Account Opening

1.      Customers Account
What: Bank accounts opened by individuals or institutions with AOF, KYC, TP, and FATCA compliance.
Why: To establish formal banking relations.
Importance: Ensures customer identification and prevents money laundering.
Uses: Daily deposits, withdrawals, and transactions.
Example: An individual opening a savings account with NID and proof of address.

2.      Opening and Operation of Different Types of Account
What: Accounts like CD, SB, SND under centralized system.
Why: To serve different financial needs.
Importance: Provides flexibility for business and personal use.
Uses: Current for business, savings for individuals, SND for large deposits.
Example: A company opens a CD account for business transactions.

3.      Opening and Operation of Various Accounts
What: Accounts for individual, minor, partnership, trust, etc.
Why: To allow diverse customers to access banking.
Importance: Supports all segments of society.
Uses: Depositing and managing funds.
Example: A trust account opened by an NGO.

4.      Handling of Locker
What: Safe deposit lockers to keep valuables.
Why: To protect customer’s assets.
Importance: Enhances customer confidence.
Uses: Storing jewelry or documents.
Example: A customer rents a locker for gold ornaments.

5.      Special Types of Account
What: Dormant, inoperative, deceased, minor, etc. accounts.
Why: To handle exceptional cases.
Importance: Maintains account safety.
Uses: Provides service under special conditions.
Example: Payment from deceased account after succession certificate.

6.      FDR Account
What: Fixed Deposit Receipt account.
Why: To earn higher interest.
Importance: Provides long-term funding to banks.
Uses: Encashment, renewal, auto-renewal, duplicate issuance.
Example: Customer makes a 1-year fixed deposit of 5 lakh taka.

7.      Account Opening and Closing Process
What: Steps to open or close accounts.
Why: To maintain compliance.
Importance: Ensures accurate customer record.
Uses: KYC, e-KYC, signatory changes, cheque book request.
Example: Customer closes account after repaying loan.

8.      Sanction Screening
What: Checking names against global sanction lists.
Why: To prevent terrorism financing.
Importance: Compliance with regulations.
Uses: During account opening and transactions.
Example: Screening a foreign remittance beneficiary.

9.      Introduction
What: Introducer required in account opening.
Why: To verify customer authenticity.
Importance: Prevents fraud.
Uses: Establishing trust in new customer.
Example: Existing customer introduces a new customer.

10.  Thanks Letter
What: Letter confirming account opening.
Why: To verify customer’s address.
Importance: Ensures communication link.
Uses: Sent by bank after account opening.
Example: Thanks letter sent to customer’s home address.

11.  Cheque Issue and Stop Payment
What: Issuance of cheque book and facility to stop payment.
Why: To provide safe payment option.
Importance: Prevents fraud and misuse.
Uses: Cheque transaction control.
Example: Customer requests stop payment after losing cheque.

12.  Solvency/Balance Confirmation Certificate
What: Certificate proving financial stability or account balance.
Why: Needed for government, business, or education purposes.
Importance: Confirms creditworthiness.
Uses: For visa or tender applications.
Example: A student applies for foreign study with solvency certificate.

NI Act

1.      The NI Act 1881
What: Law governing negotiable instruments.
Why: To regulate cheques, bills, promissory notes.
Importance: Legal framework for transactions.
Uses: Cheque settlement and dispute resolution.
Example: Cheque dishonor cases are judged under this act.

2.      Origin
What: Historical background of NI Act.
Why: To trace development of negotiable instruments.
Importance: Provides legal clarity.
Uses: Understanding application.
Example: British-introduced act in 1881.

3.      Objectives
What: Purpose of NI Act.
Why: To standardize banking instruments.
Importance: Reduces disputes.
Uses: Easy trade financing.
Example: Ensuring cheque is legally enforceable.

4.      Definition & Characteristics
What: Features of negotiable instruments.
Why: To define its nature.
Importance: Ensures transferability.
Uses: Trade and payments.
Example: A promissory note transferable to another party.

5.      Kinds of NI & Parties
What: Cheque, bill of exchange, promissory note.
Why: To identify legal instruments.
Importance: Explains parties (drawer, drawee, payee).
Uses: Smooth transaction process.
Example: Drawer issues cheque to payee through drawee bank.

