RBS Internship Report

Royal Bank of Scotland
INTERNSHIP REPORT
Bahawalpur Branch
RBS.COM.PK
Presented To:
Shahid Gondal
Presented By: Waqas Javed Janjua

FAO6-BBA-76,
Date of submission: September 10, 2009
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ACKNOWLEDGEMENTS
First I would like to thank my mighty ALLAH. After that I would also like to
thank my respected advisor Sir Shahid Gondal who guided me in different
phases of this report. And last but not the least is the special mention of all
the family members of my family and friends who has contributed the peace
of our mind to accomplish this report
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PREFACE
In Bachelors of Business Administration, Internship Program is an

important part to give students an opportunity to have experience of
practical field. Unless and until the students experience the novelty of
practical work, their knowledge of what they study in theoretical courses
remains incomplete. The most important point in an Internship Program is
that the student should spend their time in a true manner and with the
spirit to learn practical orientation of theoretical study framework.
This internship report is on my six weeks practical training at Royal Bank

of Scotland, Bahawalpur. In this internship report I have tried to give
details about the RBS, working and the functions of different departments
of the bank.
.
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Table Of Contents
Executive Summary
Background
Vision, Mission and Core Values
Business Operation
Organizational Structure
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Marketing Strategies
Business Process Analysis
Learning as a student Intern
Duties
Accomplishments
Problems Encountered
New Knowledge Acquired
RBS Product
How Experience Impacts My Career
Acronyms
Conclusions
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EXECUTIVE SUMMARY
The internship requirement in the degree of Bachelors in Business Administration led

me to experience an exciting and professional exposure to RBS Bank as an intern.
RBS is rapidly gaining ground in the global financial market and considering this rapid
growth; RBS is the formerly NO 1 bank in the world before selling their operations in
Asia. In Pakistan, banking giant MCB purchases RBS last month & ANZ takeover RBS
in rest of Asia.
Given the identical positioning of both the banks in the market, the combined entity of
MCB and RBS will deliver economies of scale, a more complete product set, a stronger
operating platform and a wider distribution network. This acquisition will make MCB
stronger and have the opportunity to make their image better.
Though, RBS will officially operated as MCB in next six months but the management
takeover still remains, which will completely change the internal business processes and
policies. But during my period of internship, I essentially learned the business processes
and policies of RBS so from now onwards in this repot, I will refer the Bank as RBS and
will focus on its details and policies.
This report accentuates the details of business operations and my learning and
observation at RBS as an intern from 24 Aug 2009 to 4 Sep 2009. It also includes the
actual forms that are used in this organization to carry out basic business processes.
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BACKGROUND
According to (The Royal Bnak of Scotland, 2008) Royal Bank of Scotland (RBS) is one
of the world's leading financial services providers and one of the oldest banks in the
United Kingdom (UK). Following the takeover of National Westminster Bank in 2000, the
Group has continued to grow its business around the globe and, in addition to its strong
UK presence, it has offices in Europe, the United States of America and Asia. By the
end of 2002, it was the second largest bank in Europe and the fifth largest in the world
by market capitalisation.
In (The Royal Bank of Scotland, 2008) RBS itself was founded in Edinburgh, by royal
charter, in 1727. It opened its first branch in Glasgow in 1783 and developed a large
network of offices throughout Scotland during the nineteenth century. In 1874 it opened
a branch office in London and from the 1920s developed, by acquisition, a major
presence in England. By 1970, following the Royal Bank's merger with the Edinburgh-
based National Commercial Bank of Scotland, comprising the former National Bank of
Scotland (established 1825) and Commercial Bank of Scotland (established 1810), it
enjoyed over forty per cent of Scotland's banking business. Under the Williams & Glyn's
Bank banner, it also boasted a large and growing presence in England and Wales. In
1985 Williams & Glyn's merged fully with the Group's Scottish clearing bank which
thereafter traded throughout Britain as a single entity, The Royal Bank of Scotland.
During the 1980s the Group diversified, setting up an innovative car insurance company.
During the early 1990s the Royal Bank refocused on its core business of retail banking.
In 2000 the Royal Bank acquired National Westminster Bank which was the biggest
takeover in the history of British banking. Now in 2008 RBS took over Aljameen Bank of
Netherland, Amstardamsche Rotterdamsche (ABN AMRO), which is considered the
number one bank in Asia. RBS has proved itself one of the best bank providing better
facilities to the people
of Pakistan as compared to the commercial banks.
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RBS has 75 branches in various cities of Pakistan. Few of them are in the following
cities:
• Karachi
• Lahore
• Islamabad
• Peshawar
• Quetta
• Rawalpindi
• Fasilabad
• Multan
• Sialkot
• Hyderabad
• Gujrat
• Mirpur (Azad Kashmir)
• Sargodha
• Gujranwala
• Vehari
• Jehlum
• Turbat
• Dera Ghazi Khan
• Sukhur
• Mardan
• Gujar Khan
• Kharian
• Bhalwal
• Bhawalpur
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RBS Pakistan offers products in areas like Deposits, Saving and currents accounts,
cash and cheque deposits, and loan facilities. Not only this, but it is also offering
products as: Balance Transfer Facility (BTF) which in banking terminology is One Stop
Payment Shop, 24 hour nonstop banking centre, relationship card through which
customer can access to over 1000 ATMs, life insurance protection, E statements
through which you can receive your BTF via email, Drop box facility- the convenience of
dropping of your payments at any of the drop boxes placed outside RBS, Pakistan State
Oil (PSO) and Shell.
VISION, MISSION AND CORE VALUES
RBS Vision…
“Contributing to profit generating by reducing the amount of time employees spend on
training activities and enabling employees to spend more time on revenue generating
activities.” (The Royal Bank of Scotland, 2008)
Our Mission…
“To create maximum economic value for our shareholders through a constant
relationship focus on the financial services needs of our chosen clients segment and a
strict adherence to our financial target.” (The Royal Bank of Scotland, 2008)
Core Values…
 Customer Focus
Relentless focus on understanding and fulfilling customer needs through superior
service.
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 Innovation
Continually generate, validate and implement creative solutions to business
challenges
 Integrity
Uncompromising financial and intellectual honesty to the organization and
oneself with relationships based on mutual trust and openness.
 Team-work
Willingness to share the glory of achievements as well as responsibility for failure
BUSINESS OPERATION
Overview of the Departments:
According to (personal communication, July 24, 2009) RBS Bahawalpur consists of the
following departments:
Administration Department:
The administration department of RBS lies in the basement. It has a main head that looks over all
the functions like cleaning, maintenance of the building, issuance of certificates and transfer
letters, keeping record of employees of all the departments, providing printing and fax facility
etc. As the bank has installed cameras at various places so this department views all the persons
going in and out of the bank from a television set.
Lockers:
This is just a separate unit rather than department. It has a very important function to perform. It
provides safety to the customers’ valuables like bonds and jewelry. Mostly three to four
employees work there with proper knowledge about lockers.
The doors of the department are not free to enter but are locked by automatic and well secured
switches.
General Banking / Customer Services Department:
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The ground floor consists of general banking area which has a separate floor manager under
whom various Customer service officers are working. This department provides a list of products
like Balance Transfer Facility (BTF), Deposit facility, Locker facility, Credit Cards, ATM facility,
Treasure Plus, Insurance benefits, Online banking and Non Stop Banking Service. The Manager
of this department takes care of dress code and language of all employees working there.
Operations Department:
This department is divided in to two main sections one which is directly dealing with the
customers like account opening, cash transactions and cash transfer takes place over here. The
second, has no direct customer dealing like issuing of pay order and demand drafts, telegraph
transfer and daily reporting etc.
Legal Recovery:
This department has a head, team manager and various customers’ handling staff. Basically this
department recovers various loans (Auto Loan, Islamic Loans, Credit cards) from those clients /
customers who do not pay off. In the list of customers who do not pay their money back to the
bank can be of two types those who are unwilling to pay and secondly defaulters. The department
contacts these customers through telephone and firstly inform them that their case is in recovery
so please contact bank and return the loan. Secondly if they do not turn up then the employees
themselves visit the customers.
This process consists of settlement letter, sending a waiver to the customers and then contacting
lawyers.
Royal Preferred Banking (RPB):
This department has the same structure and products as that of General banking but the main
difference is that it deals with high profile customers who have account balance of more than 1
million. Here the upper level management meets the customers. The RBP clients are well
sophisticated businessmen with high profits earning ability and are treated as Royal Customers.
The environment of RPB is very peaceful and has various facilities for the customers like
television, internet, magazines and newspapers.
Credit Initiation Unit (CIU):
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This is a top secretive department where entry is not so easy for every one. This department has a
boss, two supervisors and other employees. Basically it checks and verifies all the documents of
the customers who have applied for loan or credit card whether they are common customers or
Royal ones. It is being sub divided in two portions the secure and the insecure one. In secure
portion those loans are verified against which some collateral is granted by the customer like
mortgage and auto loans. In case of non collateral loans like (credit cards and Balance Transfer
facility) the secured portion is considered. The external and internal verification of documents is
done in this department.
Fraud Risk Management:
This is the subunit of CIU which keeps check and balance on the customers that if they are
involved in any kind of fraudulent activity, fake documentation so in this way checking the
integrity of a customer. The main focus of this department is on those clients who have requested
for credit card, home or Auto loan. The case passes through the following threes steps as:
vigilance, monitoring and investigation.
Organizational Structure of Branch Banking
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Consumer Branch Head

