deposit / Cash Account..Dr. OCPF (A/C No.9007038/).Cr. OCPF (A/C No.9007038)..Dr. OCPF/EFTN Charges Payable (A/C No. 9009241)Cr. OCPF (A/C No.9206038)Cr. VAT on OCPF/ EFTN Charge (A/C No. 9009242).Cr.
Branch posting 2
Above postings in Flora Software shall be performed by branches on a daily basis. CCPU Posting (Online GL) OCPF/EFTN Charges Payable (A/C No. 9009241).Dr.(Own Branch) OCPF/EFTN Charges Payable (A/C No. 9009241)..Cr.(SKB Br)
As per PSD Circular no.1/2013 dated 28/02/2013 (enclosed) VAT is included in Bangladesh Bank Clearing Charge portion of the total clearing charge and branches need to deduct VAT only from Banks income part @ 13.0435%. For example, VAT on Tk.2 @ 13.0435% = Tk.0.26 VAT on Tk.10 @ 13.0435% = Tk.1.30 VAT on Tk.5 @ 13.0435% = Tk.0.65 Note that you need to deduct Cheque Collection Charge from your customers as per Bangladesh Bank PSD Circular no. 01/2013 dated December 26, 2012 and this revised Clearing charge will be applicable from 01/03/2013.
34
Thank You
35