Clearing

1.      Duties & Obligations of Collecting & Paying Bankers
What: Collecting banker receives cheques, paying banker pays.
Why: To process cheques correctly.
Importance: Prevents fraud and disputes.
Uses: Clearing house transactions.
Example: Bank A collects cheque drawn on Bank B.

2.      Legal Protection
What: Protection under NI Act.
Why: To safeguard bankers.
Importance: Encourages honest operations.
Uses: Acts done in good faith.
Example: Banker not liable for forged cheque if acted honestly.

3.      Processing & Lodgment of Clearing Cheque & Pay Order
What: Presenting cheques/pay orders to clearing house.
Why: To settle interbank claims.
Importance: Smooth payment system.
Uses: Central bank clearing.
Example: Cheque of Bank A deposited in Bank B.

4.      BACH
What: Bangladesh Automated Clearing House.
Why: To digitize cheque clearing.
Importance: Fast and secure.
Uses: Nationwide electronic clearing.
Example: Cheque cleared within one day through BACH.

5.      Outward Clearing & Inward Clearing
What: Sending cheques outward and receiving inward.
Why: To process interbank cheques.
Importance: Settles customer payments.
Uses: Daily clearing.
Example: Outward clearing of cheque issued from another bank.

6.      BEFTN
What: Bangladesh Electronic Funds Transfer Network.
Why: To transfer funds electronically.
Importance: Fast and paperless.
Uses: Salary, vendor payments.
Example: Company pays staff salaries via BEFTN.

7.      Same Day Clearing
What: Clearing of high-value cheques same day.
Why: To avoid delay in business.
Importance: Saves time.
Uses: Urgent transactions.
Example: High-value cheque over 5 lakh cleared same day.

8.      High Value & Regular Value Session
What: Separate sessions for big and normal cheques.
Why: For efficient clearing.
Importance: Reduces risk.
Uses: Prioritizing transactions.
Example: Cheque of 10 lakh cleared in high-value session.

9.      Cheque Return Procedure
What: Process when cheque dishonored.
Why: To inform customer.
Importance: Transparency.
Uses: Legal compliance.
Example: Cheque bounced for insufficient balance.

10.  MICR Cheque
What: Machine-readable cheque.
Why: To reduce errors.
Importance: Fast processing.
Uses: Used in clearing system.
Example: Salary cheque with MICR code.

11.  Functions of DMS Software
What: Document Management System.
Why: To keep records safe.
Importance: Easy tracking.
Uses: Storing cheque images and data.
Example: Bank stores scanned cheque copies in DMS.

12.  RTGS
What: Real Time Gross Settlement.
Why: Instant transfer of large funds.
Importance: Speeds up business.
Uses: Large transactions.
Example: Company transfers 1 crore instantly via RTGS.

13.  Positive Payment Instruction (PPI)
What: Customer confirms cheque details before clearing.
Why: To prevent fraud.
Importance: Ensures authenticity.
Uses: Extra security.
Example: Customer confirms cheque no. 12345 before payment.

Remittance & FCAD

1.      Issuance, Payment & Cancellation of PO
What: Process for Pay Orders.
Why: Safe payment method.
Importance: Guaranteed payment.
Uses: Tender, exam fees.
Example: Student pays exam fee through PO.

2.      Inward & Outward Clearing
What: Receiving and sending funds.
Why: To transfer money.
Importance: Facilitates transactions.
Uses: Domestic and foreign remittances.
Example: Worker’s remittance inward from abroad.

3.      Function of Branches & Main Clearing Branches
What: Branches send instruments to main branch.
Why: Centralized clearing.
Importance: Smooth process.
Uses: Settlement of cheques.
Example: Sub-branch routes cheque through main branch.

4.      Encashment of FDR/MTDR/ECHO/DPS/TDS
What: Withdrawal of deposits before or after maturity.
Why: To return customer’s funds.
Importance: Builds trust.
Uses: Matured or premature encashment.
Example: Customer encashes DPS after 3 years.

5.      Functions of FCAD
What: Financial Control & Accounts Division.
Why: To monitor finance of bank.
Importance: Ensures accuracy.
Uses: Depreciation, expenditure management.
Example: FCAD maintains provision for bad loans.

6.      Voucher Preparation, Checking, Approval & Preservation
What: Recording financial transactions.
Why: To keep accurate accounts.
Importance: Prevents fraud.
Uses: Internal audit and records.
Example: Teller prepares cash receipt voucher.