Ehsan ul Haq Ehsan
Floor Manager
Ijlal Rahim
Operations Manager
Sohail Majeed
Administration
Manager
Salman Qamar
Royal Preferred
Banking Head
Asif Muslim
Legal Recovery Head

Mohd. Bashir
Credit Initiation Unit

Head
Adnan Mansoor
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SWOT ANALYSIS
A SWOT analysis is used as a framework to help the firm develop its overall corporate,
marketing or product strategies. Strengths and Weaknesses are internal factors, which
are controllable by the organization. Opportunities and threats are external factors,
which are uncontrollable by the organization.
During My internship period, I closely studied the SWOT of RBS and is described below
STRENGHTS
1. RBS is the first multinational bank which has started the concept of Islamic banking
and so rapidly expanded its products of Islamic banking. The launching of Islamic
credit cards and auto financing on basis of Mudarabah is expected to provide
positive growth opportunities to the bank.
2. RBS formerly ABN AMRO, was at number five with respect to its assets but now it is
at number one.
3. It enjoys better position than the other banks of Pakistan because RBS maintains big
accounts of highly profiled businessmen as compared to other banks.
4. RBS has expanded the network of its branches in a very short period of time. It
started with eight branches in major cities of Pakistan but now it has seventy five in
various cities of Pakistan.
5. One of the plus points of RBS is that it has very tight policies based on foreign and
State Bank mandate, which makes it better than Pakistani local banks.
6. RBS has one special department by name of Fraud Risk Management (FRM). The
staff of FRM verifies the customers at various stages in order to reduce the
occurrence of fraud in bank.
7. RBS provides best service to the customers by taking care of their needs.
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8. RBS gives too much importance to its customers. On the main entrance of bank
there is special greeter desk which is responsible to properly guide the customer.
Not only has this bank always kept two to four staff members who are ready to help
the new customer any time.
9. The concept of NSBC introduced by the bank is very positive by providing 24 hours
service to the customers. Also the SMS banking is better than other banks of
Pakistan.
10. All the departments of the bank follow the policy of KYC that is “Know Your
Customer.” According to this policy the bank staff knows its customers fully from his /
her business to daily activities so that they do not fall a pray to illegal activities.
11. A very positive point of this bank is that it gives separate status to high profile
customers. For example the customers who have account worth of more than 1
million are treated specially. Bank has a separate department and dealing section for
such customers which is known as RPB and customers are called Royal Preferred
Customers. These customers have access to luxurious and well decorated waiting
areas where they can enjoy reading newspapers, magazines, watching television
and using internet.
12. On the whole employees are satisfied with the bank and its environment and have
high salary structure than the other banks.
RBS has a very strong management who is always ready to take strict actions and
wise decisions during the bad conditions.
WEAKNESSES
1. One of the weaknesses of this bank is that some of its branches have not even
started its operations like its Peshawar branch is not functioning because of lack
of employees in that area.
2. It is very much true that RBS considers it’s customer a great asset but some
times it is not able to satisfy them. The main problem is with ATMs mostly the
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customers get annoyed but the bank employees do not take this problem
seriously.
3. Many of the times employees on the floor who have direct dealing with the
customers feel frustrated without any break during the work schedule.
4. There is lack of proper rotation among the departments, which leads to limited
knowledge among employees.
5. Sometime the customers feel dissatisfied and complaints that bank does not
clearly mentions the terms and conditions on various products like deduction of
service charges. Mostly credit card holders come up with such complaints.
6. Many of the banks employees are not loyal with it. They just leave the job in
search of better job opportunities to other banks.
7. Some times the customers are not informed before time about the certain
changes being going in the bank; regarding banking products or changing the
name or structure of the bank, which creates confusion in minds of the
customers.
OPPORTUNITIES
1. RBS has started NSBC there is opportunity of growth in this field.

2. There are growth trends in Islamic Banking sector of Pakistan which will further
enhance the working condition of Islamic banking in near future.
3. The bank should employ the best courier companies and keep in touch with
them, for resolving the problem of dispatching customers’ goods.
4. The bank management should use the modern ways of communicating with staff
and staff in return to the customers, so that flow of information leads to rapid and
positive results.
5. As employees have the habit of working with ABN AMRO, but now with RBS take
over there are chances of further growth in productivity of employees and
improved banking environment.
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THREATS
1. Due to present government and the instability of the policies RBS may face a lot
of problems in future.
2. The religious class emerging from the Pakistani society, which hates working with
the foreign banks and prefers local banks, can disturb the working of the bank in
future.
3. Due to depreciation of Pakistani rupee, bank may earn less profit than its other
foreign branches.
4. The employees are not loyal with the bank, when they find better opportunities
they leave their existing posts so it can create the problem of recruiting new staff
for Human Resource Department.
5. Many new and emerging banks like Barclays are offering better pay packages to
the employees which in future may increase the turnover of employees.
Conclusion
The biggest strength of RBS is that it is the first multinational bank which has started the
concept of Islamic banking. It enjoys better position than the other banks of Pakistan
because world wide it is at number five with respect to its assets The department of
FRM is giving good results as compared to other banks of Pakistan. The main
weaknesses are that some of its branches have not even started its operations so they
should be in the working condition, lack of proper rotation among the departments and
customers dissatisfaction arising about changes going on in bank. But the bank has
opportunity of growth in Islamic Banking sector. On the other hand the biggest threat is
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the instable economic position of Pakistan and the depreciation of Pakistani rupee by
which it will earn less profit than its other foreign branches.
MARKETING STRATEGIES
RBS strongly believes in “winning the customer by winning his heart” through complete
satisfaction of his/her needs. RBS bank’s marketing strategies are more towards making
their existing customers loyal because they believe that it is their customers who provide
them with new customers. RBS uses KYC (Know your customer forms) to have
complete association with their new customers.
DEPOSITS
Target Market
Personal Bankers target markets include businessmen, salaried individuals,
housewives, retired individuals and anyone who has the potential of providing legal
deposits to the bank.
Promotional Strategies
Promotional marketing has various types; from what I can recall there is direct
marketing and indirect marketing. Direct marketing is a discipline within marketing that
involves the planned recording, analysis and tracking of individual customers’ response
and transactions for the purpose of developing and prolonging mutually profitable
customer relationship.
Direct marketing is a form of marketing that attempts to send its messages directly to
consumers using “addressable” media, such as mail and (increasingly email), telephone
and personal meeting with customers. Therefore, direct marketing differs from regular
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advertising in that it does not place its messages in a third party medium, or in the public
market, such as billboard to a radio commercial would. Instead, the marketing of the
service or commodity is addressed directly to the target customer
On the other hand indirect marketing includes such types of advertising tools like
billboards, TV commercials where no immediate response can be seen neither can be
measured. No matter what the promotional strategy, as Mr. Kashif, Team Manager of
Credit Cards Department in Consumer Banking said
“A successful product or service means nothing unless the

