CBS

What changes have taken place since CBS was introduced

A customer is no longer tied to a branch. He is able to do transactions at any b
ranch of the bank
His customer profile is used in any branch to open new accounts
Collection & remittances business has vanished.
DDs can be paid at any branch
Cheques are quickly collectible in any clearing centre
Cheque books are issued centrally. Personalised cheque books are issued.
KYC adherence has become stricter. Transactions are now supposed to monitored ab
ove the threshold level.
Cheque drop boxes have gained acceptability. Customers have accepted the practic
e of dropping cheques in the cheque drop box.
Cheques are lodged for collection any where.
NEFT and RTGS have quickly replaced DDs
TTs and MTs have gone out of the window. TT check cypher codes are no longer us
ed.
Currency chests demand credit advices on the same day.
C2C has replaced IBGA and is quicker. IBR pending entries have drastically dwin
dled
nETBANKING is rising in popularity. ATM debit cards have grown in accpetability.
IP message has replaced letters. Data communication between branches is quicker
and is trhu ip message
There is no book balancing. Annual closing of account is no longer a dreaded exe
rcise. Report printing has vanished.
E-vvr has replaced sectional day book and day book checking. Logging of every tr
ansaction is now taking place. Any change in master is also logged. A user is l
ogged with regard to the machine he uses, login and logout times and the types o
f transactions that he does. Any unsuccessful attempt to login is also recorded.
Preventive vigilance measures
1)cash scroll should be checked every day
2)e-VVR checking to be thorough - more focussed on missing vouchers
The above two measures will up the control-temparature in the branch bringing in
a climate of easy detection of a fraud
3)New accounts should be monitored for cheque collections. AML alerts to be proc
essed with more care and attention
4)More control should be exer4cised on parking accounts. Especially in regard to
balance pending for more than a day.
5)There is still some room for SWOs to commit frauds as receipt unless entered
in teh system are not accounted for. Receipts for remittances are still given m
anually. The system that was introdcued did not take off.
6)SWOs in regard to transactions falling within their powers, are not under any
body's supervision. This is because e-VVR checking is not thorough.
7)Password stealing still happens. Though control measures have been introduced
in regard to the type of chars that comprise a password, still users go for thei
r children's names, spouse names and combine it with 123 or some such number li
ke DOB.
8)Many officers still wallow under the self-delusion that "it will not happen to
me". The psyche of the fraudster should be understood. He chooses an easy targ
et which will not meet with any obstacles in execution. A staff turns a fraudst
er when he is unable to manage his money-needs within his salary income. Most of
the staff who commit the frauds do not plan anything in advance and the first f
raud is simply a response to exploit a friendly situation. Once it is a success,
he tries to repeat and invariably gets caught.
9)Latest trends indicate that frauds by BM/ABM are on the increase. Advance-rel
ated frauds are by BMs. So are parking account frauds. Ethics seem to be taki
ng a backseat and today's BMs stop at nothing to reach targets. Trichy cantonmen
t, madhavdhara, Gauhati are some examples of branch managers crossing the line o
f ethics in their zeal to achieve targets.
10) Anybody can alter/view master-data. So personal details like date of birth,
mother name, father name, PAN number, passport number, ration card no. are no l
onger remain personal. Bank staff have access to your personal data and this is
a risk that bank should mitigate.
11)Issue of cheque books to third-parties, changing mobile numbers in master, di
sabling SMS provision, delivery of ATM/PINs to third parties are to be avoidedc
12)Shroff do not sign/initial payment/receipt challans
13)No benefit of doubt should be extended while checking KYC credentials. Have t
he habit of asking for ID-CARD from a customer before you grant his request. You
can be indulgent to a customer only after u are sure that your indulgence is to
the right person
14)While changing your password, if a staff is looking over your shoulder or is
in a poisition to observe, do not hesitate to ask the staff to move away from yo
u far enough. Impress on every one of your staff that it is a desirable practic
e to move away from the scene if some one is changing the password
15)BMs should randomly check staff accounts. I am sure the practice that every o
ne writes his mobile number in the last page of the attendance register is there
in every branch. Introduce a similar practice where every one discloses his sa
vings account number. If a staff avoids cash transactions at the branch where h
e serves, then that is a alerting signal. If only ATM debits are there in an acc
ount, then scrutinise the credits and check their offset.
16)Have an interaction with your SB DESK officer atleast twice a week. Impress o
n them not to dilute KYC adherence. Any thing observed as not normal, should be
escalated. This is not to be confused with a tendency to pass on work or avoid
taking decisions.
17)Cheque conversion frauds are on the rise. The trend that is noticed is cheque
to which the customer does not have a good title is dropped in cheque drop box
for collection in a remote location. This happens mostly in recently opened acco
unts. 8 cases of cheque conversion frauds were reported from Mumbai in about 6 m
onths.
18)KYC documents - examine them thoroughly. Unknown employers' certificates nee
d not be accepted. If the letterhead of the employer does not have a verifiable
phone number, do not accept certificates from that employer. Send a communicatio
n by ordinary mail and wait for the response. Dont use the customer in the proce
ss of verification.
19)Adhere to HO guidelines 100% while evaluating KYC adherence. No body can ques
tion you.
20)In case of doubt, freeze the balance and shoot of a letter to the address of
the customer that u need to complete verification. Freeze should be accompanied
by communication.
21)Wehn u dont know how to proceed further, seek help from ZO/HO or from your pe
ers. Record it.
22)STR filing - mere suspicion is enough ground to file a STR
23)kyc MATRIx - ARE U AWARE?
24)Trust accounts - high risk. How many of you are aware?
25)Discuss Prashant nagar case
26)Deccan Gymkhana
27)Harbour
28)Study body-language; keenness of observation and a conscious attempt to inter
pret signals is what is required.
29)Do not answer questions posed by yourself
30)