Are you looking to know about Charge taking of a Bank Branch? If yes then you came to article.
In this article you get to know about important points related to charge taking of a bank branch. This article is written after referring more than 7 articles related to this topic.
Due to fast retirements the promotions process is also fast, now a days Scale I to scale II or scale II to scale III service period is reduced in many banks. In such a short span of time, youngsters don’t get much exposure and in many cases officers spending two to three years in one seat only. It’s really tough to learn anything when you sit in the one seat only So, when officers who didn’t get much chance to work in different roles often face difficulties when they are promoted as Branch Managers. They fear to take charge of Branch because they don’t have that much exposure.
While taking a charge of the branch, Branch Manager need to check these important points before taking a charge.
1. SECURITY ITEMS
Branch Manager should look at security items before taking the charge. This is very first thing he/she should check. Branch Manager need to check.
- All cheque books.
- Fixed Deposit Receipts
- Demand Drafts
- Other Security Items
These securities must tally with the system reports. If something is not tallying, Branch Manager should immediately ask the previous officer and note it down.
2. CASH BALANCES
Branch Manager should check Physical cash balance with the System Cash Balance. If any difference immediately note it down and report to controlling office.
3. ATM CASH BALANCES
Branch Manager also need to check ATM cash and should take ATM cash tally certificate from a previous Branch Manager.
4. TRAIL BALANCE
Branch Manager should check whenever he/she enter a new branch is the Trail Balance, GLB statement or a Balance sheet. From that He can easily figure out some discrepancies from GLB itself. BM can easily check the outstanding sundry entries, remittances, debit note receivable and suspense entries. If there is any outstanding in the countries, BM should immediately reverse it and note it down or ask the present officer about the entries. It’s really difficult to reconcile sundry entries and that too old entries. At the time of quarterly or annual closing, Branch Manager need to have all these accounts Zero balance otherwise need to provide the details so its better take the sundry head very seriously at the time of joining.
5. LOAN DOCUMENTS
Checking the loan documents is the most important point. Branch Manager should check all the loan documents available as per system balance. (Loan Documents and System Loan Accounts should tally) In few cases loan wrongly created in system but loan documents are not available in such BM should report to his Reporting Office.
6. LOAN FILES
Checking all loan files is not possible, so Branch Manager should check previous one year loan files. Branch Manager don’t need to see files before that as inspection or audit must have taken place before that and auditors or inspectors must have audited the files earlier. BM should carefully check the securities attached like LIC policies, FDR’s or Original Land Registry papers and also check that sanction letters are duly signed by the Previous Branch Manager. The best thing is to ask for Audit Report or any inspection report. This is the shortest way by that BM can check whether there is any discrepancy.
7. SANCTION REGISTER
Branch Manager should verify the sanction letters and proposals regarding the sanction of limits by the appropriate authority. Loans and advances which are sanctioned under discretionary powers of the previous Branch Manager. Which have been duly reported to the next higher authority or not. BM should verify the control register and office copies of the control return.
8. DRAWING POWER REGISTER
Branch Manager should verify the stock statements and drawing power register and see for any discrepancies. All the loan accounts classified properly or not. Need to verify all loan accounts according to their classification and returns containing approval from Competent Authorities maintained in the branch or not. Drawing powers adequately backed by assets or not. For this BM should carry on the inspection of the securities pledged or hypothecated to the bank as primary security. it’s not possible to check each and every single routine, but still you should check larger advances and smaller accounts should be checked randomly.
Branch Manager should verify those stocks hypothecated to the bank with latest stock statement. BM should verify weather banks name boards with emblem indicating the Charges are prominently displayed or not. Before the previous in charge leaves, BM should try to have a meeting with all important borrowers and discuss their units, affairs or problems which they are facing. BM should check collateral security properly secured? That is, properly charged to the bank or not? For this Branch Manager should verify the original title deed or sale deed or lease date with approve map in case of housing property. Is it a particular recorded in the title? It register and connected papers? BM also need to verify the implementation of circular instructions related to Equitable mortgage and formalities related to creation of equitable mortgage vary from one state or another, so you should see your states norms.
9. JEWEL LOANS
Branch Manager should check outstanding Jewel Loans. This is for branches which deals with gold related products. Four points must be checked and gold ornaments of the customers must be checked with the joint custodians. You should note down for any discrepancy you observe.
10. KEYS OF THE BRANCH
Branch Manager should check all keys of the branch. Keys of strong room, cash cabin, main gate, Grill, ATM, room or any other safe present in the branch should be checked without fail. Mostly ATM operations are outsourced in many banks right now. But still if operation of a team is done by a branch staff, then password of ATM should be properly handed over from previous Manager.
11. DUPLICATE KEYS OF THE BRANCH
This is really important and many Branch Managers don’t know where to duplicate keys of the branches are kept. Front seal duplicate keys of the branches generally present in another branch. BM should arrange for withdrawal of duplicate key for verification from neighboring branch. After verification it should be released and redeposited. The fact of withdrawal should be duly recorded in the branch key register and report to the controlling authority.
12. FURNTITURE AND FIXTURE
Branch Manager need to check furniture and fixture of the branch and must be tallied with General Ledger balances and also check the depreciation register. BM should note that all entries exist in the register. Also, take a broader look at items listed in the furniture fixture and check whether they are actually present in the branch or not.
13. FIXED DEPOSITS OPENED NOT PRINTED
Branch Manager should check details related to FDR Open but not printed. Take a note of FDR that are open but not printed. Make sure that got them signed by the outgoing Branch Manager.
14. TDS CHALLANS
BM should check TDS challans properly filed or not? Take a look at quarterly TDS returns. Need to check whether they are filed or not. If not filled Income Tax department imposes interest/penalty for that. There is last date for filing quarterly TDS return.
15. KYC COMPLIANCE
Branch Manager should make sure that all accounts are KYC compliant. Most banks offer known KYC compliant reports in their system. Take out that report and make all the known capacity compliance KYC compliant before you take charge.
16. INSPECTION REPORTS
Branch Manager needs to go through the inspection report, audit report, statutory audit report, RBI inspection report and other audit reports and need to check compliance submitted by the branch.
17. EXPIRED DOCUMENTS
Branch Manager need to verify AOD reports and report the expired document report to Regional Office.
18. IMPORTANT REGISTORS
- Most banks have many important registers in the branch and you should check whether they are maintained or not as this may create problem doing inspections and audits. So some of the important registers are.
- Complaint Register:
- In this Register complaint given by customers need to maintained and these complaints need to resolved quickly.
- MDP Register
- In this Register BM Sanctioned loan details recorded.
- Voucher Register
- In this Register transaction done by staffs are recorded.
- Cash Register
- In this Register incoming and outgoing Cash Details recorded.
- Sunday Register
- In this Register Sundry Assets and Sundry Liabilities details recorded.
- ATM Register
- In this Register details related to ATM are recorded.
- Insurance Register
- Sometimes insurance register is not updated and assets charged to the bank, whether as principal, security or as collateral, are not insured for full value. BM needs to update the same.
- Furniture and Fixture Register
- Depreciation Register
- Inventory Movement Register
- Key Movement Register
- NPA Register
- Recovery Register
- Stock Register
- Security Item Register
- Office Order Register
- Nomination Register
- 15G and 15 H Register
- Title Deed Register
All these Register reports need to reported in joining report of the Branch Manager.
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