benefit of such a service can be communicated clearly to the
target market”
RBS promotional strategies consist of
Public Relations
RBS strongly aims to develop positive relationship with public. RBS Bank donated
Rs.20 Million to the President’s Relief Fund for people of Swat.
Direct Mail
There has been a massive growth in direct mail campaigns over the last few
years. RBS Bank has complete databases, which contain names and addresses of
potential customers.
Direct mail allows RBS to use their resources more effectively by allowing them to send
publicity material to a named person within their target segment. By personalizing
advertising, response rates increase thus increasing the chance of improving business.
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Internet Promotion
Owning a website is a now a crucial ingredient to the marketing mix strategy of any
organization. Union Bank’s customers can now obtain instant information on products or
services to aid them in their crucial decision. Further RBS also facilitates its customers
through I-Banking. Customer can register on the web site and can enjoy a host of
services.
Personal Selling (Push Strategy)

The foremost Promotional Strategy of RBS is Personal Selling i.e. Selling a products
one to one.
Direct Marketing
Personal Bankers at RBS, whose primary job is to bring more and more deposits
to the bank, make use of Direct Marketing techniques. First of all these PBs
identify their sources from the reference groups and track down their likely to be
customers. According to a PB Mr. Rab Nawaz at RBS Bank,
“It is all a matter of keeping your eyes and ears open. While
meeting with a potential customer, it is most likely that you can
get a new reference for a new customer”
Once they get a reference from their existing customer or relative or colleague,
they try to get as much information as possible about their potential customer.
Then they give a call to the customer and try to convince him/her over the phone.
Customers with greater potential are asked for appointments for a face-to-face
meeting.
Customers who provide the bank with heavy deposits are given special
treatment. It is common for the Branch Manage Mr. Ehsan ul Haq to give formal
meals in restaurants to such customers.
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Product Strategies
Augmented Product
With every new account opened, RBS Bank provides a free chequebook and a free
Customer Relationship card. Other than that, if a customer maintains an average
balance of five lac, he/she has the facility of making two DDs free of any charge.
Augmented Personalized Services
Personal bankers are dedicated to provide with the best possible attention, advice and
services to their customers aside from regular.
CREDIT CARDS
Push Promotional Strategy

RBS makes use of push promotional strategy to promote the credit cards business.
Through this promotional strategy, Union Bank makes use of its sales force and trade
promotion activities to create consumer demand for credit cards.
Positioning
The Credit Card meets the everyday usage needs of financially responsible consumers
who desire the flexibility offered by the credit cards. It provides the high level of quality
customer service.
Target Market
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The Credit Cards are targeted towards customers who are financially responsible,
middle and upper income consumers who seek greater financial flexibility, a mix of local
and global services and support and demand a high level of quality and service
Target Market Profile

Aspirant
Financially responsible
Need for financial flexibility
Price and image conscious
High everyday retail use, as well as local travel and entertainment use
Approved Cities
Karachi
Lahore
Islamabad
Multan
Others (All Cities where UnionRBS Bank Branches exist along with Collection and
Verification infrastructure)
Risky Categories
Property Dealers/ Real Estate Investors
Agriculturists/ Politicians/ Landlords (can consider if exporters/business)
Manpower Suppliers / Overseas Employment Agencies
Expatriates
Non-Resident Pakistani’s
Lawyers/ Journalists (exceptional approval only by Credit Manager/ Business Head)
IT Schools (exceptions include multinational collaborations like NCR, Microsoft and
schools operating for more than 2 years.)
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BUSINESS PROCESS ANALYSIS
Auto Financing Process
RBS bank finances only new car models of 2005 or higher models. When a consumer
leases a car, he has to make the payment or installment on the 1st of every month. If the
customer does not makes payment then .1% additional interest is charged. If the
customer desires to get rid of the installments then he has to make a one-time payment
plus 5% penalty. Markup rates can increase and the customer is liable to pay it. The
process of leasing a car is as follows
Step 1 - The chooses a car to be financed or leased

Step 2 - An application attached at the end of report is filled out and signed by the
consumer
Step 3 - KYC form (Know you customer form) is filled out
Step 4 - The Sales Processor rechecks the documents and enters the whole information
in the ATS (Auto Tracking System).
Step 5 - This soft copy and the original file are sent to the CIU department who tries to
find out objections and reject that application.
Step 6 - If no objection is found with the provided documents and evidences, then the
copy of record is forwarded to Verification Department whereas
Step 7 - The original documents are sent to credit analysts at Lahore.
Step 8 - When credit analysts pass the case then the application and forms are sent to
Karachi to COPS department where the case is filed as pending at operation.
Step 9 - The COPS ask for legal documents. Upon receiving legal documents, the Head
Office issues the purchase order.
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Step 10 - This purchase order and a dealership acceptance form are given to the
customer.
The Bank makes the purchase of the car; the dealers give away two keys one goes to
customer and the other to HO (Head Office). The financed car is always insured to an
insurance company for which customer has to pay.
The whole process is lengthy and complex and customer must get carefully as much
information as possible so as to avoid any trouble in future.
Weaknesses of this process
The process is complex and time consuming

Strict policies in Autos make the whole process very complex and unpleasant for
customers. This can result in the customer diverting to UBL (United Bank Limited)
Auto Financing, which is a giant in Autos department.
Down payment before getting the vehicle

UBL has such policies that straightly go into consumers benefit e.g. UBL receives
down payment from consumer after he takes the car home unlike RBS Bank’s.
Besides, if the application rejects then the customer is refunded the down
payment with Rs. 2000 deduction and customers sometimes get frustrated on
that.
Strict verification department

The VU department is adamant to reject the application. Even small grammar
and spelling mistakes or any cutting on the documents attached at the end of
report could lead to sending back the documents for correction.
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Consumers Prefer Dox rather than No Dox

Nowadays, a large population of consumer prefers car financing through No Dox
(No Documents) also known as BAC (Branch Acquisition Channel). Through
BAC, a consumer comes to know just within a day whether he/she can finance a
car or not. The No Dox process requires merely the following
Last six months bank statement showing average balance as 1 lac Business
proof in the form of
 Partnership deed
 Rental Agreement
 Salary Slips
 4 to 5 lac rupees deposited in Union Bank for just one week
 ID Card Copy
 Two Snaps
Then I read an article in newspaper that I would like to share. The outlines are as
follows
UBL Auto Financing

UBL finances over 2000 cars per month. Its car financing features are as follows
Zero Pre Payment Penalty

UBL does not charge down payment and processing charges till application is
approved
PAYS (Up/Down)
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PAYS is a revolutionary feature and heart of UBL’s Drive Philosophy. It provides

 Consumer driven facility where customer can distribute the quantum of
payments over period of seven years on his/her own will.
 Consumer gets free car tracking device
 Consumer can take payment holidays
Car Replacement Plan

This plan provides value added financing solutions to their customers this plan
facilitates life Insurance, maneuver the loan tenure and Opt for financial payment
Recommendation
Clearly, in the presence of such major leading competitor, RBS does not seem to get a
competitive market share in near future. RBS should pay more attention to its Branch
Acquisition Channel with new competing strategies and should continue the Dox Car
Financing as well for there are still consumer markets that cannot afford to arrange five
lac rupees for a week.
Autos Collection Process
Collection is defined as obtaining payments from delinquent accounts or from customers

who are close to availing the maximum of the facility allowed. Collection process
continues for six months, after six months the process becomes recovery of funds.
Payers could be
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Prompt payers
Good but slow payers
Willing but unable
Able but Unwilling
Delinquent Accounts
RBS Bank classifies an account as delinquent when the monthly amount due is not
settled on the due date. After an account is stated as delinquent, special efforts are
needed to be carried out for collection.
1-29 DPD is equal to 1 payment due (Front Range)