Cash / Cheque Receipt & Payment

1.      Cash Management (Inward/Outward)
What: Handling deposits and withdrawals.
Why: To ensure liquidity.
Importance: Smooth operation.
Uses: Daily transactions.
Example: Customer withdraws 20,000 taka.

2.      Cash Receipt & Payment over Counter
What: Teller services.
Why: To facilitate customers.
Importance: Frontline service.
Uses: Cash deposits/withdrawals.
Example: Customer deposits 10,000 taka in SB account.

3.      Preparation of Teller & Reserve Sheet
What: Record of daily transactions.
Why: To check balance.
Importance: Prevents shortage.
Uses: Internal reconciliation.
Example: Teller submits reserve sheet at day-end.

4.      Cash Position
What: Available cash at branch.
Why: To avoid cash crisis.
Importance: Smooth service.
Uses: Meeting daily demand.
Example: Branch maintains 50 lakh taka cash position.

5.      Maintenance of Vault within Limit
What: Keeping cash in vault safely.
Why: To reduce risk.
Importance: Regulatory compliance.
Uses: Safe storage.
Example: Vault limit fixed at 2 crore taka.

6.      Maintenance of Key Register
What: Recording keys of vault/lockers.
Why: For security.
Importance: Prevents misuse.
Uses: Accountability.
Example: Duplicate key entry in register.

7.      Periodical Transfer of Duplicate Keys
What: Sending spare keys to other branch/treasury.
Why: To maintain safety.
Importance: Reduces risk.
Uses: Emergency use.
Example: Duplicate key kept at head office.

8.      Safe In – Safe Out Register
What: Record of cash movement.
Why: For monitoring.
Importance: Ensures accuracy.
Uses: Daily audit trail.
Example: 10 lakh taken out from safe recorded in register.

9.      Safe/Vault Limit, Counter Limit & Cash in Transit Limit
What: Maximum allowed limits for cash.
Why: For safety and compliance.
Importance: Reduces theft risk.
Uses: Banking regulation.
Example: Counter limit set at 5 lakh.

10.  Insurance Coverage
What: Insurance for cash.
Why: To cover loss/theft.
Importance: Provides security.
Uses: Protecting bank’s money.
Example: Insurance policy covers transit theft.

11.  Steps in Receipt & Payment of Cash/Cheque
What: Standard operating procedures.
Why: To avoid fraud.
Importance: Ensures discipline.
Uses: Teller guidelines.
Example: Verification before payment.

12.  Receiving of Outward Clearing Cheques
What: Accepting cheques for outward clearing.
Why: To send for settlement.
Importance: Smooth transaction.
Uses: Interbank payment.
Example: Customer deposits cheque of another bank.

13.  Identification of Bearer & Record Keeping
What: Verifying identity before payment.
Why: To prevent fraud.
Importance: Security.
Uses: Legal compliance.
Example: Paying bearer cheque after verifying NID.

14.  Cash Feeding & Lifting Procedures
What: Adding/removing cash in vault.
Why: To maintain limits.
Importance: Liquidity management.
Uses: Adjusting cash stock.
Example: Head office sends 20 lakh cash to branch.

15.  Security Measures in Cash Remittance
What: Escort services and armored vans.
Why: To protect cash.
Importance: Reduces robbery risk.
Uses: Safe transport.
Example: Cash remitted with police escort.

16.  Accounting Procedures of Cash Remittance
What: Recording in books.
Why: To ensure accuracy.
Importance: Transparency.
Uses: Ledger maintenance.
Example: Entry made after remittance received.

17.  Collection & Exchange of Torn, Burnt, Soiled Notes
What: Accepting damaged notes.
Why: To help customers.
Importance: Ensures currency circulation.
Uses: Replacement from central bank.
Example: Customer exchanges torn 500 taka note.

18.  Policies Regarding Exchange Values of Prize Bond, Sanchayapatra, WES Bonds
What: Redemption and exchange rules.
Why: To facilitate investments.
Importance: Encourages savings.
Uses: Customer benefit.
Example: Customer redeems matured prize bond.

19.  Procurement of Stock of Bond, SP, WBDB, PO, FDR & Other Security Instruments
What: Maintaining stock of instruments.
Why: To serve customer demand.
Importance: Business support.
Uses: Issue to customers.
Example: Branch keeps stock of Sanchayapatra for sale.