30-59 is equal to 2 payments due (Mid Range)
60-89 is equal to 3 payments due
90-119 is equal to 4 payments due
120 onwards is equal to 5 payments due
Collection could be In-house or external as follows
In-house Collection
In-house collection can be made through
Telephone calls
Letter Dunning (Delinquent payment letters are generated according to the type of
delinquency)
Visits; Customer walks in (Customer may wish to visit and meet with RCM Regional
Collection Manager)
External Collection
When In-house fails, legitimate process is carried out which follows repossession in
which physical confiscation of the asset is carried out after legal notice has been sent.
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Collection department performs the following
 They enforce customers to make payments

 If more than three payments are over due, the vehicle is captured in possession.
 If customer agrees to pay then amount charged is outstanding payments plus
extra charges. Otherwise auction is carried out.
 If after auction, dues still remain to be paid by the unwilling customer then court
case can be registered against consumer.
 If a customer does not pays on due date he/she can becomes a defaulter at CIB.
CIB (Credit investigation beaureu)

If a customer does not make due payments for three months, he/she becomes a
defaulter and his name is sent to CIB. Afterwards if the customer pays then his name
can be removed from defaulter list. Every bank to identify its new customer as good or
bad refers the defaulter list.
Voucher Audit Process
Verification of Transactions Made By Cashiers

Every morning, the voucher audit process start from the submission of debit and credit
vouchers of the previous day by cashiers at the back office. The head office sends the
printout of TRL to all RBS Bank Branches. This TRL contains the transactions made by
cashiers. The order of the transactions listed is by the account numbers. So upon
receiving the vouchers, the following steps are carried out.
 Separation of vouchers of this branch and other branches
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 Arranging both vouchers in ascending order according to account numbers.

 Matching the vouchers one by one with the related transaction in the transaction
list.
The following things must match for credit vouchers.
 The account title on the credit voucher must match with the title on the TRL.
 The amount written on the credit voucher must match with the one written on
TRL.
 If deposit is through cheque of RBS then the cheque number written on credit
voucher must match with the one written on TRL.
If all these things match this means that the entry made by the cashier was correct.
While carrying out this process, the credit vouchers are examined carefully for any
errors. The following things are examined
 The date entered on the credit voucher must be correct

 Account number is entered correctly
 If the payment is through cheque, cheque number must be mentioned
 The amount written in numbers must match with the amount written in words
 There must be no cutting or over writing
Other than this, stamps are checked
 Every credit voucher must contain the uploaded stamp

 If payment was made through cash then cash received stamp must be there
 All credit vouchers must contain the signature verification stamp
 If credit voucher is for transfer, then transfer stamp must be there
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 Credit voucher must contain the clearing stamp if the instrument presented for
funds deposit is of some other bank
 Related signatures of cashiers must be there
The following are needed to be matched for debit vouchers.
 The account title on the debit voucher must match with the title on the JRC.
 The cheque number on JRC must match with the one on debit voucher.
 The amount written on debit voucher must be the same as on JRC
While carrying out this process, the debit vouchers are checked carefully for any errors.
The following are checked carefully.
 Cheques must not be post dated

 Cheques must not be staled
 All required stamps must be there
 The amount written in numbers must match with the amount written in words
 There must be no cutting or over writing
 If there is any sort of over writing, customers’ signature must be taken near that
area
Other than this, the following stamps are checked
 If the cheque is crossed, this means that the amount specified on the cheque can
only be transferred to another account and cash cannot be paid. If there is
crossing stamp on the cheque then there must be payees account credited
stamp at the back.
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 If the cheque is not crossed and was presented at RBS Bank then cash paid
stamp must be there.
 If the cheque carries some other banks stamp then it must also have clearing
stamp on it for that cheque had come to union bank after passing through
clearing process.
 If the cheque contains a clearing stamp then it must also contain Received for
final realization stamp
 Signature verification stamp must be there
 If the account title written on the cheque is of some company then it must also
carry the company stamp.
LEARNING AS A STUDENT INTERN
I started my internship at RBS on 24th July 2009. I reported at the Circular Road Branch
promptly at 9:00 am in the morning where I had an orientation and then I was placed at
the Customer services Department .I was to report to Finance dept. head, Mr. Asif
Muslim, and during my working tenure he supervised me as well.
DUTIES
During my internship period at RBS, initially I was assigned no particular duties. It was if
I had found some modern archeological plot equipped with knowledge. It was
completely up to me how much I could dig out according to my strength and capabilities.
But still there were some regular duties that I was needed to accomplish efficiently and
with great responsibility as follows.
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Vouchers Audit
One of my regular duties was to carry out the audit of debit and credit vouchers. This
department comes under Mr. Saeed Ather who is Operations Control Officer at RBS
Bank and I worked under his supervision. Audit of vouchers is a lengthy and tedious and
hence wearisome process. It requires constant attention and any negligence can lead to
fanatic situation.
Firstly we have to sort all the vouchers in the same order as it appears on the TRL
(Transaction List) so that it could become easier to match the vouchers with their
corresponding entry on the list. Once sorted, each and every voucher is carefully
examined for stamps and signatures and also that none are post dated or stale. After
satisfying ones self, the transaction on the TRL is underlined.
Any objection in the vouchers is reported and is taken care of accordingly. The purpose
of matching is to make sure the cashier did not miss anything and all the transactions
were made correctly.
In the end, the transaction list is revised to make sure that no transactions were
overlooked and that every transaction that appears on the TRL is underlined, a
transaction that is not underlined suggests that the related voucher is missing.
My job as CRO (Customer Relationship Officer)
My job as CRO was a completely new and exciting experience. CRO is a person who
interacts with every customer who steps into the bank and guides him/her according to
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his need and business. I do not think I have interacted with such large number of people
as CRO in these six weeks than in my whole life.
As CRO, I learnt a lot of things, not only work related or career related but things, which
are good for one’s character as well. For instance in my experience I learnt how to be
patient when dealing with customers, it became so irritating at times. But then looking
around, and seeing how the other colleagues worked with customers everyday and
observing their tactics made me realize the art.
Every customer who arrives at the Bank needs a different treatment because different
customers belong to diverse backgrounds and set of values and beliefs. Some are
educated, others uneducated and cannot even write, some are rude, other are
cooperative and polite, some are in urgent need while others are more trivial, some
need an outstanding treatment and are fully aware of their rights as customers whereas
others are afraid of asking even for their rights. I had to interact with all and guide them.
I also guided customers who interacted through phone and this requires immediate
feedback, good communication, quick thinking and fast decision-making skills. This
interaction with so many people built huge confidence in me.
I also maintained the record of outward and inward mails, which included OBC as well,
that are received on daily basis. The gain of such record is that we could always trace
back whether a mail was dispatched or not in times of uncertainty.
Maintaining CBR, CBI and Debit Cards Record
During my internship, I worked in CRD (Customer Relationship Department) under the

direct supervision of Mr. Asghar Iqbal who serves as Customer Relationship Manager at
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RBS Bank. I was also assigned the duty of maintaining the record of chequebooks and
shopping cards. Chequebooks arrive from Head Office at Karachi on daily basis upon
receiving chequebook requests. The request is received on CBR (chequebook request
form) from customer. All the requests at the end of the day are sent to head office
through RBS Bank’s special online system OSMS. The next day, chequebooks arrive
through courier service. An entry is made in OSMS confirming that chequebooks have
arrived.
The record of these received chequebooks is maintained manually in a register to take

customers signature upon receiving. The customers are informed through telephone to
come and collect their chequebooks. Upon customer arrival, CBI (chequebook
issuance) that is in the chequebook is signed by the customer and is kept safely for
record whereas the CBR initially given by customer is returned because CRD does not
need it any more. Another signature of customer is taken on chequebook register.
A customer can also authorize a person to collect his/her chequebook if he/she cannot
come in person. The account holder fills out an authorization form and authorized
person ID card is submitted and signatures of both are taken. The authority holder can
be one time or full time.
Rests of the chequebooks that are not delivered on that day are kept safely in the locker
room. If a customer does not come to collect his chequebook within 90 days, they must
be destroyed. Ten days before destruction, the customers are again informed to receive
their chequebooks. The process of destruction is carried out on 1st and 16th of every
month.
I was also to maintain the record of VISA debit cards. Debit cards requests are received
on Shopping Card request form attached at the end of report. These requests are
34
handled just like chequebooks requests difference is that debit cards must be destroyed
within 40 days from the date of issue.
ACCOMPLISHMENTS
New knowledge acquired
The core of my internship was the knowledge I acquired. Being Business graduate and
completely supported and helped by my family, I never felt the need to even step into a
bank and open an account. I was entirely ignorant of a bank’s business processes. But
this internship program has made me aware of most of bank’s business processes and
hence it has built in me, immense confidence to step into bank and carry out the routine
banking tasks.
New exposure
My internship experience has given me a completely new industry exposure in the

banking sector, which includes both the consumer banking and branch banking. After
graduation, I strived to have some professional experience so that I could overcome my
weakness of hesitation from social circle. I can say that for me the best thing about BBA
was this social and professional exposure that I longed to have.
People Diversity
Being an introvert personality, I never had the precious experience in people diversity.
During this internship period, I interacted with so many people both customers and
employees with diverse personalities and behaviors, different age groups, some far too
senior and experienced that it has given me confidence to interact efficiently with
people.
Tactful communication; A MUST
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From this internship program, I have realized that the skill to communicate tactfully is
the thing we should learn and polish, especially in dealing with customers. It is not the
most important if you don’t have the required skills at this moment. Rather, being
creative in problem solving and being a quick learner are the keys to success in the fast
growing banking sector.
Another important thing regarding communication that I have learnt is; no matter how
far we go in adopting English language; practically and within organizations, staff prefer
to communicate in their mother language i.e. Urdu, because their priority is to efficiently
complete the work to attain the corporate goal of the organization in minimum time and
they simply do not let formalities come in their way because actions speak louder than
words.
Working towards corporation goal
During my internship, in the last weeks, I started to feel part of that organization. I
actually felt working for that organization though I was merely an intern. Techniques like
how to work towards the corporation goal, tackle a problem, are not something that can
be taught in classrooms and this internship has definitely trained me in it.
Larger social circle
I have come to know and be respected by a number of professionals who are lending
their services to the banking sector for more than a decade. I feel honored that I have
worked with such seasoned professionals and have experienced broader social
awareness.
Self-discoveries
36
During my internship period, I self discovered that I could interact well with difficult
people and that I have the tendency of being liked by other people, which is because I
believe that to earn respect, one should give respect. Moreover people find me their
secret holder and trust me and that is perhaps because of my simple rule, which is “no
backbiting”.
Career Awareness
This program was a career awareness program as well in the sense that it helped me in
identifying my interests. What I have identified is that I want to do some thing dynamic
and not an assembly line kind of job. Moreover, I have found that in Pakistan, it doesn’t
matter what is your field of education meaning that as long as you have the slightest
idea of job in hand and you are an active learner, you can work wonders.
Opening up new horizons
I must admit that such interaction in that respectable professional community will help
me in seeking out job opportunities. All this experience has transformed me into a
mature person with multiple perspectives and has put me one step forward to a better
career, and also broadened my horizon.
Confidence building
One thing I lacked and strived for was the lack of confidence in interacting in a
professional environment. RBS Bank’s supportive and multinational culture made me
feel comfortable talking to my superiors regarding problems encountered at work. I
learnt to always be responsible and have the sense of ownership when problems
appear. This all has definitely helped me build up confidence and had made me well
equipped for my career.
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PROBLEMS ENCOUNTERED
Difficult time in getting used to new environment

Initially I had difficult time in mixing with organization members and felt uncomfortable in
that new place with new people. However, after some time, I became a part of it just like
everyone else and felt completely comfortable.
Working Ladies Still Not Respected

Second problem that I encountered is very common in our society and that is women
are assaulted emotionally; though trend of working women has immensely increased in
our society and people have started to accept a lady working on a descent job outside
her home but unfortunately, we know too well that our society, culture, and citizens live
and function far from ideal.
I must briefly quote here the actual incident that took place; an officer simply refused to
guide an intern because apparently she was a female and her presence was not
welcomed in his office. It does not matter whether he actually meant it or not, his
statement hurt the intern emotionally and for the time being she was ready to leave
internship. Then another intern was remarked on having her hair lose.
NEW KNOWLEDGE ACQUIRED
During my internship, I came across with an attention-grabbing issue of money

laundering. I studied it and it is briefly described as follows
Money Laundering
Money laundry covers activities and procedures to change the identity of illegally
obtained money so that it appears to have originated from legitimate source. Money
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laundering encompasses moving the money back and forth in financial institutions to
hide the money's
Origin
Ownership
Character, which is tried to be changed from illegal to legal
Generation of Illegal Wealth

Illegal wealth can be generated from
Drug Trafficking
Robbery to Theft
Tax Evasion
Smuggling
Terrorism
Profits derived from environmental violations
Three Basic Stages in Money Laundering
Placement
Placement is carried out by splitting of large sums into smaller amounts known as
smurfing and
 Deposited into bank accounts.
 Used to buy financial instruments e.g. cheques, securities in the name of
front man
 Collected through accounts in other banks
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Layering
Complex financial transactions are carried out that separate the money from its
source. Each transaction on its own appears innocent such as
 Purchasing assets Gold/Fine Arts
 Purchase of Traveler cheques or Stocks or Bonds
Integration
Money is brought back into legal economy to benefit criminals who created this
wealth in the first place.
How to Control It
 By monitoring card transactions

 Reliability of staff handling cash
 Transactions that do not make any economic sense
 Customers with large number of accounts with the same bank
 Transactions in which assets are withdrawn immediately after depositing
 Account shows virtually no normal, personal or business related activity
but is used to receive or withdraw large sums
 Through KYC (Know Your Customer)
 Trust Worthy Third Party
 Purchasing or selling of foreign currencies or substantial amounts by cash
 Purchase of large number of cheques by an interim customer
Who are Customers and Non Customers?
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RBS keeps the distinction between customers and non-customers. According to RBS
Bank, individuals who possess account with RBS are their customers and those who do
not are non-customers. To become a customer, an individual opens an account with
RBS Bank as follows.
How an Account opens?

Account opening is the first step towards establishing banker-customer relationship. A
written contract in the form of Account Opening Form (AOF) attached at the end of
report must be completed and signed by the customer who desires to open an account
with the bank. The customer submits the required information and submits the required
documents.
Once all the required information is completed, the personal banker rechecks the
information, gets the required signatures from OM or BM and enters the mandatory
information in the MOCHA information system. MOCHA system provides a unique
account number that is provided to the account holder. Then an initial deposit slip is
prepared so that the customer can make the first deposit.
How to make a deposit?

To make a deposit, customer needs to fill out a deposit slip attached at the end of report.
Deposit can be made through cash, cheque or draft. When the customer’s desired
account is actually debited, depends on the nature of instrument presented. For
example if the cheque presented needs to be launched in clearing then the transaction
cannot take place immediately as in the case of cash deposit or RBS Bank crossed
cheque deposit. Deposit voucher is marked with a number of stamps and can be signed
by a number of employees. A deposit voucher must not contain any over writing or extra
markings. During audit of deposit vouchers, a number of things must be carefully
checked.
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During my duty as CRO, I was surprised to the fact that a number of customers do not
know how to fill their deposit slips. Though it is not the duty of CRO to fill the deposit
slips for customers but there is no other option. Besides, deposit works as blood in the
veins of Bank. I used to make sure that the account number in which deposit is to be
made is correctly written as told by the customer and used to urge them to verify it
before presenting it on the cash counter.
What is MOCHA Information System?

MOCHA information System is software designed specifically keeping in view the needs
of RBS Bank. This SW acts as the vertebral column of this organization. The sensitivity
of this SW can be judges by the fact that I was not allowed to capture a screen shot of
this sophisticated SW. The employees are well aware of the fact that this SW plays a
vital role in the competition in banking sector. This SW is used to open an account
electronically. Once all the information is entered in the system, it allots a distinctive
number, which is to be quoted in all correspondence with the Bank relating to the
account.
MOCHA SW keeps history of all the transactions performed on an account. It maintains

and manages all the functions related to an account such as the balance remained in an
account, time and amount of transactions carried out, average balance of an account,
customer details, customer contact details, the serial number of cheques utilized by a
customer.
Each and every computer terminal in the organization is installed with this SW with
some limited access according to the department. Each and every input in the system
made; can be seen at any RBS Bank branch all over the Pakistan. Through this SW,
RBS is competing in the war of real time online banking systems.
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This system is efficiently maintained and secured by the IT department. Customers’

inquiries about their accounts are answered by getting the desired information from this
system. This system not only manages customer accounts information rather it is a
complete accounting information system and is used to maintain and manage all the
accounts of the organization as well.
Only the authorized employees have access to this system. Entering a valid
combination of user name and password can access MOCHA system.
How inquires about account balances are handled?

Customers can inquire about their account related information by providing the account
number on phone or by coming in person. Customer satisfaction is priority of RBS Bank.
The culture of Union Bank is to receive the phone call in maximum three rings. This
culture helps RBS Bank to maintain its position as a leader in providing best customer
services in banking sector.
Debit Card / Customer Relationship Card
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When a customer opens an account with RBS Bank, he/she can request for a debit card
free of charge for the first time. This shopping card can be used 24 hours to withdraw
cash through ATM machine. The request for shopping card is sent to the head office
Karachi, where they are produced and delivered to different branches. The maximum
cash of 25000 can be withdrawal in a day through ATM or debit card. The maximum limit
of cash withdrawal depends on how much customer deposits in his/her account.
What is a Bank Statement?

A bank statement is a statement that contains past transactions carried out on an
account in a specific time period.
How Bank Statement Requests are fulfilled?

RBS issues bank statements to all account holders after six months time period. Other
than that, a customer can get a bank statement any time upon request by filling out a
bank statement issuance request attached at the end of report, the presence of account
holder or an authorized person is mandatory. After the request is verified, the statement
is printed out on the spot. The whole procedure takes less than five minutes on average
at RBS.
What is intimation regarding change of address of A/C numbers?
When a customer opens an account, his/her mailing address is fed into system for
contact purposes. If the customer needs to change his/her contact address, he/she is to
fill the request regarding change of address. The request is sent to he Head Office
where the address is changed in the system.
What is CTL Program?
44
CTL program is used to track credit cards payments. The credit cards department has
this program installed in computers. Through CTL, collection department can inform the
customer of each and every transaction he made and where it was made or can check
the amounts deposited on specific dates by the customer. All the merchant machines
around the globe are interconnected. That is how the customer transactions can be
traced out.
Lockers
There are three types of lockers small, medium and large, to rent a locker, customer has
to fill a request form, locker can be a joint locker of up to four individuals or it can be
individual. In case of joint, signatures and IDs and presence of all locker candidates is
compulsory.
For every locker, customer has to submit a key deposit amount of Rs. 2000 for once
which is non refundable and also lien; Lien is an advance amount of 3xLockerRent that
is refundable upon locker surrender. Then there is annual fee of amount according to
the type of locker. If customer does not submit this fee, a monthly fee of Rs.100 is
charged unless customer does not pay.
Lien against locker rent

Lien is an advance amount of 3xLockerRent that is refundable upon locker surrender.
Locker Keys
Inserting two keys can open every locker. One of the keys is kept with locker holder,
whereas the CRM keeps other one in custody.
Locker Breaking Charges

If a customer loses his/her locker key, that locker's lock has to be replaced by a new one
with new keys. Locker breaking charges are charged to the customer.
45
Locker Surrender
When a customer no longer wants to keep the locker, he/she has to surrender it. After
surrender, the key is put into pending which means that this locker cannot be rented to
any customer unless a new lock of the locker is placed with new keys.
Lockers with lost locker holders

If the annual fee is not submitted for 10 years, in that case the belongings are handed
over to the State bank of Pakistan.
Free Locker
If a customer is an account holder and he maintains an average minimum balance of 1
million, then a free locker is granted.
OSMS (Operations and Services Management System)
Stop Payment
Stop payment instructions are accepted subject to the condition that item has not been
paid. To stop payment through an instrument, customer fills out a stop payment request
attached at the end of report. The instrument numbers are entered in the MOCHA
system as soon as possible.
Vernacular Form (Letter of Authority)

If customer signatures differ a bit every time he signs then a vernacular form is signed
by the customer which states that the customer takes the responsibility if something
goes wrong due to signature mismatch.
46
Drop Box
A drop box is used so that customer does not have to wait to make monthly payments
credit cards. Instead the customer can make payment of the AMX or Visa card or
leasing installments by dropping the cheque and attached deposit slip in the drop box
and can leave immediately.
Types of accounts
To open any account, a different set of documents and proofs are required
 Individual Account
An individual account is the property of only a single individual and hence only
that individual’s signature or presence is required to carry out certain activities.
 Joint Account
Two or maximum four individuals possess joint account. In this case, it is possible
that one of the two individuals can carry out the transactions with his authority
alone.
 Sole Proprietor Account

This account requires Rubber Stamp, CNIC, request for opening sole proprietor
account on firm's letterhead and NTN certificate.
 Partnership account
47
This account requires Rubber stamp, List of partners, Partnership deed,

Registration of Partnership, request for opening sole proprietor account on firm's
letterhead and NTN certificate
 Company Account
This account requires Memorandum of Association, Article of Association, List of
Directors, Certificate of Commencement of Business (only for Public limited
companies), NTN certificate, Rubber Stamp, Board Resolution, NIC of all
Directors and Registration of Company.
 Association/Trust/Club/Society Account
This type of account requires NIC, Rubber Stamp, List of Members, Resolution,
Copy of Rules, and Copy of By-Laws.
Types of Cheques
 Self or Bearer
A self or bearer cheque is a type of cheque that can be cashed. The person who
presents the cheque is paid the amount written on the cheque.
 Crossed Cheques
Crossed cheques can only be transferred into an account. They cannot be
cashed. There are two types of crossed cheques.
Simple Crossing
These instruments can be used by anyone, however the bearer of cheque
will not be paid cash instead the amount will be transferred in the account
mentioned by the bearer.
48
Special Crossing
In Special Crossing, account title and account number are mentioned and
the cheque can be deposited only in the payees account.
 Order cheque
In order cheques, the name of person is mentioned who is eligible to get cash,
the person has to show NIC to get the cash.
Stale Cheque
A cheque is stale if it has completed its six months limit and it sort of expires and cannot
be presented for withdrawal.
Post-Dated Cheque
A cheque is post dated if it is presented but it face date is some future date.
Clearing Process
Clearing is a process that is carried out in order to verify that the cheque presented is
collectable and the account holder of that cheque maintains the balance that is written
on the cheque. This process involves
 Presentation of cheque on cash counter

 Stamping
 Posting of shadow entries
 Printing of JRC of shadow entries
 Sorting of cheques according to banks
 Verification by comparing actual cheques received and that on the JRC and
 Making of outward/inward clearing sheet
 Verification of balance by matching manual and computer generated figures
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OBC (Outward Billing Collection)

Outward billing collection is the same as clearing except that the cheques are received
from other RBS bank's branches located in different cities so that they can be launched
in clearing locally.
IBC or Inward Clearing
When RBS cheques are launched in clearing by other banks in the same city, they are
received by RBS as IBC at National Bank Limited.
Cheque Returned Memo

If a transaction cannot be carried out for a cheque presented, because of any reason,
the cheque is returned along with an attached memo attached at the end of report. The
memo contains the reason for return of that cheque.
Dishonored cheque
If account holder gives a person a cheque, such that the person cannot draw it due to
insufficient balance and the cheque returns with memo, it is the right of that person to
register FIR against that account holder. However, to register FIR, he/she must provide
at least three consecutive memos.
Funds can be transferred through following security leaves
Pay order
To transfer funds within the city, an account holder can make use pay order. The
advantage of pay order against cheques is that the bank gets involve at two
points. At first the pay order has to be made from bank and the second point
where the pay order will be presented for withdrawal. Pay order is used to
transfer funds in the account of the beneficiary however, if the account does not
50
exist then the signatures of two bank officers are required to cancel the effect of
payee's account only.
Demand Draft (DD)

The difference between pay order and DD is that, DD is used to transfer funds
between cities.
Telegraphic Transfer (TT)

Telegraphic transfer is a fast way to complete transaction. To make TT, .1 % of
the amount transferred or 200, which ever is higher, is charged to the customer.
The customer fills out funds transfer request form and pays cash. Suppose a
person who has to receive the cash (TT) resides in Islamabad, the RBS BWP will
make a call to RBS Islamabad to give a specified amount on funds transfer form
to the person whose name was mentioned on the funds transfer request form.
The RBS Bank Islamabad gives away the amount to that person by keeping a
copy of his ID card.
Traveler’s cheque
If a person needs to travel and he does not want to carry a heavy cash amount,
he/she can make a traveler cheque from a bank. This cheque can then be
cashed from any branch in another city of the same bank
Stamp Paper
Proprietorship deed is taken on stamp paper. There are different worth of stamp papers.
Before 1999 the deed was taken on stamp paper worth Rs. 150. After 1999 it is taken
on Rs. 500 worth paper. This is so because of government act.
Advice
In some banks, to make payments against demand draft to the beneficiary, advice is
required. Advice is a sort of code that is posted by the bank who issues the DD in first
51
place. Any one does not know this code. The receiver matches the advice and if
matched, makes the payment to the customer. Unless advice is not received, payment
cannot be made.
Service Quality Programs

Three activities are carried out in service quality program at RBS
1- ISM (Internal Service Measurement)

2- MSP (Mystery shopping Program)
3- CSS (Customer Satisfaction Survey)
Through ISM, different activities are recorded whether they are performed within
specified time e.g. Turn Around time of customers at cash counter is recorded. Similarly,
CRM keeps an eye that no phone should ring more than thrice as a result of this,
customers get fast response.
In MSP, a Union Bank agent arrives at bank and pretends to be a customer and checks
out how he/she was treated at the bank. Moreover, he/she also gives phone call to
check the services on phone. The shopper is equipped with hidden camera that can be
used later for proving.
The employees at the bank deal with him like their regular customer and mystery
shopper reports back to head office of his experience at the Bank.
CSS is carried out by asking different questions related to RBS services from
customers.
For every quality program, there are accuracy percentages that must be maintained in
order to get the highest performance scores.
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CMS (Complaint Management System)
CRM at RBS receives the complaints through CMS. Any complaint that is resolved must
be entered into the system so as to keep a record.
A customer complained that his balance was showing greater number of deductions
than it should. CRM produced and reviewed his bank statement. Upon reviewing, it was
found that he made three transactions of 25000. Two of them were charged .2% of the
amount withdrew which was informed to the customer and was entered into the CMS.
Service Quality Department

The service quality department checks whether the services quality is maintained for
example has the customer been served within ten minutes after getting the token?
Similarly has the phone been picked up before three rings? These checks enable Union
Bank to maintain and improve their services.
Host of the Day

Every day, there is a host of the day; the duty of HOD is to check the status of things
such as Branch entrance cleanliness, Security alarm system, Mobile Jamming
equipment, water dispensers, Notice Board, Brochures Availability, Plants and Planters,
All indoor lights, Trash bins and a number of other things. The status could be
satisfactory or needs improvement. If it needed improvement then what action the host
took has to be mentioned.
Video Cameras
All the activities in bank are recorded on videotapes. The videos of last twelve months
are maintained and are placed in the locker room.
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RBS PRODUCTS & SERVICES

According to company brochures (RBS, 2008, p. 2) the Customer Service Department is
offering the following products and services to the customers:
1. Balance Transfer Facility (BTF)
2. Deposit facility
3. Locker facility
4. Credit Cards
5. ATM facility
6. Treasure Plus
7. Insurance benefits
8. Online banking
9. Non Stop Banking Service
1. Balance Transfer Facility (BTF)
According to (BTF, 2008) RBS has introduced BTF which is often called one Stop
Payment Shop that take care of all your financial needs. BTF is most convenient and
flexible, economical and easy-to-use-to-use loan facility designed to suit your needs and
give you the power to control the finances. It brings you the variety of features that
provide you the spending convenience you need.
In BTF there are no lines or limit of credit, generally you can get the loan between PKR.
50,000 to PKR. 500,000. But in BTF ‘there is no matter, what your limit’, you are
charged on the amount of money you used and not on the whole amount assigned to
you.
2. Deposit Facility
According to (RBS, 2008) the followings are the main type of deposit accounts being
offered by RBS for various categories of people:
Current Account --------------------Sahulat Account
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Savings Account--------------------Anchor Account

Checking Account------------------Access Account
Term Deposit Account-------------Value Term
3. Locker Facility
“If your jewelry has been given you sleepless nights, and the prize bonds tucked in the
bottom drawer make you feel tense, it is time to discover peace of mind.”
According to (Lockers, 2008) the lockers at RBS are safe, convenient and private. As a
customer, you can enjoy personalized service and operate your locker in a friendly and
pleasant environment.
4. Credit Cards
In (Credit Cards, 2008) credit card is the safest mode of using money. It is used
repeatedly to borrow money or buy products and services on credit. Credit cards are
issued by banks, savings and loans, retail stores, and other businesses.
RBS is offering three kinds of credit cards
4.1 Future Perfect Master Card
4.2 RBS Air Blue Master Card
4.3 RBS Ufone Credit Card
5. ATM facility
According to (Javed, 2008, p. 26) through RBS ATM network you can have access to money 24
hours a day, 7 days a week. This facility gives you the flexibility of withdrawing money from
your account any time. The RBS ATMs are located inside the premises of the bank.
Any customer can make one to five transactions in a single day, by withdrawing 20,000 of
amount in a single transaction, so the customer having the credit card can withdraw 100,000 in a
day. If some one wants more than 100,000 then he can use his cheque book.
6. Online banking
55
In (RBS online banking, 2008) RBS is offering the facility of online banking to its customers
through the country wide network of branches. If the customer is interested in sending the money
in any other branch of RBS then he / she can use this facility. Customers can use ATMs or
banking counters of any branch for day to day banking needs, irrespective of branch where they
maintain their accounts. It is fast and secure access to any of your private accounts via Internet.
7. Insurance plans of RBS:
RBS is offering various kinds of insurance plans. According to (Insurance Plan, 2008)
RBS product menu spans across various lines of insurance and offers combination of
life and non-life insurance plans which are made-to- fit your personal needs. RBS has
insurance plans for young professionals, married, retired people. This insurance plan
provides cover on the following risks
I. Robbery
II. Fire
III. Natural Calamity
IV. Vandalism
V. Terrorism
VI. Applicable on each locker.
VII. Only events that take place in the locker area are covered under this scheme.
8. Treasure Plus:
Treasure Plus (Treasure Plus, 2008) is a kind of insured

loan for children’s education. It is very simple. You select the premium
amount (in multiples of 12,000) and term of the plan. Minimum annual premium amount
for customers is Rs. 120,000 to Rs. 24 million
You have the flexibility of paying the amount on a monthly, quarterly, half yearly or
annual basis. When your child reaches the college going age, you will receive a lump
sum amount to meet his / her education needs. In addition to the above, Treasure Plus
also offers a unique School Fee Continuation Benefit. This option would ensure
56
continuity of your dream to give your child the best education in case of your untimely
death.
9. Non-Stop Banking (NSBC):
According to (personal communication, August 17, 2008) any one can make payments
for their credit card, order a demand draft, stop a cheque or pay telephone, gas and
mobile bills. In this way one can do almost all kind of banking transactions over the
phone.
Analysis
General Environment Analysis----PEST
The analysis of RBS will take in to account the general environment analysis, the
competitors analysis by comparing the products offered by the competitive Islamic
banks and the departmental analysis.
The general environment of takes in to account the external factors like politics,
economy of country, socio-cultural factors and technology. Now we will analyze these
factors one by one and check how these affect the working of RBS:
Political
The present state of the government in Pakistan is directly affecting the policies of
banks. Although RBS tries hard to keep its business away from the politics but
sometimes it is not able to do so. RBS has no accounts of political leaders or parties.
But its Customer Service Department faces peer pressure from such political parties.
As RBS is trapped in dual sanctions from the State Bank of Pakistan (SBP) and from
the European Union so the changing political environment is not so conducive for the
bank to operate freely. The changing policies of the government, affects SBP which in
return affects the RBS rules and policies.
The government of Pakistan is privatizing most of the banks. The number of government
owned banks are constantly declining, so these changes directly affect RBS and other
banks working in Pakistan.
Economical
57
The economy of any country directly influences any financial organization. Economic
indicators include Gross Domestic Product (GDP), inflation, balance of payment, debt of
the government. The following graphs are showing the economic position of Pakistan. In
view of these graphs we come to know that the banking system is adversely affected by
the economic condition of any country.
HOW EXPERIENCE IMPACTS MY CAREER
My internship experience has given me a realistic preview of my field of education. Now

I feel that I am better prepared to enter the world of professional work. I have come to
know and been appreciated by a number of professionals who are lending their services
to the banking sector for more than a decade. I feel honored that I have worked with
such experienced professionals. I must admit that such interaction in this respectable
professional community will help me in seeking out job opportunities in the near future.
Each task I performed was a different experience in itself. By the end of it, I must say I
realize my potentials, I have realized that earning money is not so easy after all, it takes
a lot of hard work and devotion, and not to forget time. And I now know that if I want I
can make things possible, and I also know how good it feels to having accomplished
something and being appreciated for it. I definitely have learnt things, which will impact
my career and my character.
The overall experience of my internship was very good; I have learnt the sense of
responsibility in its literal meaning. I am now capable of dealing with different sort of
customers, and how to be patient while doing so. Besides this I also gained knowledge
about banking which I previously lacked and many more products being offered by the
bank. So in a nutshell, this internship gave me the experience, which would no doubt
boost my confidence to work in future.
Conclusion
58
RBS has a very strong position in Asia. In Pakistan it has more than seventy branches.
It is known as one of the best customer service providers with focus on the high profile
business persons.
In Islamic banking it is one of the first foreign banks to launch Islamic products. It has a
bright future ahead. The Islamic Mortgage Department is working on launching various
products, although its products range can not be compared with the competitors but one
can predict that in future a wide variety of RBS products will be covering the market. The
Customer Service Department is one of the best departments in the whole bank,
offering products in areas like Deposits, Saving and currents accounts, cash and
cheque deposits, and loan facilities. Not only this, it is also offering products as: Balance
Transfer Facility (BTF) which in banking terminology is One Stop Payment Shop, 24
hour nonstop banking centre, relationship card through which customer can access to
over 1000 ATMs, life insurance protection, E statements through which you can receive
your BTF via email, Drop box facility- the convenience of dropping of your payments at
any of the drop boxes placed outside RBS.
Despite its strong position RBS has some of the weak points which can be removed
easily. There are weaknesses in the bank which can be overcome by efforts of the staff.
It’s strength is that it is the number one bank in whole world with respect to the assets
and the big weakness is that it should improve its information sharing with the
customers. On the whole we can conclude that almost all of the employees are
satisfied, although some are dissatisfied whose results are shown in the survey.
But on the whole we can not compare RBS with any other bank. One can feel the
difference while entering its premises that’s why it says, “We make it happen.”
ACRONYMS
BM - Branch Manager
OM - Operations Manager
59
CSD - Customers Services Department

CSM - Customer Services Manager
CSO - Customer Services Officer
CRD - Customer Relationship Department
CRM - Customer Relationship Manager
CRO - Customer Relationship Officer
PB - Personal Banker
OCO - Operations Control Officer
BAO - Branch Accounts Officer
SE - Sales Executive
SP - Sales Processor
AOF - Account Opening Form
SQD - Service Quality Department
PKR - Pakistani Currency
DPD - Days Payment Due
FKR - Foreign Currency
A/C - Account
SW - Software
ATM - Automatic Teller Machine
PIN - Personal Identification Number
CNIC - Computerized National Identity Card Number
NTN - National Tax Number
HD - Host of the Day
SPP - Simple Payment Plan
BTF - Balance Transfer Facility
TRL - Transaction List
OBC - Outward Billing Collection
CBR - Chequebook Request
CBI - Chequebook issuance
60
OSMS - Operations and Services Management System

SQD - Service Quality Department
TT - Telegraphic Transfer
DD - Demand Draft
KYC - Know Your Customer
ISM - Internal Service Measurement
MSP - Mystery shopping Program
CSS - Customer Satisfaction Survey
CMS - Complaint Management System
VU - Verification Unit
UBL - United Bank Limited
CIU - Customer Inquiry Unit
BAC - Branch Acquisition Channel
ATS - Auto Tracking System
RCM - Regional Collection Manager
CIB - Credit investigation beaureu
61

RBS Internship Report

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RBS Internship Report

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Royal Bank of Scotland

Presented By: Waqas Javed Janjua

In Bachelors of Business Administration, Internship Program is an

This internship report is on my six weeks practical training at Royal Bank

Vision, Mission and Core Values

Business Process Analysis

Learning as a student Intern

New Knowledge Acquired

The internship requirement in the degree of Bachelors in Business Administration led

VISION, MISSION AND CORE VALUES

Organizational Structure of Branch Banking

Consumer Branch Head

Legal Recovery Head

Credit Initiation Unit

1. RBS has started NSBC there is opportunity of growth in this field.

“A successful product or service means nothing unless the

RBS promotional strategies consist of

Personal Selling (Push Strategy)

Augmented Personalized Services

Push Promotional Strategy

Target Market Profile

BUSINESS PROCESS ANALYSIS

Auto Financing Process

Step 1 - The chooses a car to be financed or leased

Weaknesses of this process

The process is complex and time consuming

Down payment before getting the vehicle

Strict verification department

Consumers Prefer Dox rather than No Dox

UBL Auto Financing

Zero Pre Payment Penalty

PAYS is a revolutionary feature and heart of UBL’s Drive Philosophy. It provides

Car Replacement Plan

Autos Collection Process

Collection is defined as obtaining payments from delinquent accounts or from customers

1-29 DPD is equal to 1 payment due (Front Range)

Collection could be In-house or external as follows

Collection department performs the following

 They enforce customers to make payments

CIB (Credit investigation beaureu)

Voucher Audit Process

Verification of Transactions Made By Cashiers

 Separation of vouchers of this branch and other branches

 Arranging both vouchers in ascending order according to account numbers.

The following things must match for credit vouchers.

 The date entered on the credit voucher must be correct

Other than this, stamps are checked

 Every credit voucher must contain the uploaded stamp

The following are needed to be matched for debit vouchers.

 Cheques must not be post dated

Other than this, the following stamps are checked

LEARNING AS A STUDENT INTERN

My job as CRO (Customer Relationship Officer)

Maintaining CBR, CBI and Debit Cards Record

During my internship, I worked in CRD (Customer Relationship Department) under the

The record of these received chequebooks is maintained manually in a register to take

New knowledge acquired

My internship experience has given me a completely new industry exposure in the

Tactful communication; A MUST

Working towards corporation goal

Larger social circle

Opening up new horizons

Difficult time in getting used to new environment